Document:

EXECUTION COPY
	 

	 
		 
	 

	 
		
		  
		  

		
 
 

	 
		AGREEMENT FOR PURCHASE OF MEMBERSHIP
		INTERESTS
	 

	 
		 
	 

	 
		in
	 

	 
		 
	 

	 
		OPC LLC 
	 

	 
		 
	 

	 
		 
	 

	 
		by and among
	 

	 
		 
	 

	 
		 
	 

	 
		ORMAT NEVADA, INC., 
	 

	 
		 
	 

	 
		 
	 

	 
		MORGAN STANLEY GEOTHERMAL LLC
	 

	 
		 
	 

	 
		and
	 

	 
		 
	 

	 
		LEHMAN-OPC LLC
	 

	 
		
		  
		  

		
 
 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 	 
	
				
				  ARTICLE 1 
				

			 	
				
				  DEFINED TERMS
				

			 	
				
				  1
				

			 	 
	
				
				  1.1 
				

			 	
				
				  Defined Terms
				

			 	
				
				  1
				

			 	
				
				   
				

			 
	
				
				  ARTICLE 2 
				

			 	
				
				  SALE AND PURCHASE OF MEMBERSHIP
				  INTEREST
				

			 	
				
				  1
				

			 	
				
				   
				

			 
	
				
				  2.1 
				

			 	
				
				  Agreement to Sell and Buy
				

			 	
				
				  1
				

			 	
				
				   
				

			 
	
				
				  2.2 
				

			 	
				
				  Purchase Price
				

			 	
				
				  1
				

			 	
				
				   
				

			 
	
				
				  2.3 
				

			 	
				
				  Initial Closing
				

			 	
				
				  2
				

			 	
				
				   
				

			 
	
				
				  2.4 
				

			 	
				
				  Galena 3 Closing
				

			 	
				
				  2
				

			 	
				
				   
				

			 
	
				
				  2.5 
				

			 	
				
				  No Obligation of Seller with Respect
				  to Galena 3
				

			 	
				
				  2
				

			 	
				
				   
				

			 
	
				
				  2.6 
				

			 	
				
				  Conditions Precedent to the
				  Obligations of Purchasers in Connection with the Initial Closing
				

			 	
				
				  3
				

			 	
				
				   
				

			 
	
				
				  2.7
				

			 	
				
				  Conditions Precedent to the
				  Obligations of Seller in Connection with the Initial Closing
				

			 	
				
				  4
				

			 	
				
				   
				

			 
	
				
				  2.8
				

			 	
				
				  Conditions Precedent to the
				  Obligations of Purchasers in Connection with Galena 3 Closing
				

			 	
				
				  5
				

			 	
				
				   
				

			 
	
				
				  2.9 
				

			 	
				
				  Conditions Precedent to the
				  Obligations of Seller in Connection with Galena 3 Closing
				

			 	
				
				  6
				

			 	
				
				   
				

			 
	
				
				  ARTICLE 3 
				

			 	
				
				  REPRESENTATIONS AND
				  WARRANTIES
				

			 	
				
				  7
				

			 	
				
				   
				

			 
	
				
				  3.1 
				

			 	
				
				  Representations and Warranties of
				  Seller
				

			 	
				
				  7
				

			 	
				
				   
				

			 
	
				
				  3.2 
				

			 	
				
				  Representations and Warranties of
				  Purchasers
				

			 	
				
				  19
				

			 	
				
				   
				

			 
	
				
				  3.3 
				

			 	
				
				  No Other Seller
				  Representations
				

			 	
				
				  21
				

			 	
				
				   
				

			 
	
				
				  ARTICLE 4 
				

			 	
				
				  CERTAIN OTHER REPRESENTATIONS,
				  WARRANTIES AND COVENANTS
				

			 	
				
				  21
				

			 	
				
				   
				

			 
	
				
				  4.1 
				

			 	
				
				  Geothermal Matters
				

			 	
				
				  21
				

			 	
				
				   
				

			 
	
				
				  4.2 
				

			 	
				
				  Confidentiality
				

			 	
				
				  21
				

			 	
				
				   
				

			 
	
				
				  4.3 
				

			 	
				
				  Access to Information
				

			 	
				
				  22
				

			 	
				
				   
				

			 
	
				
				  4.4 
				

			 	
				
				  Regulatory Matters
				

			 	
				
				  22
				

			 	
				
				   
				

			 
	
				
				  4.5 
				

			 	
				
				  Post Closing Deliverables
				

			 	
				
				  22
				

			 	
				
				   
				

			 
	
				
				  ARTICLE 5 
				

			 	
				
				  [RESERVED]
				

			 	
				
				  23
				

			 	
				
				   
				

			 
	
				
				  ARTICLE 6 
				

			 	
				
				  INDEMNIFICATION
				

			 	
				
				  23
				

			 	
				
				   
				

			 
	
				
				  6.1 
				

			 	
				
				  Indemnification
				

			 	
				
				  23
				

			 	
				
				   
				

			 
	
				
				  6.2 
				

			 	
				
				  Direct Claims
				

			 	
				
				  23
				

			 	
				
				   
				

			 
	
				
				  6.3 
				

			 	
				
				  Third Party Claims
				

			 	
				
				  24
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-i-
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  6.4 
				

			 	
				
				  After-Tax Basis
				

			 	
				
				  25
				

			 
	
				
				  6.5 
				

			 	
				
				  No Duplication
				

			 	
				
				  25
				

			 
	
				
				  6.6 
				

			 	
				
				  Sole Remedy
				

			 	
				
				  26
				

			 
	
				
				  6.7 
				

			 	
				
				  Survival
				

			 	
				
				  26
				

			 
	
				
				  6.8 
				

			 	
				
				  Final Date for Assertion of
				  Indemnity Claims
				

			 	
				
				  26
				

			 
	
				
				  6.9 
				

			 	
				
				  Mitigation and Limitations on
				  Losses
				

			 	
				
				  27
				

			 
	
				
				  6.10 
				

			 	
				
				  Payment of Indemnification
				  Claims
				

			 	
				
				  27
				

			 
	
				
				  ARTICLE 7 
				

			 	
				
				  GENERAL PROVISIONS
				

			 	
				
				  27
				

			 
	
				
				  7.1 
				

			 	
				
				  Exhibits and Schedules
				

			 	
				
				  27
				

			 
	
				
				  7.2 
				

			 	
				
				  Disclosure Schedules
				

			 	
				
				  27
				

			 
	
				
				  7.3 
				

			 	
				
				  Amendment, Modification and
				  Waiver
				

			 	
				
				  28
				

			 
	
				
				  7.4 
				

			 	
				
				  Severability
				

			 	
				
				  28
				

			 
	
				
				  7.5 
				

			 	
				
				  Expenses
				

			 	
				
				  28
				

			 
	
				
				  7.6 
				

			 	
				
				  Parties in Interest
				

			 	
				
				  28
				

			 
	
				
				  7.7 
				

			 	
				
				  Notices
				

			 	
				
				  28
				

			 
	
				
				  7.8 
				

			 	
				
				  Counterparts
				

			 	
				
				  30
				

			 
	
				
				  7.9 
				

			 	
				
				  Entire Agreement
				

			 	
				
				  30
				

			 
	
				
				  7.10 
				

			 	
				
				  Governing Law; Choice of Forum;
				  Waiver of Jury Trial
				

			 	
				
				  30
				

			 
	
				
				  7.11 
				

			 	
				
				  Public Announcements
				

			 	
				
				  30
				

			 
	
				
				  7.12 
				

			 	
				
				  Assignment
				

			 	
				
				  30
				

			 
	
				
				  7.13 
				

			 	
				
				  Relationship of Parties
				

			 	
				
				  31
				

			 
	
				
				  7.14 
				

			 	
				
				  Intent of the Parties
				

			 	
				
				  31
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-ii-
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  Annex I
				

			 	
				
				  Definitions
				

			 

 

	 
		 
	 

	 
		Exhibits:
	 

	 
			
				
				   Exhibit A 
				

			 	
				
				  [Reserved]
				

			 
	
				
				  Exhibit B 
				

			 	
				
				  [Reserved]
				

			 
	
				
				  Exhibit C 
				

			 	
				
				  Company LLC Agreement
				

			 
	
				
				  Exhibit D
				

			 	
				
				   Form of Management Services
				  Agreement
				

			 
	
				
				  Exhibit E
				

			 	
				
				   Operation and Maintenance
				  Agreements
				

			 

 

	 
		 
	 

	 
		Schedules:
	 

	 
			
				
				   Schedule 1 
				

			 	
				
				  Project Companies and
				  Projects
				

			 
	
				
				  Schedule 2.2(b)(ii) 
				

			 	
				
				  Galena 3 Purchase Price Adjustment
				  Example
				

			 
	
				
				  Schedule 3.1(a)(v) 
				

			 	
				
				  Absence of Litigation
				

			 
	
				
				  Schedule 3.1(a)(vii) 
				

			 	
				
				  Sufficiency of Assets
				

			 
	
				
				  Schedule 3.1(a)(x) 
				

			 	
				
				  Interim Financials
				

			 
	
				
				  Schedule 3.1(a)(xii) 
				

			 	
				
				  Compliance with Applicable
				  Law
				

			 
	
				
				  Schedule 3.1(a)(xiii) 
				

			 	
				
				  Environmental Matters
				

			 
	
				
				  Schedule 3.1(a)(xiv) 
				

			 	
				
				  Permits
				

			 
	
				
				  Schedule 3.1(a)(xv) 
				

			 	
				
				  Insurance
				

			 
	
				
				  Schedule 3.1(a)(xvi) 
				

			 	
				
				  Real Property
				

			 
	
				
				  Schedule 3.1(a)(xvii) 
				

			 	
				
				  Personal Property
				

			 
	
				
				  Schedule 3.1(a)(xviii) 
				

			 	
				
				  Liens
				

			 
	
				
				  Schedule 3.1(a)(xix) 
				

			 	
				
				  Material Contracts
				

			 
	
				
				  Schedule 3.1(a)(xxi) 
				

			 	
				
				  Affiliate Transactions
				

			 
	
				
				  Schedule 3.1(a)(xxii)
				

			 	
				
				   Completion
				

			 
	
				
				  Schedule 3.1(a)(xxviii) 

				

			 	
				
				  Background Materials
				

			 
	
				
				  Schedule 3.1(b)(viii) 
				

			 	
				
				  ORNI 14 Financial Information

				

			 
	
				
				  Schedule 3.1(b)(ix) 
				

			 	
				
				  ORNI 14 Compliance with Applicable
				  Law
				

			 
	
				
				  Schedule 3.1(b)(x) 
				

			 	
				
				  ORNI 14 Environmental Matters

				

			 
	
				
				  Schedule 3.1(b)(xi) 
				

			 	
				
				  ORNI 14 Permits
				

			 
	
				
				  Schedule 3.1(b)(xii) 
				

			 	
				
				  ORNI 14 Insurance
				

			 
	
				
				  Schedule 3.1(b)(xiii) 
				

			 	
				
				  ORNI 14 Real Property
				

			 
	
				
				  Schedule 3.1(b)(xiv) 
				

			 	
				
				  ORNI 14 Personal Property
				

			 
	
				
				  Schedule 3.1(b)(xv) 
				

			 	
				
				  ORNI 14 Liens
				

			 
	
				
				  Schedule 3.1(b)(xvi) 
				

			 	
				
				  ORNI 14 Material Contracts
				

			 
	
				
				  Schedule 3.1(b)(xviii) 
				

			 	
				
				  ORNI 14 Affiliate
				  Transactions
				

			 
	
				
				  Schedule 3.1(b)(xix) 
				

			 	
				
				  ORNI 14 Completion
				

			 
	
				
				  Schedule 3.1(b)(xxiv) 
				

			 	
				
				  ORNI 14 Background Materials
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-iii-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		AGREEMENT FOR PURCHASE OF MEMBERSHIP
		INTERESTS
	 

	 
		This Agreement is made and entered into as
		of June 7, 2007 by and among Morgan Stanley Geothermal LLC, a Delaware
		limited liability company (“Morgan
		Stanley Purchaser Entity”) and
		Lehman-OPC LLC, a Delaware limited liability company (“Lehman Brothers Purchaser Entity”, and together with Morgan Stanley Purchaser
		Entity, the “Purchasers”) and Ormat Nevada, Inc., a Delaware corporation
		(“Seller”), for the sale by the Seller to the Purchasers of
		all of the Class B Membership Interests (as defined below) of OPC LLC, a
		Delaware limited liability company (the “Company”).
	 

	 
		In consideration of the respective
		representations, warranties, covenants, agreements, and conditions hereinafter
		set forth, and other good and valuable consideration, the sufficiency of which
		is hereby acknowledged, the Parties hereto hereby agree as follows:
	 

	 
		ARTICLE 1
	 

	 
		DEFINED TERMS
	 

	 
		1.1 Defined Terms. Capitalized
		terms used but not otherwise defined herein shall have the meanings given such
		terms in Annex I hereto, and the rules of interpretation set forth in
		Annex I hereto shall apply to this Agreement.
	 

	 
		ARTICLE 2
	 

	 
		SALE AND PURCHASE OF MEMBERSHIP
		INTEREST
	 

	 
		2.1 Agreement to Sell and Buy. Upon the terms
		and subject to the conditions set forth in this Agreement, Seller shall sell,
		assign, transfer and deliver to Purchasers on the Initial Closing Date, and
		each Purchaser shall severally and not jointly purchase on the Initial Closing
		Date, such Class B Membership Interests in the Company set forth opposite
		each Purchaser’s name on Schedule 2.1 hereto, for the aggregate
		consideration in Section 2.2.
	 

	 
		2.2 Purchase Price. The aggregate
		purchase price (the “Purchase
		Price”) for the Class B
		Membership Interests being purchased under this Agreement will be:
	 

	 
		(a) Initial Closing Payment: a payment on
		the Initial Closing Date comprised of a payment by (x) the Morgan Stanley
		Purchaser Entity of $50,260,000 and (y) the Lehman Brothers Inc. Purchaser
		Entity of $21,540,000 (collectively, the “Initial Closing Payment”), in each case made by wire transfer of
		immediately available United States dollars to such account or accounts as
		Seller may designate in a written notice given to Purchasers not later than two
		Business Days before the Initial Closing Date.
	 

	 
		(b) Galena 3 Closing Payment: 
	 

	 
		(i) a payment on the Galena 3 Closing Date
		in the aggregate amount currently estimated to be $46,600,000 comprised of a
		payment by (x) the Morgan Stanley Purchaser Entity of an amount currently
		estimated to be $32,620,000, and (y) the Lehman Brothers Inc. Purchaser
		Entity of an amount currently estimated to be $13,980,000, and subject to
		adjustment as provided in Section 2.2(b)(ii) below (the
		“Galena 3 Closing 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Payment”), in each case made by wire transfer of
		immediately available United States dollars to such account or accounts as
		Seller may designate in a written notice given to Purchasers not later than two
		Business Days before the Galena 3 Closing Date.
	 

	 
		(ii) immediately prior to the Galena 3
		Closing Date, the Base Case Model will be rerun, on the same basis and using
		the same methodology and principles as were used to prepare the Base Case
		Model, to determine the actual Galena 3 Closing Payment, but revised to reflect
		(i) the actual Galena 3 Commercial Operations Date, (ii) the
		appraised fair market value of the Galena 3 Project and the adjusted
		depreciation deduction resulting therefrom, and (iii) any change in
		allocation ratios if the IRS has announced a “safe harbor” for
		partnership flip transactions before the Galena 3 Closing Date that requires
		such a shift. The revised Base Case Model will then be used to determine an
		adjustment to the Galena 3 Closing Payment, which when considering the timing
		of such payments will leave the Purchasers with the same Target Internal Rate
		of Return (as defined in the Company LLC Agreement) projected on the Initial
		Closing Date assuming no other change in the Base Case Model. The adjustment
		will be treated as an adjustment to the purchase price for the Class B
		Membership Interests. Attached as Schedule 2.2(b)(ii) is a sample pro
		forma showing examples of the purchase price adjustment set forth above.

	 

	 
		2.3
		Initial
		Closing. The initial
		closing of the purchase and sale of the Class B Membership Interests (the
		“Initial Closing”)
		will take place (i) at the offices of Chadbourne & Parke LLP in New
		York, New York at 10:00 a.m. (Eastern time) (the “Effective Time”) on the date (the “Initial Closing Date”) upon which all of the conditions in
		Section 2.6 and Section 2.7 have either been satisfied or, in the
		case of conditions not satisfied, waived in writing by the Party entitled to
		the benefit of such conditions or (ii) at such other place and time as
		Purchasers and Seller may agree in writing but not later than June 30,
		2007, subject to one 30-day extension, by mutual agreement of the Parties. The
		rights and obligations of the Parties hereunder and under the documents
		delivered pursuant to Section 2.6 and Section 2.7 shall not take
		effect until the Effective Time and such documents shall be of no force and
		effect until the Initial Closing is consummated.
	 

	 
		2.4
		Galena 3
		Closing. The Galena 3
		Closing will take place (i) at the offices of Chadbourne & Parke LLP
		in New York, New York at 10:00 a.m. (Eastern time) (the “Galena 3 Effective Time”) on the date (the “Galena 3 Closing Date”) upon which all of the conditions in
		Section 2.8 and Section 2.9 have either been satisfied or, in the
		case of conditions not satisfied, waived in writing by the Party entitled to
		the benefit of such conditions or (ii) at such other place and time as
		Purchasers and Seller may agree in writing but not later than April 30,
		2008, subject to one 30-day extension, by mutual agreement of the
		Parties.
	 

	 
		2.5
		No Obligation of Seller with
		Respect to Galena 3.
		Purchasers acknowledge that while Seller has advised Purchasers of its
		present intention to construct the Galena 3 Project, Seller and its Affiliates
		shall be entitled to pursue, direct and make decisions regarding the
		development of the Galena 3 Project in their sole discretion, and that neither
		Seller nor any of its Affiliates shall be obligated to construct the Galena 3
		Project. However, notwithstanding the foregoing, if Seller or its Affiliates do
		complete the construction of the Galena 3 Project prior to April 30, 2008,
		Seller is obligated to convey its membership interests in ORNI 14 to the
		Company in accordance with the terms of this Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		-2-
	 

	 
		 
	 

	 
	 

	 

	 
		2.6 Conditions Precedent to the Obligations of Purchasers in
		Connection with the Initial Closing.
	 

	 
		The obligations of Purchasers to consummate
		the Initial Closing will be subject to the satisfaction or waiver by Purchasers
		of each of the conditions set forth below:
	 

	 
		(a) Each of the representations and
		warranties of Seller in Section 3.1(a) of this Agreement shall be true and
		correct in all material respects as of the Initial Closing Date (other than
		those qualified by a reference to materiality or Material Adverse Effect, which
		representations and warranties shall be true and correct in all
		respects).
	 

	 
		(b) All consents, approvals and filings
		required to be obtained or made by Seller to execute, deliver and perform the
		Transaction Documents to which it is a party shall have been obtained or made
		and shall be in full force and effect as of the Effective Time. 
	 

	 
		(c) Seller shall have delivered to
		Purchasers a legal opinion of Chadbourne & Parke LLP, outside counsel to
		Seller, Manager, the Operator, the Company and the Project Companies, in form
		and substance reasonably satisfactory to Purchasers.
	 

	 
		(d) There shall not be any injunction,
		judgment, order, decree or ruling in effect or pending that would prevent or
		inhibit consummation of the transactions contemplated by the Transaction
		Documents, and no action, complaint, investigation, suit or other proceeding
		shall be threatened or instituted by any private party or Governmental
		Authority, and remain pending at what would otherwise be the Initial Closing
		Date, which (a) restrains or prohibits or otherwise challenges the
		performance of the obligations of the Parties, or (b) seeks material
		damages or penalties in relation to such obligations.
	 

	 
		(e) Purchasers shall have received copies of
		all Material Contracts.
	 

	 
		(f) (i) Purchasers shall have received a
		copy of a title policy with respect to the Desert Peak 2 Project with a policy
		limit of $33,000,000, with endorsements substantially similar to those provided
		in the Steamboat Hills Title Policy (as defined below) (the
		“Desert Peak 2 Title
		Policy”), each of which shall be
		in form and substance reasonably satisfactory to Purchasers, and no other
		changes; and (ii) Purchasers shall have received a copy of a title policy
		with respect to the Galena 2 Project and the Steamboat Hills Project with a
		policy limit of $64,000,000, with endorsements as set forth in the pro forma
		title policy insurance issued by First American Title Insurance Company
		No. NCS-91388-RENO (the “Steamboat Hills Title Policy”), each of which shall be in form and substance
		reasonably satisfactory to Purchasers, and no other changes.
	 

	 
		(g) Seller shall have delivered to
		Purchasers an officer’s certificate of an authorized officer of Seller
		(i) certifying that each of the conditions set forth in Section 2.7
		have been fulfilled to the satisfaction of Seller or have been waived by the
		Seller, (ii) certifying that each of the representations and warranties
		set forth in Section 3.1 are true and correct in all material respects as
		of the Initial Closing Date (other than those qualified by a reference to
		materiality or Material Adverse Effect, which representations and warranties
		shall be true and correct in all other respects); and (iii) attaching
		true, accurate and complete copies of the Organizational Documents of each of
		Seller, the Company and the Project Companies and 
	 

	 
		 
	 

	 
		 
	 

	 
		-3-
	 

	 
		 
	 

	 
	 

	 

	 
		resolutions of each of the Seller, the
		Company and the Project Companies authorizing the execution of the Transaction
		Documents to which it is a party.
	 

	 
		(h) Seller shall have delivered to
		Purchasers a certificate of incumbency from the secretary or assistant
		secretary of each of Seller, the Operator, the Manager and the Company as to
		the officers of Seller, the Operator, the Manager and the Company who sign the
		Transaction Documents on behalf of each of them.
	 

	 
		(i) The Company LLC Agreement shall have
		been duly executed by Seller and delivered to Purchasers.
	 

	 
		(j) Seller shall have delivered an affidavit
		of non-foreign status that complies with Section 1445 of the Code, duly
		executed by Seller.
	 

	 
		(k) The Management Services Agreement shall
		have been duly executed by Seller and the Company.
	 

	 
		(l) Operation and Maintenance Agreements
		shall have been duly executed by Seller and each Project Company.
	 

	 
		(m) Seller shall have delivered to
		Purchasers good standing certificates and certificates of good standing as to
		foreign corporations/limited liability companies for each of Seller, the
		Company and the Project Companies.
	 

	 
		(n) Seller shall have delivered to
		Purchasers the certificates of Class B Membership Interests together with
		duly executed transfer instruments.
	 

	 
		(o) Seller shall have delivered to
		Purchasers a duly executed Assignment Agreement with respect to the assignment
		of the Class B Membership Interests.
	 

	 
		2.7
		Conditions Precedent to the
		Obligations of Seller in Connection with the Initial Closing.
	 

	 
		The obligations of Seller to consummate the
		Initial Closing will be subject to the satisfaction or waiver by Seller of each
		of the conditions set forth below:
	 

	 
		(a) Each Purchaser shall have severally paid
		to Seller the payment amount constituting its portion of the Initial Closing
		Payment in the manner set forth in Section 2.2(a).
	 

	 
		(b) Each of the representations and
		warranties of Purchasers in Section 3.2 of this Agreement shall be true
		and correct in all material respects as of the Initial Closing Date (other than
		those qualified by a reference to materiality or Material Adverse Effect, which
		representations and warranties shall be true and correct in all respects).
		
	 

	 
		(c) All consents, approvals and filings
		required to be obtained or made by each Purchaser to execute, deliver and
		perform the Transaction Documents to which such entity is a party shall have
		been obtained or made and shall be in full force and effect as of the Effective
		Time. 
	 

	 
		 
	 

	 
		 
	 

	 
		-4-
	 

	 
		 
	 

	 
	 

	 

	 
		(d) Purchasers shall have delivered to
		Seller a legal opinion of Nixon Peabody LLP, outside counsel to Purchasers, in
		form and substance reasonably satisfactory to Seller.
	 

	 
		(e) Each Purchaser shall have delivered to
		Seller an officer’s certificate of an authorized officer of such Purchaser
		(i) certifying that each of the conditions set forth in Section 2.6
		have been fulfilled to the satisfaction of such Purchaser or have been waived
		by such Purchaser, (ii) certifying that each of the representations and
		warranties set forth in Section 3.2 are true and correct in all material
		respects as of the Initial Closing Date (other than those qualified by a
		reference to materiality or Material Adverse Effect, which representations and
		warranties shall be true and correct in all respects); and (iii) attaching
		true, accurate and complete copies of the Organizational Documents of such
		Purchaser and resolutions of such Purchaser authorizing the execution of the
		Transaction Documents to which it is a party.
	 

	 
		(f) Each Purchaser shall have delivered to
		Seller certificates of incumbency from the secretary or assistant secretary of
		such Purchaser as to the officers of such Purchaser who sign the Transaction
		Documents on behalf of such Purchaser.
	 

	 
		(g) The Company LLC Agreement shall have
		been duly executed by each Purchaser and delivered to Seller.
	 

	 
		(h) Each Purchaser shall have delivered to
		Seller a good standing certificate and certificates of good standing as to
		foreign corporations/limited liability companies.
	 

	 
		2.8
		Conditions Precedent to the
		Obligations of Purchasers in Connection with Galena 3 Closing.
	 

	 
		The obligations of Purchasers to consummate
		the Galena 3 Closing will be subject to the satisfaction or waiver by
		Purchasers of each of the conditions set forth below:
	 

	 
		(a) Each of the representations and
		warranties of Seller in Section 3.1(b) of this Agreement shall be true and
		correct in all material respects as of the Galena 3 Closing Date (other than
		those qualified by a reference to materiality or Material Adverse Effect, which
		representations and warranties shall be true and correct in all respects).
		
	 

	 
		(b) All consents, approvals and filings
		required to be obtained or made by Seller to execute, deliver and perform the
		Transaction Documents required to be executed and delivered on the Galena 3
		Closing Date to which it is a party shall have been obtained or made and shall
		be in full force and effect as of the Galena 3 Effective Time. 
	 

	 
		(c) Seller shall have delivered to
		Purchasers a legal opinion of Chadbourne & Parke LLP, outside counsel to
		Seller and ORNI 14, in form and substance reasonably satisfactory to
		Purchasers. 
	 

	 
		(d) There shall not be any injunction,
		judgment, order, decree or ruling in effect or pending that would prevent or
		inhibit consummation of the transactions contemplated by the Transaction
		Documents, and no action, complaint, investigation, suit or other proceeding
		shall be threatened or instituted by any private party or Governmental
		Authority and remain pending, at what would otherwise be the Initial closing
		Date, which (a) restrains or prohibits or 
	 

	 
		 
	 

	 
		 
	 

	 
		-5-
	 

	 
		 
	 

	 
	 

	 

	 
		otherwise challenges the performance of the
		obligations of the Parties, or (b) seeks material damages or penalties in
		relation to such obligations or transactions.
	 

	 
		(e) Purchasers shall have received copies of
		all Material Contracts to which ORNI 14 is party.
	 

	 
		(f) Purchasers shall have received a copy of
		a title policy with respect to the Galena 3 Project with a policy limit of
		$56,000,000, with endorsements substantially similar to those provided in the
		Steamboat Hills Title Policy, each of which shall be in form and substance
		reasonably satisfactory to Purchasers, and no other changes.
	 

	 
		(g) Seller shall have delivered to
		Purchasers an officer’s certificate of an authorized officer of Seller
		(i) certifying that each of the conditions set forth in Section 2.9
		have been fulfilled to the satisfaction of Seller or have been waived by
		Seller, (ii) certifying that each of the representations and warranties
		set forth in Section 3.1 are true and correct in all material respects as
		of the Galena 3 Closing Date (other than those qualified by a reference to
		materiality or Material Adverse Effect, which representations and warranties
		shall be true and correct in all respects); and (iii) attaching true,
		accurate and complete copies of the Organizational Documents of ORNI 14 and
		resolutions of each of Seller and ORNI 14 authorizing the execution of the
		Transaction Documents to which it is a party. 
	 

	 
		(h) Seller shall have delivered to
		Purchasers a certificate of incumbency from the secretary or assistant
		secretary of ORNI 14 as to the officers of ORNI 14 who sign the Transaction
		Documents on behalf of ORNI 14.
	 

	 
		(i) Seller shall have delivered an affidavit
		of non-foreign status that complies with Section 1445 of the Code, duly
		executed by Seller.
	 

	 
		(j) Seller shall have delivered to
		Purchasers good standing certificates and certificates of good standing as to
		foreign corporations/limited liability companies, for each of Seller, the
		Company and ORNI 14.
	 

	 
		(k) Seller shall have delivered a
		certificate from the Independent Engineer confirming that the Galena 3 Project
		has reached substantial completion.
	 

	 
		2.9
		Conditions Precedent to the
		Obligations of Seller in Connection with Galena 3 Closing.
	 

	 
		The obligations of Seller to consummate the
		Galena 3 Closing will be subject to the satisfaction or waiver by Seller of
		each of the conditions set forth below:
	 

	 
		(a) Each Purchaser shall have severally paid
		to Seller the payment amount constituting its portion of the Galena 3 Closing
		Payment in the manner set forth in Section 2.2(a).
	 

	 
		(b) Each of the representations and
		warranties of Purchasers in Section 3.2 of this Agreement shall be true
		and correct in all material respects as of the Galena 3 Closing Date (other
		than those qualified by a reference to materiality or Material Adverse Effect,
		which representations and warranties shall be true and correct in all
		respects).
	 

	 
		 
	 

	 
		 
	 

	 
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		(c) All consents, approvals and filings
		required to be obtained or made by each Purchaser to execute, deliver and
		perform the Transaction Documents required to be executed and delivered on the
		Galena 3 Closing Date to which such entity is a party shall have been obtained
		or made and shall be in full force and effect as of the Galena 3 Effective
		Time. 
	 

	 
		(d) Purchasers shall have delivered to
		Seller a legal opinion of Nixon Peabody LLP, outside counsel to Purchasers, in
		form and substance reasonably satisfactory to Purchasers.
	 

	 
		(e) Each Purchaser shall have delivered to
		Seller an officer’s certificate of an authorized officer of such Purchaser
		(i) certifying that each of the conditions set forth in Section 2.8
		have been fulfilled to the satisfaction of such Purchaser or have been waived
		by such Purchaser, (ii) certifying that each of the representations and
		warranties set forth in Section 3.2 are true and correct in all material
		respects as of the Galena 3 Closing Date (other than those qualified by a
		reference to materiality or Material Adverse Effect, which representations and
		warranties shall be true and correct in all other respects); and
		(iii) attaching true, accurate and complete copies of the Organizational
		Documents of such Purchaser and resolutions of such Purchaser authorizing the
		execution of the Transaction Documents to which it is a party.
	 

	 
		(f) Each Purchaser shall have delivered to
		Seller certificates of incumbency from the secretary or assistant secretary of
		such Purchaser as to the officers of Purchaser who sign the Transaction
		Documents on behalf of Purchaser.
	 

	 
		(g) Each Purchaser shall have delivered to
		Seller a good standing certificate and certificates of good standing as to
		foreign corporations/limited liability companies.
	 

	 
		ARTICLE 3
	 

	 
		REPRESENTATIONS AND WARRANTIES

	 

	 
		3.1 Representations and Warranties of Seller. Seller
		represents and warrants to Purchasers as set forth below: 
	 

	 
		(a) As of the Initial Closing Date:
	 

	 
		(i) Organization, Good Standing, Etc. of
		Seller. Seller is a corporation, duly
		organized, validly existing and in good standing under the laws of the State of
		Delaware. Seller has the corporate power and authority to own, lease and
		operate its properties and to carry on its business as being conducted on the
		date hereof. Seller is duly qualified to do business as a foreign corporation
		and is in good standing under the laws of each state in which either the
		ownership or use of the properties owned or used by it, or the nature of the
		activities conducted by it, requires such qualification, except where the
		absence of qualification could not reasonably be expected to have a Material
		Adverse Effect.
	 

	 
		(ii) Organization, Good Standing, Etc. of the Company and
		Project Companies. Each of the Company
		and the Project Companies is a limited liability company duly organized,
		validly existing and in good standing under the laws of the state of Delaware.
		Each of the Company and the Project Companies has the limited liability company
		power and authority to own, lease and operate its 
	 

	 
		 
	 

	 
		 
	 

	 
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		properties and to carry on its business as
		now being conducted. Each of the Company and the Project Companies is duly
		qualified to do business as a foreign limited liability company and is in good
		standing under the laws of each state in which either the ownership or use of
		the properties owned or used by it, or the nature of the activities conducted
		by it, requires such qualification, except where the absence of qualification
		could not reasonably be expected to have a Material Adverse Effect.
	 

	 
		(iii) Authority. Each
		of Seller, the Company, and the Project Companies has the necessary power and
		authority to enter into the Transaction Documents to which it is party, to
		perform its obligations thereunder and to consummate the transactions
		contemplated therein. All corporate or limited liability company actions or
		proceedings to be taken by or on the part of Seller, the Company, and the
		Project Companies to authorize and permit the due execution and valid delivery
		by Seller, the Company, and the Project Companies of the Transaction Documents
		to which it is a party required to be duly executed and validly delivered by it
		pursuant thereto, the performance by Seller, the Company, and the Project
		Companies of its obligations thereunder, and the consummation by Seller, the
		Company, and the Project Companies of the transactions contemplated therein,
		have been duly and properly taken. The Transaction Documents have been duly
		executed and delivered by Seller, the Company, and the Project Companies, as
		applicable, and constitute the legal, valid, and binding obligation of Seller,
		the Company, and the Project Companies, as applicable, enforceable in
		accordance with their terms, except as such enforceability (i) may be
		limited by applicable bankruptcy, insolvency, reorganization, fraudulent
		conveyance, moratorium or other similar laws affecting the enforcement of
		creditors’ rights and remedies generally and (ii) is subject to
		general principles of equity (regardless of whether enforceability is
		considered in a proceeding in equity or at law).
	 

	 
		(iv) No Conflicts.
		The execution and delivery of the Transaction Documents to which each of
		Seller, the Company or any Project Company is a party and the performance by
		each of Seller, the Company and any Project Company of its respective
		obligations thereunder will not, (i) violate any Applicable Law to which
		Seller, the Company or any of the Project Companies or any of their respective
		properties are subject, (ii) conflict with or cause a breach of any
		provision in the Organizational Documents of Seller, the Company or any Project
		Company or (iii) cause a breach of, constitute a default under, cause the
		acceleration of, create in any party the right to accelerate, terminate, modify
		or cancel, or require any authorization, consent, waiver or approval under any
		contract, license, instrument, decree, judgment or other arrangement to which
		Seller, the Company or any Project Company is a party or under which any of
		them is bound or to which any of their assets are subject (or result in the
		imposition of a Lien upon any such assets), except (in the case of this
		clause (iii)) for any that would not reasonably be expected to have a
		Material Adverse Effect. 
	 

	 
		(v) Absence of Litigation. Except as set forth on Schedule 3.1(a)(v), no
		action, suit, claim, demand or other proceeding is pending against any of the
		
	 

	 
		 
	 

	 
		 
	 

	 
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		Seller, the Company or any Project Company
		or, to the Knowledge of Seller, neither the Seller, the Company nor any Project
		Company is threatened with being made a party to any action, suit, proceeding,
		hearing or investigation of, in, or before any Governmental Authority or before
		any arbitrator, other than any such instance that would not reasonably be
		expected to have a Material Adverse Effect.
	 

	 
		(vi) Ownership.
		Seller owns of record and beneficially 100% of the membership interests of
		the Company, immediately prior to the Initial Closing Date, and the Company
		owns of record and beneficially 100% of the membership interests in each
		of the Project Companies. There are no outstanding options, warrants, calls,
		puts, rights of first refusal, convertible securities or other contracts of any
		nature obligating Seller to issue, deliver or sell membership interests or
		other securities in the Company, except as provided herein, or obligating the
		Company to issue, deliver or sell membership interests or other securities in
		any of the Project Companies.
	 

	 
		(vii) Sufficiency of Assets. Except as set forth on Schedule 3.1(a)(vii), the
		assets, whether real, personal, tangible or intangible and whether leased,
		owned or licensed, comprising the Projects constitute all of the assets
		required for or used in the operation of the Projects as presently operated or
		proposed to be operated and no other assets are required or necessary in the
		operation of the Projects in the ordinary course of business; provided,
		however, that nothing contained herein shall constitute any
		representation or warranty regarding the sufficiency or adequacy of the
		geothermal resources available to the Projects. 
	 

	 
		(viii) Valid Interests.
		The Class B Membership Interests will constitute a membership interest in
		the Company, and are being sold free and clear of any Liens except for
		obligations imposed on members of the Company under the Company LLC Agreement
		and any other Permitted Lien.
	 

	 
		(ix) Tax Matters.
	 

	 
		a. Each of the Company and each Project
		Company has filed, or has caused to be filed on its behalf, all Tax Returns
		required to be filed (after giving effect to any extensions that have been
		requested by, and granted to such party by the applicable Governmental
		Authority) and has paid, or has caused to be paid on its behalf, all Taxes
		shown as due on such returns. To Seller’s Knowledge, all such Tax Returns
		are complete and accurate in all material respects; provided,
		however, that no representation is being made about the income
		tax characteristics of the Projects (including the depreciation allowances for
		the Projects and whether the output qualifies for Tax Credits).
	 

	 
		b. There are no claims pending for any
		additional Tax assessed by any Governmental Authority against the Company or
		the Project Companies and no deficiency for any Taxes of the Company or any
		Project Company has been assessed and remains outstanding nor, to the Knowledge
		of the Seller, 
	 

	 
		 
	 

	 
		 
	 

	 
		-9-
	 

	 
		 
	 

	 
	 

	 

	 
		are proposed. There are no Tax Returns filed
		by or with respect to the Company or any Project Company that are currently
		being audited by any Governmental Authority or have been so audited, nor, to
		the Seller’s Knowledge, is any such audit pending or threatened (formally
		or informally, orally or in writing). Neither the Company nor any Project
		Company has waived any statute of limitations or agreed to any extension of
		time with respect to (x) the filing of any Tax Return or (y) any Tax
		assessment or deficiency which has not been resolved. There are no proceedings
		now pending or to the Seller’s Knowledge threatened against the Company or
		any Project Company with respect to any Tax or any matters under discussion
		with any Governmental Authority relating to any Tax. No claim has been made by
		a Governmental Authority in a jurisdiction where the Company or any Project
		Company does not file Tax Returns that the Company or any Project Company is
		subject to taxation by that jurisdiction.
	 

	 
		(x) Financial Statements. Included in Schedule 3.1(a)(x) are (i) the
		consolidated audited financial statements of the Seller as of December 31,
		2006, (ii) the consolidated unaudited financial statements of the Seller
		as of March 31, 2007 (the “Seller Interim Financials”), and (iii) the unaudited pro-forma
		consolidated financial statements of the Company as of March 31, 2007 (the
		“Company Interim
		Financials” and together with the
		Seller Interim Financials, the “Interim Financials”).
	 

	 
		(xi) Absence of Material Change. Since the date of the Interim Financials, the Company
		has not incurred any liabilities that could reasonably be expected to have a
		Material Adverse Effect. The Company has (i) managed and operated (or
		caused to be operated) the Project Companies and the Projects in the ordinary
		course of business, (ii) not suffered any damage, destruction or loss in
		excess of $1 million to any of the Project Companies or Projects whether or not
		covered by insurance, (iii) not made any material changes in its
		accounting systems, policies, principles or practices, or (iv) not waived,
		released or cancelled any material claims against any third parties or debts
		owing to it.
	 

	 
		(xii) Compliance with Applicable Law. Except as set forth on Schedule 3.1(a)(xii) and
		other than (i) non-compliance that would reasonably be expected not to
		have a Material Adverse Effect, and (ii) Environmental Laws (which are
		addressed in Section 3.1(a)(xiii)) and (iii) Taxes (which are
		addressed in Section 3.1(a)(ix)), the Company and the Project Companies
		are in compliance with Applicable Law, and neither the Company nor any of the
		Project Companies has received written notice from a Governmental Authority of
		an actual or potential violation of any Applicable Law. 
	 

	 
		(xiii) Environmental Matters. Except as listed on Schedule 3.1(a)(xiii), to
		Seller’s Knowledge (i) each Project Company is in compliance with all
		Environmental Laws, other than any failures to comply that would reasonably be
		expected not to have a Material Adverse Effect, (ii) there are no
		locations or premises used by a Project Company where, during the period that
		such Project 
	 

	 
		 
	 

	 
		 
	 

	 
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		Company or an Affiliate of Seller has owned
		the relevant Project, Hazardous Substances have been allowed into the soil or
		groundwater in violation of Environmental Laws during the period that each
		Project Company or Affiliate of Seller has owned the relevant Project and
		(iii) none of the Seller, the Company or the Project Companies has
		received written notice from any Governmental Authority of an actual or
		potential violation of any Environmental Laws.
	 

	 
		(xiv) Permits. All
		permits, approvals and certificates held by each Project Company are shown in
		Schedule 3.1(a)(xiv). Insofar as the Seller has Knowledge, each Project
		Company has, or will have when required, in full force and effect all permits,
		approvals and certificates necessary to operate its Project, other than
		permits, approvals and certificates whose absence would not have a Material
		Adverse Effect. The Projects have been constructed in material compliance with
		all permits, approvals and certificates and are operating in material
		compliance with all permits, approvals and certificates. None of the Project
		Companies has received written notice from any Governmental Authority of an
		actual or potential violation of any permit, approval or certificate.
	 

	 
		(xv) Insurance.
		Schedule 3.1(a)(xv) lists all insurance maintained for each Project by or
		on behalf of the Company or the respective Project Company, indicating the
		types of coverage, name of insurance carrier or underwriter, policy limits and
		expiration date of each policy. The insurance policies collectively provide
		full and adequate coverage for all normal risks incident to the properties,
		assets, management and operations of each Project and the Project Companies.
		None of the Project Companies has had any insurance cancelled or refused by any
		carrier. All of the insurance policies are in full force and effect, and none
		of the Project Companies is in default with respect to any obligations it may
		have under any of the insurance policies in any material respects and premiums
		with respect to such insurance policies have been paid.
	 

	 
		(xvi) Real Property.
		The Company does not own or lease any real property. All real property owned or
		leased by each Project Company or to which such Project Company has rights
		under easements or rights of way, and the title insurance maintained by such
		Project Company with respect to all such property, is described on
		Schedule 3.1(a)(xvi). The real property owned or leased, or in which
		rights are held, by each Project Company, described on
		Schedule 3.1(a)(xvi) (including, in the case of ORNI 3 and the Desert Peak
		2 Project, such rights under the instruments listed under the caption
		“Post Closing Deliverables,” and such rights under the instruments
		listed under the caption “Extensions Required” on such Schedule
		3.1(a)(xvi)), have been sufficient to enable each Project Company to conduct
		its operations as a geothermal power project prior to the Initial Closing Date,
		including providing adequate ingress and egress and transmission capabilities
		from each Project and adequate sewer, water, gas and electricity for each
		Project. None of the Seller, the Company or the Project Companies has been
		informed in writing by the owner of any such real property that a Project
		Company is in breach of its obligations with respect to such property. All
		premiums with respect to the title insurance shown on 
	 

	 
		 
	 

	 
		 
	 

	 
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		Schedule 3.1(a)(xv) have been paid and,
		insofar as Seller has Knowledge, there are no circumstances that have rendered
		such title insurance unenforceable. 
	 

	 
		(xvii) Personal Property. The Company owns no personal property other than the
		membership interests in the Project Companies. Schedule 3.1(a)(xvii) lists
		all items of personal property having a replacement cost of at least $500,000
		owned by each of the Project Companies. Except as shown on
		Schedule 3.1(a)(x), each Project Company has good and marketable title to
		its personal property as listed thereon. Each Project Company owns, leases or
		has contractual rights to use all the equipment and facilities necessary for
		the operations of its respective Projects as of the date hereof. To
		Seller’s Knowledge, the tangible assets included in the Projects are in
		good condition, free and clear from all defects (patent or latent), taking into
		account their use and age, subject to normal wear and tear, and subject to
		continued maintenance, repair and replacement in the ordinary course of
		business.
	 

	 
		(xviii) Liens. Except as
		listed on Schedule 3.1(a)(xviii), all assets owned by the Company and by
		each of the Project Companies are free and clear of all Liens, other than
		Permitted Liens or those Liens that would not reasonably be expected to have a
		Material Adverse Effect.
	 

	 
		(xix) Material Contracts. Schedule 3.1(a)(xix) lists all Material Contracts
		to which the Company and each Project Company is a party. To the Knowledge of
		Seller, each Material Contract is binding on the Company or the relevant
		Project Company, as applicable, and on the other parties thereto, except as
		enforceability may be limited by applicable bankruptcy and similar laws
		affecting the enforcement of creditors’ rights and general equitable
		principles. Neither the Company nor any Project Company or, to the Knowledge of
		the Seller, any other party to a Material Contract is in default under any
		Material Contract and, to the Knowledge of the Seller, no event has occurred
		which, with lapse of time or action by a third party, would result in such a
		default under any Material Contract, except where any such default would not
		reasonably be expected to have a Material Adverse Effect. No party to any of
		the Material Contracts has exercised any right of termination with respect
		thereto. The versions of the Material Contracts provided by Seller to
		Purchasers are true, correct and complete and have not been amended or modified
		except as disclosed in writing to the Purchasers.
	 

	 
		(xx) Employee Matters. Neither the Company nor any Project Company has any
		employees. Neither the Company nor any Project Company has maintained,
		sponsored, administered or participated in any employee benefit plan or
		arrangement, including any employee benefit plan subject to ERISA. 
	 

	 
		(xxi) Affiliate Transactions. Except as listed on Schedule 3.1(a)(xxi) and
		except for the Transaction Documents, there are no existing contracts between
		the Company or any Project Company, on the one hand, and the Seller or any
		other 
	 

	 
		 
	 

	 
		 
	 

	 
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		Affiliate of the Seller, on the other hand.
		Neither the Company nor any of the Project Companies has any outstanding debt
		to an Affiliate thereof
	 

	 
		(xxii) Completion.
		Schedule 3.1(a)(xxii) shows the date that each Project achieved
		substantial completion and the date the Project was synchronized with the
		utility grid. Except as disclosed to the Purchasers in connection with the
		Desert Peak 2 Project, each Project Company obtained title to its Project by
		the date such Project was synchronized with the utility grid and each Project
		Company has been selling power on a commercial basis to a third party since the
		date the Project was synchronized with the utility grid.
	 

	 
		(xxiii) Tax Character.
		Each of the Project Companies and the Company is a “disregarded
		entity” for federal income tax purposes and, apart from the Project
		Company for the Steamboat Hills Project, each has been such an entity since its
		formation. The Company will become a partnership for such tax purposes after
		the Initial Closing. No elections have been filed with the IRS to treat the
		Company or any of the Project Companies as an association. 
	 

	 
		(xxiv) Qualifying Facility. Each Project is a Qualifying Facility within the
		meaning of the Public Utility Regulatory Policies Act of 1978, as amended
		(“PURPA”), and the rules and regulations promulgated
		thereunder. Upon becoming the owner of any Project, the Seller filed a notice
		of self-certification as a Qualifying Facility with FERC. Since Seller became
		the owner of the Projects, each Project has satisfied the requirements to be a
		Qualifying Facility. The Projects are not currently subject to any pending
		inquiry, investigation, or challenge relating to its status as a Qualifying
		Facility.
	 

	 
		(xxv) Subsidies.
		Neither the Seller, the Company or any Project Company is the beneficiary of
		any government grants, tax exempt bonds (or similar tax exempt financing),
		subsidized energy financing or any other federal income tax credit, in each
		case, within the meaning of section 45(b)(3) of the Code.
	 

	 
		(xxvi) Public Utility Holding Company. Neither the Seller, the Company nor any Project
		Company is subject to regulation as a “holding company” or a
		“public utility company” within the meaning of the Public Utility
		Holding Company Act of 2005 as amended (“PUHCA”).
	 

	 
		(xxvii) Investment Company Act. The Company is not an “investment company,”
		as such term is defined in the Investment Company Act of 1940, as
		amended.
	 

	 
		(xxviii) Background Materials.  Seller collected and, with respect to the
		documents prepared by Seller, prepared the written materials contained in the
		virtual and physical data rooms and Seller’s written responses to due
		diligence inquiries, as set forth in Schedule 3.1(a)(xxviii)
		(collectively, the “Background
		Materials”) in good faith. 
		The Background Materials were provided to the Purchasers by the Seller in good
		faith.  Without limiting the effectiveness of any 
	 

	 
		 
	 

	 
		 
	 

	 
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		qualification contained in any other
		representation or warranty in this Section 3.1(a), to Seller’s
		Knowledge, Seller has provided all documents in Seller’s possession
		containing material information (exclusive of documents that contain
		information duplicative of information contained or incorporated in any other
		Background Materials) relating to the Company, the Projects and the Project
		Companies and the Background Materials do not contain any untrue statement of a
		material fact concerning the Company or the Projects or the Project Companies
		and the transactions contemplated by this Agreement. Seller has not
		intentionally omitted any material fact or document from the Background
		Materials with the purpose of causing the Background Materials, when taken in
		their entirety, to be misleading.
	 

	 
		(b) As of the Galena 3 Closing Date:
	 

	 
		(i) Organization, Good Standing, Etc. of
		Seller. Seller is a corporation, duly
		organized, validly existing and in good standing under the laws of the State of
		Delaware. Seller has the corporate power and authority to own, lease and
		operate its properties and to carry on its business as being conducted on the
		date hereof. Seller is duly qualified to do business as a foreign corporation
		and is in good standing under the laws of each state in which either the
		ownership or use of the properties owned or used by it, or the nature of the
		activities conducted by it, requires such qualification, except where the
		absence of qualification could not reasonably be expected to have a Material
		Adverse Effect.
	 

	 
		(ii) Organization, Good Standing, Etc. of ORNI
		14. ORNI 14 is a limited liability
		company duly organized, validly existing and in good standing under the laws of
		the state of Delaware. ORNI 14 has the limited liability company power and
		authority to own, lease and operate its properties and to carry on its business
		as now being conducted. ORNI 14 is duly qualified to do business as a foreign
		limited liability company and is in good standing under the laws of each state
		in which either the ownership or use of the properties owned or used by it, or
		the nature of the activities conducted by it, requires such qualification,
		except where the absence of qualification could not reasonably be expected to
		have a Material Adverse Effect.
	 

	 
		(iii) Authority. Each
		of Seller and ORNI 14 has the necessary power and authority to enter into the
		Transaction Documents to which it is a party, to perform its obligations
		thereunder, and to consummate the transactions contemplated therein. All
		corporate or limited liability company actions or proceedings to be taken by or
		on the part of Seller and ORNI 14 to authorize and permit the due execution and
		valid delivery by Seller and ORNI 14 of the Transaction Documents to which it
		is a party required to be duly executed and validly delivered by it pursuant
		thereto, the performance by Seller and ORNI 14 of its obligations thereunder,
		and the consummation by Seller and ORNI 14 of the transactions contemplated
		therein, have been duly and properly taken. The Transaction Documents have been
		duly executed and delivered by Seller and ORNI 14, as applicable, and
		constitute the legal, valid, and binding obligation of 
	 

	 
		 
	 

	 
		 
	 

	 
		-14-
	 

	 
		 
	 

	 
	 

	 

	 
		Seller and ORNI 14, as applicable,
		enforceable in accordance with their terms, except as such enforceability
		(i) may be limited by applicable bankruptcy, insolvency, reorganization,
		fraudulent conveyance, moratorium or other similar laws affecting the
		enforcement of creditors’ rights and remedies generally and (ii) is
		subject to general principles of equity (regardless of whether enforceability
		is considered in a proceeding in equity or at law). 
	 

	 
		(iv) No Conflicts.
		The execution and delivery of the Transaction Documents to which each of Seller
		and ORNI 14 is a party and the performance by each of Seller and ORNI 14 of its
		respective obligations thereunder will not, (i) violate any Applicable Law
		to which Seller or ORNI 14 or any of their respective properties are subject,
		(ii) conflict with or cause a breach of any provision in the
		Organizational Documents of Seller or ORNI 14 or (iii) cause a breach of,
		constitute a default under, cause the acceleration of, create in any party the
		right to accelerate, terminate, modify or cancel, or require any authorization,
		consent, waiver or approval under any contract, license, instrument, decree,
		judgment or other arrangement to which Seller or ORNI 14 is a party or under
		which any of them is bound or to which any of their assets are subject (or
		result in the imposition of a Lien upon any such assets), except (in the case
		of this clause (iii)) for any that would not reasonably be expected to
		have a Material Adverse Effect. 
	 

	 
		(v) Absence of Litigation. Except as set forth on Schedule 3.1(b)(v), no
		action, suit, claim, demand or other proceeding is pending against the Seller
		or ORNI 14 or, to the Knowledge of Seller, neither the Seller nor ORNI 14 is
		threatened with being made a party to any action, suit, proceeding, hearing or
		investigation of, in, or before any Governmental Authority or before any
		arbitrator, other than any such instance that would not reasonably be expected
		to have a Material Adverse Effect.
	 

	 
		(vi) Sufficiency of Assets. The assets, whether real, personal, tangible or
		intangible and whether leased, owned or licensed, comprising the Galena 3
		Project constitute all of the assets required for or used in the operation of
		Galena 3 Project as presently operated or proposed to be operated and no other
		assets are required or necessary in the operation of the Galena 3 Project in
		the ordinary course of business; provided,
		however, that nothing contained herein shall constitute any
		representation or warranty regarding the sufficiency or adequacy of the
		geothermal resources available to the Galena 3 Project.
	 

	 
		(vii) Tax Matters.
	 

	 
		a. ORNI 14 has filed, or has caused to be
		filed on its behalf, all Tax Returns required to be filed (after giving effect
		to any extensions that have been requested by, and granted to ORNI 14 by the
		applicable Governmental Authority) and has paid, or has caused to be paid on
		its behalf, all Taxes shown as due on such returns. To Seller’s Knowledge,
		all such Tax Returns are complete and accurate in all material respects;
		provided, however, that no
		representation is being made about the income tax characteristics of the
		
	 

	 
		 
	 

	 
		 
	 

	 
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		Galena 3 Project (including the depreciation
		allowances for the Galena 3 Project and whether the output qualifies for Tax
		Credits).
	 

	 
		b. There are no claims pending for any
		additional Tax assessed by any Governmental Authority against ORNI 14 and no
		deficiency for any Taxes of ORNI 14 has been assessed and remains outstanding
		nor, to the Knowledge of the Seller is proposed. There are no Tax Returns
		filed, by or with respect to ORNI 14 that are currently being audited by any
		Governmental Authority or have been so audited, nor, to the Seller’s
		Knowledge, is any such audit pending or threatened (formally or informally,
		orally or in writing). ORNI 14 has not waived any statute of limitations or
		agreed to any extension of time with respect to (x) the filing of any Tax
		Return or (y) any Tax assessment or deficiency which has not been
		resolved. There are no proceedings now pending or to the Seller’s
		Knowledge threatened against ORNI 14 with respect to any Tax or any matters
		under discussion with any Governmental Authority relating to any Tax. No claim
		has been made by a Governmental Authority in a jurisdiction where ORNI 14 does
		not file Tax Returns that ORNI 14 is subject to taxation by that
		jurisdiction.
	 

	 
		(viii) Financial Information. Included in Schedule 3.1(b)(viii) are the capital
		expenditures incurred in connection with the construction of the Galena 3
		Project, incurred as of the date of the Galena 3 Closing.
	 

	 
		(ix) Compliance with Applicable Law. Except as set forth on Schedule 3.1(b)(ix) and
		other than (i) non-compliance that would reasonably be expected not to
		have a Material Adverse Effect, and (ii) Environmental Laws (which are
		addressed in Section 3.1(b)(x)) and (iii) Taxes (which are addressed
		in Section 3.1(b)(vii)), ORNI 14 is in compliance with Applicable Law, and
		ORNI 14 has not received written notice from a Governmental Authority of an
		actual or potential violation of any Applicable Law. 
	 

	 
		(x) Environmental Matters. Except as listed on Schedule 3.1(b)(x), to
		Seller’s Knowledge (i) ORNI 14 is in compliance with all
		Environmental Laws, other than any failures to comply that would reasonably be
		expected not to have a Material Adverse Effect, (ii) there are no
		locations or premises used by ORNI 14 where, during the period that ORNI 14 or
		an Affiliate of Seller has owned the Galena 3 Project, Hazardous Substances
		have been allowed into the soil or groundwater in violation of Environmental
		Laws during the period ORNI 14 or an Affiliate of the Seller has owned the
		Galena 3 Project and (iii) neither the Seller nor ORNI 14 has received
		written notice from any Governmental Authority of an actual or potential
		violation of any Environmental Laws.
	 

	 
		(xi) Permits. All
		permits, approvals and certificates held by ORNI 14 are shown in
		Schedule 3.1(b)(xi). Insofar as the Seller has Knowledge, ORNI 14 has, or
		will have when required, in full force and effect all permits, approvals and
		certificates necessary to operate the Galena 3 Project, other than permits,
		approvals and certificates whose absence would not have a Material Adverse
		
	 

	 
		 
	 

	 
		 
	 

	 
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		Effect. The Galena 3 Project has been
		constructed in material compliance with all permits, approvals and certificates
		and are operating in material compliance with all permits, approvals and
		certificates. ORNI 14 has not received written notice from any Governmental
		Authority of an actual or potential violation of any permit, approval or
		certificate.
	 

	 
		(xii) Insurance.
		Schedule 3.1(b)(xii) lists all insurance policies for the Galena 3
		Project, indicating the types of coverage, name of insurance carrier or
		underwriter, policy limits and expiration date of each policy. The insurance
		policies collectively provide full and adequate coverage for all normal risks
		incident to the properties, assets, management and operations of the Galena 3
		Project and ORNI 14. ORNI 14 has not had any insurance cancelled or refused by
		any carrier. All of the insurance policies are in full force and effect, and
		ORNI 14 is not in default with respect to any obligations it may have under any
		of the insurance policies in any material respects and premiums with respect to
		such insurance policies have been paid.
	 

	 
		(xiii) Real Property.
		All real property owned or leased by ORNI 14 or to which ORNI 14 has rights
		under easements or rights-of-way, and the title insurance maintained by ORNI 14
		with respect to all such property, is described on Schedule 3.1(b)(xiii).
		The real property owned or leased, or in which rights are held, by ORNI 14 has
		been sufficient to enable ORNI 14 to conduct its operations as a geothermal
		power project prior to the Galena 3 Closing Date including providing adequate
		ingress and egress and transmission capabilities from the Galena 3 Project and
		adequate sewer, water, gas and electricity for the Galena 3 Project. Neither
		ORNI 14 nor Seller has been informed in writing by the owner of any such real
		property that ORNI 14 is in breach of its obligations with respect to such
		property. All premiums with respect to the title insurance for ORNI 14 shown on
		Schedule 3.1(b)(xiii) have been paid and, insofar as Seller has Knowledge,
		there are no circumstances that have rendered such title insurance
		unenforceable. 
	 

	 
		(xiv) Personal Property. Schedule 3.1(b)(xiv) lists all items of personal
		property having a replacement cost of at least $500,000 owned by ORNI 14.
		Except as shown on Schedule 3.1(b)(xiv), ORNI 14 has good and marketable
		title to its personal property as listed thereon. ORNI 14 owns, leases or has
		contractual rights to use all the equipment and facilities necessary for the
		operations of the Galena 3 Project as of the date hereof. To Seller’s
		Knowledge, the tangible assets included in the Galena 3 Project are in good
		condition, free and clear from all defects (patent or latent), taking into
		account their use and age, subject to normal wear and tear, and subject to
		continued maintenance, repair and replacement in the ordinary course of
		business.
	 

	 
		(xv) Liens. Except as
		listed on Schedule 3.1(b)(xv), all assets owned by ORNI 14 are free and
		clear of all Liens, other than Permitted Liens or those Liens that would not
		reasonably be expected to have a Material Adverse Effect.
	 

	 
		 
	 

	 
		 
	 

	 
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		(xvi) Material Contracts. Schedule 3.1(b)(xvi) lists all Material Contracts
		to which ORNI 14 is a party. Each such Material Contract is binding on ORNI 14,
		and on the other parties thereto, except as enforceability may be limited by
		applicable bankruptcy and similar laws affecting the enforcement of creditors'
		rights and general equitable principles. Neither ORNI 14 nor, to the Knowledge
		of the Seller, any other party to any Material Contracts to which ORNI 14 is a
		party is in default under any such Material Contracts and, to the Knowledge of
		the Seller, no event has occurred which, with lapse of time or action by a
		third party, would result in such a default by ORNI 14 under any such Material
		Contracts, except where any such default would not reasonably be expected to
		have a Material Adverse Effect. No party to any of the Material Contracts to
		which ORNI 14 is party has exercised any right of termination with respect
		thereto. The versions of the Material Contracts to which ORNI 14 is a party
		provided by Seller to Purchasers are true, correct and complete and have not
		been amended or modified except as disclosed in writing to the
		Purchasers.
	 

	 
		(xvii) Employee Matters. ORNI 14 does not have any employees. ORNI 14 has not
		maintained, sponsored, administered or participated in any employee benefit
		plan or arrangement, including any employee benefit plan subject to ERISA.
		
	 

	 
		(xviii) Affiliate Transactions. Except as listed on Schedule 3.1(b)(xviii) and
		except for the Transaction Documents executed and delivered on the Galena 3
		Closing Date, there are no existing contracts between ORNI 14, on the one hand,
		and the Seller or any other Affiliate of the Seller, on the other hand. ORNI 14
		does not have any outstanding debt to an Affiliate thereof.
	 

	 
		(xix) Completion.
		Schedule 3.1(b)(xix) shows the date that the Galena 3 Project achieved
		substantial completion and the date the Galena 3 Project was synchronized with
		the utility grid. ORNI 14 obtained title to the Galena 3 Project by the date
		the Galena 3 Project was synchronized with the utility grid and ORNI 14 has
		been selling power on a commercial basis to a third party since the date the
		Galena 3 Project was synchronized with the utility grid.
	 

	 
		(xx) Tax Character.
		ORNI 14 is a “disregarded entity” for federal income tax purposes and
		has been such an entity since its formation. No elections have been filed with
		the IRS to treat ORNI 14 as an association. 
	 

	 
		(xxi) Qualifying Facility. The Galena 3 Project is a Qualifying Facility within
		the meaning of the PURPA. Upon becoming the owner of the Galena 3 Project, the
		Seller filed a self-certification as a Qualifying Facility with FERC. Since
		Seller became the owner of the Galena 3 Project, such Project has satisfied the
		requirements to be a Qualifying Facility. The Galena 3 Project is not currently
		subject to any pending inquiry, investigation, or challenge relating to its
		status as a Qualifying Facility.
	 

	 
		(xxii) Subsidies.
		Neither the Seller nor ORNI 14 is the beneficiary of any government grants, tax
		exempt bonds (or similar tax exempt financing), 
	 

	 
		 
	 

	 
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		subsidized energy financing or any other
		federal income tax credit, in each case, within the meaning of
		section 45(b)(3) of the Code.
	 

	 
		(xxiii) Public Utility Holding Company. Neither the Seller nor ORNI 14 is subject to
		regulation as a “holding company” or a “public utility
		company” within the meaning of PUHCA.
	 

	 
		(xxiv) Background Materials. Seller collected and prepared the Background Materials
		set forth in Schedule 3.1(b)(xxiv) in good faith. The Background Materials
		were provided to the Purchasers by the Seller in good faith. Without limiting
		the effectiveness of any qualification contained in any other representation or
		warranty in this Section 3.1(b), to Seller’s Knowledge, Seller has
		provided all documents in Seller’s possession containing material
		information (exclusive of documents that contain information duplicative of
		information contained or incorporated in any other Background Materials)
		relating to the Galena 3 Project and ORNI 14 and the Background Materials do
		not contain any untrue statement of a material fact concerning the Galena 3
		Project or ORNI 14 and the transactions contemplated by this Agreement. Seller
		has not intentionally omitted any material fact or document from the Background
		Materials with the purpose of causing the Background Materials, when taken in
		their entirety, to be misleading.
	 

	 
		3.2 Representations and Warranties of
		Purchasers. Each of the Purchasers severally and not jointly
		represents and warrants to Seller as follows:
	 

	 
		(a) Organization, Good Standing, Etc. Purchaser is a corporation, limited liability company
		or other entity duly organized, validly existing and in good standing under the
		laws of the jurisdiction of its formation, and has the corporate, limited
		liability or other entity organizational power and authority to own, lease and
		operate its properties and to carry on its business as being conducted on the
		date hereof. 
	 

	 
		(b) Authority.
		Purchaser has the corporate, limited liability or other power and authority to
		enter into this Agreement and the other Transaction Documents to which it is a
		party, to perform its obligations hereunder and thereunder, and to consummate
		the transactions contemplated hereby or thereby. All actions or proceedings
		required to be taken by or on the part of the Purchaser to authorize and permit
		the due execution and valid delivery by Purchaser of this Agreement and the
		instruments required to be duly executed and validly delivered by Purchaser
		pursuant hereto and thereto, the performance by Purchaser of its obligations
		hereunder and thereunder, and the consummation by Purchaser of the transactions
		contemplated herein and therein, have been duly and properly taken. This
		Agreement has been duly executed and validly delivered by Purchaser and
		constitutes the legal, valid and binding obligation of Purchaser, enforceable
		in all material respects against Purchaser in accordance with its terms and
		conditions except as enforceability may be limited by applicable bankruptcy and
		similar laws affecting the enforcement of creditors' rights and general
		equitable principles.
	 

	 
		(c) No Conflicts.
		The execution and delivery by Purchaser of this Agreement and the other
		Transaction Documents to which Purchaser is a party do not, and the performance
		
	 

	 
		 
	 

	 
		 
	 

	 
		-19-
	 

	 
		 
	 

	 
	 

	 

	 
		by Purchaser of Purchaser obligations
		hereunder and thereunder will not, (i) violate any Applicable Law,
		(ii) conflict with or cause a breach of any provision of its
		Organizational Documents or (iii) cause a breach of, constitute a default
		under, cause the acceleration of, create in any party the right to accelerate,
		terminate, modify or cancel, or require any authorization, consent, waiver or
		approval under any contract, license, instrument, decree, judgment or other
		arrangement to which Purchaser is a party or under which it is bound or to
		which any of its assets are subject (or result in the imposition of a Lien upon
		any such assets), except (in the case of this clause (iii)) for any that
		would not reasonably be expected to have a Material Adverse Effect. 
	 

	 
		(d) Absence of Litigation. Purchaser is not subject to any pending or outstanding
		injunction, judgment, order, decree, ruling or charge, nor is Purchaser
		threatened with being made a party to any action, suit, proceeding, hearing or
		investigation of, in, or before any Governmental Authority or before any
		arbitrator that could affect its ability to complete the transactions
		contemplated in the Transaction Documents to which it is a party or that could
		have a Material Adverse Effect on the operation of the Company or any of the
		Project Companies.
	 

	 
		(e) Accredited Investor; Information; Investment
		Intent. Purchaser is an
		“Accredited Investor” as such term is defined in Regulation D
		under the Securities Act of 1933. Purchaser has had a reasonable
		opportunity to ask questions of and receive answers from Seller concerning
		Seller, the Class B Membership Interests, the Company and the Project
		Companies, and all such questions have been answered to the full satisfaction
		of Purchaser. Purchaser understands that the Class B Membership Interests
		have not been registered under the Securities Act in reliance on an exemption
		therefrom, and that the Class B Membership Interests must be held
		indefinitely unless the sale thereof is registered under the Securities Act or
		an exemption from registration is available thereunder, and that Seller is
		under no obligation to register the Class B Membership Interests.
		Purchaser shall not sell, hypothecate or otherwise transfer the Class B
		Membership Interests without registering or qualifying them under the
		Securities Act and applicable state securities laws unless the transfer is
		exempted from registration or qualification under such laws. Purchaser is
		purchasing the Class B Membership Interests for its own account and not
		for the account of any other Person and not with a view to distribution to
		others.
	 

	 
		(f) Information and Investment Intent. Purchaser recognizes that investment in the
		Class B Membership Interests involves substantial risks. Purchaser
		acknowledges that any financial projections that may have been provided to it
		are based on assumptions of future operating results developed by Seller and
		Seller’s advisers and, therefore, represent an estimate of future results
		based on assumptions about certain events (many of which are beyond the control
		of Seller, the Company and the Project Companies). Purchaser understands that
		no assurances or representations can be given that the actual results of the
		operations of the Company and the Project Companies will conform to the
		projected results for any period. Purchaser has relied solely on its own legal,
		tax and financial advisers for its evaluation of an investment in the
		Class B Membership Interests and not on the advice of the Seller or the
		Company or any of their respective legal, tax or financial advisers. 
	 

	 
		(g) Security Interest. Purchaser has not pledged or otherwise encumbered any
		right, title or interest in or to the Class B Membership Interests.

	 

	 
		 
	 

	 
		 
	 

	 
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		(h) Public Utility Holding Company. Purchaser is not a “holding company” within
		the meaning of PUHCA.
	 

	 
		3.3 No Other Seller Representations. Except with respect to the representations and
		warranties of Seller in Section 3.1, the Company LLC Agreement and the
		Management Services Agreement, none of Seller, the Company or any of the
		Project Companies has made any representation or warranty, either express or
		implied, hereunder or in any of the other Transaction Documents, nor has the
		Purchaser relied on any representation or warranty not expressly made herein.
		Without limiting the foregoing, Purchaser acknowledges that none of Seller, the
		Company or any of the Project Companies has made any representation or
		warranty, nor has Purchaser relied on any representation or warranty, with
		respect to Purchaser’s, the Company’s or any of the Project
		Companies’ eligibility to claim Tax Credits except with respect to the
		representations and warranties of Seller in Section 3.1. The Purchaser
		represents, warrants and agrees that it will not bring any claim against the
		Seller, the Company or any of the Project Companies relating to the
		Purchaser’s, the Company’s or any of the Project Companies’
		eligibility to claim Tax Credits. The Purchaser specifically acknowledges that,
		except as stated in Sections 3.1(a)(xxviii) and 3.1(b)(xxiv), no
		representation or warranty has been made and that the Purchaser has not relied
		on any representation or warranty about the accuracy of any projections,
		estimates or budgets, future revenues, future results from operations, future
		cash flows, the future condition of the Projects or any assets of the Project
		Companies, the future financial condition of the Project Companies, or any
		other information or documents made available to the Purchaser or its counsel,
		accountants or other advisors. 
	 

	 
		ARTICLE 4
	 

	 
		CERTAIN OTHER REPRESENTATIONS, WARRANTIES
		AND COVENANTS
	 

	 
		4.1 Geothermal Matters. The Seller and each Purchaser expressly acknowledges
		and consents as follows: (i) the Seller shall not develop, construct, and
		own and operate, and shall ensure that none of its Affiliates develop,
		construct, own or operate, a new geothermal power plant utilizing the same
		geothermal resource (to the extent such resource is controlled by the Seller or
		any Affiliate) that is utilized by the Desert Peak 2 Project, other than as
		part of an expansion or enhancement to the Desert Peak 2 Project that will be
		owned by the Sellers and the Purchasers under the Transaction Documents, and
		(ii) (x) the Projects owned by Steamboat Hills and the Galena 3 Project
		that is under development and construction, and that will be owned and operated
		by ORNI 14 currently utilize, and will continue to utilize, geothermal
		resources (to the extent such resource is controlled by the Seller or any
		Affiliate) that form part of a single “Known Geothermal Resource Area,” and (y) the Seller shall not develop,
		construct, and own and operate, and shall ensure that none of its Affiliates
		develop, construct, own or operate, a new geothermal power plant utilizing
		geothermal resources that form part of such same Known Geothermal Resource Area
		(to the extent such resource is controlled by the Seller or any Affiliate)
		unless it shall first deliver to the Purchasers a certificate from GeothermEx,
		Inc. (or other geothermal consultant acceptable to the Purchasers), to the
		effect that the sustainable operation of the existing Projects owned by the
		Project Companies will not be affected by such development, construction and
		operation of the planned new geothermal power project.
	 

	 
		4.2 Confidentiality. The Confidentiality Agreement between Seller and the
		Morgan Stanley Purchaser Entity dated March 20, 2007 and the
		Confidentiality Agreement between the 
	 

	 
		 
	 

	 
		 
	 

	 
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		Seller and the Lehman Brothers Inc.
		Purchaser Entity dated March 19, 2007 (the “Confidentiality Agreements”) shall terminate at the Effective Time and,
		thereafter, the provisions of Section 11.12 of the Company LLC Agreement
		shall apply with respect to the confidentiality obligations of the
		Parties.
	 

	 
		4.3 Access to Information. From the date hereof and continuing until the earlier
		of the termination of this Agreement or the Effective Time, Seller, on not less
		than five days prior notice by any Purchaser to Seller, will and will cause the
		Company to (i) give such Purchaser, its counsel, financial advisors,
		auditors and other authorized representatives reasonable access during normal
		business hours to the offices, properties, employees and personnel, books and
		records of the Company and the Project Companies, (ii) furnish to such
		Purchaser, its counsel, financial advisors, auditors, and other authorized
		representatives such financial and operating data and other information as such
		persons may reasonably request, and (iii) instruct the Company’s
		employees, auditors, counsel and financial advisors to cooperate with such
		Purchaser in its investigation of the business of the Company and the Project
		Companies. The foregoing information shall be held in confidence by such
		Purchaser, its counsel, financial advisors, auditors and other authorized
		representatives in accordance with the provisions of the Confidentiality
		Agreement or Section 11.12 of the Company LLC Agreement as provided in
		Section 4.2 hereof.
	 

	 
		4.4 Regulatory Matters. Promptly after the Effective Time, Seller shall file
		with FERC a notice of self re-certification as a Qualifying Facility. 
	 

	 
		4.5 Post Closing Deliverables. 
	 

	 
		(a) Seller represents, warrants and agrees
		with the Purchasers that it will use commercially reaonable efforts to obtain
		at the expense of Seller each and all of the Post Closing Deliverables on or
		prior to the Date Certain; provided, however, that in lieu of obtaining all or
		any individual Post Closing Deliverable item, Seller may elect instead, at the
		expense of Seller subject to the consent of the Purchasers, which consent shall
		not be unreasonably withheld or delayed, to merge WSGC and ORNI 3 into a single
		entity with the result that the surviving merged entity shall have all of the
		combined rights and assets of both WSGC and ORNI 3, including, without
		limitation, all of the rights, title and interest in and to all of the Post
		Closing Deliverables. Such consent will not be deemed unreasonably withheld or
		delayed if the Purchasers' due diligence investigation of WSGC is not
		satisfactory to the Purchasers in their sole discretion and Seller does not
		assume and agree to indemnify the Purchasers for all liabilities of WSGC which
		are not directly related to the Projects.
	 

	 
		(b) Extension of Specified Leases or
		Easement. Seller represents, warrants
		and agrees with the Purchasers that it will use commercially reasonable efforts
		to obtain an extension of the term of each of the Specified Leases or Easements
		on or prior to their respective current expiration or termination date.
	 

	 
		(c) No Further Obligation. Upon obtaining all of the Post Closing Deliverables or
		consummation of the merger between WSGC and ORNI 3 or combination thereof as
		contemplated in Subsection (a) above, Seller shall have no further
		liability or obligation under such Subsection (a) or otherwise on account
		of any Post Closing Deliverable or 
	 

	 
		 
	 

	 
		 
	 

	 
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		as a result of the merger between WSGC and
		ORNI 3 (other than, and only to the extent that, the Seller expressly agrees in
		writing to assume any liabilities of WSGC prior to such merger), whether toward
		the Purchasers or any of their Affiliates, the Company, ORNI 3, WSGC or any
		other party. Upon obtaining an extension of each Specified Lease or Easement,
		Seller shall have no further liability or obligation under Subsection
		(b) or otherwise on account of any such obtained Specified Lease or
		Easement, whether toward the Purchasers or any of their Affiliates, the
		Company, ORNI 3, WSGC or any other party. 
	 

	 
		ARTICLE 5
	 

	 
		[RESERVED]
	 

	 
		ARTICLE 6
	 

	 
		INDEMNIFICATION
	 

	 
		6.1 Indemnification. (a) Seller
		agrees to indemnify, defend and hold harmless the Purchaser Indemnified Parties
		from and against any and all Purchaser Indemnified Costs; provided, however, that,
		except with respect to Purchaser Indemnified Costs resulting from fraud, gross
		negligence or willful misconduct or failure to pay any amount due to Purchaser
		Indemnified Parties under any Transaction Document, in no event shall
		Seller’s aggregate obligation to indemnify the Purchaser Indemnified
		Parties hereunder exceed 50% of the Purchase Price (or portion thereof) that it
		has received as of the date such indemnification obligation arises, less any
		amounts paid as damages by Seller under the Company LLC Agreement.
	 

	 
		(b) Purchasers agree to severally indemnify,
		defend and hold harmless the Seller Indemnified Parties from and against any
		and all Seller Indemnified Costs; provided,
		however, that, except with respect to Seller Indemnified Costs
		resulting from fraud, gross negligence or willful misconduct or failure to pay
		any amount due to Seller Indemnified Parties under any Transaction Document, in
		no event shall each Purchaser’s aggregate obligation to indemnify the
		Seller Indemnified Parties hereunder exceed 50% of the sum of the Purchase
		Price (or portion thereof) paid by such Purchaser as of the date such
		indemnification obligation arises, less any amounts paid as damages by such
		Purchaser under the Company LLC Agreement.
	 

	 
		(c) No claim for indemnification may be made
		with respect to any breach (other than failure to pay an amount due) unless and
		until the aggregate amount of claims for which indemnification is (or
		previously has been) sought exceeds $500,000; provided that, once such
		threshold amount of claims has been reached, the relevant Indemnified Party
		shall have the right to be indemnified for all such claims, including amounts
		that were not previously paid because such threshold amount had not been
		reached.
	 

	 
		6.2 Direct Claims. In any case in
		which an Indemnified Party seeks indemnification under Section 6.1 which
		is not subject to Section 6.3 because no Third Party Claim is involved,
		the Indemnified Party shall notify the Indemnifying Party in writing of any
		amounts which such Indemnified Party claims are subject to indemnification
		under the terms of this Article 6. The failure of the Indemnified Party to
		exercise promptness in such notification shall not amount to a 
	 

	 
		 
	 

	 
		 
	 

	 
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		waiver of such claim, except to the extent
		the resulting delay materially prejudices the position of the Indemnifying
		Party with respect to such claim.
	 

	 
		6.3 Third Party Claims. An Indemnified
		Party shall give written notice to any Indemnifying Party within 30 days
		after it has actual knowledge of commencement or assertion of any action,
		proceeding, demand, or claim by a third party (collectively, a
		“Third Party Claim”) in respect of which such Indemnified Party may
		seek indemnification under Section 6.1. Such notice shall state the nature
		and basis of such Third Party Claim and the events and the amounts thereof to
		the extent known. Any failure so to notify an Indemnifying Party shall not
		relieve such Indemnifying Party from any liability that it, he, or she may have
		to such Indemnified Party under this Article 6, except to the extent the
		failure to give such notice materially and adversely prejudices such
		Indemnifying Party. In case any such action, proceeding or claim is brought
		against an Indemnified Party, so long as it has acknowledged in writing to the
		Indemnified Party that it is liable to the Indemnified Party for such Third
		Party Claim pursuant to this Section, the Indemnifying Party shall be entitled
		to participate in and, unless in the reasonable judgment of the Indemnified
		Party a conflict of interests between it and the Indemnifying Party may exist
		in respect of such Third Party Claim or such Third Party Claim entails a
		material risk of criminal penalties or civil fines or non-monetary sanctions
		being imposed on the Indemnified Party (a “Third Party Penalty Claim”), to assume the defense thereof, with counsel
		selected by the Indemnifying Party and reasonably satisfactory to the
		Indemnified Party, and after notice from the Indemnifying Party to the
		Indemnified Party of its election so to assume the defense thereof, the
		Indemnifying Party shall not be liable to such Indemnified Party for any legal
		or other expenses subsequently incurred by the latter in connection with the
		defense thereof other than as expressly provided below in this
		Section 6.3; provided nothing
		contained herein shall permit any Indemnifying Party to control or participate
		in any Tax contest or dispute involving Purchasers or any Affiliate of
		Purchasers, or permit Purchasers to control or participate in any Tax contest
		or dispute involving Seller or any Affiliate of Seller other than the Company;
		and, provided, further, the
		Parties agree that the handling of any tax contests involving the Company will
		be governed by Section 7.7 of the Company LLC Agreement. In the event that
		(i) the Indemnifying Party advises an Indemnified Party that it will not
		contest a claim for indemnification hereunder, (ii) the Indemnifying Party
		fails, within 30 days of receipt of any indemnification notice to
		notify, in writing, such Indemnified Party of its election, to defend, settle
		or compromise, at is sole cost and expense, any such Third Party Claim (or
		discontinues its defense at any time after it commences such defense) or
		(iii) in the reasonable judgment of the Indemnified Party, a conflict of
		interests between it and the Indemnifying Party exists in respect of such Third
		Party Claim or the action or claim is a Third Party Penalty Claim, then the
		Indemnified Party may, at its option, defend, settle or otherwise compromise or
		pay such action or claim or Third Party Claim. In any event, unless and until
		the Indemnifying Party elects in writing to assume and does so assume the
		defense of any such claim, proceeding or action, the Indemnifying Party shall
		be liable for the Indemnified Party’s reasonable costs and expenses
		arising out of the defense, settlement or compromise of any such action, claim
		or proceeding. The Indemnified Party shall cooperate fully with the
		Indemnifying Party in connection with any negotiation or defense of any such
		action or claim by the Indemnifying Party. The Indemnifying Party shall keep
		the Indemnified Party fully apprised at all times as to the status of the
		defense or any settlement negotiations with respect thereto. If the
		Indemnifying Party elects to defend any such action or claim, then the
		Indemnified Party shall be entitled to participate in such defense with counsel
		of its choice at its sole cost and expense; provided that any such
		participation of the Indemnified Party shall be at 
	 

	 
		 
	 

	 
		 
	 

	 
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		the Indemnifying Party’s sole cost and
		expense to the extent such participation relates to a Third Party Penalty Claim
		or if a conflict of interest between the Indemnified Party and the Indemnifying
		Party exists in respect of the Third Party Claim; and, provided further, that the Indemnifying Party shall not be responsible
		for the costs and expenses of more than one counsel for all Indemnified
		Parties. If the Indemnifying Party does not assume such defense, the
		Indemnified Party shall keep the Indemnifying Party apprised at all times as to
		the status of the defense; provided,
		however, that the failure to keep the Indemnifying Party so
		informed shall not affect the obligations of the Indemnifying Party hereunder.
		The Indemnifying Party shall not be liable for any settlement of any action,
		claim or proceeding effected without its written consent; provided, however, that
		the Indemnifying Party shall not unreasonably withhold, delay or condition its
		consent. Notwithstanding anything in this Section 6.3 to the contrary, the
		Indemnifying Party shall not, without the Indemnified Party’s prior
		written consent, settle or compromise any claim or consent to entry of judgment
		in respect thereof which imposes any criminal liability or civil fine or
		sanction or equitable remedy on the Indemnified Party or which does not
		include, as an unconditional term thereof, the giving by the claimant or the
		plaintiff to the Indemnified Party, a release from all liability in respect of
		such claim.
	 

	 
		6.4 After-Tax Basis. For tax
		reporting purposes, to the maximum extent permitted by the Code, each Party
		will agree to treat all amounts paid under any of the provisions of this
		Article 6 as an adjustment to the purchase price for the Class B
		Membership Interests (or otherwise as a non-taxable reimbursement, contribution
		or return of capital, as the case may be). To the extent any such
		indemnification payment is includable as income of the Indemnified Party as
		determined by agreement of the Parties, or if there is no agreement, by an
		opinion of a nationally-recognized tax counsel selected jointly by the Parties
		that such amount is "more likely than not" includable as income of the
		recipient, the amount of the payment shall be increased by the amount of any
		federal income tax required to be paid by the Indemnified Party or its
		Affiliates on the receipt or accrual of the indemnification payment, including,
		for this purpose, the amount of any such Tax required to be paid by the
		Indemnified Party on the receipt or accrual of the additional amount required
		to be added to such payment pursuant to this Section 6.4, assuming full
		taxability, using an assumed tax rate equal to the highest marginal income tax
		rate applicable to corporations generally (currently 35 percent).
		Both Parties shall have the opportunity to comment on the opinion delivered in
		accordance with the foregoing sentence. If an opinion is delivered in
		accordance with this Section 6.4, the Indemnified Party shall report the
		relevant indemnification payments as income consistent with such opinion and
		otherwise act in a manner consistent with such opinion. Any payment made under
		this Article 6 shall be reduced by the present value (as determined on the
		basis of a discount rate equal to 8% percent per annum and the same assumptions
		about taxability and tax rates) of any federal income tax benefit to be
		realized by the Indemnified Party or its Affiliates by reason of the facts and
		circumstances giving rise to such indemnification. 
	 

	 
		6.5 No Duplication. Any liability
		for indemnification under this Article 6 shall be determined without
		duplication of recovery. Without limiting the generality of the prior sentence,
		if a statement of facts, condition or event constitutes a breach of more than
		one representation, warranty, covenant or agreement which is subject to the
		indemnification obligation in Section 6.1, only one recovery of Purchaser
		Indemnified Costs or Seller Indemnified Costs, as applicable, shall be
		allowed.
	 

	 
		 
	 

	 
		 
	 

	 
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		6.6 Sole Remedy. The remedies
		of the Parties under this Article 6 are the sole and exclusive remedies
		that a Party may have under this Agreement for the recovery of monetary damages
		with respect to any breach or failure to perform any covenant or agreement set
		forth in Article 4 of this Agreement or any breach of any representation
		or warranty set forth in this Agreement other than (1) fraud or willful
		misconduct and (2) as provided in the Company LLC Agreement with respect
		to the calculation of the Target Internal Rate of Return.
	 

	 
		6.7 Survival.
		All representations and warranties in
		this Agreement shall survive until the final date for any assertion of claims
		as forth in Section 6.8.
	 

	 
		6.8 Final Date for Assertion of Indemnity
		Claims. (a) All claims by a
		Purchaser Indemnified Party for indemnification pursuant to this Article 6
		resulting from breaches of representations or warranties shall be forever
		barred unless Seller is notified on or prior to the Initial Closing Date, or on
		or prior to the Galena 3 Closing Date with respect to those representations and
		warranties made as a condition precedent to the Galena 3 Closing, except that
		(i) (x) the representations and warranties made as a condition precedent
		to the Initial Closing and set forth in Sections 3.1(a)(i) (Organization,
		Good Standing, Etc. of Seller), 3.1(a)(ii) (Organization, Good Standing, Etc.
		of the Company and Project Companies), 3.1(a)(iii) (Authority) and 3.1(a)(vi)
		(Ownership) shall survive indefinitely, (y) the representations and
		warranties set forth in Sections 3.1(a)(ix) (Tax Matters) and
		3.1(a)(xxiii) (Tax Character) shall survive for 60 days after the applicable
		statute of limitations and (z) the representations and warranties set
		forth in Section 3.1(a)(xiii) (Environmental Matters) shall survive for
		two years from the Initial Closing Date; (ii) (x) the representations and
		warranties made as a condition precedent to the Galena 3 Closing Date and
		set forth in Sections 3.1(b)(i) (Organization, Good Standing, Etc. of
		Seller), 3.1(b)(ii) (Organization, Good Standing, Etc. of ORNI 14) and
		3.1(b)(iii) (Authority) shall survive indefinitely, (y) the
		representations and warranties set forth in Sections 3.1(b)(vii) (Tax
		Matters) and 3.1(b)(xx) (Tax Character) shall survive for 60 days after the
		applicable statute of limitations and (z) the representations and
		warranties set forth in Section 3.1(b)(x) (Environmental Matters) shall
		survive for two years from the Galena 3 Closing Date; and (iii) the
		representations and warranties made in Section 4.5 (Post Closing
		Deliverables) shall survive for 90 days after the Date Certain.
	 

	 
		(b) All claims by a Seller Indemnified Party
		for indemnification pursuant to this Article 6 resulting from breaches of
		representations or warranties shall be forever barred unless Purchasers are
		notified on or prior to the Initial Closing Date or on or prior to the Galena 3
		Closing Date with respect to those representations and warranties made as a
		condition precedent to the Galena 3 Closing; provided, that,
		if written notice of a claim for indemnification has been given by such Seller
		Indemnified Party on or prior to the Initial Closing Date or the Galena 3
		Closing Date with respect to those representations and warranties made as a
		condition precedent to the Galena 3 Closing, then the obligation of the
		Purchasers to indemnify such Seller Indemnified Party pursuant to this
		Article 6 shall survive with respect to such claim until such claim is
		finally resolved.
	 

	 
		 
	 

	 
		 
	 

	 
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		6.9 Mitigation and Limitations on Losses. Notwithstanding anything to the contrary contained
		herein:
	 

	 
		(a) Reasonable Steps to Mitigate. Each of the Indemnified Parties will take, at the
		Indemnifying Party’s cost and expense, all reasonable commercial steps
		identified by the Indemnifying Party to mitigate all Indemnified Costs, which
		steps may include availing itself of any defenses, limitations, rights of
		contribution, claims against third Persons and other rights at law or equity.
		The Indemnified Parties will provide such evidence and documentation of the
		nature and extent of the Indemnified Costs as may be reasonably requested by
		the Indemnifying Party. 
	 

	 
		(b) Net of Insurance Benefits. All Losses shall be limited to the amount of actual
		out-of-pocket damages sustained by the Indemnified Party by reason of any
		breach or nonperformance hereunder, net of insurance recoveries from insurance
		policies of the Project Companies (including under the existing title
		policies).
	 

	 
		(c) No Consequential Damages. Indemnified Costs shall not include, and the
		Indemnifying Party shall have no obligation to indemnify any Indemnified
		Parties for or in respect of any punitive, consequential or exemplary damages
		of any nature including, but not limited to, damages for lost profits or
		revenues or the loss or use of such profits or revenue, loss by reason of plant
		shutdown or inability to operate at rated capacity, increased operating
		expenses of plant or equipment, increased costs of purchasing or providing
		equipment, materials, labor, services, costs of replacement, power or capital,
		debt service fees or penalties, inventory or use charges, damages to
		reputation, damages for lost opportunities, or claims of any of the Project
		Companies’ customers, members or affiliates, regardless of whether said
		claim is based upon contract, warranty, tort (including negligence and strict
		liability) or other theory of law.
	 

	 
		6.10
		Payment of Indemnification
		Claims. All claims for
		indemnification shall be paid by the Indemnifying Party in immediately
		available funds in U.S. Dollars. Payments for indemnification claims shall
		be made promptly after any final determination of the amount of such claim is
		made by a court of competent jurisdiction (or by agreement of the Parties
		involved). 
	 

	 
		ARTICLE 7
	 

	 
		GENERAL
		PROVISIONS
	 

	 
		7.1
		Exhibits and
		Schedules. All
		Exhibits and Schedules attached hereto are incorporated herein by
		reference.
	 

	 
		7.2
		Disclosure
		Schedules. Any matter disclosed in
		any section of the Schedules shall be deemed disclosed for all purposes and all
		sections of the Schedules to the extent it is readily apparent from a reading
		of the disclosure that such disclosure is applicable to such other sections. At
		any time prior to the Initial Closing, or with respect to any matter relating
		to ORNI 14 or the Galena 3 Project, at any time prior to the Galena 3 Closing,
		by written notice to Purchasers Seller may supplement or amend the Schedules to
		this Agreement for matters which, if existing or known at the Execution Date,
		would have been required to be set forth or described in the Schedules. For all
		purposes of this Agreement, including for purposes of determining whether
		
	 

	 
		 
	 

	 
		 
	 

	 
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		the conditions set forth in Sections 2.6 and 2.8 have been fulfilled, the Schedules shall be deemed to
		include information contained therein on the Execution Date and shall also be
		deemed to include all information contained in any supplement or amendment to
		the Schedules; unless, solely with respect to ORNI 14, anything disclosed
		therein with respect to ORNI 14 would reasonably be expected to have a Material
		Adverse Effect solely on the Galena 3 Project, determined at the reasonable
		discretion of the Purchasers. If the Initial Closing or the Galena 3 Closing,
		as the case may be, shall occur, then all claims with respect to any matters
		disclosed pursuant to any such supplement or amendment at or prior to such
		closing shall be waived and Purchasers shall not be entitled to make a claim
		thereon pursuant to the terms of this Agreement (for indemnification, breach or
		otherwise).
	 

	 
		7.3
		Amendment, Modification and
		Waiver. This Agreement may not be amended or modified except by
		an instrument in writing signed by the Party against which enforcement of such
		amendment or modification is sought. Any failure of Purchasers or Seller to
		comply with any obligation, covenant, agreement, or condition contained herein
		may be waived only if set forth in an instrument in writing signed by the Party
		to be bound thereby, but such waiver or failure to insist upon strict
		compliance with such obligation, covenant, agreement or condition shall not
		operate as a waiver of, or estoppel with respect to, any other failure.
	 

	 
		7.4
		Severability. If any term or
		other provision of this Agreement is invalid, illegal, or incapable of being
		enforced by any rule of Applicable Law, or public policy, all other conditions
		and provisions of this Agreement shall nevertheless remain in full force and
		effect so long as the economic or legal substance of the transactions
		contemplated herein are not affected in any manner materially adverse to any
		Party.
	 

	 
		7.5
		Expenses. Each Party
		will be responsible for all of its own costs, fees and expenses in connection
		with the preparation, negotiation and consummation of the transactions
		contemplated by this Agreement and the other Transaction Documents, whether or
		not the Initial Closing or the Galena 3 Closing occurs. No Party shall be
		responsible for any commission, broker’s fee, finder’s fee or similar
		fee or expense of any other Party.
	 

	 
		7.6
		Parties in
		Interest. This Agreement shall be binding upon and, except as
		provided below, inure solely to the benefit of each Party and their successors
		and assigns, and nothing in this Agreement, express or implied, is intended to
		confer upon any other Person (other than the Indemnified Parties as provided in
		Article 6) any rights or remedies of any nature whatsoever under or by
		reason of this Agreement.
	 

	 
		7.7
		Notices. All notices
		and other communications hereunder shall be in writing and shall be deemed
		given if delivered personally, by a nationally recognized overnight courier, by
		facsimile, or mailed by registered or certified mail (return receipt requested)
		to the Parties at the following addresses (or at such other address for a Party
		as shall be specified by like notice):
	 

	 
		(a) If to Seller, to:
	 

	 
		Ormat Nevada, Inc.
	 

	 
		6225 Neil Road
	 

	 
		Reno, Nevada 89511
	 

	 
		 
	 

	 
		 
	 

	 
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		Attention: Paul Zavesov, Asset
		Manager
	 

	 
		Telephone: (775) 356-9029
	 

	 
		Facsimile: (775) 356-9039
	 

	 
		With a copy to:
	 

	 
		Chadbourne & Parke LLP
	 

	 
		1200 New Hampshire Avenue, NW
	 

	 
		Washington, DC 20036
	 

	 
		Attention: Noam Ayali
	 

	 
		Telephone: (202) 974-5600
	 

	 
		Facsimile: (202) 974-5602
	 

	 
		(b) If to Morgan Stanley Purchaser Entity,
		to:
	 

	 
		Morgan Stanley Geothermal LLC
	 

	 
		1585 Broadway, Floor 04
	 

	 
		New York, NY 10020
	 

	 
		Attention: Jason Cavaliere, Executive
		Director
	 

	 
		Telephone: (212) 761-1385
	 

	 
		Facsimile: (212) 507-4012
	 

	 
		With a copy to:
	 

	 
		Morgan Stanley & Co. Incorporated

	 

	 
		1221 Avenue of the Americas, Floor 40

	 

	 
		New York, NY 10036
	 

	 
		Attention: Duane Hughes, Executive
		Director
	 

	 
		Telephone: (212) 762-5032
	 

	 
		Facsimile: (212) 507-0423
	 

	 
		(c) If to Lehman Brothers Purchaser Entity,
		to:
	 

	 
		Lehman-OPC LLC
	 

	 
		c/o Lehman Brothers
	 

	 
		745 7th Ave, 5th Floor
	 

	 
		New York, NY 10019
	 

	 
		Attention: Carl Weatherley-White
	 

	 
		Telephone: (212) 526-4041
	 

	 
		Facsimile: (212) 834-4754
	 

	 
		All notices and other communications given
		in accordance herewith shall be deemed given (i) on the date of delivery,
		if hand delivered, (ii) on the date of receipt, if faxed (provided a hard
		copy of such transmission is dispatched by first class mail within 48
		hours), (iii) 3 Business Days after the date of mailing, if mailed by
		registered or certified mail, return receipt requested, and (iv) 1
		Business Day after the date of sending, if sent by a nationally recognized
		overnight courier; provided,
		that a notice given in accordance with this Section 7.7
		but received on any day other 
	 

	 
		 
	 

	 
		 
	 

	 
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		than a Business Day or after business hours
		in the place of receipt, will be deemed given on the next Business Day in that
		place.
	 

	 
		7.8
		Counterparts. This Agreement
		may be executed and delivered (including by facsimile transmission) in one or
		more counterparts, all of which shall be considered one and the same agreement
		and shall become effective when one or more counterparts have been signed by
		each of the Parties and delivered to the other Parties, it being understood
		that all Parties need not sign the same counterpart.
	 

	 
		7.9
		Entire
		Agreement. This Agreement
		(together with the other Transaction Documents) constitutes the entire
		agreement of the Parties and supersedes all prior agreements, letters of intent
		and understandings, both written and oral, among the Parties with respect to
		the subject matter hereof. 
	 

	 
		7.10
		GOVERNING LAW; CHOICE OF FORUM;
		WAIVER OF JURY TRIAL. THIS AGREEMENT
		SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
		NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN
		SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH SHALL APPLY
		TO THIS AGREEMENT). THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE
		JURISDICTION OF ANY STATE OR FEDERAL COURT IN NEW YORK WITH RESPECT TO ANY
		ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY
		HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION, SUIT
		OR PROCEEDING RELATING TO A DISPUTE AND FOR ANY COUNTERCLAIM WITH RESPECT
		THERETO.
	 

	 
		7.11
		Public
		Announcements. Except for statements made or press releases issued
		(i) pursuant to the Securities Act of 1933 or the Securities Exchange
		Act of 1934, (ii) pursuant to any listing agreement with any national
		securities exchange or the National Association of Securities Dealers, Inc., or
		(iii) as otherwise required by law, neither Seller nor Purchasers shall
		issue, or permit any of their respective Affiliates to issue, any press release
		or otherwise make any public statements with respect to this Agreement or the
		transactions contemplated hereby without the prior written consent of the other
		Parties. Seller and Purchasers will have the right to review in advance all
		information relating to the transactions contemplated by the Transaction
		Documents that appear in any filing made in connection with the transactions
		contemplated hereby or thereby.
	 

	 
		7.12
		Assignment. This Agreement
		and all of the provisions hereof will be binding upon and inure to the benefit
		of the Parties and their respective successors and permitted assigns. This
		Agreement may only be assigned to the same extent (and only by and to the same
		Persons) that membership interests in the Company are assignable pursuant to
		the terms of the Company LLC Agreement. Any attempted assignment of this
		Agreement other than in strict accordance with this Section and the terms of
		the Company LLC Agreement shall be null and void and of no force or
		effect.
	 

	 
		 
	 

	 
		 
	 

	 
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		7.13 Relationship of Parties. This Agreement
		does not constitute a joint venture, association or partnership between the
		Parties. No express or implied term, provision or condition of this Agreement
		shall create, or shall be deemed to create, an agency, joint venture,
		partnership or any fiduciary relationship between the Parties.
	 

	 
		7.14
		Intent of the
		Parties. The Parties intend, for federal income tax purposes,
		that the acquisition of the Class B Membership Interests is an acquisition
		of an undivided interest in the Projects and a contribution to the Company of
		such undivided interest.
	 

	 
		[Remainder of page intentionally left
		blank. Signature pages to follow.]
	 

	 
		 
	 

	 
		-31-
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, each Party hereto has
		caused this Agreement for Purchase of Membership Interests to be signed on its
		behalf as of the date first written above.
	 

	 
		 
	 

	 
			 	
				
				  ORMAT NEVADA, INC.
				

			 
	 	 	 
	 	
				
				  By:  
				

			 	
				
				   
				

			 
	 	
				
				  Name:  
				

			 	
				
				   
				

			 
	 	
				
				  Title:  
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			 	
				
				  MORGAN STANLEY GEOTHERMAL
				  LLC
				

			 
	 	 	 
	 	
				
				  By:  
				

			 	
				
				   
				

			 
	 	
				
				  Name:  
				

			 	
				
				   
				

			 
	 	
				
				  Title:  
				

			 	
				
				   
				

			 

 

	  

	 	 	 
	 	
			 
				LEHMAN-OPC LLC
			 

		  
	 	 	 
	 	
			 
				By:  
			 

		  	
			 
				 
			 

		  
	 	
			 
				Name:  
			 

		  	
			 
				 
			 

		  
	 	
			 
				Title:  
			 

		  	
			 
				 
			 

		  

	 
		
 
 [Signature page to Agreement for Purchase of Membership
		Interests in OPC LLC]
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX I
	 

	 
		DEFINITIONS
	 

	 
		“Affiliate”
		means, with respect to any Person, any other Person controlling, controlled by
		or under common control with such first Person. For purposes of this definition
		and the Agreement, (a) the term “control” (and correlative
		terms) means (1) the ownership of 50% or more of the equity interest
		in a Person, or (2) the power, whether by contract, equity ownership or
		otherwise, to direct or cause the direction of the policies or management of a
		Person, and (b) the Company shall be deemed to be an Affiliate of Seller
		prior to the Initial Closing (for purposes of representations and warranties),
		but shall not be deemed to be an Affiliate of Seller or Purchasers from and
		after the Initial Closing.
	 

	 
		“Agreement”
		means this Agreement for Purchase of Class B Membership Interests, and all
		schedules and exhibits hereto.
	 

	 
		“Applicable Law” means any constitution, statute, law, rule,
		regulation, ordinance, judgment, order, decree or governmental approval, or any
		published directive or requirement which has the force of law, or other
		governmental restriction which has the force of law, or any determination by,
		or interpretation of any of the foregoing by, any judicial authority,
		applicable to and/or binding on the Seller, the Company, the Project Companies,
		or the Purchasers, as the context may require, whether in effect as of the
		Initial Closing Date or the Galena 3 Closing Date, and in each case as amended,
		modified and/or supplemented.
	 

	 
		“Assignment Agreement” means the Assignment of Membership Interests,
		dated as of the Initial Closing Date, by and among Purchasers, Seller and the
		Company.
	 

	 
		“Base Case Model” has the meaning set forth in the Company LLC
		Agreement. The Base Case Model will be updated in connection with the Galena 3
		Closing as described in Schedule 2.2(b)(ii).
	 

	 
		“Business Day” means any day other than (i) a Saturday or
		Sunday or (ii) a day on which commercial banks in New York, New York are
		authorized or required to be closed.
	 

	 
		“Class B Membership Interests” has the meaning set forth in the Company LLC
		Agreement.
	 

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

	 
		“Company”
		has the meaning set forth in the preamble to this Agreement.
	 

	 
		“Company Interim Financials” has the meaning set forth in
		Section 3.1(a)(x).
	 

	 
		“Company LLC Agreement” means the Amended and Restated Limited Liability
		Company Agreement of the Company by and between Seller and Purchasers,
		substantially in the form annexed as Exhibit C,
		dated the Initial Closing Date.
	 

	 
		“Confidentiality Agreements” has the meaning set forth in Section 4.2.
		
	 

	 
		 
	 

	 
		A-1
	 

	 
		 
	 

	 
	 

	 

	 
		“Date Certain” means April 30, 2008.
	 

	 
		“Desert Peak 2 Project” means the 12 MW geothermal power project owned by
		ORNI 3 as described on Schedule 1.
	 

	 
		“Effective Time” has the meaning set forth in
		Section 2.3.
	 

	 
		“Environmental Law” means any and all Applicable Laws and permits
		issued, promulgated or entered into by any governmental entity relating to the
		environment, the protection or preservation of human health or safety,
		including the health and safety of employees, the preservation or reclamation
		of natural resources, or the management, release or threatened release of
		Hazardous Substances.
	 

	 
		“ERISA”
		means the United States Employee Retirement Income Security Act of 1974,
		as amended.
	 

	 
		“Execution Date” means June 7, 2007.
	 

	 
		“Exhibits”
		means the Exhibits attached to the Agreement.
	 

	 
		“FERC” means
		the Federal Energy Regulatory Commission.
	 

	 
		“Galena 2 Project” means the 10 MW geothermal power project owned by
		Steamboat Hills as described on Schedule 1.
	 

	 
		“Galena 3 Closing” means the closing of the simultaneous transfer by
		Seller of all of the issued and outstanding membership interests in ORNI 14 to
		the Company and the payment by Purchasers to Seller of the Galena 3 Closing
		Payment.
	 

	 
		“Galena 3 Closing Date” has the meaning set forth in
		Section 2.4.
	 

	 
		“Galena 3 Closing Payment” has the meaning set forth in
		Section 2.2.
	 

	 
		“Galena
		3 Commercial Operation Date” means
		the date on which the Galena 3 Project substation is energized from the
		transmission system and its turbines are commissioned and ready for
		operation.
	 

	 
		“Galena 3 Effective Time” has the meaning set forth in
		Section 2.4.
	 

	 
		“Galena 3 Project” means the 17 MW geothermal power project owned by
		ORNI 14 as described on Schedule 1.
	 

	 
		“GAAP” means
		United States generally accepted accounting principles as recognized by the
		American Institute of Certified Public Accountants, as in effect from time to
		time, consistently applied and maintained on a consistent basis for a Person
		throughout the period indicated and consistent with such Person’s prior
		financial practice.
	 

	 
		 
	 

	 
		A-2
	 

	 
		 
	 

	 
	 

	 

	 
		“Governmental Authority” means any governmental department, commission,
		board, bureau, agency, court or other instrumentality of any country, state,
		province, county, parish or municipality, jurisdiction, or other political
		subdivision thereof.
	 

	 
		“Hazardous Substances” means (A) any hazardous materials, hazardous
		wastes, hazardous substances, toxic wastes, solid wastes, and toxic substances
		as those or similar terms are defined under any Environmental Laws;
		(B) any friable asbestos or friable asbestos-containing material;
		(C) polychlorinated biphenyls (“PCBs”), or
		PCB-containing materials or fluids; (D) radon; (E) any petroleum,
		petroleum hydrocarbons, petroleum products, crude oil and any fractions or
		derivatives thereof; and (F) any  any other hazardous, radioactive,
		toxic or noxious substance, material, pollutant, or contaminant that, whether
		by its nature or its use, is subject to regulation or giving rise to liability
		under any Environmental Laws.
	 

	 
		“Indemnified Party” means any Person seeking indemnification from
		another Person pursuant to Article 6.
	 

	 
		“Indemnifying Party” means any Person against whom a claim for
		indemnification is asserted by another Person pursuant to
		Article 6.
	 

	 
		“Independent Engineer” means Stone & Webster Management Consultants,
		Inc. 
	 

	 
		“Initial Closing” has the meaning set forth in
		Section 2.3.
	 

	 
		“Initial Closing Date” means the date of the Initial Closing. 
	 

	 
		“Initial Closing Payment” has the meaning set forth in
		Section 2.2.
	 

	 
		“Interim Financials” has the meaning set forth in
		Section 3.1(a)(x).
	 

	 
		“IRS” means
		the Internal Revenue Service of the United States of America.
	 

	 
		“Knowledge", with
		respect to Seller, means the actual knowledge, after due inquiry, of the
		persons listed below with respect to the subject matter(s) set forth below and
		the knowledge each such Person would have as a result of reasonable inquiries
		of employees of Seller with supervisory or managerial responsibilities related
		to such matters. 
	 

	 
		 
	 

	 
			
				
				  Name
				

			 	 	
				
				  Subject Matter
				

			 
	
				
				  Yoram Bronicki, Chief Operating
				  Officer
				

			 	 	
				
				  Sections 3.1(a)(i) through
				  (xxviii) and (b) (i) through (xxiv)
				

			 
	
				
				  Scott Kessler,
				  Environmental/Regulatory Affairs Administrator
				

			 	 	
				
				  Sections 3.1(a)(xiii), (xiv),
				  (xxiv) and (xxvi)
 Sections 3.1(b)(x), (xi), (xxi) and (xxiii)
				

			 

 

	 
		 
	 

	 
		A-3
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  Name
				

			 	 	
				
				  Subject Matter
				

			 
	
				
				  Paul Zavesov, Asset Manager
				

			 	 	
				
				  Sections 3.1(a)(vii), (xv),
				  (xvi), (xvii), (xviii), (xix), (xx), (xxi), (xxii), (xxiv) and
				  (xxvi)
 Sections 3.1(b)(vi), (xii),
				  (xiii), (xiv), (xv), (xvi), (xvii), (xviii), (xix), (xxi) and (xxiii)
				

			 

 

	 
		“Known Geothermal Resource Area” has the meaning set forth in
		Section 3.3.
	 

	 
		“Liens”
		means any liens, pledges, claims, security interests, encumbrances, easements,
		rights-of-way, mortgages, deeds of trust, covenants, restrictions, rights of
		first refusal or defects in title.
	 

	 
		“Manager”
		has the meaning set forth in the Company LLC Agreement.
	 

	 
		“Management Services Agreement” means the Management Services Agreement dated the
		date hereof between the Manager and the Company, substantially in the form
		annexed as Exhibit D.
	 

	 
		“Material Adverse Effect” means (1) a material adverse effect on the
		business, assets, liabilities, financial condition or results of operations of
		the Project Companies, taken as a whole, excluding any effect resulting from
		(a) any change in political, social, economic, industry, market or
		financial conditions (including changes in the electric generating,
		transmission or distribution industry, the wholesale or retail markets for
		electrical power, the general state of the energy industry, including natural
		gas and natural gas liquid prices, the transmission system, interest rates,
		consumer confidence, outbreak of hostilities, terrorist activities or war),
		whether general or regional in nature or limited to any area in which the
		Projects are located or any of the Project Companies operate, (b) any
		change in Applicable Law or regulatory policy, (c) effects of weather or
		meteorological events, or (d) the execution or delivery of the Transaction
		Documents, the consummation of the transactions contemplated thereby or the
		announcement thereof, other than such changes or events that affect the Seller,
		the Company and the Project Companies materially disproportionally; or
		(2) an actual reduction of $5,000,000 or more on the net present value of
		the Tax Credits and distributable cash from the Projects over the 10 years from
		the Initial Closing Date. The net present value will be calculated by
		discounting to the Initial Closing Date the Tax Credits and distributable cash
		received to the date of the calculation and discounting such remaining Tax
		Credits and cash to the end of the 10-year period that are projected in the
		Base Case Model using a discount rate of 6.24%.
	 

	 
		“Material Contract” means (1) a contract for the sale of
		electric energy or transmission services of a Project; (2) a contract,
		lease, indenture or security under which 
	 

	 
		 
	 

	 
		A-4
	 

	 
		 
	 

	 
	 

	 

	 
		the Company or any Project Company
		(a) has created, incurred, assumed or guaranteed any indebtedness for
		borrowed money or obligations under any lease that, in accordance with GAAP,
		should be capitalized, (b) has created a mortgage, security interest or
		other consensual encumbrance on any property with a fair market value in excess
		of $4,000,000 (other than any Permitted Liens), or (c) has a reimbursement
		obligation in respect of any letter of credit, guaranty, bond, or other credit
		or collateral support arrangement required to be maintained by any Project
		Company under the terms of any contract referred to in clause (1) above;
		(3) a contract for management, operation or maintenance of a Project;
		(4) a product warranty or repair contract by or with a manufacturer or
		vendor of equipment owned or leased by a Project Company with a fair market
		value in excess of $4,000,000; and (5) any other contract that could
		require payments of more than $4,000,000, in the aggregate for any Project
		Company during any fiscal year.
	 

	 
		“Newmont Easement” means the Easement Agreement for Electrical
		Transmission Line, dated September 27, 2002, between WSGC and Newmont
		Mining Corporation.
	 

	 
		“Newmont Lease” means the Geothermal Lease Agreement, dated
		October 14, 2003, between WSGC and Newmont Mining Corporation.
	 

	 
		“Newmont Right of Way” means the Right of Way, dated February 6, 2004,
		between WSGC and Newmont Mining Corporation.
	 

	 
		“Operation and Maintenance Agreements” means, collectively, the Amended and Restated
		Operation and Maintenance Agreements between the Seller or an Affiliate of
		Seller and each Project Company, attached hereto as Exhibit E.
	 

	 
		“Operator”
		has the meaning provided in the Operation and Maintenance Agreements.
	 

	 
		“Ordinary Course of Business” means the ordinary conduct of business consistent
		with past custom and practice (including with respect to quantity and
		frequency).
	 

	 
		“Organizational Documents” means articles of incorporation, certificate of
		incorporation, charter, bylaws, articles of organization, formation or
		association, regulations, operating agreement, certificate of limited
		partnership, partnership agreement, and all other similar documents,
		instruments or certificates executed, adopted, or filed in connection with the
		creation, formation or organization of a Person, including any amendments
		thereto.
	 

	 
		“ORNI 3” has
		the meaning set forth in Schedule 1.
	 

	 
		“ORNI 14”
		has the meaning set forth in Schedule 1.
	 

	 
		“Party”
		means a party to the Agreement.
	 

	 
		“Permitted Liens” means (a) liens for taxes not yet due or
		that are being contested in good faith by appropriate proceedings,
		(b) carriers’, warehousemen’s, mechanics’,
		materialmen’s, repairmen’s, employees’, contractors’,
		operators’ or other similar liens or charges securing the payment of
		expenses not yet due and payable that were incurred in the 
	 

	 
		 
	 

	 
		A-5
	 

	 
		 
	 

	 
	 

	 

	 
		Ordinary Course of Business of each Project
		Company, (c) trade contracts or other obligations of a like nature
		incurred in the Ordinary Course of Business of each Project Company,
		(d) obligations or duties to any Governmental Authority arising in the
		Ordinary Course of Business (including under licenses and permits held by the
		Project Companies and under Applicable Law), (e) obligations or duties
		under easements, leases or other property rights, and (f) all other
		encumbrances and exceptions that are incurred in the Ordinary Course of
		Business of each Project, are not incurred for borrowed money and do not have a
		Material Adverse Effect on either the use of any assets of the Project
		Companies as currently used or the value of any such assets.
	 

	 
		“Person”
		means an individual, corporation, partnership, limited liability company,
		association, trust, unincorporated organization, or other entity.
	 

	 
		“Post Closing Deliverables” means each of the following items:
	 

	 
		(i) the Frase Consent to the Sublease dated
		June 1, 2007, between WSGC and ORNI 3;
	 

	 
		(ii) the transfer of the Newmont Easement,
		or rights thereunder, from WSGC to ORNI 3 and the consent of Newmont Mining to
		such transfer;
	 

	 
		(iii) the transfer of the Newmont Lease, or
		rights thereunder, from WSGC to ORNI 3 and the consent of Newmont Mining to
		such transfer;
	 

	 
		(iv) the transfer of Right of Way Agreement
		(N-20001), dated June 20, 1979, between Phillips Petroleum and Nevada
		Bureau of Land Management, from WSGC to ORNI 3 and the consent of the Bureau of
		Land Management to such transfer;
	 

	 
		(v) the transfer of Right of Way Agreement
		(N-39518), dated October 25, 1984, between Phillips Petroleum and
		Winnemucca Bureau of Land Management, from WSGC to ORNI 3 and the consent of
		the Bureau of Land Management to such transfer;
	 

	 
		(vi) the transfer of the Powerline License
		Agreement (4-07-20-L3010), dated June 19, 1985, between Phillips Petroleum
		Company and U.S. Department of the Interior, Bureau of Land Reclamation "BLR",
		from WSGC to ORNI 3, with the consent of the BLR to such transfer or the
		reissuance of such license in the name of ORNI 3 by the BLR;
	 

	 
		(vii) the transfer of rights under the
		Letter Agreement regarding Longitudinal Easements, dated June 14, 2002,
		between Burlington Northern and Stante Fe Railway Company, from WSGC to ORNI 3,
		with the consent of Burlington Northern to such transfer;
	 

	 
		(viii) the issuance of the Desert
		Peak 2 Title Policy without any exceptions for any of the foregoing items
		(i) through (vii) above;
	 

	 
		 
	 

	 
		A-6
	 

	 
		 
	 

	 
	 

	 

	 
		(ix) a surveyor’s certification in form
		and substance reasonably acceptable to the Purchasers; and
	 

	 
		(x) the transfer of the Newmont Right of
		Way.
	 

	 
		“Project Companies” means, each of ORNI 3, Steamboat Hills and ORNI
		14, provided, however, that
		for the purposes of Sections 2.6 and 3.1(a) and prior to the Galena 3
		Closing Date, Project Companies shall be deemed to include only ORNI 3 and
		Steamboat Hills. 
	 

	 
		“Projects”
		means the geothermal power projects described on Schedule 1.
	 

	 
		“PUHCA” has
		the meaning set forth in Section 3.1(a)(xxvi).
	 

	 
		“Purchase Price” has the meaning set forth in
		Section 2.2.
	 

	 
		“Purchasers”
		has the meaning set forth in the first paragraph of the Agreement.
	 

	 
		“Purchaser Indemnified Costs” means, subject to Article 6 of this
		Agreement, any and all damages, losses, claims, liabilities, demands, charges,
		suits, Taxes, penalties, costs, and reasonable expenses (including court costs
		and reasonable attorneys’ fees and expenses of one law firm (plus one firm
		of local counsel in any jurisdiction where a Project is located), for all
		Purchaser Indemnified Parties, incurred by any of the Purchaser Indemnified
		Parties resulting from or relating to (i) any breach or default by Seller
		of any representation, warranty, covenant, indemnity or agreement under this
		Agreement or any other Transaction Document or (ii) any claim for fraud,
		gross negligence, or willful misconduct relating to this Agreement or any
		Transaction Document.
	 

	 
		“Purchaser Indemnified Parties” means Purchasers and each of their respective
		Affiliates and each of their respective shareholders, members, officers,
		directors, employees, agents, and other representatives, and their respective
		successors and assigns.
	 

	 
		“PURPA” has
		the meaning set forth in Section 3.1(a)(xxiv).
	 

	 
		“Schedules”
		means the Schedules attached to this Agreement.
	 

	 
		“Seller” has
		the meaning set forth in the first paragraph of this Agreement.
	 

	 
		“Seller Indemnified Costs” means, subject to Article 6 of this
		Agreement, any and all damages, losses, claims, liabilities, demands, charges,
		suits, Taxes, penalties, costs, and reasonable expenses (including court costs
		and reasonable attorneys’ fees and expenses of one law firm for all Seller
		Indemnified Parties) incurred by any of the Seller Indemnified Parties
		resulting from or relating to (i) any breach or default by any Purchaser
		of any representation, warranty, covenant, indemnity or agreement under this
		Agreement or any other Transaction Document or (ii) any claim for fraud or
		willful misconduct relating to this Agreement or any Transaction
		Document.
	 

	 
		 
	 

	 
		A-7
	 

	 
		 
	 

	 
	 

	 

	 
		“Seller Indemnified Parties” means Seller and each of its Affiliates and each
		of their respective shareholders, members, officers, directors, employees,
		agents, and other representatives, and their respective successors and
		assigns.
	 

	 
		“Seller Interim Financials” has the meaning set forth in
		Section 3.1(a)(x).
	 

	 
		“Specified Leases or Easements” means each of the following leases or easements:
		(i) the Newmont Lease Agreement; (ii) the Newmont Easement; (iii) the
		Newmont Right of Way; (iv) Right of Way Agreement (N-20001) and (v) Right
		of Way Agreement (N-39518).
	 

	 
		“Steamboat Hills” has the meaning set forth in
		Schedule 1.
	 

	 
		“Steamboat Hills Project” means the 10 MW geothermal power project owned by
		Steamboat Hills as described on Schedule 1.
	 

	 
		“Tax” or
		"Taxes” means any taxes, assessments, fees and other
		governmental charges imposed by any Governmental Authority, including income,
		profits, gross receipts, net proceeds, alternative or add-on minimum, ad
		valorem, value added, turnover, sales, use, property, personal property
		(tangible and intangible), environmental, stamp, leasing, lease, user, excise,
		duty, franchise, capital stock, transfer, registration, license, withholding,
		social security (or similar), unemployment, disability, payroll, employment,
		fuel, excess profits, occupational, premium, windfall profit, severance,
		estimated, or other tax of any kind whatsoever, including any interest,
		penalty, or addition thereto, whether disputed or not.
	 

	 
		“Tax Credits” means the renewable electricity production tax
		credits within the meaning of Section 45 of the Code or any successor to
		such Section.
	 

	 
		“Tax Returns” means any return, report, statement, information
		return or other document (including any amendments thereto and any related or
		supporting information) filed or required to be filed with any Governmental
		Authority in connection with the determination, assessment, collection or
		administration of any Taxes or the administration of any laws, regulations or
		administrative requirements relating to any Taxes.
	 

	 
		“Third Party Claim” has the meaning set forth in
		Section 6.2.
	 

	 
		“Transaction Documents” has the meaning set forth in the Company LLC
		Agreement. 
	 

	 
		“WSGC” means
		Western States Geothermal Company, a Delaware corporation.
	 

	 
		OTHER DEFINITIONAL PROVISIONS
	 

	 
		(b) All terms in this Agreement shall have
		the defined meanings when used in any certificate or other document made or
		delivered pursuant hereto unless otherwise defined therein.
	 

	 
		(c) As used in this Agreement and in any
		certificate or other documents made or delivered pursuant hereto or thereto,
		accounting terms not defined in this Agreement or in any 
	 

	 
		 
	 

	 
		A-8
	 

	 
		 
	 

	 
	 

	 

	 
		such certificate or other document, and
		accounting terms partly defined in this Agreement or in any such certificate or
		other document to the extent not defined, shall have the respective meanings
		given to them under GAAP. To the extent that the definitions of accounting
		terms in this Agreement or in any such certificate or other document are
		inconsistent with the meanings of such terms under GAAP, the definitions
		contained in this Agreement or in any such certificate or other document shall
		control.
	 

	 
		(d) The words “hereof”,
		“herein”, “hereunder”, and words of similar import when
		used in this Agreement shall refer to this Agreement as a whole and not to any
		particular provision of this Agreement. Section references contained in
		this Agreement are references to Sections in this Agreement unless
		otherwise specified. The term “including” shall mean “including
		without limitation”.
	 

	 
		(e) The definitions contained in this
		Agreement are applicable to the singular as well as the plural forms of such
		terms and to the masculine as well as to the feminine and neuter genders of
		such terms.
	 

	 
		(f) Any agreement, instrument or statute
		defined or referred to herein or in any instrument or certificate delivered in
		connection herewith means such agreement, instrument or statute as from time to
		time amended, modified or supplemented and includes (in the case of agreements
		or instruments) references to all attachments thereto and instruments
		incorporated therein. 
	 

	 
		(g) Any references to a Person are also to
		its permitted successors and assigns.
	 

	 
		(h) All Article and Section titles
		or captions contained in this Agreement or in any Exhibit or
		Schedule referred to herein and the table of contents of this Agreement
		are for convenience only and shall not be deemed a part of this Agreement or
		affect the meaning or interpretation of this Agreement. Unless otherwise
		specified, all references herein to numbered Articles and
		Sections are to Articles and Sections of this Agreement, as
		applicable, and all references herein to Schedules or Exhibits are to
		Schedules and Exhibits to this Agreement.
	 

	 
		(i) Unless otherwise specified, all
		references contained in this Agreement, in any Exhibit or
		Schedule referred to herein or in any instrument or document delivered
		pursuant hereto to dollars or “$” shall mean United States
		dollars.
	 

	 
		(j) The Parties have participated jointly in
		the negotiation and drafting of this Agreement. In the event an ambiguity or
		question of intent or interpretation arises, this Agreement shall be construed
		as if drafted jointly by the Parties and no presumption or burden of proof
		shall arise favoring or disfavoring any Party by virtue of the authorship of
		any of the provisions of this Agreement. 
	 

	 
		 
	 

	 
		A-9
	 

	 
		 
	 

	 
	 

	 

	 
		Exhibit A
	 

	 
		[Reserved]
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Exhibit B
	 

	 
		[Reserved]
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Exhibit C
	 

	 
		Company LLC Agreement
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Exhibit D
	 

	 
		Form of Management Services
		Agreement
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Exhibit E
	 

	 
		Operation and Maintenance
		Agreements
	 

	 
		 
	 

Schedule 1

Project Companies and Projects

Prior to the Galena 3 Closing:

 

	
      Name of Project Company
 	
      Project
 	
      Location of Project
 	
      Generating Capacity (MW)
 	
      PPA Offtaker
 	
      PPA End Date
 
	
                        ORNI 3, LLC
 	
                        Desert Peak 2
 	
                        Churchill County, Nevada
 	
                        12
 	
                        Nevada Power Company
 	
                        2027
 
	
                        Steamboat Hills, LLC
 	
                        Galena 2
 	
                        Washoe County, Nevada
 	
                        10
 	
                        Nevada Power Company
 	
                        2027
 
	
                        Steamboat Hills, LLC
 	
                        Steamboat Hills
 	
                        Washoe County, Nevada
 	
                        10
 	
                        Sierra Pacific Power Company
 	
  2018
 

 

After the Galena 3 Closing:

 

	
      Name of Project Company
 	
      Project
 	
      Location of Project
 	
      Generating Capacity (MW)
 	
      PPA Offtaker
 	
      PPA End Date
 
	
                        ORNI 3, LLC
 	
                        Desert Peak 2
 	
                        Churchill County, Nevada
 	
                        12
 	
                        Nevada Power Company
 	
                        2027
 
	
                        Steamboat Hills, LLC
 	
                        Galena 2
 	
                        Washoe County, Nevada
 	
                        10
 	
                        Nevada Power Company
 	
                        2027
 
	
                        Steamboat Hills, LLC
 	
                        Steamboat Hills
 	
                        Washoe County, Nevada
 	
                        10
 	
                        Sierra Pacific Power Company
 	
                        2018
 
	
                        ORNI 14, LLC 
 (“ORNI 14”)
 	
                        Galena 3
 	
                        Washoe County, Nevada
 	
                        17
 	
                        Sierra Pacific Power Company
 	
  2028*
 

 

	
                        *
 	
                        The Galena 3 power purchase agreement will expire twenty years from January 1 following the commercial operations date. The expiration date presented above is based on current expectations regarding the commercial operations date of the Galena 3 Project.
 

 

 

 

Schedule 2.1

Initial Closing Payment

 

	
      Purchaser
 	
      Initial Closing Payment
 	
      Class B Membership Interests
 
	
                        Morgan Stanley Geothermal, LLC
 	
                        $50,260,000
 	
                        70%
 
	
                        Lehman-OPC LLC
 	
                        $21,540,000
 	
  30%
 

 

Schedule 2.2(b)(ii)

Galena 3 Purchase Price Adjustment Example

See attachment.

 

 

 

Schedule 3.1(a)(v)

Absence of Litigation

None.

 

 

 

Schedule 3.1(a)(vii)

Sufficiency of Assets

See Schedule 3.1(a)(xvi) in relation to the Post Closing Deliverables and extensions required.

 

 

 

Schedule 3.1(a)(x)

Interim Financials

See attachment.

 

 

 

Schedule 3.1(a)(xii)

Compliance with Applicable Law

None.

 

 

 

Schedule 3.1(a)(xiii)

Environmental Matters

Our Steamboat Hills Project was recently advised by the Washoe County Water Department that certain changes had been observed in the course of the County’s monitoring of well chemistry and was asked to explain why this was occurring. In the course of our investigation, we discovered that a liner in a geothermal fluid injection well failed, resulting in injection of the spent geothermal fluid at a higher depth than the designed and permitted depth for such injection. The Washoe County Water Department and the State of Nevada have also indicated their concern that the injection well may be situated near a geological fault, which may also be causing the movement of injected fluid into a higher zone of the groundwater aquifer. We engaged an outside geothermal consultant to examine the situation and have since completed the well repair work. We have agreed with the State of Nevada to conduct an
expanded monitoring program and to continue to study the issue. If it should be determined that the injection well location is not acceptable, it may be necessary to drill a new injection well to manage the spent geothermal fluids.

 

 

 

Schedule 3.1(a)(xiv)

Permits

ORNI 3 LLC

Class II Air Quality Operating Permit (AP4911-0503.01) issued on September 8, 2003 by Nevada Bureau of Air Pollution Control

Environmental Permit Audit (EMA Report 1816-04) dated December 2000, issued by Environmental Management Associates, Inc.

Boiler/Pressure Vessel Permit (06-0293) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations, Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0294A) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0294B) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0294C) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0294D) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0295A) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0295B) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0296) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0297A) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

 

 

 

Boiler/Pressure Vessel Permit (06-0297B) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0297C) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0297D) dated June 12, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0298A) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0298B) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0298C) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0298D) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0299) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0300) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Boiler/Pressure Vessel Permit (06-0301) dated June 13, 2006, issued by Nevada Department of Business and Industry, Division of Industrial Relations Occupational Safety and Health Administration Mechanical Unit

Nevada Hazardous Materials Storage Permit Renewal Invoice dated May 9, 2007, issued by Nevada State Fire Marshall (including Hazardous Materials Storage Permit Number 52247-55093 dated May 1, 2007.

Certificate of Occupancy, dated July 12, 2006, issued by Churchill County Building Department

Permit to Construct (UEPA No. 339), dated January 6, 2006, issued by Public Utilities Commission of Nevada

 

 

 

Special Use Permit (004-051-21) Approval Letter, dated March 14, 2003, issued by Churchill County Planning Commission

Steamboat Hills, LLC

Galena II

Commercial Use Permit Application Report issued by the U.S. Department of the Interior, Bureau of Land Management

Geothermal Sundry Notice Approval (N-63124, N-61835) dated October 21, 2005, issued by U.S. Department of the Interior, Bureau of Land Management

Special Use Permit Action Order (SW05-021) dated January 4, 2006, issued by Washoe County Community Development Division

Authority to Construct/Permit to Operate Galena II (A06-0042) Approval Letter dated July 7, 2006, issued by Washoe County Health Department, Air Quality Division

Stormwater General Permit (NVR100000) Approval Letter dated July 28, 2006, issued by Nevada Division of Environmental Protection

Amended Plan for Production and Plan of Utilization Approval Letter dated August 8, 2006, issued by U.S. Forest Service

Permit to Operate an Air Pollution Emission Source (CO1174A, CO1897A) expires February 29, 2008, issued by Washoe County Health Department, Air Quality Division (including the Steamboat Hills Emissions April 2007 Report dated April 22, 2007)  

Permit to Operate Galena II Authorization Letter dated April 10, 2007, issued by Nevada Bureau of Waste Management, Chemical Accident Prevention Program

Building Permit (06-1109), dated July 10, 2006, issued by Washoe County Department of Building and Safety (includes Building Inspection Record, dated March 21, 2007)

Notice of Final Action Letter, dated February 9, 2006, issued by Truckee Meadows Regional Planning Agency

Steamboat Hills 

Commercial Use Permit Application Report issued by U.S. Department of the Interior, Bureau of Land Management

Modification of Landscape and Parking Requirements Approval Letter dated June 13, 2006, issued by Washoe County Community Development Division

Authority to Construct/Permit to Operate SBHE (A06-0036) Approval Letter dated July 7, 2006, issued by Washoe County Health Department, Air Quality Division

 

 

 

Building Permit dated July 10, 2006, issued by Washoe County Department of Building and Safety

Permit to Operate SBHE Authorization Letter dated April 10, 2007, issued by Nevada Bureau of Waste Management, Chemical Accident Prevention Program

Building Permit (06-1109), dated July 10, 2006, issued by Washoe County Department of Building and Safety (includes Building Inspection Record, dated March 21, 2007)

Notice of Final Action Letter, dated February 9, 2006, issued by Truckee Meadows Regional Planning Agency

 

 

 

Schedule 3.1(a)(xv)

Insurance

ORNI 3 LLC

	
                        •
 	
                        Commercial General Liability Insurance, policy No. B070380, effective May 30, 2007 through May 30, 2008.
 

	
                        •
 	
                        Excess Umbrella Liability Insurance, policy No. 07/FL00899, effective May 30, 2007 through May 30, 2008.
 

	
                        •
 	
                        Workers Compensation and Employers’ Liability Insurance, policy No. WCJZ91445179027, effective June 1, 2007 through June 1, 2008.
 

	
                        •
 	
                        Automobile Insurance, policy No. 57UENTM6394, effective June 1, 2007 through June 1, 2008.
 

	
                        •
 	
                        All-Risk Insurance, policy No. B070034, effective May 30, 2007 through May 30, 2008.
 

Steamboat Hills, LLC

	
                        •
 	
                        Title Insurance, policy No. NCS-91388-RENO, issued on June 7, 2007 in the amount of $64,000,000 by First American Title Insurance Company to ORNI 3 LLC.
 

	
                        •
 	
                        Commercial General Liability Insurance, policy No. B070380, effective May 30, 2007 through May 30, 2008.
 

	
                        •
 	
                        Excess Umbrella Liability Insurance, policy No. 07/FL00899, effective May 30, 2007 through May 30, 2008.
 

	
                        •
 	
                        Workers Compensation and Employers’ Liability Insurance, policy No. WCJZ91445179027, effective June 1, 2007 through June 1, 2008.
 

	
                        •
 	
                        Automobile Insurance, policy No. 57UENTM6394, effective June 1, 2007 through June 1, 2008.
 

	
                        •
 	
                        All-Risk Insurance, policy No. B070034, effective May 30, 2007 through May 30, 2008.
 

 

 

 

Schedule 3.1(a)(xvi)

Real Property 

ORNI 3 LLC

	
                        •
 	
                        Sublease Agreement, dated as of June 1, 2007, by and between Western States Geothermal Company and ORNI 3 LLC and Memorandum of Sublease Agreement dated as of June 1, 2007 between said parties.
 

Post Closing Deliverables

	
                        (i)
 	
                        The Frase Consent to the Sublease dated June 1, 2007, between WSGC and ORNI 3.
 

	
                        (ii)
 	
                        The transfer of the Easement Agreement for Electrical Transmission Line, dated September 27, 2002, between WSGC and Newmont Mining Corporation, or rights thereunder from WSGC to ORNI 3 and the consent of Newmont Mining to such transfer.
 

	
                        (iii)
 	
                        The transfer of the Geothermal Lease Agreement, dated October 14, 2003, between WSGC and Newmont Mining Corporation, or rights thereunder from WSGC to ORNI 3, and the consent of Newmont Mining to such transfer, or the grant of separate rights from Newmont Mining to Orni 3.
 

	
                        (iv)
 	
                        The transfer of an undivided interest in Right of Way Agreement (N-20001), dated June 20, 1979, between Phillips Petroleum and Nevada Bureau of Land Management, from WSGC to ORNI 3 and the consent of the Bureau of Land Management to such transfer.
 

	
                        (v)
 	
                        The transfer of an undivided interest in Right of Way Agreement (N-39518), dated October 25, 1984, between Phillips Petroleum and Bureau of Land Management, from WSGC to ORNI 3, and the consent of the Bureau of Land Management to such transfer.
 

	
                        (vi)
 	
                        The transfer of the Powerline License Agreement (4-07-20-L3010), dated June 19, 1985, between Phillips Petroleum Company and U.S. Department of the Interior, Bureau of Land Reclamation “BLR”, from WSGC to ORNI 3, with the consent of the BLR to such transfer or the reissuance of such license in the name of ORNI 3 by the BLR.
 

	
                        (vii)
 	
                        The transfer of rights under the Letter Agreement regarding Longitudinal Easements, dated June 14, 2002, between Burlington Northern and Santa Fe Railway Company, from WSGC to ORNI 3, with the consent of Burlington Northern to such transfer, or a grant of separate rights to ORNI 3.
 

	
                        (viii)
 	
                        The issuance of a title policy covering the Desert Peak 2 Project which includes the above items (i) through (vii) above in Schedule A to such policy.
 

Extensions Required

	
                        (i)
 	
                        Right of Way Agreement (N-20001), dated June 20, 1979, between Phillips Petroleum and Nevada Bureau of Land Management.
 

	
                        (ii)
 	
                        Right of Way Agreement (N-39518), dated October 25, 1984, between Phillips Petroleum and Bureau of Land Management.
 

Steamboat Hills, LLC

 

 

 

	
                        •
 	
                        The estates and interests shown on Schedule A of the pro forma title insurance policy attached hereto as Annex 1 to this Schedule 3.1(a)(xvi).
 

 

 

 

Schedule 3.1(a)(xvii)

Personal Property

ORNI 3 LLC

 

	
                         
 	
                         
 	
                        Description
 	
                         
 	
                        Make
 	
                         
 	
                        Model
 	
                         
 	
                        Serial No.
 	
                         
 
	
                        OEC 1
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.10.800.0
 	
                         
 	
                        691-3
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.10.801.0
 	
                         
 	
                        691-2
 	
                         
 
	
                         
 	
                         
 	
                        Generator
 	
                         
 	
                        Brush
 	
                         
 	
                        Type DGBP 60/50 exciter
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Vaporizer
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.55.705.0
 	
                         
 	
                        1159-2
 	
                         
 
	
                         
 	
                         
 	
                        Vaporizer
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.55.715.0
 	
                         
 	
                        1159-1
 	
                         
 
	
                         
 	
                         
 	
                        Brine Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.57.700.0
 	
                         
 	
                        2126-1
 	
                         
 
	
                         
 	
                         
 	
                        Brine Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.57.702.0
 	
                         
 	
                        2126-2
 	
                         
 
	
                         
 	
                         
 	
                        Condensate Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.57.701.0
 	
                         
 	
                        2127-1
 	
                         
 
	
                         
 	
                         
 	
                        Condensate Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.57.701.0
 	
                         
 	
                        2127-2
 	
                         
 
	
                         
 	
                         
 	
                        Air cooled condenser
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Air cooled condenser
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Vertical Cycle Pumps 4 ea.
 	
                         
 	
                        Ruhrpumpen, INC.
 	
                         
 	
                        F-PUMP, 12 STAGE, 1352 gpm
 	
                         
 	
                         
 	
                         
 
	
                        OEC 2
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.10.800.0
 	
                         
 	
                        691-1
 	
                         
 
	
                         
 	
                         
 	
                        Generator
 	
                         
 	
                        IDEAL
 	
                         
 	
                        Type SAB Frame 21520-54
 	
                         
 	
                        041046-01
 	
                         
 
	
                         
 	
                         
 	
                        Vaporizer
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.30.610.0
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Brine Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0697516170-4
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Condensate Preheater
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        0.697.60.805.0
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Water Cooled Condenser
 	
                         
 	
                        Ormat Systems LTD.
 	
                         
 	
                        J35803
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Vertical Cycle Pumps 2 ea.
 	
                         
 	
                        Ruhrpumpen, INC.
 	
                         
 	
                        F-PUMP, 12 STAGE, 1352 gpm
 	
                         
 	
                         
 	
                         
 

 

 

 

	
                        BOP
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Brine Injection Pumps 3 ea.
 	
                         
 	
                        Ruhrpumpen, INC.
 	
                         
 	
                        SCE 8x10x19m
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Cooling Water Pumps 2 ea.
 	
                         
 	
                        SIEMENS
 	
                         
 	
                        449-S
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        OEC-2 Cooling Tower
 	
                         
 	
                        American Cooling Tower
 	
                         
 	
                        CFF-545434-21-32//25-503
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Brine Accumulator
 	
                         
 	
                        Sejin Heavy Industries Co., LTD.
 	
                         
 	
                        V-3102 
 	
                         
 	
                        SHI - P0S - 032
 	
                         
 
	
                         
 	
                         
 	
                        Steam Separator
 	
                         
 	
                        Sejin Heavy Industries Co., LTD.
 	
                         
 	
                        V-3101A
 	
                         
 	
                        SHI - P0S - 030
 	
                         
 
	
                         
 	
                         
 	
                        Steam Separator
 	
                         
 	
                        Sejin Heavy Industries Co., LTD.
 	
                         
 	
                        V-3101B
 	
                         
 	
                        SHI - P0S - 031
 	
                         
 
	
                        Electrical
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Step Up Transformer
 	
                         
 	
                        Wakesha Electrical System
 	
                         
 	
                        Onan 3 ph, 60 Hz
 	
                         
 	
                        A5522T
 	
                         
 
	
                         
 	
                         
 	
                        Switchgear
 	
                         
 	
                        Powercon Corp.
 	
                         
 	
                        S-18521, D-11900
 	
                         
 	
                        01-29337
 	
                         
 
	
                         
 	
                         
 	
                        MCC
 	
                         
 	
                        Allen Bradley
 	
                         
 	
                        Bulletin 2100
 	
                         
 	
                        M FLN 92/3 Series M
 	
                         
 

Steamboat Hills, LLC

Galena 2

 

	
                         
 	
                         
 	
                        Description
 	
                         
 	
                        Make
 	
                         
 	
                        Model
 	
                         
 	
                        Serial No.
 	
                         
 
	
                        OEC 21
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.736.25.500.0
 	
                         
 	
                        718-1
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.736.25.500.0
 	
                         
 	
                        718-2
 	
                         
 
	
                         
 	
                         
 	
                        Generator
 	
                         
 	
                        Brush
 	
                         
 	
                        DG 1652-04
 	
                         
 	
                        410040
 	
                         
 
	
                         
 	
                         
 	
                        Vaporizer
 	
                         
 	
                        Sejin Heavy Ind.
 	
                         
 	
                         
 	
                         
 	
                        SHI-P05-65
 	
                         
 
	
                         
 	
                         
 	
                        Brine Preheater
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.736.57.700.0
 	
                         
 	
                        2137
 	
                         
 
	
                         
 	
                         
 	
                        Condensate Preheater
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.736.57.710.0
 	
                         
 	
                        2138
 	
                         
 
	
                         
 	
                         
 	
                        Air Cooled Condenser
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        7110
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        Vertical Cycle Pumps 4ea.
 	
                         
 	
                        Weir
 	
                         
 	
                        VTP
 	
                         
 	
                        60306-1,2,3,4
 	
                         
 
	
                        Electrical
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 

 

 

 

	
                         
 	
                         
 	
                        Power Shelter
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.736.30.900.0
 	
                         
 	
                        086
 	
                         
 
	
                         
 	
                         
 	
                        Switchgear
 	
                         
 	
                        Powercon Corp.
 	
                         
 	
                        Various
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        MCC
 	
                         
 	
                        Allen Bradley Corp.
 	
                         
 	
                        Bulletin 2100
 	
                         
 	
                        Various
 	
                         
 

Steamboat Hills

 

	
                         
 	
                         
 	
                        Description
 	
                         
 	
                        Make
 	
                         
 	
                        Model
 	
                         
 	
                        Serial No.
 	
                         
 
	
                        STG
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Steam Turbine
 	
                         
 	
                        General Electric Corp.
 	
                         
 	
                        Marine low pressure
 	
                         
 	
                        51057
 	
                         
 
	
                         
 	
                         
 	
                        Generator
 	
                         
 	
                        Westinghouse
 	
                         
 	
                        HG-7
 	
                         
 	
                        11492A-46410
 	
                         
 
	
                         
 	
                         
 	
                        Direct Contact Condenser
 	
                         
 	
                        NA
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Condensate Pumps 2 ea.
 	
                         
 	
                        Peerless Pump Co.
 	
                         
 	
                        28 HXB
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        Vacuum Pump
 	
                         
 	
                        Nash
 	
                         
 	
                        904L2 S.S.
 	
                         
 	
                        9600 L18
 	
                         
 
	
                         
 	
                         
 	
                        Steam Separator
 	
                         
 	
                        NA
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Brine Injection Pumps 2ea.
 	
                         
 	
                        Goulds
 	
                         
 	
                        3410 12x14-15 XL
 	
                         
 	
                        Various
 	
                         
 
	
                        OEC 41
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Turbine
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.746.25.500.0
 	
                         
 	
                        7196
 	
                         
 
	
                         
 	
                         
 	
                        Generator
 	
                         
 	
                        KATO
 	
                         
 	
                        AA27826000
 	
                         
 	
                        18376
 	
                         
 
	
                         
 	
                         
 	
                        Vaporizer
 	
                         
 	
                        Whasung Industry Co.
 	
                         
 	
                         
 	
                         
 	
                        WSIC-D06-002
 	
                         
 
	
                         
 	
                         
 	
                        Brine Preheater
 	
                         
 	
                        Whasung Industry Co.
 	
                         
 	
                         
 	
                         
 	
                        WSIC-D06-001
 	
                         
 
	
                         
 	
                         
 	
                        Water Cooled Condenser
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.746.60.702.0
 	
                         
 	
                        3019-12
 	
                         
 
	
                         
 	
                         
 	
                        Vertical Cycle Pump
 	
                         
 	
                        Goulds
 	
                         
 	
                        VIC-T
 	
                         
 	
                        512363
 	
                         
 
	
                        BOP
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Cooling Tower
 	
                         
 	
                        Marley
 	
                         
 	
                        587-98-03
 	
                         
 	
                        587-12-525-88
 	
                         
 
	
                         
 	
                         
 	
                        Cooling Water Circulation Pumps 2ea.
 	
                         
 	
                        Goulds
 	
                         
 	
                        10-22-06
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        24-4 Steam Separator System
 	
                         
 	
                        Whasung Industry Co.
 	
                         
 	
                         
 	
                         
 	
                        WSIC-D06-010,012
 	
                         
 
	
                         
 	
                         
 	
                        21 Wells Steam Separator
 	
                         
 	
        Whasung
          Industry Co.

      	
                         
 	
                         
 	
                         
 	
                        WSIC-D06-006,009
 	
                         
 

 

 

 

	
                         
 	
                         
 	
                        System
 	
                         
 	
                        Whasung Industry Co.
 	
                         
 	
                         
 	
                         
 	
                        WSIC-D06-006,009
 	
                         
 
	
                         
 	
                         
 	
                        Brine Injection Pumps 3ea.
 	
                         
 	
                        Ruhrpumpen
 	
                         
 	
                        10x8x13 CPP-21
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        Electrical
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Step Up Transformer
 	
                         
 	
                        Ohio Transformer Corp.
 	
                         
 	
                        Class OA/FA/FOA
 	
                         
 	
                        F-961420
 	
                         
 
	
                         
 	
                         
 	
                        STG Switchgear
 	
                         
 	
                        Powercon Corp.
 	
                         
 	
                        Various
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        STG MCC
 	
                         
 	
                        Allen Bradley
 	
                         
 	
                        Bulletin 2100
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        OEC 21 Switchgear
 	
                         
 	
                        Powercon Corp.
 	
                         
 	
                        Various
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        OEC 21 MCC
 	
                         
 	
                        Allen Bradley
 	
                         
 	
                        Bulletin 2100
 	
                         
 	
                        Various
 	
                         
 
	
                         
 	
                         
 	
                        OEC Power Shelter
 	
                         
 	
                        Ormat Systems Ltd.
 	
                         
 	
                        0.746.30.900.0
 	
                         
 	
                        089
 	
                         
 

 

 

 

 

Schedule 3.1(a)(xviii)

Liens

None.

 

 

Schedule 3.1(a)(xix)

Material Contracts

ORNI 3 LLC

	
                         
 	
                        •
 	
                        Power Purchase Agreement for Firm Power, dated November 21, 2002, between ORNI 3, LLC and Nevada Power Company, as amended by Letter Amendment No. 2 to the Power Purchase Agreement, dated as of August 20, 2003, as amended by Amendment No. 3 to Power Purchase Agreement, dated as of October 7, 2004, as amended by Amendment No. 4 to Power Purchase Agreement, dated as of May 21, 2007.
 

	
                         
 	
                        •
 	
                        Operation and Maintenance Agreement, dated as of March 8, 2007, by and between Ormat Nevada, Inc. and ORNI 3, LLC, as amended and restated by the Amended and Restated Operation and Maintenance Agreement, dated as of June 7, 2007
 

	
                         
 	
                        •
 	
                        Fluid Supply Agreement, dated as of June 1, 2007, by and between Western States Geothermal Company and ORNI 3, LLC
 

	
                         
 	
                        •
 	
                        Standard Large Generator Interconnection Agreement, dated January 4, 2005, between ORNI 3, LLC and Sierra Pacific Power Company, as amended by the First Amendment to Large Generator Interconnection Agreement, dated as of August 16, 2005
 

Steamboat Hills, LLC

	
                         
 	
                        •
 	
                        Long Term Agreement for the Purchase and Sale of Electricity, dated October 29, 1986, between Steamboat Hills, LLC (as successor to Yankee Caithness Joint Venture) and Sierra Pacific Power Company, as amended by Amendmennt No. 1 to Long-Term Agreement for the Purchase and Sale of Electricity, dated May 31, 2007.
 

	
                         
 	
                        •
 	
                        Operation and Maintenance Agreement, dated as of June 2, 2004, by and between Ormat Nevada, Inc. and Steamboat Hills, LLC, as amended by Amendment No. 1 to Operation and Maintenance Agreement, dated as of March 8, 2007, as amended and restated by the Amended and Restated Operation and Maintenance Agreement, dated as of June 7, 2007
 

	
                         
 	
                        •
 	
                        Special Facilities Agreement, dated September 8, 1987, between Steamboat Hills, LLC (as successor to Yankee Caithness Joint Venture) and Sierra Pacific Power Company
 

	
                         
 	
                        •
 	
                        Station Usage Renewable Energy Credit Purchase Agreement, dated October 14, 2004, between Steamboat Hills LLC and Sierra Pacific Power Company
 

	
                         
 	
                        •
 	
                        Power Purchase Agreement for Firm Power, dated November 21, 2002, between Steamboat Hills LLC (as successor by merger to ORNI 9, LLC) and Nevada Power Company, as amended by Amendment No. 1 to the ORNI 9 LLC Power Purchase Agreement, dated as of June 2003, as amended by Letter Amendment No. 2, dated August 20, 2003, as amended by Amendment No. 3 to Power Purchase Agreement, dated as of October 7, 2004, as amended by Amendment No. 4 to Power Purchase Agreement, dated as of May 21, 2007
 

	
                         
 	
                        •
 	
                        Standard Small Generator Interconnection Agreement, dated April 11, 2006, between Steamboat Hills, LLC (as successor by merger to ORNI 9, LLC) and Sierra Pacific Power Company
 

 

 

Schedule 3.1(a)(xxi)

Affiliate Transactions

ORNI 3, LLC

	
                        •
 	
                        Operation and Maintenance Agreement, dated as of March 8, 2007, by and between Ormat Nevada, Inc. and ORNI 3, LLC, as amended and restated by the Amended and Restated Operation and Maintenance Agreement, dated as of June 7, 2007
 

	
                        •
 	
                        Fluid Supply Agreement, dated as of June 1, 2007, by and between Western States Geothermal Company and ORNI 3, LLC
 

	
                        •
 	
                        Sublease Agreement, dated as of June 1, 2007, by and between Western States Geothermal Company and ORNI 3 LLC
 

Steamboat Hills, LLC

	
                        •
 	
                        Operation and Maintenance Agreement, dated as of June 2, 2004, by and between Ormat Nevada, Inc. and Steamboat Hills, LLC, as amended by Amendment No. 1 to Operation and Maintenance Agreement, dated as of March 8, 2007, as amended and restated by the Amended and Restated Operation and Maintenance Agreement, dated as of June 7, 2007
 

 

 

 

Schedule 3.1(a)(xxii)

Completion

ORNI 3, LLC

Desert Peak 2

	
        •

      	
                        August 4, 2006 - Connection to the grid
 

	
        •

      	
                        April 17, 2007 - Commercial Operation Date
 

Steamboat Hills, LLC

Steamboat Hills - April 25, 2007. 

Ormat is currently constructing a pipeline to connect the Steamboat Hills plant to an additional injection well. This construction is expected to be completed within three months of the Initial Closing Date. Until such well is connected and operational, Steamboat Hills will have a shortfall of 3MW of generation.

Galena 2 – April 22, 2007

 

 

 

Schedule 3.1(a)(xxviii)

Background Materials

ORNI 3 LLC

Organizational Documents

	
        •

      	
                        Capital Contributions Receipt for 1,000 units at $100 by Ormat Nevada, Inc.
 

  	
        •

      	
        Certificate
          of Formation and LLC Agreement, dated December 14, 2000, issued by Delaware
          Office of the Secretary of State

      

  	
        •

      	
        Member
          Units Register, dated December 14, 2000, issued by Ormat Nevada, Inc.

      

  	
        •

      	
        Limited
          Liability Company Charter and Articles of Organization (LLC 806-0),
          dated January 22, 2003, issued by Nevada Office of the Secretary of
          State

      

Real Estate Documents

  	
        •

      	
        Right
          of Way Agreement (N-20001), dated June 20, 1979, between Phillips Petroleum
          and Nevada Bureau of Land Management

      

  	
        •

      	
        Right
          of Way Agreement (N-39518), dated October 25, 1984, between Phillips
          Petroleum and Winnemucca Bureau of Land Management

      

  	
        •

      	
        Powerline
          License Agreement (4-07-20-L3010), dated June 19, 1985, between Phillips
          Petroleum Company and U.S. Department of the Interior, Bureau of Land
          Reclamation (including Right of Way Application Amendment Letter, dated
          July 23, 1984)

      

  	
        •

      	
        Letter
          Agreement For Longitudinal Easements, dated June 14, 2002, between Burlington
          Northern and Santa Fe Railway Company, issued by Western States Geothermal
          Company

      

  	
        •

      	
        Easement
          Agreement for Electrical Transmission Line, dated September 27, 2002,
          between Western States Geothermal Company and Newmont Mining Corporation

      

  	
        •

      	
        Lease
          Agreement, dated October 14, 2003, by and between Western States Geothermal
          Company and Newmont Mining Corporation

      

  	
        •

      	
        Memorandum
          of Geothermal Lease Agreement, dated October 14, 2003, by and between
          Western States Geothermal Company and Newmont Mining Corporation

      

  	
        •

      	
        Assignment
          of Right of Way Agreement (N-20001), dated January 21, 2004, between
          Western States Geothermal Company and Brady Power Partners

      

  	
        •

      	
        Right
          of Way Permit, dated February 19, 2004, by and among Newmont Mining
          Corporation, Brady Power Partners and Western States Geothermal Company

      

  	
        •

      	
        Powerline
          Easement Preliminary Title Report (03-27284-06), dated March 27, 2006,
          issued by Western Nevada Title Company

      

  	
        •

      	
        Sublease
          Agreement, dated June 1, 2007, by and between Western States Geothermal
          Company and ORNI 3 LLC

      

Federal Energy Regulatory Commission (FERC) Documents

 

  	
        •

      	
        Notice
          of Self-Certification of Qualifying Facility Status for Small Power
          Production Facility, dated February 22, 2006, by ORNI 3 LLC

      

  	
        •

      	
        Notice
          of Self-Certification of Qualifying Facility Status for Small Power
          Production Facility, dated May 29, 2007, by ORNI 3 LLC

      

Other Documents (LGIA, PPA, O&M Agreements, and other Agreements)

  	
        •

      	
        Power
          Purchase Agreement for Firm Power (05-00033), dated November 21, 2002,
          between Nevada Power Company and ORNI 3 LLC

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power Amendment 1, dated July 10, 2003,
          between Nevada Power Company and ORNI 3 LLC

      

  	
        •

      	
        Power
          Purchase Agreement Letter Amendment Number 2, dated August 19, 2003
          between Nevada Power Company and ORNI 3 LLC

      

  	
        •

      	
        Amendment
          Number 3 to Power Purchase Agreement, dated October 7, 2004, between
          Nevada Power Company and ORNI 3 LLC

      

  	
        •

      	
        Amendment
          Number 4 to Power Purchase Agreement, dated May 21, 2007, between Nevada
          Power Company and ORNI 3 LLC

      

  	
        •

      	
        Large
          Generator Interconnection Agreement, dated January 5, 2005, between
          Sierra Pacific Power Company and ORNI 3 LLC

      

  	
        •

      	
        First
          Amendment to Large Generator Interconnection Agreement, dated August
          16, 2005, between Sierra Pacific Power Company and ORNI 3 LLC

      

  	
        •

      	
        License
          to Energize Line Agreement, dated March 20, 2006, between Ormat Nevada,
          Inc. and Sierra Pacific Power Company

      

  	
        •

      	
        Interconnection
          Facilities Studies Agreement, dated October 30, 2006, between ORNI 14
          LLC and Sierra Pacific Power Company

      

  	
        •

      	
        Operation
          and Maintenance Agreement, dated March 8, 2007, between ORNI 3 LLC and
          Ormat Nevada, Inc.

      

  	
        •

      	
        Amended
          and Restated Operation and Maintenance Agreement between ORNI 3 LLC
          and Ormat Nevada, Inc. (Unexecuted Exection Version)

      

  	
        •

      	
        Fluid
          Supply Agreement, dated June 1, 2007, between Western States Geothermal
          Company and ORNI 3 LLC

      

Environmental Documents

  	
        •

      	
        Fluid
          Supply Agreement, dated June 1, 2007, between Western States Geothermal
          Company and ORNI 3 LLC

      

  	
        •

      	
        Class
          II Air Quality Operating Permit (AP4911-0503.01) issued on September
          8, 2003, by Nevada Bureau of Air Pollution Control

      

  	
        •

      	
        Environmental
          Permit Audit (EMA Report 1816-04), dated December 2000, issued by Environmental
          Management Associates, Inc.

      

  	
        •

      	
        Special
          Use Permit (004-051-21) Approval Letter, dated March 14, 2003, issued
          by Churchill County Planning Commission

      

  	
        •

      	
        Permit
          to Construct (UEPA No. 339), dated January 6, 2006, issued by Public
          Utilities Commission of Nevada

      

 

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0293), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations, Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0294A), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0294B), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0294C), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0294D), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0295A), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0295B), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0296), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0297A), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0297B), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0297C), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

Environmental Documents

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0297D), dated June 12, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0298A), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0298B), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

 

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0298C), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0298D), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0299), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0300), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Boiler/Pressure
          Vessel Permit (06-0301), dated June 13, 2006, issued by Nevada Department
          of Business and Industry, Division of Industrial Relations Occupational
          Safety and Health Administration Mechanical Unit

      

  	
        •

      	
        Certificate
          of Occupancy, dated July 12, 2006, issued by Churchill County Building
          Department

      

  	
        •

      	
        Injection
          Permit (UNEV 40019) Report, dated February 2, 2007, prepared by Ormat
          Nevada, Inc.

      

  	
        •

      	
        Nevada
          Hazardous Materials Storage Permit Renewal Invoice dated May 9, 2007,
          issued by Nevada State Fire Marshall (including Hazardous Materials
          Storage Permit Number 52247-55093 dated May 1, 2007.

      

  	
        •

      	
        Visible
          Emissions Testing Report, dated May 23, 2007, issued by Tetra Tech

      

Steamboat Hills LLC

Organizational Documents

  	
        •

      	
        Amendment
          of Limited Partnership of Yankee Caithness Joint Venture Certificate
          dated June 7, 2004, issued by Delaware Office of the Secretary of State

      

  	
        •

      	
        Transfer
          of Water Rights Agreement and Water Rights Quitclaim Deed, dated July
          28, 2005, between Caithness Power, Inc. and Caithness Power Water Rights
          LLC (DV-3261149, DV-3261150), (includes ancillary documents, e.g. 27
          conveyances, title abstracts and declarations of value)

      

  	
        •

      	
        Sale
          and Purchase Agreement, dated September 12, 2005, by and among Caithness
          Operating Company LLC, Caithness Power, Inc. and Steamboat Hills LP

      

Organizational Documents

  	
        •

      	
        Plan
          of Merger Agreement, dated December 1, 2005, by and among Steamboat
          Hills LLC, Caithness Operating Water Rights LLC and ORNI 9 LLC (includes
          ancillary documents, e.g. Steamboat Hills LLC Certificate of Formation
          (2167446), dated December 1, 2005; ORNI 9 LLC Certificate of Merger
          (with Caithness Operating Water Rights, Caithness Power Water Rights,
          and Steamboat Hills LLC) (3554306), dated December 1, 2005)

      

 

  	
        •

      	
        Steamboat
          Hills LLC Certificate of Conversion from a Limited Partnership (2167446),
          dated December 1, 2005 (includes ancillary documents, e.g. Articles
          of Conversion issued by Nevada Office of the Secretary of State; Transfer
          Instrument between Caithness Operating Company LLC and Steamboat Hills
          LP, dated September 12, 2005)

      

  	
        •

      	
        Steamboat
          Hills LLC Application for Registration of Foreign Limited Liability
          Company, dated December 1, 2005

      

  	
        •

      	
        Limited
          Liability Company Agreement, dated as of December 1, 2005, by and between
          Steamboat Hills LLC and Ormat Nevada, Inc.

      

Real Estate Documents

  	
        •

      	
        Building
          Permit (06-1109), dated July 10, 2006, issued by Washoe County Department
          of Building and Safety (includes Building Inspection Record, dated March
          21, 2007)

      

Environmental Documents

  	
        •

      	
        Commercial
          Use Permit Application Report issued by the U.S. Department of the Interior,
          Bureau of Land Management

      

  	
        •

      	
        Geothermal
          Sundry Notice Approval (N-63124, N-61835) dated October 21, 2005, issued
          by U.S. Department of the Interior, Bureau of Land Management

      

  	
        •

      	
        Geothermal
          Sundry Notice and Report on Wells, Notice of Intention to Change Plans,
          dated October 19, 2005, submitted by Ormat Nevada, Inc. 

      

  	
        •

      	
        Special
          Use Permit Action Order (SW05-021), dated January 4, 2006, issued by
          Washoe County Community Development Division

      

  	
        •

      	
        Notice
          of Final Action Letter, dated February 9, 2006, issued by Truckee Meadows
          Regional Planning Agency

      

  	
        •

      	
        Letter
          Regarding ORMAT Nevada Pipeline Project, dated June 5, 2006, issued
          by U.S. Department of the Interior, Fish and Wildlife Services 

      

  	
        •

      	
        Modification
          of Landscape and Parking Requirements Approval Letter, dated June 13,
          2006, issued by Washoe County Community Development Division

      

  	
        •

      	
        Authority
          to Construct/Permit to Operate Galena II (A06-0042) Approval Letter,
          dated July 7, 2006, issued by Washoe County Health Department, Air Quality
          Division

      

  	
        •

      	
        Building
          Permit, dated July 10, 2006, issued by Washoe County Department of Building
          and Safety

      

  	
        •

      	
        Certificate
          of Occupancy, dated July 12, 2006, issued by Churchill County Building
          Department

      

  	
        •

      	
        Stormwater
          General Permit (NVR100000) Approval Letter, dated July 28, 2006, issued
          by Nevada Division of Environmental Protection

      

  	
        •

      	
        Amended
          Plan for Production and Plan of Utilization Approval Letter, dated August
          8, 2006, issued by U.S. Forest Service

      

  	
        •

      	
        Permit
          to Operate an Air Pollution Emission Source (CO1174A, CO 1897A), expires
          February 29, 2008, issued by Washoe County Health Department, Air Quality
          Division (including the Steamboat Hills Emissions April 2007 Report
          dated April 22, 2007) 

      

 

  	
        •

      	
        Permit
          to Operate Galena II Authorization Letter, dated April 10, 2007, issued
          by Nevada Bureau of Waste Management, Chemical Accident Prevention Program

      

  	
        •

      	
        Steamboat
          Phase I Environmental Site Assessment (Report No. 2016-01), including
          Appendices A-J, dated May 2007, issued by Environmental Management Associates,
          Inc.

      

Federal Energy Regulatory Commission (FERC) Documents

  	
        •

      	
        Steamboat
          Hills, LP, Notice of Name Change and Self Re-certification (QF87-383-004),
          dated June 10, 2004

      

  	
        •

      	
        Steamboat
          Hills LLC, Notice of Self Re-certification (QF87-383-005), dated December
          20, 2005

      

  	
        •

      	
        List
          of Steamboat Hills FERC Certifications (QF87-383), dated March 13, 2007

      

Other Documents (LGIA, PPA, O&M Agreements, and other Agreements)

  	
        •

      	
        Long
          Term Agreement for the Purchase and Sale of Electricity, dated November
          17, 1986, between Sierra Pacific Power Company and Steamboat Hills,
          LLC

      

  	
        •

      	
        Amendment
          Number 1 to Long Term Agreement for the Purchase and Sale of Electricity,
          dated May 31, 2007, between Sierra Pacific Power Company and Steamboat
          Hills, LLC

      

  	
        •

      	
        Special
          Facility Agreement, dated September 8, 1987, between Sierra Pacific
          Power and Yankee Caithness Joint Venture

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power, dated November 21, 2002, between
          Nevada Power Company and ORNI 9, LLC

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power, Amendment 1, dated July 10, 2003,
          between Nevada Power Company and ORNI 9 LLC

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power, Letter Amendment 2, dated August
          19, 2003, between Nevada Power Company and ORNI 9 LLC

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power, Amendment 3, dated October 7, 2004,
          between Nevada Power Company and ORNI 9 LLC

      

  	
        •

      	
        Power
          Purchase Agreement for Firm Power, Amendment 4, dated as of May 21,
          2007, between Nevada Power Company and ORNI 9 LLC

      

  	
        •

      	
        Operation
          and Maintenance Agreement, dated June 2, 2004, between Steamboat Hills,
          L.P. and Ormat Nevada, Inc., as amended by Amendment No. 1, dated March
          8, 2007

      

  	
        •

      	
        Amended
          and Restated Operation and Maintenance Agreement, dated March 30, 2007,
          between Steamboat Hills, LP and Ormat Nevada, Inc.

      

  	
        •

      	
        Second
          Amended and Restated Operation and Maintenance Agreement between Steamboat
          Hills, LP and Ormat Nevada, Inc. (Unexecuted Execution Version)

      

  	
        •

      	
        Purchase
          Agreement, dated October 14, 2004, between Sierra Pacific Power Company
          and Steamboat Hills, LP, 

      

  	
        •

      	
        Small
          Standard Generator Interconnection Agreement, dated April 6, 2006 between
          Sierra Pacific Power Company and ORNI 9, LLC

      

OPC

 

  	
        •

      	
        Limited
          Liability Company Agreement of OPC LLC, dated as of January 31, 2007,
          by and between OPC LLC and Ormat Nevada, Inc.

      

  	
        •

      	
        OPC
          LLC Proforma Balance Sheets, dated as of March 31, 2007

      

  	
        •

      	
        OPC
          LLC Proforma Balance Sheets (for Three Months Ending March 31, 2007),
          dated March 31, 2007

      

  	
        •

      	
        Management
          Services Agreement by and between OPC LLC and Ormat Nevada, Inc. (Unexecuted
          Execution Version)

      

Ormat Nevada, Inc.

  	
        •

      	
        Report
          on Audits of Consolidated Financial Statements for Ormat Nevada, Inc.
          and Subsidiaries, dated March 29, 2007, prepared by PricewaterhouseCoopers
          LLC

      

  	
        •

      	
        Ormat
          Nevada, Inc. and Subsidiaries Consolidated Balance Sheets, dated March
          31, 2007

      

  	
        •

      	
        Insurance
          Due Diligence Summary for OPC Portfolio Monetization, dated May 29,
          2007, prepared by Moore-McNeil LLC

      

Base Case Model

  	
        •

      	
        Model
          v19i (posted on 6/7/07 and last circulated 11:02 a.m)EXECUTION COPY

================================================================================

                              CLARKE AMERICAN CORP.
                  (TO BE RENAMED HARLAND CLARKE HOLDINGS CORP.)

             AND EACH OF THE CO-ISSUERS AND GUARANTORS PARTY HERETO

                     9.50% SENIOR FIXED RATE NOTES DUE 2015

                       SENIOR FLOATING RATE NOTES DUE 2015

                                   ----------

                                    INDENTURE

                             Dated as of May 1, 2007

                                   ----------

                             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)......................................................         12.03
   (c)......................................................         12.03
313(a)......................................................         7.06
   (b)(2)...................................................      7.06; 7.07
   (c)......................................................      7.06; 12.02
   (d)......................................................         7.06
314(a)......................................................   4.03;12.02; 12.05
   (c)(1)...................................................         12.04
   (c)(2)...................................................         12.04
   (c)(3)...................................................         N.A.
   (e)......................................................         12.05
   (f)......................................................         N.A.
315(a)......................................................         7.01
   (b)......................................................      7.05; 12.02
   (c)......................................................         7.01
   (d)......................................................         7.01
   (e)......................................................         6.11
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)......................................................         12.01
   (b)......................................................         N.A.
   (c)......................................................         12.01

N.A. means not applicable.

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

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
                                    ARTICLE 1
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

Section 1.01   Definitions...............................................      1
Section 1.02   Other Definitions.........................................     34
Section 1.03   Incorporation by Reference of Trust Indenture Act.........     35
Section 1.04   Rules of Construction.....................................     35

                                    ARTICLE 2
                                    THE NOTES

Section 2.01   Form and Dating...........................................     36
Section 2.02   Execution and Authentication..............................     37
Section 2.03   Registrar, Paying Agent and Calculation Agent.............     37
Section 2.04   Paying Agent to Hold Money in Trust.......................     38
Section 2.05   Holder Lists..............................................     38
Section 2.06   Transfer and Exchange.....................................     38
Section 2.07   Replacement Notes.........................................     51
Section 2.08   Outstanding Notes.........................................     51
Section 2.09   Treasury Notes............................................     52
Section 2.10   Temporary Notes...........................................     52
Section 2.11   Cancellation..............................................     52
Section 2.12   Defaulted Interest........................................     52

                                    ARTICLE 3
                            REDEMPTION AND PREPAYMENT

Section 3.01   Notices to Trustee........................................     53
Section 3.02   Selection of Notes to Be Redeemed or Purchased............     53
Section 3.03   Notice of Redemption......................................     53
Section 3.04   Effect of Notice of Redemption............................     54
Section 3.05   Deposit of Redemption or Purchase Price...................     54
Section 3.06   Notes Redeemed or Purchased in Part.......................     55
Section 3.07   Optional Redemption.......................................     55
Section 3.08   Mandatory Redemption......................................     57
Section 3.09   Offer to Purchase by Application of Excess Proceeds.......     57

                                    ARTICLE 4
                                    COVENANTS

Section 4.01   Payment of Notes..........................................     59
Section 4.02   Maintenance of Office or Agency...........................     59
Section 4.03   Reports...................................................     59
Section 4.04   Compliance Certificate....................................     61
Section 4.05   Taxes.....................................................     61
Section 4.06   Stay, Extension and Usury Laws............................     61
Section 4.07   Restricted Payments.......................................     62
Section 4.08   Dividend and Other Payment Restrictions Affecting
               Restricted Subsidiaries...................................     68
Section 4.09   Incurrence of Indebtedness and Issuance of Preferred Stock
               and Disqualified Stock....................................     70
Section 4.10   Asset Sales...............................................     76

                                        i

Section 4.11   Transactions with Affiliates..............................     79
Section 4.12   Liens.....................................................     81
Section 4.13   Business Activities.......................................     82
Section 4.14   Corporate Existence.......................................     82
Section 4.15   Offer to Repurchase Upon Change of Control................     82
Section 4.16   Limitation on Sale and Lease-Back Transactions............     84
Section 4.17   Limitations on Guarantees of Indebtedness by Restricted
               Subsidiaries..............................................     84

                                    ARTICLE 5
                                   SUCCESSORS

Section 5.01   Merger, Consolidation, or Sale of Assets..................     85
Section 5.02   Successor Corporation Substituted.........................     87

                                    ARTICLE 6
                              DEFAULTS AND REMEDIES

Section 6.01   Events of Default and Remedies............................     88
Section 6.02   Acceleration..............................................     89
Section 6.03   Other Remedies............................................     90
Section 6.04   Waiver of Past Defaults...................................     90
Section 6.05   Control by Majority.......................................     90
Section 6.06   Limitation on Suits.......................................     91
Section 6.07   Rights of Holders of Notes to Receive Payment.............     91
Section 6.08   Collection Suit by Trustee................................     91
Section 6.09   Trustee May File Proofs of Claim..........................     91
Section 6.10   Priorities................................................     92
Section 6.11   Undertaking for Costs.....................................     92

                                    ARTICLE 7
                                     TRUSTEE

Section 7.01   Duties of Trustee.........................................     93
Section 7.02   Rights of Trustee.........................................     94
Section 7.03   Individual Rights of Trustee..............................     94
Section 7.04   Trustee's Disclaimer......................................     94
Section 7.05   Notice of Defaults........................................     95
Section 7.06   Reports by Trustee to Holders of the Notes................     95
Section 7.07   Compensation and Indemnity................................     95
Section 7.08   Replacement of Trustee....................................     96
Section 7.09   Successor Trustee by Merger, etc..........................     97
Section 7.10   Eligibility; Disqualification.............................     97
Section 7.11   Preferential Collection of Claims Against Company.........     97

                                    ARTICLE 8
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01   Option to Effect Legal Defeasance or Covenant Defeasance..     97
Section 8.02   Legal Defeasance and Discharge............................     97
Section 8.03   Covenant Defeasance.......................................     98
Section 8.04   Conditions to Legal or Covenant Defeasance................     98
Section 8.05   Deposited Money and Government Securities to be Held in
               Trust; Other Miscellaneous Provisions.....................    100
Section 8.06   Repayment to Company......................................    100
Section 8.07   Reinstatement.............................................    100

                                       ii

                                    ARTICLE 9
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01   Without Consent of Holders of Notes.......................    101
Section 9.02   With Consent of Holders of Notes..........................    102
Section 9.03   Compliance with Trust Indenture Act.......................    103
Section 9.04   Revocation and Effect of Consents.........................    103
Section 9.05   Notation on or Exchange of Notes..........................    104
Section 9.06   Trustee to Sign Amendments, etc...........................    104

                                   ARTICLE 10
                                   GUARANTEES

Section 10.01. Guarantee.................................................    104
Section 10.02. Limitation on Guarantor Liability.........................    105
Section 10.03. Execution and Delivery of Guarantee.......................    105
Section 10.04. Releases..................................................    106

                                   ARTICLE 11
                           SATISFACTION AND DISCHARGE

Section 11.01  Satisfaction and Discharge................................    107
Section 11.02  Application of Trust Money................................    108

                                   ARTICLE 12
                                  MISCELLANEOUS

Section 12.01  Trust Indenture Act Controls..............................    108
Section 12.02  Notices...................................................    108
Section 12.03  Communication by Holders of Notes with Other Holders of
               Notes.....................................................    109
Section 12.04  Certificate and Opinion as to Conditions Precedent........    109
Section 12.05  Statements Required in Certificate or Opinion.............    110
Section 12.06  Rules by Trustee and Agents...............................    110
Section 12.07  No Personal Liability of Directors, Officers, Employees,
               Stockholders or Controlling Persons.......................    110
Section 12.08  Governing Law.............................................    111
Section 12.09  No Adverse Interpretation of Other Agreements.............    111
Section 12.10  Successors................................................    111
Section 12.11  Severability..............................................    111
Section 12.12  Counterpart Originals.....................................    111
Section 12.13  Table of Contents, Headings, etc..........................    111
Section 12.14  Force Majeure.............................................    111

                                    EXHIBITS

Exhibit A1     FORM OF FLOATING RATE NOTE
Exhibit A2     FORM OF FIXED RATE NOTE
Exhibit A3     FORM OF REGULATION S TEMPORARY GLOBAL FLOATING RATE NOTE
Exhibit A4     FORM OF REGULATION S TEMPORARY GLOBAL FIXED RATE NOTE
Exhibit B      FORM OF CERTIFICATE OF TRANSFER
Exhibit C      FORM OF CERTIFICATE OF EXCHANGE
Exhibit D1     FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
               INVESTOR FOR FLOATING RATE NOTES

                                       iii

Exhibit D2     FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
               INVESTOR FOR FIXED RATE NOTES
Exhibit E1     FORM OF NOTATION OF GUARANTEE FOR FLOATING RATE NOTES
Exhibit E2     FORM OF NOTATION OF GUARANTEE FOR FIXED RATE NOTES
Exhibit F      FORM OF SUPPLEMENTAL INDENTURE

                                       iv

     INDENTURE dated as of May 1, 2007 among Clarke American Corp., a Delaware
corporation, the Co-Issuers (as defined), the Guarantors (as defined) and Wells
Fargo Bank, N.A., as trustee.

     The Company (as defined), the Co-Issuers, the Guarantors 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 Senior Floating Rate Notes due 2015
(the "Floating Rate Notes") and the 9.50% Senior Fixed Rate Notes due 2015 (the
"Fixed Rate Notes" and, together with the Floating Rate 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 A1
or Exhibit A2 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 Restricted 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 Fixed Rate Notes" means additional Fixed Rate Notes (other than the
Initial Fixed Rate Notes) issued under this Indenture in accordance with
Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Fixed
Rate Notes (except that Fixed Rate Notes that bear the legend required by
Section 2.06(g)(4) will be treated where necessary as separate series as
contemplated by Section 2.06(i)(9)), and the Exchange Fixed Rate Notes issued in
respect of such Initial Fixed Rate Notes.

"Additional Floating Rate Notes" means additional Floating Rate Notes (other
than the Initial Floating Rate Notes) issued under this Indenture in accordance
with Sections 2.02 and 4.09 hereof, as part of the same series as the Initial
Floating Rate Notes (except that Floating Rate Notes that bear the legend
required by Section 2.06(g)(4) will be treated where necessary as separate
series as contemplated by Section 2.06(i)(9)), and the Exchange Floating Rate
Notes issued in respect of such Initial Floating Rate Notes.

"Additional Interest" means all Additional Interest then owing pursuant to the
Registration Rights Agreement.

"Additional Notes" means the Additional Fixed Rate Notes and the Additional
Floating Rate 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"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or

                                       1

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.

"Agent" means any Registrar, co-registrar, Paying Agent, additional paying agent
or Calculation Agent.

"Applicable LIBOR Rate" means, for each interest period with respect to the
Floating Rate Notes, the rate determined by the Company (notice of such rate to
be sent to the Trustee on the date of determination thereof) equal to the
greater of (a) 1.250% or (b) the applicable British Bankers' Association LIBOR
rate for deposits in U.S. dollars for a period of three months as reported by
any generally recognized financial information service as of 11:00 a.m. (London
time) two business days prior to the first day of such interest period; provided
that if no such British Bankers' Association LIBOR rate is available to the
Company, the Applicable LIBOR Rate for the relevant interest period shall
instead be the rate at which Credit Suisse Securities (USA) LLC or one of its
affiliate banks offers to place deposits in U.S. dollars with first-class banks
in the London interbank market for a period of six months as of approximately
11:00 a.m. (London time) two business days prior to the first day of such
interest period, in amounts equal to $1.0 million.

"Applicable Premium" means, with respect to any Note on any Make-Whole
Redemption Date, the greater of:

          (1) 1.0% of the principal amount of the Note; or

          (2) the excess of:

               (a) the present value at such redemption date of (i) the
          redemption price of such Floating Rate Note at May 15, 2009 or such
          Fixed Rate Note at May 15, 2011, as the case may be (each such
          redemption price being set forth in the tables appearing in Section
          3.07 hereof), plus (ii) all required interest payments due on such
          Floating Rate Note through May 15, 2009 or such Fixed Rate Note
          through May 15, 2011, as the case may be (assuming with respect to
          Floating Rate Notes, that the rate of interest on the Floating Rate
          Notes for the period from the redemption date through May 15, 2009
          will be equal to the rate of interest on the Floating Rate Notes in
          effect on the date on which the applicable notice of redemption is
          given) excluding accrued but unpaid interest to the Make-Whole
          Redemption Date, computed using a discount rate equal to the Treasury
          Rate as of such Make-Whole Redemption Date plus 50 basis points; over

               (b) the principal amount of the Note.

"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, conveyance, transfer or other disposition, whether in a
     single transaction or a series of related transactions, of property or
     assets (including by way of a Sale and Lease-Back Transaction) of the
     Company or any Restricted Subsidiary (each referred to in this definition
     as a "disposition"); and

          (2) the issuance or sale of Equity Interests of any Restricted
     Subsidiary (other than directors' qualifying shares), whether in a single
     transaction or a series of related transactions.

                                       2

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

               (a) a disposition of cash, Cash Equivalents or Investment Grade
          Securities or obsolete or worn out equipment, vehicles or other
          similar assets in the ordinary course of business or any disposition
          of inventory or goods held for sale in the ordinary course of business
          or any disposition of assets no longer used or useful or necessary in
          the conduct of the business of the Company and its Restricted
          Subsidiaries;

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

               (c) the making of any Permitted Investment or the making of any
          Restricted Payment that is not prohibited by Section 4.07 hereof;

               (d) any disposition of assets or issuance or sale of Equity
          Interests of any Restricted Subsidiary in any transaction or series of
          transactions with an aggregate Fair Market Value of less than $7.5
          million;

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

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

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

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

               (i) foreclosures on assets;

               (j) sales of accounts receivable, payment intangibles and related
          assets, or participations therein, in connection with any Receivables
          Facility;

               (k) the unwinding of any Hedging Obligations;

               (l) the sale or grant of licenses or sub-licenses of intellectual
          property entered into in the ordinary course of business;

               (m) creation or realization of Liens that are permitted to be
          incurred by this Indenture;

               (n) any transfer of property or assets that is a surrender or
          waiver of a contract right or a settlement, surrender or release of a
          contract or tort claim;

               (o) dispositions in connection with Sale and Lease-Back
          Transactions permitted by Section 4.16 hereof; and

               (p) dispositions of Investments in joint ventures to the extent
          required by, or made pursuant to customary buy/sell arrangements
          between, the joint venture parties set forth in joint venture
          agreements and similar binding agreements.

"Attributable Debt" in respect of a Sale and Lease-Back Transaction means, at
the time of determination, the present value (discounted at the interest rate
implicit in such transaction, determined in accordance with GAAP) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale and Lease-Back Transaction (including any period for
which such lease has

                                       3

been extended); provided, however, that if such Sale and Lease-Back Transaction
results in a Capitalized Lease Obligation, the amount of Indebtedness
represented thereby will be determined in accordance with the definition of
Capitalized Lease Obligation.

"Attributable Receivables Facility Debt" means, at any time, the principal
amount of any Receivables Facility outstanding at such time; provided that in
the case of a multi-seller Receivables Facility, the amount of Attributable
Receivables Facility Debt shall be the portion of the principal amount of such
Receivables Facility attributable (as determined in good faith by the Company)
to any receivables or payment intangibles transferred by the Company or any
Restricted Subsidiary in support of such Receivables Facility at or prior to
such time and still outstanding.

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

"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 corresponding meanings.

"Board of Directors" means:

          (1) with respect to a corporation, the board of directors of the
     corporation or any committee thereof;

          (2) with respect to a partnership the general partner of which is a
     corporation, the board of directors of the general partner of the
     partnership or any committee thereof;

          (3) with respect to a limited liability company, any managing member
     thereof or, if managed by managers, the board of managers or any committee
     thereof; and

          (4) with respect to any other Person, the board or committee of such
     Person (or such Person's general partner, manager or equivalent) serving a
     similar function.

"Board Resolution" means, with respect to the Company, a duly adopted resolution
of the Board of Directors of the Company or any committee thereof.

"Broker-Dealer" has the meaning set forth in the Registration Rights Agreement.

"Business Day" means each day that is not a Legal Holiday.

"Calculation Agent" has the meaning set forth in Section 2.03 hereof.

"Capital Stock" means:

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

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

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

                                       4

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

 "Capitalized Lease Obligation" means, at the time any determination thereof is
to be made, the amount of the liability in respect of a capital lease that would
at such time be required to be capitalized and reflected as a liability on a
balance sheet (excluding the footnotes thereto) in accordance with GAAP.

"Cash Equivalents" means:

          (1) United States dollars, Canadian dollars, Japanese yen, pounds
     sterling, euro or, in the case of any Foreign Subsidiary that is a
     Restricted Subsidiary, such local currencies held by it from time to time
     in the ordinary course of business;

          (2) securities issued or directly and fully and unconditionally
     guaranteed or insured by the government of the United States of America or
     any agency or instrumentality thereof the securities of which are
     unconditionally guaranteed as a full faith and credit obligation of such
     government with maturities of 24 months or less from the date of
     acquisition;

          (3) certificates of deposit, time deposits and eurodollar time
     deposits with maturities of one year or less from the date of acquisition,
     bankers' acceptances with maturities not exceeding one year and overnight
     bank deposits, in each case with any lender party to the Credit Agreement
     or with any domestic commercial bank having capital and surplus in excess
     of $250.0 million;

          (4) repurchase obligations 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 at least P-1 by Moody's or at least A-1 by
     S&P and in each case maturing within 12 months after the date of issuance
     thereof;

          (6) investment funds investing at least 95% of their assets in
     securities of the types described in clauses (1) through (5) above;

          (7) readily marketable direct obligations issued by any state of the
     United States of America or any political subdivision thereof having one of
     the two highest rating categories obtainable from either Moody's or S&P
     with maturities of 24 months or less from the date of acquisition; and

          (8) Indebtedness or Preferred Stock issued by Persons with a rating of
     "A" or higher from S&P or "A2" or higher from Moody's with maturities of 12
     months or less from the date of acquisition.

     Notwithstanding the foregoing, Cash Equivalents shall include amounts
denominated in currencies other than those set forth in clause (1) above;
provided that such amounts are converted into one or more of the currencies set
forth in clause (1) above as promptly as practicable and in any event within ten
(10) Business Days following the receipt of such amounts.

"Cash Management Obligations" means any obligations of the Company or any of its
Restricted Subsidiaries in respect of any arrangement for treasury, depositary
or cash management services provided to the Company or any of its Restricted
Subsidiaries in connection with any transfer or disbursement of

                                       5

funds through an automated clearinghouse or on a same day or immediate or
accelerated availability basis.

"Change of Control" means the occurrence of any of the following:

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

          (2) the Company becoming aware of (by way of a report or any other
     filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written
     notice or otherwise) the acquisition by any Person or group (within the
     meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any
     successor provision), including any group acting for the purpose of
     acquiring, holding or disposing of securities (within the meaning of Rule
     13d-5(b)(1) under the Exchange Act, or any successor provision), other than
     any of the Permitted Holders, in a single transaction or in a series of
     related transactions, by way of merger, consolidation or other business
     combination or purchase of beneficial ownership (within the meaning of Rule
     13d-3 under the Exchange Act, or any successor provision) of 50% or more of
     the total voting power of the Voting Stock of the Company; or

          (3) the Board of Directors of the Company ceasing to consist of a
     majority of Continuing Directors.

     Notwithstanding the foregoing, (A) any holding company whose only
significant asset is Equity Interests of Holdings or the Company or any of their
direct or indirect parent companies shall not itself be considered a "Person" or
"group" for purposes of clause (2) above; (B) the term "Change of Control" shall
not include a merger or consolidation of the Company or Holdings with or the
sale, assignment, conveyance, transfer, lease or other disposition of all or
substantially all of the Company's or Holdings' assets to, an Affiliate
incorporated or organized solely for the purpose of reincorporating or
reorganizing the Company or Holdings in another jurisdiction and/or for the sole
purpose of forming or collapsing a holding company structure; and (C) a "Person"
or "group" shall not be deemed to have beneficial ownership of securities
subject to a stock purchase agreement, merger agreement or similar agreement (or
voting or option agreement related thereto) until the consummation of the
transactions contemplated by such agreement.

"Clearstream" means Clearstream Banking, S.A.

"Co-Issuer" means each of:

          (1) John H. Harland Company, a Georgia corporation, Checks in the
     Mail, Inc., a Delaware corporation, Harland Checks and Services, Inc., a
     Georgia corporation, Clarke American Checks, Inc., a Delaware corporation,
     B2Direct, Inc., a Delaware corporation, Scantron Corporation, a Delaware
     corporation, Harland Financial Solutions, Inc., an Oregon corporation, HFS
     Core Systems, Inc., a Delaware corporation, H Acquisition Corp., a Georgia
     corporation, New CS, Inc., a Delaware corporation, New SCH, Inc., a Georgia
     corporation, New SCSFH, Inc., a Delaware corporation and New SFH, Inc., an
     Oregon corporation; and

          (2) any other Subsidiary of the Company that becomes a Co-Issuer in
     accordance with the provisions of this Indenture;

and their respective successors and assigns, in each case, until such Co-Issuer
has been released in accordance with the provisions of this Indenture.

                                       6

"Company" means Clarke American Corp., and any and all successors thereto;
provided that when used in the context of determining the fair market value of
an asset or liability under this Indenture, "Company" shall, unless otherwise
expressly stated, be deemed to mean the Board of Directors of Clarke American
Corp. when the fair market value of such asset or liability is equal to or in
excess of $30.0 million.

"consolidated" means, with respect to any Person, such person consolidated with
its Subsidiaries, excluding from such consolidation any Receivables Subsidiary
and any Unrestricted Subsidiary as if such Receivables Subsidiary or
Unrestricted Subsidiary were not an Affiliate of such Person, unless otherwise
specifically indicated.

"Consolidated Depreciation and Amortization Expense" means with respect to any
Person for any period, the sum of (i) the total amount of depreciation and
amortization expense, including the amortization of deferred financing fees and
other related noncash charges of such Person and its Restricted Subsidiaries for
such period on a consolidated basis and otherwise determined in accordance with
GAAP and (ii) to the extent not included in clause (i), the amount of
amortization expense related to capitalized pre-paid incentive payments (which
pre-paid incentive payments may also be recorded as "upfront contract
acquisition costs").

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

          (1) consolidated interest expense of such Person and its Restricted
     Subsidiaries for such period, to the extent such expense was deducted in
     computing Consolidated Net Income (including (a) amortization of original
     issue discount resulting from the issuance of Indebtedness at less than
     par, (b) all commissions, discounts and other fees and charges owed with
     respect to letters of credit or bankers' acceptances, (c) noncash interest
     payments (but excluding any noncash interest expense attributable to the
     movement in the mark-to-market valuation of Hedging Obligations or other
     derivative instruments pursuant to GAAP), (d) the interest component of
     Capitalized Lease Obligations and (e) net payments, if any, pursuant to
     interest rate Hedging Obligations with respect to Indebtedness, and
     excluding (i) Additional Interest, (ii) amortization of deferred financing
     fees, debt issuance costs, commissions, fees and expenses, (iii) any
     expensing of bridge, commitment and other financing fees, (iv) commissions,
     discounts, yield and other fees and charges (including any interest
     expense) related to any Receivables Facility, (v) any redemption premiums,
     prepayment fees, other charges or penalties incurred in connection with the
     Transactions and (vi) any premiums, fees or other charges incurred in
     connection with the refinancing of the Existing Credit Agreements or the
     Tender Offer (in each case of (i) through (vi), to the extent included in
     any of the foregoing items (a) through (e))), plus

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

          (3) interest income for such period and net receipts, if any, pursuant
     to interest rate Hedging Obligations with respect to Indebtedness.

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

"Consolidated Leverage Ratio" means, with respect to any Person as of any date
of determination, the ratio of (x) the excess of (i) Consolidated Total
Indebtedness of such Person as of the end of the most

                                       7

recent fiscal quarter for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur over (ii) an amount equal to the lesser of (a) the amount
of cash and Cash Equivalents of the Company and its Restricted Subsidiaries on
such date that are free and clear of any Lien (other than non-consensual
Permitted Liens and Permitted Liens of the type set forth in clauses (22)
through (25) of the definition thereof) and (b) $40.0 million to (y) the
aggregate amount of EBITDA of such Person for the period of the most recently
ended four full consecutive fiscal quarters for which internal financial
statements are available immediately preceding the date on which such event for
which such calculation is being made shall occur, in each case with such pro
forma adjustments to Consolidated Total Indebtedness and EBITDA as are
appropriate and consistent with the pro forma adjustment provisions set forth in
the definition of "Fixed Charge Coverage Ratio".

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

          (1) any net after-tax restructuring expense or extraordinary,
     non-recurring or unusual gains or losses (less all fees and expenses
     relating thereto) or expenses (including relating to severance, relocation,
     one-time compensation charges and the Transactions) shall be excluded,

          (2) the Net Income for such period shall not include the cumulative
     effect of a change in accounting principles during such period, whether
     effected through a cumulative effect adjustment or a retroactive
     application in each case in accordance with GAAP,

          (3) any net after-tax income (loss) from disposed or discontinued
     operations and any net after-tax gains or losses on disposal of disposed or
     discontinued operations shall be excluded,

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

          (5) the Net Income for such period of any Person that is not a
     Subsidiary, or is an Unrestricted Subsidiary or a Receivables Subsidiary,
     or that is accounted for by the equity method of accounting, shall be
     excluded; provided that Consolidated Net Income of the Company shall be
     increased by the amount of dividends or distributions or other payments
     that are actually paid in cash (or to the extent converted into cash) to
     the referent Person or a Restricted Subsidiary thereof in respect of such
     period,

          (6) solely for the purpose of determining the amount available for
     Restricted Payments under Section 4.07(a)(c)(1), the Net Income for such
     period of any Restricted Subsidiary (other than any Subsidiary Guarantor)
     shall be excluded if the declaration or payment of dividends or similar
     distributions by that Restricted Subsidiary of its Net Income is not at the
     date of determination wholly permitted without any prior governmental
     approval (which has not been obtained) or, directly or indirectly, by the
     operation of the terms of its charter or any agreement, instrument,
     judgment, decree, order, statute, rule, or governmental regulation
     applicable to that Restricted Subsidiary or its stockholders, unless such
     restriction with respect to the payment of dividends or similar
     distributions has been legally waived; provided that Consolidated Net
     Income of the Company will be increased by the amount of dividends or other
     distributions or other payments actually paid in cash (or to the extent
     converted into cash) to the Company or a Restricted Subsidiary thereof in
     respect of such period, to the extent not already included therein,

          (7) any increase in amortization or depreciation or other noncash
     charges (including, without limitation, any non-cash fair value adjustment
     of inventory) resulting from the

                                       8

     application of purchase accounting in relation to the Transactions or any
     other acquisition that is consummated after the Issue Date, net of taxes,
     shall be excluded,

          (8) any net after-tax income (loss) from Hedging Obligations or Cash
     Management Obligations and the application of Statement of Financial
     Accounting Standards No. 133 or other derivative instruments or from the
     extinguishment of Indebtedness shall be excluded,

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

          (10) any net after-tax noncash compensation expense recorded from
     grants of stock appreciation or similar rights, stock options, restricted
     stock or other rights to officers, directors, employees, managers or
     consultants shall be excluded,

          (11) any non-cash cost related to the termination of any employee
     pension benefit plan, together with any related provision for taxes on any
     such termination (or the tax effect of any such termination) shall be
     excluded,

          (12) any deferred financing costs amortized or written off, and
     premiums and prepayment penalties paid in connection with the Transactions
     or any other acquisition or disposition that is consummated after the Issue
     Date shall be excluded,

          (13) any net gain or loss resulting in such period from currency
     translation gains or losses related to currency remeasurements of
     Indebtedness shall be excluded, and

          (14) any charges resulting from the application of Statement of
     Financial Accounting Standards No. 141 "Business Combinations", No. 142
     "Goodwill and Other Intangible Assets", No. 144 "Accounting for the
     Impairment or Disposal of Long-Lived Assets" or No. 150 "Accounting for
     Certain Financial Instruments with Characteristics of Both Liabilities and
     Equity" shall be excluded.

     Notwithstanding the foregoing, for the purpose of Section 4.07 only (other
than Section 4.07(a)(c)(4)), there shall be excluded from Consolidated Net
Income any income arising from any sale or other disposition of Restricted
Investments made by the Company and the Restricted Subsidiaries, any repurchases
and redemptions of Restricted Investments from the Company and the Restricted
Subsidiaries, any repayments of loans and advances that constitute Restricted
Investments by the Company or any Restricted Subsidiary, any sale of the stock
of an Unrestricted Subsidiary or any distribution or dividend from an
Unrestricted Subsidiary, in each case only to the extent such amounts increase
the amount of Restricted Payments permitted under Section 4.07(a)(c)(4).

"Consolidated Secured Debt Ratio" as of any date of determination means the
ratio of (x) the excess of (i) Consolidated Total Indebtedness of the Company
and the Restricted Subsidiaries that is secured by Liens as of the end of the
most recent fiscal quarter for which internal financial statements are available
immediately preceding the date on which such event for which such calculation is
being made shall occur over (ii) an amount equal to the lesser of (a) the amount
of cash and Cash Equivalents of the Company and its Restricted Subsidiaries on
such date that are free and clear of any Lien (other than non-consensual
Permitted Liens and Permitted Liens of the type set forth in clauses (22)
through (25) of the definition thereof) and (b) $40.0 million to (y) the
aggregate amount of EBITDA of the Company and the Restricted Subsidiaries for
the period of the most recently ended consecutive four full fiscal quarters for
which internal financial statements are available immediately preceding the date
on which such event for which such calculation is being made shall occur, in
each case with such pro forma adjustments to Consolidated Total Indebtedness and
EBITDA as are appropriate and consistent with the pro forma adjustment
provisions set forth in the definition of Fixed Charge Coverage Ratio.

"Consolidated Total Indebtedness" means, as at any date of determination, an
amount equal to the sum, without duplication, of (1) the aggregate amount of all
outstanding Indebtedness of the Company and the

                                       9

Restricted Subsidiaries on a consolidated basis consisting of Indebtedness for
borrowed money, Obligations in respect of Capitalized Lease Obligations,
Attributable Debt in respect of Sale and Lease-Back Transactions and debt
obligations evidenced by bonds, notes, debentures or similar instruments or
letters of credit or bankers' acceptances (and excluding any undrawn letters of
credit issued in the ordinary course of business and all obligations relating to
any Receivables Facility) and (2) the aggregate amount of all outstanding
Disqualified Stock of the Company and all Disqualified Stock and Preferred Stock
of the Restricted Subsidiaries (excluding items eliminated in consolidation),
with the amount of such Disqualified Stock and Preferred Stock equal to the
greater of their respective voluntary or involuntary liquidation preferences and
Maximum Fixed Repurchase Prices, in each case determined on a consolidated basis
in accordance with GAAP.

     For purposes hereof, the "Maximum Fixed Repurchase Price" of any
Disqualified Stock or Preferred Stock that does not have a fixed repurchase
price shall be calculated in accordance with the terms of such Disqualified
Stock or Preferred Stock as if such Disqualified Stock or Preferred Stock were
purchased on any date on which Consolidated Total Indebtedness shall be required
to be determined pursuant to this Indenture, and if such price is based upon, or
measured by, the fair market value of such Disqualified Stock or Preferred
Stock, such fair market value shall be determined in good faith by the Company.

"Contingent Obligations" means, with respect to any Person, any obligation of
such Person guaranteeing any leases, dividends or other obligations (the
"primary obligations") that do not constitute Indebtedness of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, including
any obligation of such Person, whether or not contingent,

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

          (2) to advance or supply funds

               (A) for the purchase or payment of any such primary obligations
          or

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

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

"Continuing Directors" means, as of any date of determination, any member of the
Board of Directors of the Company who:

          (1) was a member of such Board of Directors on the Issue Date; 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" will be at the address of the Trustee
specified in Section 12.02 hereof or such other address as to which the Trustee
may give notice to the Company.

"Credit Agreement" means that certain Credit Agreement, dated as of April 4,
2007, by and among the Company, the Guarantors party thereto, Credit Suisse, as
administrative agent, and the lenders party thereto, providing for revolving
credit and term loan borrowings, including any related notes, guarantees,

                                       10

collateral documents, instruments and agreements executed in connection
therewith, in each case as such Credit Agreement, in whole or in part, in one or
more instances, may be amended, renewed, extended, substituted, refinanced,
restructured, replaced, supplemented or otherwise modified from time to time
(including, without limitation, any successive renewals, extensions,
substitutions, refinancings, restructurings, replacements, supplementations or
other modifications of the foregoing and including, without limitation, any
amendment increasing the amount of Indebtedness incurred or available to be
borrowed thereunder, extending the maturity of any Indebtedness incurred
thereunder or contemplated thereby or deleting, adding or substituting one or
more parties thereto (whether or not such added or substituted parties are banks
or other institutional lenders)), including into one or more debt facilities,
commercial paper facilities or other debt instruments, indentures or agreements
(including by means of sales of debt securities (including Additional Notes) to
institutional investors), providing for revolving credit loans, term loans,
letters of credit or other debt obligations, whether any such extension,
replacement or refinancing (1) occurs simultaneously or not with the termination
or repayment of a prior Credit Agreement or (2) occurs on one or more separate
occasions.

"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 or other lenders providing for revolving
credit loans, term loans, debt securities, 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 such Credit Facility, in whole or in part, in one or
more instances, may be amended, renewed, extended, substituted, refinanced,
restructured, replaced, supplemented or otherwise modified from time to time
(including, without limitation, any successive renewals, extensions,
substitutions, refinancings, restructurings, replacements, supplementations or
other modifications of the foregoing and including, without limitation, any
amendment increasing the amount of Indebtedness incurred or available to be
borrowed thereunder, extending the maturity of any Indebtedness incurred
thereunder or contemplated thereby or deleting, adding or substituting one or
more parties thereto (whether or not such added or substituted parties are banks
or other institutional lenders)), including into one or more debt facilities,
commercial paper facilities or other debt instruments, indentures or agreements
(including by means of sales of debt securities (including Additional Notes) to
institutional investors), providing for revolving credit loans, term loans,
letters of credit or other debt obligations, whether any such extension,
replacement or refinancing (1) occurs simultaneously or not with the termination
or repayment of a prior Credit Facility or (2) occurs on one or more separate
occasions.

"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 A1 or Exhibit A2 hereto, except that such Note shall not bear
the Global Note Legend and shall not have the "Schedule of Exchanges of
Interests in the Global Note" attached thereto.

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

                                       11

"Designated Asset Sale" means the sale, conveyance, transfer or other
disposition, whether in a single transaction or a series of related
transactions, of Designated Assets (including by way of a Sale and Lease-Back
Transaction and including the disposition of Capital Stock of any Subsidiary) of
Holdings, the Company or any Subsidiary.

"Designated Assets" means any property or assets (including Capital Stock of any
Subsidiary) other than (i) property or assets of the Printed Products Business,
(ii) Capital Stock of the Company and (iii) Capital Stock of any Restricted
Subsidiary conducting any material portion of the Printed Products Business at
the time of such Designated Asset Sale or Restricted Payment (as the case may
be).

"Designated Noncash Consideration" means the fair market value of noncash
consideration received by the Company or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Noncash Consideration
pursuant to an Officers' Certificate, setting forth the basis of such valuation,
less the amount of cash or Cash Equivalents received in connection with a
subsequent sale of such Designated Noncash Consideration.

"Designated Preferred Stock" means Preferred Stock of the Company or any parent
company thereof (in each case other than Disqualified Stock) that is issued for
cash (other than to a Restricted Subsidiary) and is so designated as Designated
Preferred Stock pursuant to an Officers' Certificate, as the case may be, on the
issuance date thereof.

"Disqualified Stock" means, with respect to any Person, any Capital Stock of
such Person which, by its terms, or by the terms of any security into which it
is convertible or for which it is putable or exchangeable, or upon the happening
of any event, matures or is mandatorily redeemable (other than solely for
Capital Stock that is not Disqualified Stock), other than as a result of a
change of control or asset sale, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, other than as a
result of a change of control or asset sale, in whole or in part, in each case
prior to the date that is 91 days after the earlier of the maturity date of the
Notes and the date the Notes are no longer outstanding; provided that if such
Capital Stock is issued to any plan for the benefit of employees of the Company
or its Subsidiaries or by any such plan to such employees, such Capital Stock
shall not constitute Disqualified Stock solely because it may be required to be
repurchased by the Company or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligation; provided, further, that any Capital Stock
held by any future, present or former employee, director, officer, manager or
consultant (or their estates, spouses or former spouses) of the Company, any of
its Subsidiaries or any of its direct or indirect parent companies pursuant to
any stockholders agreement, management equity plan or stock option plan or any
other management or employee benefit plan or agreement shall not constitute
Disqualified Stock solely because it may be required to be repurchased by the
Company or its Subsidiaries following the termination of employment of such
employee, director, officer, manager or consultant with the Company or any of
its Subsidiaries.

"Domestic Subsidiary" means, with respect to any Person, any Restricted
Subsidiary of such Person other than (x) a Foreign Subsidiary or (y) any
Domestic Subsidiary of a Foreign Subsidiary, but, in each case, including any
subsidiary that guarantees or otherwise provides direct credit support for any
Indebtedness of the Company.

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

          (1) increased by (without duplication):

                                       12

               (a) provision for taxes based on income or profits, plus
          franchise or similar taxes, of such Person for such period deducted in
          computing Consolidated Net Income, plus

               (b) consolidated Fixed Charges of such Person for such period to
          the extent the same was deducted in calculating Consolidated Net
          Income, plus

               (c) Consolidated Depreciation and Amortization Expense of such
          Person for such period to the extent such depreciation and
          amortization were deducted in computing Consolidated Net Income, plus

               (d) any expenses or charges related to any equity offering,
          permitted acquisition or other Investment, permitted disposition,
          recapitalization or the incurrence of Indebtedness permitted to be
          incurred under this Indenture including a refinancing thereof (in each
          case, whether or not successful) and any amendment or modification to
          the terms of any such transactions, including such fees, expenses or
          charges related to the Transactions deducted in computing Consolidated
          Net Income for such period, plus

               (e) the amount of any restructuring charge, redemption premium,
          prepayment penalty, premium and other related fee or reserve deducted
          in such period in computing Consolidated Net Income, including any
          one-time costs incurred in connection with (A) acquisitions after the
          Issue Date or (B) the closing or consolidation of production or other
          operating facilities, plus

               (f) any write offs, write downs or other noncash charges reducing
          Consolidated Net Income for such period, excluding any such charge
          that represents an accrual or reserve for a cash expenditure for a
          future period, plus

               (g) the amount of any minority interest expense deducted in
          calculating Consolidated Net Income for such period, plus

               (h) the amount of management, monitoring, consulting and advisory
          fees and related expenses paid (or any accruals related to such fees
          or related expenses) (including by means of a dividend) during such
          period to the Parents to the extent permitted under Section 4.11
          hereof, plus

               (i) any costs or expenses incurred by the Company or a Restricted
          Subsidiary pursuant to any management equity plan, stock option plan,
          phantom equity plan or any other management or employee benefit plan
          or agreement or any stock subscription or stockholders agreement, to
          the extent that such costs or expenses are funded with cash proceeds
          contributed to the capital of the Company or net cash proceeds of
          issuance of Equity Interests of the Company (other than Disqualified
          Stock that is Preferred Stock);

          (2) decreased by (without duplication) noncash gains increasing
     Consolidated Net Income of such Person for such period, excluding any gains
     that represent the reversal of any accrual of, or cash reserve for,
     anticipated cash charges in any prior period (other than such cash charges
     that have been added back to Consolidated Net Income in calculating EBITDA
     in accordance with this definition);

                                       13

          (3) increased or decreased, as applicable, by (without duplication)
     (a) any net gain or loss resulting in such period from Hedging Obligations
     and the application of Statement of Financial Accounting Standards No. 133,
     (b) any net gain or loss resulting in such period from currency translation
     gains or losses related to currency remeasurements of Indebtedness and (c)
     the amount of gain or loss resulting in such period from a sale of
     receivables, payment intangibles and related assets to a Receivables
     Subsidiary in connection with a Receivables Facility; and

          (4) increased by the amount of cost savings, operational improvements
     and synergies projected by the Company in good faith as a result of actions
     taken or planned to be taken (calculated as though such actions had been
     completed and such cost savings, operational improvements and synergies had
     been realized on the first day of the period for which EBITDA is being
     calculated) in connection with the Transactions or any Investment,
     acquisition, disposition, business restructuring or operational change
     (each, an "Event") by the Company or a Restricted Subsidiary, net of the
     amount of actual cost savings realized from such actions during such
     period; provided that (w) such cost savings are set forth in a certificate
     of a Financial Officer, (x) such actions are taken within 24 months after
     the Issue Date or such other Event; (y) such amounts that will increase
     EBITDA pursuant to this clause (4) do not exceed $112.6 million in any
     given period; and (z) for the avoidance of doubt, such cost savings,
     operational improvements and synergies may (without duplication) be
     incremental to pro forma adjustments made pursuant to the relevant
     definitions and provisions in which the term "EBITDA" is used.

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

 "Equity Offering" means any public or private offer and sale of Capital Stock
(other than Disqualified Stock) other than:

          (1) public offerings with respect to the Company's or any direct or
     indirect parent company's common stock registered on Form S-4 or Form S-8;

          (2) any such public or private sale that constitutes an Excluded
     Contribution; and

          (3) an issuance to any Subsidiary of the Company.

"euro" means the single currency of participating member states of the economic
and monetary union contemplated by the Treaty of the European Union.

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

"Excess Designated Proceeds" means, with respect to any Designated Asset Sale,

               (i) 100% of the Net Proceeds from such Designated Asset Sale if
          after giving pro forma effect thereto, but before applying any portion
          of the Net Proceeds thereof to prepay, purchase or retire any
          Indebtedness the Consolidated Leverage Ratio of the Company and its
          Restricted Subsidiaries is no greater than 4.00 to 1.00 and is no
          greater than the Consolidated Leverage Ratio of the Company and its
          Restricted Subsidiaries in effect immediately prior to such Designated
          Asset Sale, or

               (ii) that portion of the Net Proceeds of such Designated Asset
          Sale that remains after giving effect to the prepayment, purchase or
          other retirement of Indebtedness of the type permitted to be prepaid,
          purchased or otherwise retired under Section 4.10 hereof in an amount
          sufficient such that the Consolidated Leverage Ratio of the Company
          and its Restricted Subsidiaries after giving effect to the Designated
          Asset

                                       14

          Sale and such prepayment, purchase or other retirement is no greater
          than 4.00 to 1.00 and is no greater than the Consolidated Leverage
          Ratio of the Company and its Restricted Subsidiaries in effect
          immediately prior to such Designated Asset Sale and application of Net
          Proceeds and

               (iii) in either case of (i) or (ii), any non-cash proceeds of any
          Designated Asset Sale.

     For the avoidance of doubt, for purposes of Section 4.07(b)(8), any
Designated Assets used to make a Restricted Payment in kind shall be deemed to
be Excess Designated Proceeds if the Consolidated Leverage Ratio of the Company
and its Restricted Subsidiaries, after giving pro forma effect to such
Restricted Payment and the prepayment, purchase or other retirement (if any) of
any Indebtedness in connection with the making of such Restricted Payment, is no
greater than either (x) the Consolidated Leverage Ratio of the Company and its
Restricted Subsidiaries immediately prior to such transactions or (y) 4.00 to
1.00.

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

"Exchange Fixed Rate Notes" means the registered Fixed Rate Notes that will be
exchanged for the Fixed Rate Notes, pursuant to the terms of the Registration
Rights Agreement, having substantially the same terms as the Fixed Rate Notes
and evidencing the same Indebtedness as the Fixed Rate Notes.

"Exchange Floating Rate Notes" means the registered Floating Rate Notes that
will be exchanged for the Notes, pursuant to the terms of the Registration
Rights Agreement, having substantially the same terms as the Floating Rate Notes
and evidencing the same Indebtedness as the Floating Rate Notes.

"Exchange Notes" means the Exchange Fixed Rate Notes and the Exchange Floating
Rates Notes.

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

"Exchange Offer Registration Statement" has the meaning set forth in the
Registration Rights Agreement.

"Excluded Contribution" means net cash proceeds, marketable securities or
Qualified Proceeds received by the Company from (a) contributions to its common
equity capital, and (b) the sale (other than to a Subsidiary of the Company or
to any management equity plan or stock option plan or any other management or
employee benefit plan or agreement of the Company) of Capital Stock (other than
Disqualified Stock and Designated Preferred Stock) of the Company, in each case
designated as Excluded Contributions pursuant to an Officers' Certificate on the
date such capital contributions are made or the date such Equity Interests are
sold, as the case may be.

"Existing Clarke Credit Agreement" means the Credit Agreement dated as of
December 15, 2005 among CA Acquisition Holdings, Inc., Clarke American Corp.,
the lenders party thereto, JPMorgan Chase Bank, N.A., as syndication agent,
Amegy Bank N.A. and Natexis Banques Populaires, as documentation agents, and
Bear Stearns Corporate Lending Inc., as administrative agent.

"Existing Clarke Notes" means the Company's 11.75% Senior Notes due 2013, issued
pursuant to the indenture dated as of December 15, 2005 (as amended on October
6, 2006 and April 19, 2007) among the Company, certain of its subsidiaries and
The Bank of New York as Trustee.

                                       15

"Existing Credit Agreements" means (a) the Existing Clarke Credit Agreement and
(b) the Credit Agreement dated as of July 3, 2006 among John H. Harland Company,
Wachovia Bank, National Association, as administrative agent, and the lenders
and other agents party thereto.

"Existing Indebtedness" means Indebtedness of the Company and its Subsidiaries
(other than Indebtedness under the Credit Agreement) in existence on the Issue
Date plus interest accruing thereon, 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 chief executive officer, chief
financial officer, chief accounting officer, controller or Board of Directors of
the Company or the Restricted Subsidiary, as applicable (unless otherwise
provided in this Indenture).

"Financial Officer" means the chief financial officer, treasurer or controller
of the Company.

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

     For purposes of making the computation referred to above, Investments,
acquisitions, dispositions, mergers, consolidations and disposed operations (as
determined in accordance with GAAP) that have been made by the Company or any
Restricted Subsidiary during the four-quarter reference period or subsequent to
such reference period and on or prior to or simultaneously with the Calculation
Date (including the Merger) shall be calculated on a pro forma basis assuming
that all such Investments, acquisitions, dispositions, mergers, consolidations
and disposed operations (and the change in any associated fixed charges and the
change in EBITDA resulting therefrom) had occurred on the first day of the
reference period; provided that no such pro forma adjustment to EBITDA shall be
required in respect of any such transaction to the extent the aggregate
consideration in connection therewith was less than $10.0 million for the
reference period. If since the beginning of such period any Person (that
subsequently became a Restricted Subsidiary or was merged with or into the
Company or any Restricted Subsidiary since the beginning of such period) shall
have made any Investment, acquisition, disposition, merger, consolidation or
disposed operation that would have required adjustment pursuant to this
definition, then the Fixed Charge Coverage Ratio shall be calculated giving pro
forma effect thereto for such period as if such Investment, acquisition,
disposition, merger, consolidation or disposed operation had occurred at the
beginning of the reference period (subject to the threshold specified in the
previous sentence).

     For purposes of this definition, whenever pro forma effect is to be given
to a transaction, the pro forma calculations shall be made in good faith by a
Financial Officer of the Company. If any Indebtedness bears a floating rate of
interest and is being given pro forma effect, the interest on such Indebtedness
shall be calculated as if the rate in effect on the Calculation Date had been
the applicable rate for the entire period (taking into account any Hedging
Obligations applicable to such Indebtedness). Interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate reasonably determined
by a Financial Officer of the Company to be the rate of interest implicit in
such Capitalized

                                       16

Lease Obligation in accordance with GAAP. For purposes of making the computation
referred to above, interest on any Indebtedness under a revolving credit
facility computed on a pro forma basis shall be computed based upon the average
daily balance of such Indebtedness during the applicable period. Interest on
Indebtedness that may optionally be determined at an interest rate based upon a
factor of a prime or similar rate, a eurocurrency interbank offered rate, or
other rate, shall be deemed to have been based upon the rate actually chosen,
or, if none, then based upon such optional rate chosen as the Company may
designate.

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

          (1) Consolidated Interest Expense of such Person for such period, and

          (2) all cash dividend payments (excluding items eliminated in
     consolidation) on any series of Disqualified Stock made during such period.

"Foreign Subsidiary" means, with respect to any Person, any Restricted
Subsidiary of such Person that is not organized or existing under the laws of
the United States of America, any state thereof, the District of Columbia, or
any territory thereof.

"Foreign Subsidiary Total Assets" means the total amount of all assets of
Foreign Subsidiaries of the Company and the Restricted Subsidiaries, determined
on a consolidated basis in accordance with GAAP as shown on the most recent
internal balance sheet of the Company.

"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, the Public Company Accounting Oversight
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
Issue Date.

"Global Note Legend" means the legend set forth in Section 2.06(g)(2) hereof,
which is required to be placed on all Global Notes issued under this Indenture.

"Global Notes" means, individually and collectively, each of the Restricted
Global Notes and the Unrestricted Global Notes deposited with or on behalf of
and registered in the name of the Depository or its nominee, substantially in
the form of Exhibit A1 or Exhibit A2 hereto and that bears the Global Note
Legend and that has the "Schedule of Exchanges of Interests in the Global Note"
attached thereto.

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

"guarantee" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including letters of credit and

                                       17

reimbursement agreements in respect thereof), of all or any part of any
Indebtedness or other obligations, and, when used as a verb, shall have a
corresponding meaning.

"Guarantee" means the guarantee by each Guarantor of the Company's and the
Co-Issuers' obligations under this Indenture and the Notes.

"Guarantors" means:

          (1) each Domestic Subsidiary of the Company that guarantees the Credit
     Agreement; and

          (2) any other Subsidiary of the Company that executes a Guarantee in
     accordance with the provisions of this Indenture,

and their respective successors and assigns, in each case, until the Guarantee
of such Person has been released in accordance with the provisions of this
Indenture.

"Harland" means John H. Harland Company, a Georgia corporation.

"Harland Subsidiaries" means the Subsidiaries of Harland.

"Hedging Obligations" means, with respect to any specified Person, the
obligations of such Person under currency exchange, interest rate or commodity
swap agreements, currency exchange, interest rate or commodity cap agreements
and currency exchange, interest rate or commodity collar agreements and other
agreements or arrangements, in each case designed to manage fluctuations in
currency exchange, interest rates or commodity prices.

"Holder" means a Person in whose name a Note is registered on the Registrar's
books.

"Holdings" means CA Acquisition Holdings, Inc., a Delaware corporation.

"IAI Global Note" means a Global Note substantially in the form of Exhibit A1 or
Exhibit A2 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 to Institutional Accredited
Investors.

"Immaterial Subsidiary" means, at any date of determination, any Restricted
Subsidiary designated as such in writing by the Company that:

               (i) contributed 2.5% or less of EBITDA of the Company and the
          Restricted Subsidiaries for the period of four fiscal quarters most
          recently ended more than forty-five (45) days prior to the date of
          determination, and

               (ii) had consolidated assets representing 2.5% or less of Total
          Assets on the last day of the most recent fiscal quarter ended more
          than forty-five (45) days prior to the date of determination.

"Indebtedness" means, without duplication, with respect to any specified Person:

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

                                       18

               (a) in respect of borrowed money,

               (b) evidenced by bonds, notes, debentures or similar instruments
          or letters of credit or bankers' acceptances (or, without double
          counting, reimbursement agreements in respect thereof),

               (c) representing the balance deferred and unpaid of the purchase
          price of any property (including Capitalized Lease Obligations),
          except any such balance that constitutes a trade payable or similar
          obligation to a trade creditor, in each case accrued in the ordinary
          course of business, or

               (d) representing any Hedging Obligations,

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

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

          (3) to the extent not otherwise included, the obligations of the type
     referred to in clause (1) of another Person secured by a Lien on any asset
     owned by such Person, whether or not such obligations are assumed by such
     Person and whether or not such obligations would appear upon the balance
     sheet of such Person; provided that the amount of such Indebtedness will be
     the lesser of the fair market value of such asset at the date of
     determination and the amount of Indebtedness so secured, and

          (4) Attributable Debt in respect of Sale and Lease-Back Transactions;

     provided, however, that notwithstanding the foregoing, Indebtedness will be
deemed not to include (A) Contingent Obligations that are incurred in the
ordinary course of business, (B) obligations under, or in respect of,
Receivables Facilities and (C) redeemable Preferred Stock of such Person.

"Indenture" means this Indenture, as amended or supplemented from time to time.

"Independent Financial Advisor" means an accounting, appraisal, investment
banking firm or consultant to Persons engaged in similar businesses of
nationally recognized standing that is, in the good faith judgment of the
Company, qualified to perform the task for which it has been engaged and that is
independent of the Company and its Affiliates.

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

"Initial Fixed Rate Notes" means the $310,000,000.00 in aggregate principal
amount of 9.50% Senior Fixed Rate Notes due 2015 issued under this Indenture on
the date hereof.

"Initial Floating Rate Notes" means the $305,000,000.00 in aggregate principal
amount of Senior Floating Rate Notes due 2015 issued under this Indenture on the
date hereof.

                                       19

"Initial Notes" means the Initial Fixed Rate Notes and Initial Floating Rate
Notes.

"Initial Purchasers" means Credit Suisse Securities (USA) LLC, Bear, Stearns &
Co. Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

"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.

"Investment Grade Securities" means:

          (1) securities issued or directly and fully guaranteed or insured by
     the government of the United States of America or any agency or
     instrumentality thereof (other than Cash Equivalents);

          (2) debt securities or debt instruments with a rating of BBB- or
     higher by S&P or Baa3 or higher by Moody's or the equivalent of such rating
     by such rating organization, or, if no rating of S&P or Moody's then
     exists, the equivalent of such rating by any other nationally recognized
     securities rating agency, but excluding any debt securities or instruments
     constituting loans or advances among the Company and its Subsidiaries;

          (3) investments in any fund that invests exclusively in investments of
     the type described in clauses (1) and (2), which fund may also hold
     immaterial amounts of cash pending investment or distribution; and

          (4) corresponding instruments in countries other than the United
     States of America customarily utilized for high quality investments.

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

          (1) "Investments" shall include the portion (proportionate to the
     Company's equity interest in such Subsidiary) of the fair market value of
     the net assets of a Subsidiary of the Company at the time that such
     Subsidiary is designated an Unrestricted Subsidiary; provided that upon a
     redesignation of such Subsidiary as a Restricted Subsidiary, the Company
     shall be deemed to continue to have a permanent "Investment" in an
     Unrestricted Subsidiary in an amount (if positive) equal to (x) the
     Company's "Investment" in such Subsidiary at the time of such
     redesignation, less (y) the portion (proportionate to the Company's equity
     interest in such Subsidiary) of the fair market value of the net assets of
     such Subsidiary at the time of such redesignation; and

          (2) any property transferred to or from an Unrestricted Subsidiary
     shall be valued at its fair market value at the time of such transfer, in
     each case as determined in good faith by the Company.

                                       20

"Issue Date" means May 1, 2007, the date of this Indenture.

"Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions are not required to be open in the State of New York. If a payment
date is a Legal Holiday at such place, payment may be made at such place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue
for the intervening period.

"Letter of Transmittal" means the letter of transmittal to be prepared by the
Company 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; provided that in
no event shall an operating lease be deemed to constitute a Lien.

"Merger" means the merger of H Acquisition Corp. with and into Harland pursuant
to the Merger Agreement.

"Merger Agreement" the Agreement and Plan of Merger, dated as of December 19,
2006, among MFW, H Acquisition Corp. and Harland, as such agreement may be
amended on or prior to the Issue Date.

"MFW" means M&F Worldwide Corp., a Delaware corporation.

"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.

"Net Proceeds" means the aggregate cash proceeds received by the Company or any
Restricted Subsidiary in respect of any Asset Sale or Designated Asset Sale,
including any cash received upon the sale or other disposition of any Designated
Noncash Consideration received in any Asset Sale or Designated Asset Sale, net
of the direct costs relating to such Asset Sale or Designated Asset Sale and the
sale or disposition of such Designated Noncash Consideration, including:

          (1) legal, accounting and investment banking fees, and brokerage and
     sales commissions,

          (2) any relocation, restructuring or severance expenses incurred as a
     result thereof,

          (3) taxes paid or estimated in good faith to be payable as a result
     thereof (after taking into account any available tax credits or deductions
     and any tax sharing arrangements),

          (4) amounts required to be applied to the repayment of principal,
     premium, prepayment fees, penalties, if any, and interest on Indebtedness
     required (other than as required by Section 4.10 hereof) to be paid as a
     result of such transaction, and

          (5) any deduction of appropriate amounts to be provided by the Company
     or any Restricted Subsidiary as a reserve in accordance with GAAP in
     respect of (A) the sale price of the assets that are the subject of such
     sale or other disposition (including in respect of working capital
     adjustments or any evaluation of such assets) or (B) any liabilities
     associated with the asset disposed of in such transaction and retained by
     the Company or any Restricted Subsidiary after

                                       21

     such sale or other disposition thereof, including pension and other
     post-employment benefit liabilities and liabilities related to
     environmental matters or against any indemnification obligations associated
     with such transaction.

"Non-U.S. Person" means a Person who is not a U.S. Person.

"Notes" has the meaning assigned to it in the preamble to this Indenture. Except
as expressly provided herein, the Initial Notes, the Exchange 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, the Exchange Notes and any Additional
Notes.

"Obligations" means any principal (including reimbursement obligations with
respect to letters of credit whether or not drawn), interest (including, to the
extent legally permitted, all interest accrued thereon after the commencement of
any insolvency or liquidation proceeding at the rate, including any applicable
post-default rate, specified in the applicable agreement), premium (if any),
guarantees of payment, fees, indemnifications, reimbursements, expenses, damages
and other liabilities payable under the documentation governing any
Indebtedness; provided that Obligations with respect to the Notes shall not
include fees or indemnification in favor of the Trustee and any other third
parties other than the Holders.

"Offering Circular" means the offering circular of the Company, dated April 26,
2007.

"Officer" means the Chairman of the Board, the Chief Executive Officer, the
Chief Financial Officer, the President, any Executive Vice President, Senior
Vice President or Vice President, the Treasurer, the controller, the Secretary
or the Assistant Secretary of the Company.

"Officers' Certificate" means a certificate signed on behalf of the Company by
two Officers of the Company, one of whom must be the chief executive officer or
a Financial Officer of the Company.

"Opinion of Counsel" means an opinion from legal counsel that meets the
requirements of Section 12.05 hereof. Such opinion may be subject to customary
assumptions, exceptions and qualifications. The counsel may be an employee of or
counsel to the Company or any Subsidiary of the Company.

"Parents" means:

          (1) MacAndrews & Forbes Holdings Inc.,

          (2) MFW,

          (3) each of their direct and indirect subsidiaries and Affiliates,

          (4) Ronald O. Perelman,

          (5) any of the directors or executive officers of MacAndrews & Forbes
     Holdings Inc., or

          (6) any of their respective Permitted Transferees.

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

"Permitted Asset Swap" means the concurrent purchase and sale or exchange of
Related Business Assets or a combination of Related Business Assets and cash or
Cash Equivalents between the Company or any

                                       22

of its Restricted Subsidiaries and another Person that is not the Company or
any of its Restricted Subsidiaries; provided that any cash or Cash Equivalents
received must be applied in accordance with Section 4.10 hereof.

"Permitted Holders" means each of the Parents and any group (within the meaning
of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor
provision) of which any of the Parents is a member; provided that, in the case
of such group and without giving effect to the existence of such group or any
other group, the Parents have beneficial ownership of more than 50% of the total
voting power of the Voting Stock of the Company or any of its direct or indirect
parent companies. Any Person or group whose acquisition of beneficial ownership
or assets constitutes a Change of Control in respect of which a Change of
Control Offer is made in accordance with Section 4.15 hereof will thereafter,
together with its Affiliates, constitute an additional Permitted Holder.

"Permitted Investments" means:

          (1) any Investment in the Company or any Restricted Subsidiary;

          (2) any Investment in cash and Cash Equivalents or Investment Grade
     Securities;

          (3) (x) any Investment by Holdings, the Company or any Restricted
     Subsidiary of the Company in a Person that is engaged in a Similar Business
     if as a result of such Investment (a) such Person becomes a Restricted
     Subsidiary of the Company or (b) such Person, in one transaction or a
     series of related transactions, is merged, consolidated or amalgamated with
     or into, or transfers or conveys substantially all of its assets to, or is
     liquidated into, the Company or a Restricted Subsidiary of the Company, and
     (y) any Investment held by such Person;

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

          (5) loans and advances to, and guarantees of Indebtedness of,
     employees not in excess of $10.0 million outstanding at any one time, in
     the aggregate;

          (6) any Investment acquired by the Company or any Restricted
     Subsidiary (x) in exchange for any other Investment or accounts receivable
     held by the Company or any such Subsidiary in connection with or as a
     result of a bankruptcy, workout, reorganization or recapitalization of the
     Person in which such other Investment is made or which is the obligor with
     respect to such accounts receivable, (y) as a result of a foreclosure by
     the Company or any Restricted Subsidiary with respect to any secured
     Investment or other transfer of title with respect to any secured
     Investment in default or (z) as a result of litigation, arbitration or
     other disputes with Persons who are not Affiliates;

          (7) Hedging Obligations permitted under Section 4.09 hereof;

          (8) loans and advances to officers, directors and employees for
     business-related travel expenses, moving expenses and other similar
     expenses, in each case incurred in the ordinary course of business or
     consistent with past practice or to fund such Person's purchase of Equity
     Interests of the Company or any direct or indirect parent company thereof
     under compensation plans approved by the Board of Directors of the Company
     in good faith;

                                       23

          (9) Investments the payment for which consists of Equity Interests of
     the Company or any of its direct or indirect parent companies (exclusive of
     Disqualified Stock of the Company);

          (10) guarantees of Indebtedness permitted under Section 4.09 hereof
     and performance guarantees in the ordinary course of business;

          (11) any transaction to the extent it constitutes an investment that
     is permitted and made in accordance with Section 4.11 hereof (other than
     any transaction set forth in Section 4.11(b)(2), (b)(6) and (b)(7) hereof);

          (12) Investments consisting of purchases and acquisitions of
     inventory, supplies, material or equipment or the licensing or contribution
     of intellectual property pursuant to joint marketing, joint development or
     similar arrangements with other Persons;

          (13) Investments in a Similar Business having an aggregate fair market
     value, taken together with all other Investments made pursuant to this
     clause (13) that are at that time outstanding (without giving effect to the
     sale of an Unrestricted Subsidiary to the extent the proceeds of such sale
     do not consist of cash or marketable securities), not to exceed the greater
     of (x) $125.0 million and (y) 2.5% of Total Assets at the time of such
     Investment (with the fair market value of each Investment being measured by
     the Company in good faith at the time made and without giving effect to
     subsequent changes in value);

          (14) Investments relating to a Receivables Facility; provided that in
     the case of Receivables Facilities established after the Issue Date, such
     Investments are necessary or advisable (in the good faith determination of
     the Company) to effect such Receivables Facility;

          (15) additional Investments having an aggregate fair market value,
     taken together with all other Investments made pursuant to this clause (15)
     that are at that time outstanding (without giving effect to the sale of an
     Unrestricted Subsidiary to the extent the proceeds of such sale do not
     consist of cash or marketable securities), not to exceed $175.0 million
     (with the fair market value of each Investment being measured by the
     Company in good faith at the time made and without giving effect to
     subsequent changes in value);

          (16) Investments in respect of pre-paid incentives to customers (which
     pre-paid incentive payments may also be recorded as "upfront contract
     acquisition costs");

          (17) any Investments in receivables owing to the Company or a
     Restricted Subsidiary, if created or acquired in the ordinary course of
     business and payable or dischargeable in accordance with customary trade
     terms; provided, however, that such trade terms may include such
     concessionary trade terms as the Company or such Restricted Subsidiary
     deems reasonable under the circumstances;

          (18) advances, loans and extensions of credit to suppliers, customers
     and vendors in the ordinary course of business;

          (19) Investments in prepaid expenses, negotiable instruments held for
     collection and lease and utility and worker's compensation deposits
     provided to third parties in the ordinary course of business;

          (20) Investments in existence on the Issue Date or made pursuant to
     legally binding commitments in effect on the Issue Date (after giving
     effect to the Transactions); and

                                       24

          (21) Investments consisting of earn-out obligations incurred in
     connection with the Company's acquisition of Alcott Routon, Inc., not to
     exceed $3.0 million in the aggregate.

"Permitted Liens" means:

          (1) Liens on assets of the Company or any of its Restricted
     Subsidiaries securing all obligations in respect of Indebtedness under
     Credit Facilities that were permitted to be incurred under Section
     4.09(b)(a);

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

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

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

          (5) Liens in favor of issuers of performance and surety bonds or bid
     bonds or with respect to other regulatory requirements or letters of credit
     issued pursuant to the request of and for the account of such Person in the
     ordinary course of its business;

          (6) (x) survey exceptions, encumbrances, easements or reservations of,
     or rights of others for, licenses, rights-of-way, sewers, electric lines,
     telegraph and telephone lines and other similar purposes, or other
     restrictions as to the use of real properties or Liens incidental to the
     conduct of the business of such Person or to the ownership of its
     properties, in each case, which were not incurred in connection with
     Indebtedness and which do not in the aggregate materially adversely affect
     the value of said properties or materially impair their use in the
     operation of the business of such Person and (y) any zoning or similar law
     or right reserved to or vested in any Governmental Authority to control or
     regulate the use of any real property;

          (7) Liens existing on the Issue Date;

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

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

                                       25

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

          (11) Liens on specific items of inventory or other goods and proceeds
     of any Person securing such Person's obligations in respect of bankers'
     acceptances or letters of credit issued or created for the account of such
     Person to facilitate the purchase, shipment or storage of such inventory or
     other goods;

          (12) Leases, licenses, subleases and sublicenses granted to others in
     the ordinary course of business of the Company or any of the Restricted
     Subsidiaries and do not secure any Indebtedness;

          (13) Liens arising from financing statement filings under the Uniform
     Commercial Code or similar state laws regarding operating leases entered
     into by the Company and its Restricted Subsidiaries in the ordinary course
     of business;

          (14) Liens in favor of the Company or any Guarantor;

          (15) Liens on inventory or equipment of the Company or any Restricted
     Subsidiary granted in the ordinary course of business to the Company's
     client at which such inventory or equipment is located;

          (16) Liens on accounts receivable, payment intangibles and related
     assets incurred in connection with a Receivables Facility, and limited
     recourse Liens on the Capital Stock of any Receivables Subsidiary;

          (17) Liens to secure any refinancing, refunding, extension, renewal or
     replacement (or successive refinancing, refunding, extensions, renewals or
     replacements) as a whole, or in part, of any Indebtedness secured by any
     Lien referred to in the foregoing clauses (1), (7), (8), (9) and (10) and
     the following clauses (18), (28) and (30) of this definition, as the case
     may be; provided that

               (x) such new Lien shall be limited to all or part of the same
          property that secured (or was required to secure) the original Lien
          (plus improvements on such property), and

               (y) the Indebtedness secured by such Lien at such time is not
          increased to any amount greater than the sum of (A) the outstanding
          principal amount or, if greater, committed amount of the Indebtedness
          described under clauses (1), (7), (8), (9) and the following clauses
          (18), (28) and (30) of this definition, respectively, at the time the
          original Lien became a Permitted Lien under this Indenture, and (B) an
          amount necessary to pay any fees and expenses, including premiums,
          related to such refinancing, refunding, extension, renewal or
          replacement;

          (18) Liens securing Indebtedness permitted to be incurred pursuant to
     Section 4.09(b)(c), Section 4.09(b)(e), Section 4.09(b)(o)(1), Section
     4.09(b)(r), Section 4.09(b)(s) and Section 4.09(b)(v) hereof (whether or
     not, in the case of Indebtedness incurred under each of Section 4.09(b)(r)
     and Section 4.09(b)(s), such Indebtedness is subsequently deemed to have
     been incurred pursuant to Section 4.09(a) as provided in Section 4.09(b)(r)
     or Section 4.09(b)(s), as applicable); provided that

               (A) Liens securing Indebtedness permitted to be incurred pursuant
          to Section 4.09(b)(e) do not at any time encumber any property or
          assets other than the property or assets the cost of which is either
          financed or reimbursed by such Indebtedness and the proceeds and the
          products thereof,

                                       26

               (B) Liens securing Indebtedness permitted to be incurred pursuant
          to Section 4.09(b)(o)(1) or Section 4.09(b)(r) are solely on acquired
          property or the assets or Capital Stock of the acquired entity, as the
          case may be, and the proceeds and the products thereof and

               (C) Liens securing Indebtedness permitted to be incurred pursuant
          to Section 4.09(b)(s) extend only to the assets of Foreign
          Subsidiaries;

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

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

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

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

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

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

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

          (26) other Liens securing obligations the principal amount of which do
     not exceed $125.0 million at any one time outstanding;

          (27) Liens securing (x) secured Cash Management Obligations, (y)
     Hedging Obligations secured by assets securing Credit Facilities and (z)
     any Hedging Obligations, so long as the related Indebtedness is, and is
     permitted to be under this Indenture, secured by a Lien on the same
     property securing such Hedging Obligations;

          (28) Liens incurred to secure obligations in respect of any
     Indebtedness permitted to be incurred pursuant to Section 4.09 hereof; if,
     at the time of incurrence of such Indebtedness and after giving pro forma
     effect to the use of proceeds thereof, the Consolidated Secured Debt Ratio
     for the period of the most recently ended four full consecutive fiscal
     quarters for which internal financial statements are available immediately
     preceding the date of such incurrence would not be greater than 4.00 to
     1.00; provided that if, at the time of incurrence of such Indebtedness and
     after

                                       27

     giving pro forma effect to the use of proceeds thereof, the Consolidated
     Secured Debt Ratio for the period of the most recently ended four full
     consecutive fiscal quarters for which internal financial statements are
     available immediately preceding the date of such incurrence would be
     greater than 3.50 to 1.00 but less than 4.00 to 1.00, then (i) the proceeds
     of the obligations in respect of any such Indebtedness which are so secured
     shall be applied to make Investments and acquisitions that are permitted by
     this Indenture and (ii) the Liens securing such Indebtedness shall extend
     solely to such Investments or acquired property or the Capital Stock of the
     acquired entity, and the proceeds and products thereof;

          (29) Liens incurred to secure guarantees permitted under Section
     4.09(b)(m), but only to the extent that the Indebtedness so guaranteed is
     permitted to be secured under the terms of this Indenture and only to the
     extent of the assets permitted to secure such Indebtedness under the terms
     of this Indenture; and

          (30) Liens securing Indebtedness incurred pursuant to Section
     4.09(b)(c).

"Permitted Transferees" means, with respect to any Person that is a natural
person (and any Permitted Transferee of such Person), (x) such Person's
immediate family, including his or her spouse, ex-spouse, children,
step-children and their respective lineal descendants and (y) any trust or other
legal entity the beneficiary of which is such Person's immediate family,
including his or her spouse, ex-spouse, children, step-children or their
respective lineal descendants and which is controlled by such Person.

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

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

"Printed Products Business" means the provision of checks and related products,
direct marketing and contact center services to financial and commercial
institutions and individuals.

"Private Placement Legend" means the legend set forth in Section 2.06(g)(1)
hereof to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

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

"Qualified Affiliate Debt" means unsecured, subordinated Indebtedness issued by
the Company to the Parents or any of their Affiliates in an aggregate principal
amount at any time outstanding not to exceed $30.0 million (plus capitalized
interest on such Indebtedness).

"Qualified Proceeds" means assets that are used or useful in, or Capital Stock
of any Person engaged in, a Similar Business; provided that the fair market
value of any such assets or Capital Stock shall be determined by the Company in
good faith.

"Receivables Facility" means one or more receivables financing facilities, as
amended, supplemented, modified, extended, renewed, restated, refunded, replaced
or refinanced from time to time, the Indebtedness of which is non-recourse
(except for representations, warranties, covenants and indemnities made in
connection with such facilities that the Company has determined in good faith to
be customary in financings similar to a Receivables Facility, including, without
limitation, those relating to the servicing of the assets of a Receivables
Subsidiary and those relating to any obligation of the Company or any Restricted
Subsidiary to repurchase the assets it sold thereunder as a result of a breach
of a representation, warranty or covenant or otherwise) to the Company and its
Restricted Subsidiaries pursuant to which the

                                       28

Company or any of its Restricted Subsidiaries sells or transfers its accounts
receivable, payment intangibles and related assets to either (x) a Person that
is not a Restricted Subsidiary or (y) a Receivables Subsidiary that in turn
sells or transfers its accounts receivable, payment intangibles and related
assets to a Person that is not a Restricted Subsidiary; provided that the
aggregate book value (measured at the time of transfer thereof) of all
receivables and payment intangibles at any time subject to the Receivables
Facility that had been transferred to the Receivables Subsidiary by the Company
and any Restricted Subsidiaries shall not exceed an amount equal to $150.0
million.

"Receivables Fees" means distributions or payments made directly or by means of
discounts with respect to any participation interest issued or sold in
connection with, and other fees paid to a Person that is not a Restricted
Subsidiary in connection with, any Receivables Facility.

"Receivables Subsidiary" means any subsidiary formed solely for the purpose of
engaging, and that engages only, in one or more Receivables Facilities and any
Subsidiary of another Receivables Subsidiary.

"Registration Rights Agreement" means the Registration Rights Agreement, dated
as of May 1, 2007, among the Company, the Guarantors and the other parties named
on the signature pages thereof, 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 the Company, the Guarantors and the
other parties thereto, as such agreement(s) may be amended, modified or
supplemented from time to time, relating to rights given by the Company 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 Regulation S Temporary Global Note or
Regulation S Permanent Global Note, as appropriate.

"Regulation S Permanent Global Note" means a permanent Global Note in the form
of Exhibit A1 or A2 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

"Regulation S Temporary Global Note" means a temporary Global Note in the form
of Exhibit A3 or A4 hereto deposited with or on behalf of and registered in the
name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Notes initially sold in reliance on Rule 903
of Regulation S.

"Related Business Assets" means assets (other than cash or Cash Equivalents)
used or useful in a Similar Business; provided that any assets received by the
Company or a Restricted Subsidiary in exchange for assets transferred by the
Company or a Restricted Subsidiary shall not be deemed to be Related Business
Assets if they consist of securities of a Person, unless upon receipt of the
securities of such Person, such Person would become a Restricted Subsidiary.

"Representative" means, with respect to a person, any trustee, agent or
representative (if any) for an issue of Senior Indebtedness of such Person.

"Responsible Officer" of any Person means the chief executive officer, the
president, any vice president, the chief operating officer or any Financial
Officer of such Person and any other officer or similar official thereof
responsible for the administration of the obligations of such Person in respect
of the Notes.

                                       29

"Restricted Definitive Note" means a Definitive Note bearing the Private
Placement Legend.

"Restricted Global Note" means a Global Note bearing the Private Placement
Legend.

"Restricted Investment" means an Investment other than a Permitted Investment.

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

"Restricted Subsidiary" of a Person means any Subsidiary of such Person that is
not an Unrestricted Subsidiary or a Receivables Subsidiary; provided that upon
the occurrence of an Unrestricted Subsidiary ceasing to be an Unrestricted
Subsidiary, such Subsidiary shall be included in the definition of "Restricted
Subsidiary." Unless otherwise specified or the context otherwise requires, a
reference to a "Restricted Subsidiary" shall be a reference to a Restricted
Subsidiary of the Company.

"Rule 144" means Rule 144 promulgated under the Securities Act.

"Rule 144A" means Rule 144A promulgated under the Securities Act.

"Rule 903" means Rule 903 promulgated under the Securities Act.

"Rule 904" means Rule 904 promulgated under the Securities Act.

"Sale and Lease-Back Transaction" means any arrangement with any Person
providing for the leasing by the Company or any Restricted Subsidiary of any
real or tangible personal property, which property has been or is to be sold or
transferred by the Company or such Restricted Subsidiary to such Person in
contemplation of a transaction that constitutes a capital lease in accordance
with GAAP.

"SEC" means the United States Securities and Exchange Commission.

"Secured Indebtedness" means any Indebtedness secured by a Lien.

"Securities Act" means the Securities Act of 1933, as amended, or any successor
statute, and the rules and regulations promulgated by the SEC thereunder.

"Senior Indebtedness" means with respect to any Person:

          (1) all Indebtedness of such Person, whether outstanding on the Issue
     Date or thereafter incurred; and

          (2) all other Obligations of such Person (including interest accruing
     on or after the filing of any petition in bankruptcy or for reorganization
     relating to such Person whether or not post-filing interest is allowed in
     such proceeding) in respect of Indebtedness described in clause (1) above

     unless, in the case of clauses (1) and (2), the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness or other Obligations are subordinate in right of
payment to the Notes or the Guarantee of such Person, as the case may be;
provided that Senior Indebtedness shall not include:

          (1) any obligation of such Person to the Company or any Subsidiary of
     the Company or to any joint venture in which the Company or any Restricted
     Subsidiary has an interest;

                                       30

          (2) any liability for Federal, state, local or other taxes owed or
     owing by such Person;

          (3) any accounts payable or other liability to trade creditors in the
     ordinary course of business (including guarantees thereof as instruments
     evidencing such liabilities);

          (4) any Indebtedness or other Obligation of such Person that is
     subordinate or junior in right of payment to any other Indebtedness or
     other Obligation of such Person; or

          (5) that portion of any Indebtedness that at the time of incurrence is
     incurred in violation of this Indenture.

     For the purposes of the foregoing, for the avoidance of doubt, no
Indebtedness shall be deemed to be subordinated in right of payment to any other
Indebtedness solely by virtue of being unsecured or secured by a lower priority
Lien or by virtue of the fact that the holders of such Indebtedness have entered
into intercreditor agreements or other arrangements giving one or more of such
holders priority over the other holders in the collateral held by them.

"Shelf Registration Statement" means the Shelf Registration Statement as defined
in the Registration Rights Agreement.

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

"Similar Business" means any business conducted by the Company and its
Restricted Subsidiaries on the Issue Date (after giving effect to the
Transactions) or any business that is a natural outgrowth of an existing
business or is similar, reasonably related, incidental or ancillary to any of
the foregoing.

"Subordinated Indebtedness" means (a) with respect to the Company, any
Indebtedness of the Company that is by its terms subordinated in right of
payment to the Notes pursuant to a written agreement, and (b) with respect to
any Guarantor, any Indebtedness of such Guarantor that is by its terms
subordinated in right of payment to the Guarantee of such Guarantor pursuant to
a written agreement. For the purposes of the foregoing, for the avoidance of
doubt, no Indebtedness shall be deemed to be subordinated in right of payment to
any other Indebtedness solely by virtue of being unsecured or secured by a lower
priority Lien or by virtue of the fact that the holders of such Indebtedness
have entered into intercreditor agreements or other arrangements giving one or
more of such holders priority over the other holders in the collateral held by
them.

"Subsidiary" means, with respect to any specified Person:

          (1) any corporation, association or other business entity (other than
     a partnership, joint venture, limited liability company or similar entity)
     of which more than 50% of the total voting power of shares of Capital Stock
     entitled (without regard to the occurrence of any contingency) to vote in
     the election of directors, managers or trustees 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, joint venture, limited liability company or
     similar entity of which (x) more than 50% of the capital accounts,
     distribution rights, total equity and voting interests or general or
     limited partnership interests, as applicable, are owned or controlled,

                                       31

     directly or indirectly, by such Person or one or more of the other
     Subsidiaries of that Person or a combination thereof whether in the form of
     membership, general, special or limited partnership or otherwise, and (y)
     such Person or any Restricted Subsidiary of such Person is a controlling
     general partner or otherwise controls such entity.

     Unless otherwise specified or the context otherwise requires, a reference
to a "Subsidiary" shall be a reference to a Subsidiary of the Company.

"Tax Sharing Agreement" means the Tax Sharing Agreement dated as of December 15,
2005, among MFW, the Company and PCT International Holdings Inc., and any
amendments, supplements or modifications thereof.

"Tender Offer" means (x) the tender offer by the Company for the outstanding
Existing Clarke Notes and a simultaneous consent solicitation from the holders
of such Existing Clarke Notes for the removal of certain specified restrictive
covenants and events of default under the indenture governing such Existing
Clarke Notes and (y) if and to the extent that such consent solicitation does
not result in such removal, such other arrangements as shall be reasonably
acceptable to the trustee shall have been made for the redemption or covenant
defeasance of any Existing Clarke Notes not tendered and accepted in the tender
offer referred to in clause (x).

"TIA" means the Trust Indenture Act of 1939, as amended, or any successor
statute.

"Total Assets" means the total amount of all assets of the Company and the
Restricted Subsidiaries, determined on a consolidated basis in accordance with
GAAP as shown on the most recent internal balance sheet of the Company.

"Transaction Costs" means fees and expenses payable or otherwise borne by
Holdings, the Company and its subsidiaries in connection with the Transactions
and the transactions contemplated thereby, including, without limitation, the
costs of legal and financial advisors to Holdings, the Company, John H. Harland
Company and the lenders under the Credit Agreement, the payment of any change of
control payments or other severance payments, redemption premiums and prepayment
fees and penalties in connection with the prepayment redemption, repurchase and
solicitation of consents of the existing Indebtedness of each of the Company,
John H. Harland Company and their respective Affiliates and the costs of
structuring and implementing corporate restructuring transactions related to the
Transactions.

"Transactions" means, collectively, (a) the execution, delivery and performance
by the parties thereto of the Merger Agreement and the consummation of the
transactions contemplated thereby, (b) the execution, delivery and performance
by the Company and the other parties thereto of the Credit Agreement on the
Issue Date and the making of the borrowings thereunder on the Issue Date, (c)
the execution, delivery and performance by the Company and the Guarantors of
this Indenture and related documents and the issuance of the Notes, (d) the
refinancing of the Existing Credit Agreements and the Tender Offer, and (e) the
payment of the Transaction Costs. In addition, for purposes of calculating
EBITDA, Total Assets, Foreign Subsidiary Total Assets, Consolidated Total
Indebtedness and any other financial definitions (when such other financial
definitions are to be calculated on a pro forma basis), the Transactions shall
be given pro forma effect as if they had occurred on the first day of the
relevant period in a manner consistent with the pro forma adjustment provisions
set forth in the definition of "Fixed Charge Coverage Ratio."

"Treasury Rate" means, as of any redemption (or deposit) date, the yield to
maturity as of such redemption (or deposit) date of United States Treasury
securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly

                                       32

available at least two business days prior to the redemption (or deposit) date
(or, if such Statistical Release is no longer published, any publicly available
source of similar market data)) most nearly equal to the period from the
redemption (or deposit) date to May 15, 2009 with respect to the Floating Rate
Notes and May 15, 2011 with respect to the Fixed Rate Notes; provided, however,
that if the period from the redemption (or deposit) date to May 15, 2009 with
respect to the Floating Rate Notes and May 15, 2011 with respect to the Fixed
Rate Notes, is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
will be used.

"Trustee" means Wells Fargo Bank, N.A. 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 a Definitive Note that does not bear and is
not required to bear the Private Placement Legend.

"Unrestricted Global Note" means a Global Note that does not bear and is not
required to bear the Private Placement Legend.

"Unrestricted Subsidiary" means (1) any Subsidiary of the Company that at the
time of determination is an Unrestricted Subsidiary (as designated by the
Company, as provided below) and (2) any Subsidiary of an Unrestricted
Subsidiary.

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

          (1) any Unrestricted Subsidiary must be an entity of which shares of
     the capital stock or other equity interests (including partnership
     interests) entitled to cast at least a majority of the votes that may be
     cast by all shares or equity interests having ordinary voting power for the
     election of directors or other governing body are owned, directly or
     indirectly, by the Company,

          (2) such designation complies with Section 4.07 hereof and

          (3) each of (1) the Subsidiary to be so designated and (2) its
     Subsidiaries has not at the time of designation, and does not thereafter,
     create, incur, issue, assume, guarantee or otherwise become directly or
     indirectly liable with respect to any Indebtedness pursuant to which the
     lender has recourse to any of the assets of the Company or any Restricted
     Subsidiary.

     The Company may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that, immediately after giving effect to such designation
no Default shall have occurred and be continuing and either

          (1) the Company could incur at least $1.00 of additional Indebtedness
     pursuant to the Fixed Charge Coverage Ratio test in Section 4.09(a) hereof,
     or

          (2) the Fixed Charge Coverage Ratio for the Company and its Restricted
     Subsidiaries would be equal to or greater than such ratio for the Company
     and its Restricted Subsidiaries immediately prior to such designation, in
     each case on a pro forma basis taking into account such designation.

                                       33

     Any such designation by the Company shall be notified by the Company to the
Trustee by promptly filing with the Trustee a copy of any applicable Board
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing provisions.
Notwithstanding the foregoing, as of the Issue Date, all of the subsidiaries of
the Company will be Restricted Subsidiaries.

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

"Voting Stock" means, with respect to any Person that is (a) a corporation, any
class or series of capital stock of such Person that is at the time entitled to
vote in the election of directors thereof at a meeting of stockholders called
for such purpose, without the occurrence of any additional event or contingency,
(b) a limited liability company, membership interests entitled, by contract or
otherwise, to manage, or to elect or appoint the Persons that will manage the
operations or business of the limited liability company, or (c) a partnership,
partnership interests entitled to elect or replace the general partner thereof.

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

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

          (2) the sum of all such payments.

"Wholly-Owned Subsidiary" of any Person means a Subsidiary of such Person, 100%
of the outstanding Capital Stock or other ownership interests of which (other
than directors' qualifying shares) shall at the time be owned by such Person or
by one or more Wholly-Owned Subsidiaries of such Person.

Section 1.02 Other Definitions.

                                                                         Defined
                                                                           in
Term                                                                     Section
----                                                                     -------
"Affiliate Transaction"...............................................     4.11
"Asset Sale Offer"....................................................     4.10
"Authentication Order"................................................     2.02
"Change of Control Offer".............................................     4.15
"Change of Control Payment"...........................................     4.15
"Change of Control Payment Date"......................................     4.15
"Covenant Defeasance".................................................     8.03
"DTC".................................................................     2.03
"Event of Default"....................................................     6.01
"Excess Proceeds".....................................................     4.10
"Funds in Trust"......................................................     8.04
"incur"...............................................................     4.09
"Legal Defeasance"....................................................     8.02
"Make-Whole Redemption Date"..........................................     3.07
"Offer Amount"........................................................     3.09
"Offer Period"........................................................     3.09
"Paying Agent"........................................................     2.03
"Payment Default" ....................................................     6.01

                                       34

                                                                         Defined
                                                                            in
Term                                                                     Section
----                                                                     -------
"Permitted Debt"......................................................     4.09
"Purchase Date".......................................................     3.09
"Registrar"...........................................................     2.03
"Replacement ABL Facility" ...........................................     4.09
"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 Guarantees means the Company and the
Guarantors, respectively, and any successor obligor upon the Notes and the
Guarantees, respectively.

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

Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

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

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

          (3) "or" is not exclusive;

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

          (5) "will" shall be interpreted to express a command; and

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

                                       35

                                    ARTICLE 2
                                    THE NOTES

Section 2.01 Form and Dating.

     (a) General. The Notes and the Trustee's certificate of authentication will
be substantially in the form of Exhibit A1, A2, A3 or A4 hereto. The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note will be dated the date of its authentication. The Notes shall
be in denominations of $2,000 and integral multiples of $1,000 in excess
thereof.

     The terms and provisions contained in the Notes will constitute, and are
hereby expressly made, a part of this Indenture and the Company, 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. Subject to Section 2.01(c), Notes issued in global form
will be substantially in the form of Exhibit A1 or Exhibit A2 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 will be
substantially in the form of Exhibit A1 or Exhibit A2 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 will represent such of
the outstanding Notes as will be specified therein and each shall provide that
it represents 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 will 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) Temporary Global Notes. Notes offered and sold in reliance on
Regulation S that are issued in global form will be issued initially in the form
of Regulation S Temporary Global Notes, which will be deposited on behalf of the
purchasers of the Notes represented thereby with the Trustee, as custodian for
the Depositary, and registered in the name of the Depositary or the nominee of
the Depositary for the accounts of designated agents holding on behalf of
Euroclear or Clearstream, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The Restricted Period with respect to a
Regulation S Temporary Global Note will be terminated upon the receipt by the
Trustee of:

          (1) a written certificate from the Depositary, together with copies of
     certificates from Euroclear and Clearstream certifying that they have
     received certification of non-United States beneficial ownership of 100% of
     the aggregate principal amount of such Regulation S Temporary Global Note
     (except to the extent of any beneficial owners thereof who acquired an
     interest therein during the Restricted Period pursuant to another exemption
     from registration under the Securities Act and who will take delivery of a
     beneficial ownership interest in a 144A Global Note or an IAI Global Note
     of the same series bearing a Private Placement Legend, all as contemplated
     by Section 2.06(b) hereof); and

          (2) an Officers' Certificate from the Company.

                                       36

     Following the termination of the Restricted Period, beneficial interests in
the Regulation S Temporary Global Note will be exchanged for beneficial
interests in the Regulation S Permanent Global Note of the same series pursuant
to the Applicable Procedures. Simultaneously with the authentication of a
Regulation S Permanent Global Note, the Trustee will cancel the Regulation S
Temporary Global Note of the same series. The aggregate principal amount of a
Regulation S Temporary Global Note and a Regulation S Permanent Global Note may
from time to time be increased or decreased by adjustments made on the records
of the Trustee and the Depositary or its nominee, as the case may be, in
connection with transfers of interest as hereinafter provided.

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

Section 2.02 Execution and Authentication.

     One Officer of each of the Company and the Co-Issuers must sign the Notes
by manual or facsimile signature. Upon an entity becoming a Co-Issuer of a Note
in accordance with this Indenture, such Co-Issuer shall be added to the
"Schedule of Co-Issuers" attached to the relevant Note and shall sign a
signature page to such Note agreeing to be obligated jointly and severally with
all of the other Co-Issuers with respect to such Note.

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

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

     The Trustee will, upon receipt of a written order of the Company and the
Co-Issuers signed by an Officer of the Company and each Co-Issuer (an
"Authentication Order"), authenticate and deliver for original issue Notes that
may be validly issued under this Indenture, including any Additional Notes. The
aggregate principal amount of Notes outstanding at any time may not exceed the
aggregate principal amount of Notes authorized for issuance by the Company and
the Co-Issuers pursuant to one or more Authentication Orders, except as provided
in Section 2.07 hereof.

     The Trustee may appoint an authenticating agent acceptable to the Company
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 the Company.

Section 2.03 Registrar, Paying Agent and Calculation Agent.

     The Company will 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"). In addition,
the Company shall appoint a Calculation Agent for purposes of the Floating Rate
Notes (the "Calculation Agent"). The Registrar will keep a register of the Notes
and of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional Paying Agents. The term "Registrar"
includes any co-registrar and the term "Paying Agent" includes any additional
paying agent. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company will notify the Trustee in writing of the name
and address of any

                                       37

Agent not a party to this Indenture. If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.

     The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Notes. The Company may change any
Paying Agent or Registrar without notice to any Holder.

     The Company initially appoints the Trustee to act as the Registrar, Paying
Agent, and Calculation Agent and to act as Custodian with respect to the Global
Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

     The Company will 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 or Additional Interest, if any, or interest on the Notes, and will
notify the Trustee of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay
all money held by it to the Trustee. The Company at any time may require a
Paying Agent to pay all money held by it to the Trustee. Upon payment over to
the Trustee, the Paying Agent (if other than the Company or a Subsidiary) will
have no further liability for the money. If the Company or a Subsidiary acts as
Paying Agent, it will 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 the Company, the Trustee will serve as
Paying Agent for the Notes.

Section 2.05 Holder Lists.

     The Trustee will 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 Section 312(a). If the Trustee is not the
Registrar, the Company will 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 the
Company shall otherwise comply with TIA Section 312(a).

Section 2.06 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred except as a whole 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
the Company for Definitive Notes if:

          (1) the Company 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 the Company;

          (2) the Company 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; provided that
     in no event shall the Regulation S Temporary Global Note be exchanged by
     the Company for Definitive Notes prior to (A) the expiration of the
     Restricted

                                       38

     Period and (B) the receipt by the Registrar of any certificates required
     pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act; or

          (3) there has occurred and is continuing a Default or Event of Default
     with respect to the Notes.

          Upon the occurrence of either of the preceding events in (1) or (2)
     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 will
     be effected through the Depositary, in accordance with the provisions of
     this Indenture and the Applicable Procedures. Beneficial interests in the
     Restricted Global Notes will 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
     will require compliance with either subparagraph (1) or (2) below, as
     applicable, as well as one or more of the other following subparagraphs, as
     applicable:

               (1) 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
          Temporary 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 orders
          or instructions shall be required to be delivered to the Registrar to
          effect the transfers described in this Section 2.06(b)(1).

               (2) 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)(1) above,
          the transferor of such beneficial interest must deliver to the
          Registrar either:

                    (A) both:

                         (i) 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

                         (ii) instructions given in accordance with the
                    Applicable Procedures containing information regarding the
                    Participant account to be credited with such increase; or

                    (B) both:

                                       39

                         (i) 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

                         (ii) instructions given by the Depositary to the
                    Registrar containing information regarding the Person in
                    whose name such Definitive Note shall be registered to
                    effect the transfer or exchange referred to in (1) above;

                    provided that in no event shall Definitive Notes be issued
                    upon the transfer or exchange of beneficial interests in the
                    Regulation S Temporary Global Note prior to (A) the
                    expiration of the Restricted Period and (B) the receipt by
                    the Registrar of any certificates required pursuant to Rule
                    903 under the Securities Act.

Upon consummation of an Exchange Offer by the Company in accordance with Section
2.06(f) hereof, the requirements of this Section 2.06(b)(2) 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.

          (3) 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)(2) 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 Temporary Global Note or the
          Regulation S Permanent 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, certificates and Opinion of Counsel required by item
          (3) thereof, if applicable.

          (4) Transfer and Exchange of Beneficial Interests in a Restricted
     Global Note for Beneficial Interests in an Unrestricted Global Note. A
     beneficial interest in any Restricted Global Note may be exchanged by any
     holder thereof for a beneficial interest in an Unrestricted Global Note or
     transferred to a Person who takes delivery thereof in the form of a
     beneficial interest in an Unrestricted Global Note if the exchange or
     transfer complies with the requirements of Section 2.06(b)(2) 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 to be transferred, in the
          case of an exchange, or the transferee, in the case of a

                                       40

          transfer, certifies in the applicable Letter of Transmittal that it is
          not (i) a Broker-Dealer, (ii) a Person participating in the
          distribution of the Exchange Notes or (iii) a Person who is an
          affiliate (as defined in Rule 144) of the Company;

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

               (C) such exchange or transfer is effected by a Broker-Dealer
          pursuant to the Exchange Offer Registration Statement in accordance
          with the Registration Rights Agreement; or

               (D) the Registrar receives the following:

                    (i) 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

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

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

     If any such transfer is effected pursuant to subparagraph (B) or (D) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
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.

          (1) 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:

               (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

                                       41

          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, 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, 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, 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 the
          Company 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 the
Company 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)(1) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

          (2) Beneficial Interests in Regulation S Temporary Global Note to
     Definitive Notes. Notwithstanding Sections 2.06(c)(1)(A) and (C) hereof, a
     beneficial interest in the Regulation S Temporary Global Note may not be
     exchanged for a Definitive Note or transferred to a Person who takes
     delivery thereof in the form of a Definitive Note prior to (A) the
     expiration of the Restricted Period and (B) the receipt by the Registrar of
     any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the
     Securities Act, except in the case of a transfer pursuant to an exemption
     from the registration requirements of the Securities Act other than Rule
     903 or Rule 904.

                                       42

          (3) 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 Transmittal that it is not (i) a
          Broker-Dealer, (ii) a Person participating in the distribution of the
          Exchange Notes or (iii) a Person who is an affiliate (as defined in
          Rule 144) of the Company;

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

               (C) such exchange or transfer is effected by a Broker-Dealer
          pursuant to the Exchange Offer Registration Statement in accordance
          with the Registration Rights Agreement; or

               (D) the Registrar receives the following:

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

                    (ii) if the holder of such beneficial interest in a
               Restricted Global Note proposes to transfer such beneficial
               interest to a Person who shall take delivery thereof in the form
               of an Unrestricted Definitive Note, a certificate from such
               holder 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.

          (4) 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)(2) hereof, the Trustee will cause
     the aggregate principal amount of the applicable Global Note to be reduced
     accordingly pursuant to Section 2.06(h) hereof, and the Company will
     execute and the Trustee will 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)(4) will be registered in such
     name or names and in such authorized denomination or denominations as the
     holder of such beneficial interest requests through instructions to the
     Registrar from or through the Depositary and the Participant or Indirect
     Participant. The Trustee will deliver such Definitive Notes to the

                                       43

     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)(4) will not bear the Private Placement Legend.

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

          (1) 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:

               (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, 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, 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, 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
          the Company 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 will 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.

          (2) 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

                                       44

     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 (i) a Broker-Dealer, (ii) a Person participating in the
          distribution of the Exchange Notes or (iii) a Person who is an
          affiliate (as defined in Rule 144) of the Company;

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

               (C) such exchange or transfer is effected by a Broker-Dealer
          pursuant to the Exchange Offer Registration Statement in accordance
          with the Registration Rights Agreement; or

               (D) the Registrar receives the following:

                    (i) 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

                    (ii) 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)(2), the Trustee will cancel the Definitive Notes and
     increase or cause to be increased the aggregate principal amount of the
     Unrestricted Global Note.

          (3) 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 will 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 subparagraphs (2)(B), (2)(D) or
     (3) above at a time when an Unrestricted Global Note has not yet been
     issued, the Company will issue and, upon receipt of an Authentication Order
     in

                                       45

     accordance with Section 2.02 hereof, the Trustee will 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 will register the transfer or
exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder must 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
must provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

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

               (A) if the transfer will be made pursuant to Rule 144A, 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.

          (2) 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 (i) a Broker-Dealer, (ii) a Person participating in the
          distribution of the Exchange Notes or (iii) a Person who is an
          affiliate (as defined in Rule 144) of the Company;

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

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

                                       46

               (D) the Registrar receives the following:

                    (i) if the Holder of such Restricted Definitive Notes
               proposes to exchange such 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

                    (ii) 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 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.

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

     (f) Exchange Offer. Upon the occurrence of the Exchange Offer in accordance
with the Registration Rights Agreement, the Company will issue and, upon receipt
of an Authentication Order in accordance with Section 2.02 hereof, the Trustee
will authenticate:

          (1) 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 accepted for exchange in the Exchange Offer by
     Persons that certify in the applicable Letters of Transmittal that (A) they
     are not Broker-Dealers, (B) they are not participating in a distribution of
     the Exchange Notes and (C) they are not affiliates (as defined in Rule 144)
     of the Company; and

          (2) Unrestricted Definitive Notes in an aggregate principal amount
     equal to the principal amount of the Restricted Definitive Notes accepted
     for exchange in the Exchange Offer by Persons that certify in the
     applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B)
     they are not participating in a distribution of the Exchange Notes and (C)
     they are not affiliates (as defined in Rule 144) of the Company.

     Concurrently with the issuance of such Notes, the Trustee will cause the
aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Company will execute and the Trustee will
authenticate and deliver to the Persons designated by the Holders of Definitive
Notes so accepted Unrestricted Definitive Notes in the appropriate principal
amount.

                                       47

     (g) Legends. The following legends will 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.

          (1) 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:

"THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d)
TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a) (1), (2),
(3) OR (7) OF THE SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT,
PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO CLARKE AMERICAN
CORP. THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF CLARKE AMERICAN CORP. SO
REQUESTS), (2) TO CLARKE AMERICAN CORP. OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE."

               (B) Notwithstanding the foregoing, any Global Note or Definitive
          Note issued pursuant to subparagraphs (b)(4), (c)(3), (d)(2), (d)(3),
          (e)(2), (e)(3) or (f) of this Section 2.06 (and all Notes issued in
          exchange therefor or substitution thereof) will not bear the Private
          Placement Legend.

                                       48

          (2) Global Note Legend. Each Global Note will 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 (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF CLARKE AMERICAN CORP.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN."

          (3) Regulation S Temporary Global Note Legend. The Regulation S
     Temporary Global Note will bear a legend in substantially the following
     form:

"THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY 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 TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON."

          (4) OID Legend. To the extent required by Section 1275(c)(A) of the
     Internal Revenue Code of 1986, as amended, and Treasury Regulation Section
     1.1275-3(b)(1), each Note issued at a discount to its stated redemption
     price at maturity shall bear a legend in substantially the following form
     (with any necessary amendments thereto to reflect any amendments occurring
     after the Issue Date to the applicable sections):

"FOR THE PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. YOU
MAY CONTACT THE ISSUER AT 10931 LAUREATE DRIVE, SAN ANTONIO, TX 78249,
ATTENTION: CHIEF FINANCIAL OFFICER, AND THE ISSUER WILL PROVIDE YOU WITH THE
ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE AND THE YIELD
TO MATURITY OF THIS NOTE."

                                       49

     (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 will 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 will be
reduced accordingly and an endorsement will 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 will be increased accordingly and
an endorsement will 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.

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

          (2) No service charge will be made to a Holder of a beneficial
     interest in a Global Note or to a Holder of a Definitive Note for any
     registration of transfer or exchange, but the Company 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, 4.15 and 9.05 hereof).

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

          (4) All Global Notes and Definitive Notes issued upon any registration
     of transfer or exchange of Global Notes or Definitive Notes will be the
     valid obligations of the Company, 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.

          (5) Neither the Registrar nor the Company will 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 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.

          (6) Prior to due presentment for the registration of a transfer of any
     Note, the Trustee, any Agent and the Company may deem and treat the Person
     in whose name any Note is

                                       50

     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 the Company shall be
     affected by notice to the contrary.

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

          (8) 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.

          (9) To the extent that any Notes are issued at a discount to their
     stated redemption price at maturity and bear the legend required by Section
     2.06(g)(4) hereof, each group of Notes bearing a given amount of original
     issue discount shall be treated as a separate series only for purposes of
     the transfer and exchange provisions of this Section 2.06.

          (10) The Floating Rate Notes and the Fixed Rate Notes shall each be
     treated as a separate series of Notes for purposes of the transfer and
     exchange provisions of this Section 2.06.

Section 2.07 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, the Company will issue and the Trustee, upon receipt of an
Authentication Order, will authenticate a replacement Note of the same series if
the Trustee's requirements are met. If required by the Trustee or the Company,
an indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee and the Company to protect the Company, the Trustee, any
Agent and any authenticating agent from any loss that any of them may suffer if
a Note is replaced. The Company may charge for its expenses in replacing a Note.

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

Section 2.08 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08
as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Note; however, Notes held by the Company or a Subsidiary of the Company and
not cancelled shall not be deemed to be outstanding for purposes of Sections
3.07(a) and 3.07(b) hereof.

     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 protected purchaser.

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

     If the Paying Agent (other than the Company, 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 will
be deemed to be no longer outstanding and will cease to accrue interest.

                                       51

Section 2.09 Treasury Notes.

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

Section 2.10 Temporary Notes.

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

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

Section 2.11 Cancellation.

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

Section 2.12 Defaulted Interest.

     If the Company defaults in a payment of interest on any series of the
Notes, it will 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 such Notes and in Section 4.01 hereof. The Company will notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each such Note and the date of the proposed payment. The Company will fix or
cause to be fixed each such special record date and payment date; provided that
no such special record date may be less than 10 days prior to the related
payment date for such defaulted interest. At least 15 days before the special
record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) will mail or cause to be
mailed to Holders of such Notes a notice that states the special record date,
the related payment date and the amount of such interest to be paid.

Section 2.13 CUSIP Numbers.

     The Company in issuing the Notes may use "CUSIP" numbers (if then generally
in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption

                                       52

shall not be affected by any defect in or omission of such numbers. The Company
shall promptly notify the Trustee in writing of any change in the "CUSIP"
numbers.

                                    ARTICLE 3
                            REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, it must furnish to the Trustee, at least 30
days but not more than 60 days before a redemption date, an Officers'
Certificate of the Company (except that such Officers' Certificate may be
furnished more than 60 days prior to a redemption date if it is issued in
connections with a defeasance of the Notes or a satisfaction and discharge of
this Indenture pursuant to Articles 8 or 11 hereof) setting forth:

          (1)  the clause of this Indenture pursuant to which the redemption
               shall occur;

          (2)  the redemption date;

          (3)  the principal amount of Notes to be redeemed; and

          (4)  the redemption price.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes of a series are to be redeemed at any time,
the Trustee will select such Notes for redemption on a pro rata basis to the
extent practicable unless otherwise required by law or applicable stock exchange
requirements.

     In the event of partial redemption or purchase by lot, the particular Notes
of the series to be redeemed or purchased will be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption
or purchase date by the Trustee from the outstanding Notes not previously called
for redemption or purchase.

     The Trustee will promptly notify the Company in writing of the Notes
selected for redemption or purchase and, in the case of any Note selected for
partial redemption or purchase, the principal amount thereof to be redeemed or
purchased. Notes and portions of Notes selected will be in amounts of $2,000 or
whole multiples of $1,000 in excess thereof; except that if all of the Notes of
a series of a Holder are to be redeemed or purchased, the entire outstanding
amount of such Notes held by such Holder, even if not a multiple of $1,000,
shall be redeemed or purchased. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or
purchase also apply to portions of Notes called for redemption or purchase.

Section 3.03 Notice of Redemption.

     Subject to the provisions of Section 3.09 hereof, at least 30 days but not
more than 60 days before a redemption date, the Company will 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 pursuant to Articles 8 or 11 hereof.

                                       53

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

          (1) the redemption date;

          (2) the redemption price;

          (3) 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 or Notes of the same series in
     principal amount equal to the unredeemed portion will be issued upon
     cancellation of the original Note;

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

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

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

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

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

     At the Company's request, the Trustee will give the notice of redemption in
the Company's name and at its expense; provided, however, that the Company has
delivered to the Trustee, at least 45 days (or such shorter period as may be
agreed by the Trustee) 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 or Purchase Price.

     On or prior to the redemption or purchase date, the Company will deposit
with the Trustee or with the Paying Agent money sufficient to pay the redemption
or purchase price of and accrued interest and Additional Interest, if any, on
all Notes to be redeemed or purchased on that date. The Trustee or the Paying
Agent will promptly return to the Company any money deposited with the Trustee
or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest and Additional Interest,
if any, on, all Notes to be redeemed or purchased.

     If the Company complies with the provisions of the preceding paragraph, on
and after the redemption or purchase date, interest will cease to accrue on the
Notes or the portions of Notes called for redemption or purchase. If a Note is
redeemed or purchased 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

                                       54

for redemption or purchase is not so paid upon surrender for redemption or
purchase because of the failure of the Company to comply with the preceding
paragraph, interest shall be paid on the unpaid principal, from the redemption
or purchase date until such principal is paid, and to the extent lawful on any
interest 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 or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company
will issue and, upon receipt of an Authentication Order, the Trustee will
authenticate for the Holder at the expense of the Company a new Note of the same
series equal in principal amount to the unredeemed or unpurchased portion of the
Note surrendered.

Section 3.07 Optional Redemption.

     (a)  Floating Rate Notes.

          (1) At any time prior to May 15, 2009, the Company may, on any one or
     more occasions, redeem up to 35% of the sum of the aggregate principal
     amount of all Floating Rate Notes issued under this Indenture (including
     the principal amount of any Additional Floating Rate Notes issued under
     this Indenture and without duplication with respect to Exchange Floating
     Rate Notes issued under this Indenture) at a redemption price equal to 100%
     of the aggregate principal amount of the Floating Rate Notes redeemed, plus
     a premium equal to the interest rate per annum on the Floating Rate Notes
     in effect on the date on which notice of redemption is given, plus accrued
     and unpaid interest, and Additional Interest, if any, thereon to the
     redemption date, with the net cash proceeds of one or more Equity Offerings
     of the Company; provided that

               (a) at least 50% of the aggregate principal amount of Floating
          Rate Notes issued under this Indenture (excluding Floating Rate Notes
          held by the Company and its Subsidiaries, but including any Additional
          Floating Rate Notes and without duplication with respect to Exchange
          Notes issued under this Indenture) remain outstanding immediately
          after the occurrence of each such redemption; and

               (b) each such redemption occurs within 90 days of the closing of
          each such Equity Offering.

          (2) Except pursuant to the preceding paragraph and Section 3.07(d),
     the Floating Rate Notes will not be redeemable at the Company's option
     prior to May 15, 2009.

          (3) On and after May 15, 2009, the Company may, in one or more
     instances, redeem the Floating Rate Notes, in whole or in part, upon not
     less than 30 nor more than 60 days' notice (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), at the redemption prices (expressed as a
     percentage of principal amount of the Floating Rate Notes to be redeemed)
     set forth below plus accrued and unpaid interest thereon, and Additional
     Interest, if any, on the Floating Rate Notes to the applicable redemption
     date, if redeemed during the twelve-month period beginning on May 15 of the
     years indicated below subject to the right of Holders of Floating Rate
     Notes on the relevant record date to receive interest due on the relevant
     interest payment date:

                                       55

YEAR                     PERCENTAGE
----------------------   ----------
2009..................    102.000%
2010..................    101.000%
2011 and thereafter...    100.000%

     (b)  Fixed Rate Notes.

          (1) At any time prior to May 15, 2010, the Company may, on any one or
     more occasions, redeem up to 35% of the aggregate principal amount of Fixed
     Rate Notes issued under this Indenture (including the principal amount of
     any Additional Fixed Rate Notes issued under this Indenture and without
     duplication with respect to Exchange Fixed Rate Notes issued under this
     Indenture) at a redemption price equal to 109.500% of the principal amount
     of the Fixed Rate Notes redeemed, plus accrued and unpaid interest and
     Additional Interest, if any, to the redemption date, with the net cash
     proceeds of one or more Equity Offerings of the Company; provided that:

               (a) at least 50% of the aggregate principal amount of Fixed Rate
     Notes issued under this Indenture (excluding Fixed Rate Notes held by the
     Company and its Subsidiaries, but including any Additional Fixed Rate Notes
     and without duplication with respect to Exchange Fixed Rate Notes issued
     under this Indenture) remains outstanding immediately after the occurrence
     of such redemption; and

               (b) the redemption occurs within 90 days after the date of the
     closing of any such Equity Offering.

          (2) Except pursuant to the preceding paragraph and clause (d) below,
     the Fixed Rate Notes will not be redeemable at the Company's option prior
     to May 15, 2011.

          (3) On or after May 15, 2011, the Company may, in one or more
     instances, redeem all or a part of the Fixed Rate Notes upon not less than
     30 nor more than 60 days' notice (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), at the redemption prices (expressed as
     percentages of principal amount of the Fixed Rate Notes to be redeemed) set
     forth below plus accrued and unpaid interest and Additional Interest, if
     any, on the Fixed Rate Notes redeemed, to the applicable redemption date,
     if redeemed during the twelve-month period beginning on May 15 of the years
     indicated below, subject to the rights of Holders of Fixed Rate Notes on
     the relevant record date to receive interest on the relevant interest
     payment date:

YEAR                     PERCENTAGE
----------------------   ----------
2011..................    104.750%
2012..................    102.375%
2013 and thereafter...    100.000%

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

     (d) At any time prior to May 15, 2009, for the Floating Rate Notes and May
15, 2011, for the Fixed Rate Notes, the Company may, in one or more instances,
also redeem all or a part of such Notes, upon not less than 30 nor more than 60
days' prior notice mailed by first-class mail to each Holder's

                                       56

registered address, at a redemption price equal to 100% of the principal amount
of such Notes redeemed plus the Applicable Premium as of the date of redemption,
and accrued and unpaid interest and Additional Interest, if any, to such
redemption date (the "Make-Whole Redemption Date"), subject to the rights of
Holders of the Notes on the relevant record date to receive interest due on the
relevant interest payment date.

Section 3.08 Mandatory Redemption.

     The Company is not required to make mandatory redemption or sinking fund
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, the Company is required
to commence an Asset Sale Offer, it will follow the procedures specified below.

     The Asset Sale Offer shall be made to (i) all Holders of Notes, (ii) all
holders of Indebtedness to be repaid pursuant to Section 4.10(b)(1)(x) and (iii)
all holders of other Indebtedness that is pari passu in right of payment with
the Notes containing provisions similar to those contained in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of
assets. The Asset Sale Offer will remain open for a period of at least 20
Business Days following its commencement and not more than 30 Business Days,
except to the extent that a longer period is required by applicable law (the
"Offer Period"). No later than three Business Days after the termination of the
Offer Period (the "Purchase Date"), the Company will apply all Excess Proceeds
(the "Offer Amount") to the purchase of Notes and such other pari passu
Indebtedness (on a pro rata basis, if applicable, with such adjustments so that
only Notes in denominations of $2,000, or integral multiples of $1,000 thereof,
will be purchased) or, if less than the Offer Amount has been tendered, all
Notes and other Indebtedness tendered in response to the Asset Sale Offer.
Payment for any Notes so purchased will 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 and
Additional Interest, if any, will 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 will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

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

          (1) 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
     will remain open;

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

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

          (4) that, unless the Company defaults in making such payment, any Note
     or any portion thereof accepted for payment pursuant to the Asset Sale
     Offer will cease to accrue interest on and after the Purchase Date;

                                       57

          (5) that Holders electing to have a Note or any portion thereof
     purchased pursuant to an Asset Sale Offer may elect to have Notes purchased
     in denominations of $2,000 or integral multiples of $1,000 in excess
     thereof only;

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

          (7) that Holders will be entitled to withdraw their election if the
     Company, 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;

          (8) that, if the aggregate principal amount of Notes and other pari
     passu Indebtedness surrendered by holders thereof exceeds the Offer Amount,
     the Company will select the Notes and other pari passu Indebtedness to be
     purchased on a pro rata basis based on the principal amount of Notes and
     such other pari passu Indebtedness surrendered (with such adjustments as
     may be deemed appropriate by the Company so that only Notes in
     denominations of $2,000, or integral multiples of $1,000 in excess thereof,
     will be purchased); and

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

     On or before the Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary (with such
adjustments so that only Notes in denominations of $2,000, or integral multiples
of $1,000 thereof, will be purchased), 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 will deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers'
Certificate stating that such Notes or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.09. The
Company, the Depositary or the Paying Agent, as the case may be, will 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 the Company for purchase, and the
Company will promptly issue a new Note, and the Trustee, upon written request
from the Company, will authenticate and mail or deliver (or cause to be
transferred by book entry) 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 the Company to the Holder
thereof.

     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.

                                       58

                                    ARTICLE 4
                                    COVENANTS

Section 4.01 Payment of Notes.

     The Company and the Co-Issuers, jointly and severally, will pay or cause to
be paid the principal of, premium, if any, and interest and Additional Interest,
if any, on, the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest and Additional Interest, if any will be
considered paid on the date due if the Paying Agent, if other than the Company
or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date
money deposited by the Company in immediately available funds and designated for
and sufficient to pay all principal, premium, if any, and interest then due. The
Company and the Co-Issuers, jointly and severally, will pay all Additional
Interest, if any, in the same manner on the dates and in the amounts set forth
in the Registration Rights Agreement.

     The Company and the Co-Issuers, jointly and severally, will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) 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 will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest and Additional Interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

     The Company will 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 the Company in respect of the Notes and this
Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company fails to maintain any such required office or
agency or fails 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.

     The Company 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. The Company will
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

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

Section 4.03 Reports.

     (a) Whether or not required by the rules and regulations of the SEC, so
long as any Notes are outstanding, the Company will furnish to the Holders of
Notes and the Trustee 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 or furnished with the SEC on Forms 10-Q and 10-K if the Company were
     required to file or furnish such reports; and

                                       59

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

     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 the Company's consolidated
financial statements by the Company's certified independent accountants. In
addition, following the consummation of the Exchange Offer contemplated by the
Registration Rights Agreement, the Company will file or furnish, as applicable,
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).

     If, at any time after consummation of the Exchange Offer, the Company is no
longer subject to the periodic reporting requirements of the Exchange Act for
any reason, the Company 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. The
Company will not take any action for the purpose of causing the SEC not to
accept any such filings.

     (b) For so long as any Notes remain outstanding, if at any time it is not
required to file with the SEC the reports required by paragraph (a) of this
Section 4.03, the Company will furnish to the Holders of Notes and prospective
investors, upon their request, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act.

     (c) If at any time the Notes are guaranteed by a direct or indirect parent
of the Company, and such company has complied with the reporting requirements of
Section 13 or 15(d) of the Exchange Act, if applicable, and has furnished the
Holders of Notes, or filed with the SEC, the reports described herein with
respect to such company, as applicable (including any financial information
required by Regulation S-X under the Securities Act), the Company shall be
deemed to be in compliance with the provisions of this Section 4.03.

     (d) Any information filed with, or furnished to, the SEC shall be deemed to
have been made available to the Trustee and the registered Holders of the Notes.
The subsequent filing or making available of any report required by this Section
4.03 shall be deemed automatically to cure any Default or Event of Default
resulting from the failure to file or make available such report within the
required time frame.

     (e) Notwithstanding the foregoing, the requirements set forth in this
Section 4.03 shall be deemed satisfied prior to the commencement of the
Registered Exchange Offer (as defined in the Registration Rights Agreement) or
the effectiveness of the Shelf Registration Statement (as defined in the
Registration Rights Agreement) by the filing with the SEC of the Exchange Offer
Registration Statement (as defined in the Registration Rights Agreement) or
Shelf Registration Statement, and any amendments thereto, with such financial
information that satisfies Regulation S-X of the Securities Act.

     (f) Any subsequent restatement of financial statements shall have no
retroactive effect for purposes of calculations previously made pursuant to the
covenants contained in this Indenture.

     (g) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein, including
the Company's compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers' Certificates).

                                       60

Section 4.04 Compliance Certificate.

     (a) The Company 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 the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to his or her knowledge the Company 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 has occurred, describing all such Defaults or Events of Default of which
he or she may have knowledge and what action the Company is taking or proposes
to take with respect thereto) and that to 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 the Company 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 Company and the
Guarantors shall use their respective commercially reasonable efforts to have
the year-end financial statements delivered pursuant to Section 4.03 above
accompanied by a written statement of the Company's independent registered
public accountants (who shall be a firm of established national reputation),
which shall state 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 the Company 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) So long as any of the Notes are outstanding, the Company will deliver
to the Trustee, within 10 Business Days of any Officer becoming aware of any
Default or Event of Default, an Officers' Certificate specifying such Default or
Event of Default and what action the Company is taking or proposes to take with
respect thereto.

Section 4.05 Taxes.

     The Company will pay, and will 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 would not reasonably be expected to result in a
material adverse effect on the business, assets, operations or financial
condition of the Company and its Subsidiaries taken as a whole or the ability of
the Company and the Guarantors (taken as a whole) to perform their obligations
under this Indenture or the rights of, or remedies available to the Trustee or
the Holders under, this Indenture.

Section 4.06 Stay, Extension and Usury Laws.

     The Company and each of the Guarantors covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company 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
will not, by resort to any such law, hinder, delay or impede the

                                       61

execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law has been enacted.

Section 4.07 Restricted Payments.

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

          (1) declare or pay any dividend or make any distribution on account of
     the Company's or any Restricted Subsidiary's Equity Interests, including
     any dividend or distribution payable in connection with any merger or
     consolidation other than (A) dividends or distributions by the Company
     payable in Equity Interests (other than Disqualified Stock) of the Company
     or (B) dividends or distributions by a Restricted Subsidiary so long as, in
     the case of any dividend or distribution payable on or in respect of any
     class or series of securities issued by a Restricted Subsidiary other than
     a Wholly-Owned Subsidiary, the Company or a Restricted Subsidiary receives
     at least its pro rata share of such dividend or distribution in accordance
     with its Equity Interests in such class or series of securities;

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

          (3) make any principal payment on, or redeem, repurchase, defease or
     otherwise acquire or retire for value in each case, prior to any scheduled
     repayment, sinking fund payment or maturity, any Subordinated Indebtedness,
     other than (x) Indebtedness permitted under Section 4.09(b)(h), Section
     4.09(b)(i) and Section 4.09(b)(w) or (y) the purchase, repurchase or other
     acquisition of Subordinated Indebtedness of the Company or any Restricted
     Subsidiary purchased in anticipation of satisfying a sinking fund
     obligation, principal installment or final maturity, in each case due
     within one year of the date of purchase, repurchase or acquisition; or

          (4) make any Restricted Investment

     (all such payments and other actions set forth in these clauses (1) through
(4) above being collectively referred to as "Restricted Payments"),

          unless, at the time of and after giving effect to such Restricted
     Payment:

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

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

          (c) such Restricted Payment, together with the aggregate amount,
     without duplication, of all other Restricted Payments made by the Company
     and its Restricted Subsidiaries since the Issue Date pursuant to this
     Section 4.07(a) or Section 4.07(b)(1), (b)(2) (with respect to the payment
     of dividends on Refunding Capital Stock pursuant to subclause (b) thereof
     only), (b)(6)(C), (b)(12) and (b)(17) (and excluding, for the avoidance of
     doubt, all other Restricted Payments made pursuant to Section 4.07(b)), is
     less than the sum, without duplication, of:

                                       62

               (1) 50% of the Consolidated Net Income of the Company for the
          period (taken as one accounting period) from January 1, 2007 (on a pro
          forma basis, giving effect to the Transactions) to the end of the
          Company's most recently ended fiscal quarter for which internal
          financial statements are available at the time of such Restricted
          Payment (or, if such Consolidated Net Income for such period is a
          deficit, less 100% of such deficit); plus

               (2) 100% of the aggregate net cash proceeds and the fair market
          value, as determined in good faith by the Company, of marketable
          securities or other property received by the Company after the Issue
          Date (less the amount of such net cash proceeds to the extent such
          amount has been relied upon to permit the incurrence of Indebtedness,
          or issuance of Disqualified Stock or Preferred Stock pursuant to
          Section 4.09(b)(u)(2) hereof) from the issue or sale of:

                    (x) Equity Interests of the Company, including Retired
               Capital Stock (as defined below), but excluding cash proceeds and
               the fair market value, as determined in good faith by the
               Company, of marketable securities or other property received from
               the sale of (A) Equity Interests to any future, present or former
               employees, directors, managers or consultants of the Company, any
               direct or indirect parent company of the Company or any of the
               Company's Subsidiaries after the Issue Date to the extent such
               amounts have been applied to Restricted Payments made in
               accordance with Section 4.07(b)(4) hereof and (B) Designated
               Preferred Stock,

                    (y) to the extent such proceeds are actually contributed to
               the Company, Equity Interests of the Company's direct or indirect
               parent companies (excluding contributions of the proceeds from
               the sale of Designated Preferred Stock of such companies or
               contributions to the extent such amounts have been applied to
               Restricted Payments made in accordance with Section 4.07(b)(4)
               hereof), or

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

               provided that this clause (2) shall not include the proceeds from
               (a) Refunding Capital Stock (as defined below) to the extent the
               proceeds of any corresponding Retired Capital Stock are included
               in this clause (2), (b) Equity Interests of the Company or debt
               securities of the Company that have been converted into or
               exchanged for Equity Interests of the Company sold to a
               Restricted Subsidiary or the Company, as the case may be, (c)
               Disqualified Stock or debt securities that have been converted
               into or exchanged for Disqualified Stock or (d) Excluded
               Contributions; plus

               (3) 100% of the aggregate amount of cash and the fair market
          value, as determined in good faith by the Company, of marketable
          securities or other property contributed to the capital of the Company
          after the Issue Date (less the amount of such net cash proceeds to the
          extent such amount has been relied upon to permit the incurrence of
          Indebtedness or issuance of Disqualified Stock or Preferred Stock
          pursuant to Section 4.09(b)(u)(2) hereof) (other than by a Restricted
          Subsidiary and other than any Excluded Contributions); plus

                                       63

               (4) to the extent not already included in Consolidated Net
          Income, 100% of the aggregate amount received in cash and the fair
          market value, as determined in good faith by the Company, of
          marketable securities or other property received after the Issue Date
          by means of (A) the sale or other disposition (other than to the
          Company or a Restricted Subsidiary) of Restricted Investments made by
          the Company or any Restricted Subsidiary and repurchases and
          redemptions of such Restricted Investments from the Company or any
          Restricted Subsidiary and repayments of loans or advances that
          constitute Restricted Investments by the Company or any Restricted
          Subsidiary or (B) the sale (other than to the Company or a Restricted
          Subsidiary) of the Capital Stock of an Unrestricted Subsidiary or a
          distribution from an Unrestricted Subsidiary (other than in each case
          to the extent the Investment in such Unrestricted Subsidiary was made
          by the Company or a Restricted Subsidiary pursuant to Section
          4.07(b)(12) hereof or to the extent such Investment constituted a
          Permitted Investment) or a dividend from an Unrestricted Subsidiary;
          plus

               (5) in the case of the redesignation of an Unrestricted
          Subsidiary as a Restricted Subsidiary after the Issue Date, the fair
          market value of the Investment in such Unrestricted Subsidiary, as
          determined by the Company in good faith or if, in the case of an
          Unrestricted Subsidiary, such fair market value may exceed $50.0
          million, in writing by an Independent Financial Advisor, at the time
          of the redesignation of such Unrestricted Subsidiary as a Restricted
          Subsidiary, other than an Unrestricted Subsidiary to the extent the
          Investment in such Unrestricted Subsidiary was made by the Company or
          a Restricted Subsidiary pursuant to Section 4.07(b)(12) or to the
          extent such Investment constituted a Permitted Investment.

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

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

          (2) (a) the redemption, repurchase, retirement or other acquisition of
     any Equity Interests ("Retired Capital Stock") or Subordinated Indebtedness
     of the Company or any Equity Interests of any direct or indirect parent
     company of the Company, in exchange for, or out of the proceeds of the
     sale, within 60 days of such redemption, retirement, repurchase or other
     acquisition, (other than to a Restricted Subsidiary) of, Equity Interests
     of the Company (in each case, other than any Disqualified Stock unless the
     Retired Capital Stock is itself Disqualified Stock) ("Refunding Capital
     Stock") or cash capital contributions and (b) if immediately prior to the
     retirement of Retired Capital Stock, the declaration and payment of
     dividends thereon was permitted under clause (6) of this paragraph, the
     declaration and payment of dividends on the Refunding Capital Stock (other
     than Refunding Capital Stock the proceeds of which were used to redeem,
     repurchase, retire or otherwise acquire any Equity Interests of any direct
     or indirect parent company of the Company) in an aggregate amount per year
     no greater than the aggregate amount of dividends per annum that was
     declarable and payable on such Retired Capital Stock immediately prior to
     such retirement;

          (3) the defeasance, redemption, repurchase or other acquisition or
     retirement of Subordinated Indebtedness of the Company or a Guarantor made
     by exchange for, or out of the proceeds of the sale, within 60 days of such
     defeasance, redemption, repurchase or other

                                       64

     acquisition or retirement, of, new Indebtedness of such Person that is
     incurred in compliance with Section 4.09 hereof so long as:

               (A) the principal amount of such new Indebtedness does not exceed
          the principal amount (or accreted value, if applicable) of the
          Subordinated Indebtedness being so defeased, redeemed, repurchased,
          acquired or retired for value, plus the amount of any reasonable
          premium required to be paid under the terms of the instrument
          governing the Subordinated Indebtedness being so defeased, redeemed,
          repurchased, acquired or retired and any reasonable fees and expenses
          incurred in connection with the issuance of such new Indebtedness,

               (B) such Indebtedness is subordinated to the Notes at least to
          the same extent as the Subordinated Indebtedness being so defeased,
          redeemed, repurchased, acquired or retired,

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

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

          (4) a Restricted Payment to pay for the repurchase, redemption or
     other acquisition or retirement for value of Equity Interests (other than
     Disqualified Stock) of the Company or any of its direct or indirect parent
     companies held by, or any Restricted Payments made to, any future, present
     or former employee, officer, director, manager or consultant of the
     Company, any of its subsidiaries or any of its direct or indirect parent
     companies, their respective estates, spouses or former spouses pursuant to
     any management equity plan or stock option plan, phantom stock plan or any
     other management or employee benefit plan or agreement; provided that the
     aggregate Restricted Payments made under this clause (4) do not exceed in
     any calendar year $10.0 million (with unused amounts in any calendar year
     being carried over to succeeding calendar years subject to a maximum (in
     addition to the following proviso) of $20.0 million in any calendar year)
     (collectively, the "Clause (4) Limit"); provided, further, that such Clause
     (4) Limit in any calendar year may be increased by an amount not to exceed

               (A) the cash proceeds from the sale of Equity Interests (other
          than Disqualified Stock) of the Company and, to the extent contributed
          to the Company, Equity Interests of any of the Company's direct or
          indirect parent companies, in each case to members of management,
          directors, managers or consultants of the Company, any of its
          Subsidiaries or any of its direct or indirect parent companies that
          occurs after the Issue Date, to the extent the cash proceeds from the
          sale of such Equity Interests have not otherwise been applied to the
          payment of Restricted Payments by virtue of Section 4.07(a)(c), plus

               (B) the cash proceeds of key man life insurance policies received
          by the Company and the Restricted Subsidiaries after the Issue Date,
          less

               (C) the amount of any Restricted Payments previously made
          pursuant to clauses (A) and (B) of this clause (4);

                                       65

          provided, further, that cancellation of Indebtedness owing to the
     Company from members of management, directors, managers or consultants of
     the Company, any of its direct or indirect parent companies or any
     Restricted Subsidiary in connection with a repurchase of Equity Interests
     of the Company or any of its direct or indirect parent companies will not
     be deemed to constitute a Restricted Payment for purposes of this Section
     4.07 or any other provision of this Indenture;

          (5) the declaration and payment of dividends to holders of any class
     or series of Disqualified Stock of the Company or any Restricted Subsidiary
     or Preferred Stock of any Restricted Subsidiary issued in accordance with
     Section 4.09 hereof to the extent such dividends are included in the
     definition of Fixed Charges and payment of any redemption price or
     liquidation value of any such Disqualified Stock or Preferred Stock when
     due in accordance with its terms;

          (6) (A) the declaration and payment of dividends to holders of any
     class or series of Designated Preferred Stock (other than Disqualified
     Stock) issued by the Company after the Issue Date;

               (B) the declaration and payment of dividends to a direct or
          indirect parent company of the Company, the proceeds of which will be
          used to fund the payment of dividends to holders of any class or
          series of Designated Preferred Stock (other than Disqualified Stock)
          of such parent company issued after the Issue Date; provided that the
          aggregate amount of dividends paid pursuant to this clause (B) shall
          not exceed the aggregate amount of cash actually contributed to the
          Company from the sale of such Designated Preferred Stock; or

               (C) the declaration and payment of dividends on Refunding Capital
          Stock that is Preferred Stock in excess of the dividends declarable
          and payable thereon pursuant to Section 4.07(b)(2); provided, however,
          in the case of each of (A), (B) and (C) of this clause (6), that for
          the most recently ended four full fiscal quarters for which internal
          financial statements are available immediately preceding the date of
          issuance of such Designated Preferred Stock or the declaration of such
          dividends on Refunding Capital Stock that is Preferred Stock, after
          giving effect to such issuance or declaration on a pro forma basis,
          the Company and the Restricted Subsidiaries on a consolidated basis
          would have had a Fixed Charge Coverage Ratio of at least 2.00 to 1.00;

          (7) repurchases of Equity Interests deemed to occur upon exercise of
     stock options or warrants if such Equity Interests represent a portion of
     the exercise price of such options or warrants;

          (8) Restricted Payments that are made with Excluded Contributions or
     Excess Designated Proceeds;

          (9) the declaration and payment of dividends by the Company to, or the
     making of loans by the Company to, its direct parent company in amounts
     required for the Company's direct or indirect parent companies to pay:

               (A) fees, taxes and expenses required to maintain their corporate
          existence,

               (B) (without duplication for amounts paid pursuant to Section
          4.07(b)(16)) so long as the Company is a member of a consolidated,
          combined, unitary or similar group with such direct parent company for
          U.S. federal, state or local income tax purposes, (1)

                                       66

          federal, state and local income taxes incurred by such parent
          companies, but only to the extent such income taxes are attributable
          to the income of the Company and the Restricted Subsidiaries, provided
          that in each case the amount of such payments with respect to any
          fiscal year does not exceed the amount that the Company and the
          Restricted Subsidiaries would have been required to pay in respect of
          such income taxes for such fiscal year were the Company and its
          Restricted Subsidiaries a consolidated or combined group of which the
          Company was the common parent, and (2) amounts required to pay
          federal, state and local income taxes to the extent attributable to
          the income of the Unrestricted Subsidiaries or Receivables
          Subsidiaries, if any, but only to the extent of the amount actually
          received by the Company from such Unrestricted Subsidiaries or
          Receivables Subsidiaries, as the case may be,

               (C) customary salary, bonus and other benefits payable to
          officers and employees of any direct or indirect parent company of the
          Company to the extent such salaries, bonuses and other benefits are
          attributable to or reasonably allocated to (as determined by the
          Company in good faith) the ownership or operation of the Company and
          the Restricted Subsidiaries,

               (D) general corporate overhead expenses of any direct or indirect
          parent company of the Company to the extent such expenses are
          attributable to or reasonably allocated to (as determined by the
          Company in good faith) the ownership or operation of the Company and
          the Restricted Subsidiaries, and

               (E) reasonable fees and expenses incurred in connection with any
          successful or unsuccessful debt or equity offering or any successful
          or unsuccessful acquisition or strategic transaction by such direct or
          indirect parent company of the Company;

          (10) any Restricted Payments used to fund the Transactions and the
     fees and expenses related thereto, including those owed to Affiliates, in
     each case to the extent permitted by Section 4.11 hereof;

          (11) the repurchase, redemption or other acquisition or retirement for
     value of any Subordinated Indebtedness pursuant to provisions in
     documentation governing such Subordinated Indebtedness similar to those
     described under Sections 4.10 and 4.15 hereof; provided that, prior to such
     repurchase, redemption or other acquisition, the Company (or a third party
     to the extent permitted by this Indenture) shall have made a Change of
     Control Offer or Asset Sale Offer, as the case may be, with respect to the
     Notes and shall have repurchased all Notes validly tendered and not
     withdrawn in connection with such Change of Control Offer or Asset Sale
     Offer;

          (12) Investments in Unrestricted Subsidiaries, having an aggregate
     fair market value, taken together with all other Investments made pursuant
     to this clause (12) that are at the time outstanding, without giving effect
     to the sale of an Unrestricted Subsidiary to the extent the proceeds of
     such sale do not consist of cash or marketable securities, not to exceed
     the greater of (x) $70.0 million and (y) 1.0% of Total Assets at the time
     of such Investment (with the fair market value of each Investment being
     determined in good faith by the Company and measured at the time such
     Investment is made and without giving effect to subsequent changes in
     value);

          (13) distributions or payments of Receivables Fees;

                                       67

          (14) the distribution, as a dividend or otherwise (and the declaration
     of such dividend), of shares of Capital Stock of, or Indebtedness owed to
     the Company or a Restricted Subsidiary by, any Unrestricted Subsidiary;

          (15) additional Restricted Payments to the Company's direct or
     indirect parent companies, whether in respect of management fees or
     otherwise, in an aggregate amount not to exceed $15.0 million in any fiscal
     year; provided that the Company may carry over and pay in any subsequent
     fiscal year, in addition to the amounts permitted for such fiscal year, any
     portion of the amounts otherwise permitted for prior fiscal years to be
     paid pursuant to this clause (15) that were not in fact paid;

          (16) for so long as (x) the Company is a member of a group filing a
     consolidated federal income tax return with MFW, and/or (y) the Company or
     any of its Subsidiaries is included in any consolidated combined or unitary
     group for foreign, state, local income or franchise tax purposes with any
     Subsidiary of MFW (other than the Company or any of its Subsidiaries),
     payments pursuant to the Tax Sharing Agreement; and

          (17) other Restricted Payments in an amount which, when taken together
     with all other Restricted Payments made pursuant to this clause (17), does
     not exceed $25.0 million;

          provided, however, that, at the time of, and after giving effect to,
     any Restricted Payment permitted under Section 4.07(b)(15) and (b)(17)
     hereof, no Default shall have occurred and be continuing or would occur as
     a consequence thereof.

     For purposes of determining compliance with this Section 4.07, in the event
that a proposed Restricted Payment (or portion thereof) meets the criteria of
more than one of the categories of Restricted Payments described in clauses (1)
through (17) above, or is entitled to be incurred pursuant to Section 4.07(a),
the Company will be entitled to classify such Restricted Payment (or portion
thereof) on the date of its payment in any manner that complies with this
Section 4.07 and such Restricted Payment will be treated as having been made
pursuant to only such clause or clauses or Section 4.07(a).

     For purposes of designating an Unrestricted Subsidiary, such designation
will be permitted only if a Restricted Payment in such amount would be permitted
at such time, whether pursuant to Section 4.07(a) hereof or 4.07(b)(8), (b)(9),
(b)(12), (b)(13), (b)(15) or (b)(17) hereof, or pursuant to the definition of
"Permitted Investments," and if such Subsidiary otherwise meets the definition
of an Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to
any of the restrictive covenants set forth in this Indenture.

Section 4.08 Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

     (a) The Company will not, and will not permit any of its Restricted
Subsidiaries that are not Guarantors 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 the Company or any of its Restricted Subsidiaries or with respect to any
     other interest or participation in, or measured by, its profits (it being
     understood that the priority of any preferred stock in receiving dividends
     or liquidating distributions prior to dividends or liquidating
     distributions being paid on common stock shall not be deemed a restriction
     on the ability to make distributions on Capital Stock);

                                       68

          (2) pay any Indebtedness owed to the Company or any Restricted
     Subsidiary; or

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

     (b) The restrictions in Section 4.08(a) hereof will not apply to
encumbrances or restrictions existing under or by reason of:

          (1) contractual encumbrances or restrictions in effect on the Issue
     Date, including pursuant to the Credit Agreement and any related
     documentation (including security documents) and Hedging Obligations;

          (2) this Indenture, the Notes, the Exchange Notes, any Additional
     Notes or the Guarantees;

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

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

          (5) any agreement or other instrument governing Indebtedness or
     Capital Stock of a Person acquired by the Company or any of its Restricted
     Subsidiaries as in effect at the time of such acquisition (but not created
     in connection therewith 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;

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

          (7) Secured Indebtedness otherwise permitted to be incurred pursuant
     to Sections 4.09 and 4.12 hereof that limit the right of the debtor to
     dispose of the assets securing such Indebtedness;

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

          (9) other Indebtedness, Disqualified Stock or Preferred Stock of
     Restricted Subsidiaries permitted to be incurred after the Issue Date
     pursuant to Section 4.09 hereof;

          (10) customary provisions in joint venture agreements and other
     similar agreements;

          (11) customary provisions contained in leases and other agreements
     entered into in the ordinary course of business;

          (12) restrictions created in connection with any Receivables Facility;
     provided that in the case of Receivables Facilities established after the
     Issue Date, such restrictions are necessary or advisable, in the good faith
     determination of the Company, to effect such Receivables Facility;

                                       69

          (13) restrictions or conditions contained in any trading, netting,
     operating, construction, service, supply, purchase or other agreement to
     which the Company or any of its Restricted Subsidiaries is a party entered
     into in the ordinary course of business; provided that such agreement
     prohibits the encumbrance of solely the property or assets of the Company
     or such Restricted Subsidiary that are the subject of such agreement, the
     payment rights arising thereunder or the proceeds thereof and does not
     extend to any other asset or property of the Company or such Restricted
     Subsidiary or the assets or property of any other Restricted Subsidiary;

          (14) any instrument governing any Indebtedness or Capital Stock of a
     Person that is an Unrestricted Subsidiary as in effect on the date that
     such Person becomes a Restricted Subsidiary, which encumbrance or
     restriction is not applicable to any Person, or the properties or assets of
     any Person, other than the Person who became a Restricted Subsidiary, or
     the property or assets of the Person who became a Restricted Subsidiary;
     provided that, in the case of Indebtedness, the incurrence of such
     Indebtedness as a result of such Person becoming a Restricted Subsidiary
     was permitted by the terms of this Indenture; and

          (15) any encumbrances or restrictions of the type referred to in
     Section 4.08(a)(1), (a)(2) and (a)(3) hereof imposed by any amendments,
     modifications, restatements, renewals, increases, supplements, refundings,
     replacements or refinancings of the contracts, instruments or obligations
     referred to in Section 4.08(b)(1) through (14); provided that such
     amendments, modifications, restatements, renewals, increases, supplements,
     refundings, replacements or refinancings are, in the good faith judgment of
     the Company, not materially more restrictive with respect to such
     encumbrance and other restrictions than those prior to such amendment,
     modification, restatement, renewal, increase, supplement, refunding,
     replacement or refinancing; provided, further, that with respect to
     contracts, instruments or obligations existing on the Issue Date, any
     amendments, modifications, restatements, renewals, increases, supplements,
     refundings, replacements or refinancings are in the good faith judgment of
     the Company not materially more restrictive with respect to such
     encumbrances and other restrictions than those contained in such contracts,
     instruments or obligations as in effect on the Issue Date.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock and
Disqualified Stock.

     (a) The Company will not, and will 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 the Company will not issue any Disqualified Stock and will not permit
any of its Restricted Subsidiaries to issue any shares of Disqualified Stock or
Preferred Stock; provided that the Company may incur Indebtedness (including
Acquired Debt) or issue shares of Disqualified Stock, and any Restricted
Subsidiary may incur Indebtedness (including Acquired Debt), issue shares of
Disqualified Stock or issue shares of Preferred Stock, if the Fixed Charge
Coverage Ratio on a consolidated basis for the Company's and its Restricted
Subsidiaries' 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 would have been at least 2.00 to 1.00, determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred, or the Disqualified Stock or
Preferred Stock had been issued, as the case may be, and the application of the
proceeds therefrom had occurred at the beginning of such four-quarter period;
provided that the amount of Indebtedness (including Acquired Debt), Disqualified
Stock and Preferred Stock that may be incurred or issued, as applicable,
pursuant to the foregoing by Restricted Subsidiaries that are not Guarantors
shall not exceed $100.0 million at any one time outstanding.

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

          (a) Indebtedness incurred pursuant to Credit Facilities by the Company
     or any Restricted Subsidiary; provided that after giving effect to any such
     incurrence, the aggregate principal amount of all Indebtedness incurred
     under this clause (a) and then outstanding does not exceed $2,200.0 million
     less an amount equal to either (A) in the event a Replacement ABL Facility
     has been established pursuant to clause (c) below, the sum of (1) $100.0
     million plus (2) the amount by which the aggregate amount of the
     commitments under the Replacement ABL Facility exceeds $125.0 million or
     (B) the then-outstanding principal amount of any Attributable Receivables
     Facility Debt, as the case may be;

          (b) the incurrence by the Company and its Restricted Subsidiaries of
     the Existing Indebtedness, the incurrence by the Company and any Guarantor
     of Indebtedness represented by the Notes issued on the Issue Date
     (including any Subsidiary Guarantees thereof) and the Exchange Notes and
     related exchange guarantees to be issued in exchange for the Notes and the
     Guarantees pursuant to the Registration Rights Agreement (other than any
     Additional Notes);

          (c) Indebtedness under an asset-based revolving credit facility
     providing the Company and its Restricted Subsidiaries in an aggregate
     principal committed amount not to exceed $150.0 million (the "Replacement
     ABL Facility"); provided that no such Replacement ABL Facility shall be
     permitted in the event that a Receivables Facility is in existence at such
     time;

          (d) any Existing Clarke Notes not tendered and accepted in the Tender
     Offer and any other Indebtedness existing on the Issue Date;

          (e) Indebtedness (including Capitalized Lease Obligations),
     Disqualified Stock and Preferred Stock incurred by the Company or any of
     the Restricted Subsidiaries, to finance or reimburse the cost of the
     development, construction, purchase, lease, repairs, additions or
     improvement of property (real or personal), equipment or other fixed or
     capital assets that are used or useful in a Similar Business, whether
     through the direct purchase of assets or the Capital Stock of any Person
     owning such assets; provided that at the time of incurrence of such
     Indebtedness or issuance of such Disqualified Stock or Preferred Stock the
     aggregate amount of Indebtedness, Disqualified Stock and Preferred Stock
     incurred pursuant to this clause (e) does not exceed the greater of (x)
     $175.0 million or (y) 2.5% of consolidated Total Assets of the Company as
     of the last annual or interim balance sheet date for which internal
     financial statements are available at any one time outstanding;

          (f) Indebtedness incurred by the Company or any Restricted Subsidiary
     constituting reimbursement obligations with respect to letters of credit
     issued in the ordinary course of business, including letters of credit in
     respect of workers' compensation claims, or other Indebtedness with respect
     to reimbursement type obligations regarding workers' compensation claims,
     self-insurance obligations and bankers' acceptances in the ordinary course
     of business; provided that upon the drawing of such letters of credit or
     the incurrence of such Indebtedness, such obligations are reimbursed within
     30 days following such drawing or incurrence;

          (g) Indebtedness arising from agreements of the Company or a
     Restricted Subsidiary providing for indemnification, adjustment of purchase
     price or similar obligations, in each case, incurred or assumed in
     connection with the disposition of any business, assets or a Subsidiary,

                                       71

     other than guarantees of Indebtedness incurred by any Person acquiring all
     or any portion of such business, assets or Subsidiary for the purpose of
     financing such acquisition; provided that

               (1) such Indebtedness is not reflected on the balance sheet of
          the Company or any Restricted Subsidiary (contingent obligations
          referred to in a footnote to financial statements and not otherwise
          reflected on the balance sheet shall not be deemed to be reflected on
          such balance sheet for purposes of this clause (1)), and

               (2) the maximum assumable liability in respect of all such
          Indebtedness (other than liability for those indemnification
          obligations that are not customarily subject to a cap) shall at no
          time exceed the gross proceeds including noncash proceeds (the fair
          market value of such noncash proceeds being measured at the time
          received and without giving effect to any subsequent changes in value)
          actually received by the Company and the Restricted Subsidiaries in
          connection with such disposition;

          (h) Indebtedness of the Company to a Restricted Subsidiary; provided
     that any such Indebtedness owing to a Restricted Subsidiary that is not a
     Guarantor is subordinated in right of payment to the Notes; provided,
     further, that any subsequent issuance or transfer of any Capital Stock or
     any other event which results in any such Restricted Subsidiary ceasing to
     be a Restricted Subsidiary or any other subsequent transfer of any such
     Indebtedness (except to the Company or another Restricted Subsidiary) shall
     be deemed, in each case, to be an incurrence of such Indebtedness;

          (i) Indebtedness of a Restricted Subsidiary to the Company or another
     Restricted Subsidiary; provided that if a Guarantor incurs such
     Indebtedness to a Restricted Subsidiary that is not a Guarantor such
     Indebtedness is subordinated in right of payment to the Guarantee of such
     Guarantor; provided, further, that any subsequent issuance or transfer of
     Capital Stock or any other event that results in any such Restricted
     Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer
     of any such Indebtedness (except to the Company or another Restricted
     Subsidiary) shall be deemed, in each case, to be an incurrence of such
     Indebtedness;

          (j) shares of Preferred Stock of a Restricted Subsidiary issued to the
     Company or another Restricted Subsidiary; provided that any subsequent
     issuance or transfer of any Capital Stock or any other event which results
     in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or
     any other subsequent transfer of any such shares of Preferred Stock (except
     to the Company or another Restricted Subsidiary) shall be deemed, in each
     case, to be an issuance of such shares of Preferred Stock;

          (k) Hedging Obligations (excluding Hedging Obligations entered into
     for speculative purposes) for the purpose of managing: (A) interest rate
     risk with respect to any Indebtedness that is permitted by the terms of
     this Indenture to be outstanding, (B) exchange rate risk with respect to
     any currency exchange or (C) commodity pricing risk with respect to any
     commodity;

          (l) obligations in respect of performance, bid, appeal and surety
     bonds and completion guarantees and similar obligations provided by the
     Company or any Restricted Subsidiary in the ordinary course of business;

          (m) (x) any guarantee by the Company or a Restricted Subsidiary of
     Indebtedness or other Obligations of any Restricted Subsidiary, so long as
     the incurrence of such Indebtedness by such Restricted Subsidiary is
     permitted under the terms of this Indenture or (y) any guarantee by a
     Restricted Subsidiary of Indebtedness or other obligations of the Company
     permitted to be

                                       72

     incurred under the terms of this Indenture; provided that such guarantee is
     incurred in accordance with Section 4.17 hereof;

          (n) the incurrence by the Company or any Restricted Subsidiary of
     Indebtedness, Disqualified Stock or Preferred Stock that serves to extend,
     replace, refund, refinance, renew or defease any Indebtedness, Disqualified
     Stock or Preferred Stock incurred as permitted under Section 4.09(a) and
     clauses (b), (d), (e), (n), (o), (r), (s) or (w) of this Section 4.09(b) or
     any Indebtedness, Disqualified Stock or Preferred Stock issued to so
     extend, replace, refund, refinance, renew or defease such Indebtedness,
     Disqualified Stock or Preferred Stock including additional Indebtedness,
     Disqualified Stock or Preferred Stock incurred to pay premiums, fees and
     expenses in connection therewith (the "Refinancing Indebtedness");
     provided, however, that such Refinancing Indebtedness:

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

                    (2) to the extent such Refinancing Indebtedness extends,
               replaces, refunds, refinances, renews or defeases (i)
               Indebtedness subordinated to the Notes or any Guarantee, such
               Refinancing Indebtedness is subordinated to the Notes or such
               Guarantee at least to the same extent as the Indebtedness being
               extended, replaced, refunded, refinanced, renewed or defeased or
               is Disqualified Stock or Preferred Stock or (ii) Disqualified
               Stock or Preferred Stock, such Refinancing Indebtedness must be
               Disqualified Stock or Preferred Stock, respectively; and

                    (3) shall not include (x) Indebtedness, Disqualified Stock
               or Preferred Stock of a Restricted Subsidiary that is not a
               Guarantor that refinances Indebtedness, Disqualified Stock or
               Preferred Stock of the Company, (y) Indebtedness, Disqualified
               Stock or Preferred Stock of a Restricted Subsidiary that is not a
               Guarantor that refinances Indebtedness, Disqualified Stock or
               Preferred Stock of a Guarantor or (z) Indebtedness, Disqualified
               Stock or Preferred Stock of the Company or a Restricted
               Subsidiary that refinances Indebtedness, Disqualified Stock or
               Preferred Stock of an Unrestricted Subsidiary;

          (o) Indebtedness, Disqualified Stock or Preferred Stock (x) of the
     Company or any of its Restricted Subsidiaries incurred to finance the
     acquisition of any Person or assets or (y) of Persons that are acquired by
     the Company or any Restricted Subsidiary or merged into the Company or a
     Restricted Subsidiary in accordance with the terms of this Indenture;
     provided that either

               (1) after giving effect to such acquisition or merger on a pro
          forma basis, either (A) the Company would be permitted to incur at
          least $1.00 of additional Indebtedness pursuant to the Fixed Charge
          Coverage Ratio test set forth in Section 4.09(a) hereof; or (B) the
          Fixed Charge Coverage Ratio of the Company and the Restricted
          Subsidiaries on a consolidated basis for the Company's and its
          Restricted Subsidiaries' most recently ended four fiscal quarters for
          which internal financial statements are available immediately
          preceding the date of such acquisition or merger

                                       73

          would be equal to or greater than the Fixed Charge Coverage Ratio
          immediately prior to such acquisition or merger; or

               (2) such Indebtedness, Disqualified Stock or Preferred Stock

                    (A) is not Secured Indebtedness and is Subordinated
               Indebtedness with subordination terms that are either, at the
               Company's election, (x) consistent with market terms of
               agreements governing comparable Indebtedness of similar companies
               in the high yield market at the time of such acquisition or
               merger and do not conflict with the provisions of this Indenture,
               provided, that a certificate of a Responsible Officer delivered
               to the Trustee at least five Business Days (or such shorter time
               as the Trustee may agree) prior to the incurrence of such
               Indebtedness, together with a reasonably detailed description of
               the subordination terms of such Indebtedness, stating that the
               Company has determined in good faith that such terms satisfy the
               foregoing requirement shall be conclusive evidence thereof or (y)
               otherwise in form and substance reasonably satisfactory to the
               Trustee,

                    (B) is not incurred while a Default exists and no Default
               shall result therefrom,

                    (C) does not mature (and is not mandatorily redeemable in
               the case of Disqualified Stock or Preferred Stock) and does not
               require any payment of principal prior to the final maturity of
               the Notes and

                    (D) in the case of sub-clause (y) above only, is not
               incurred in contemplation of such acquisition or merger;

               provided, however, that the Company and its Restricted
          Subsidiaries may not incur any such Indebtedness under this Section
          4.09(b)(o)(2) unless (after giving pro forma effect to such
          acquisition or merger) the Fixed Charge Coverage Ratio of the Company
          and its Restricted Subsidiaries' most recently ended four fiscal
          quarters for which internal financial statements are available
          immediately preceding the date of such acquisition or merger would be
          at least 1.75:1.00;

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

          (q) Indebtedness of the Company or any Restricted Subsidiary supported
     by a letter of credit, in a principal amount not in excess of the stated
     amount of such letter of credit;

          (r) Indebtedness, Disqualified Stock or Preferred Stock of the Company
     or a Restricted Subsidiary incurred to finance or assumed in connection
     with an acquisition in an aggregate principal amount and liquidation
     preference which, when aggregated with the principal amount or liquidation
     preference of all other Indebtedness, Disqualified Stock and Preferred
     Stock incurred pursuant to this clause (r) and then outstanding (together
     with any Refinancing Indebtedness in respect of any such Indebtedness,
     Disqualified Stock or Preferred Stock which is then outstanding in reliance
     on clause (n) above), does not at any one time outstanding exceed $75.0
     million (it being understood that any Indebtedness, Disqualified Stock and
     Preferred Stock

                                       74

     incurred pursuant to this clause (r) shall cease to be deemed incurred or
     outstanding for purposes of this clause (r) but shall be deemed incurred
     pursuant to Section 4.09(a) hereof from and after the first date on which
     the Company or such Restricted Subsidiary could have incurred such
     Indebtedness, Disqualified Stock or Preferred Stock pursuant to Section
     4.09(a) hereof without reliance on this clause (r));

          (s) Indebtedness, Disqualified Stock or Preferred Stock incurred by a
     Foreign Subsidiary in an aggregate principal amount or liquidation
     preference which, when aggregated with the principal amount and liquidation
     preference of all other Indebtedness, Disqualified Stock and Preferred
     Stock incurred pursuant to this clause (s) and then outstanding, does not
     exceed 5.0% of Foreign Subsidiary Total Assets as of the most recent date
     for which internal financial statements are available (it being understood
     that any Indebtedness, Disqualified Stock and Preferred Stock incurred
     pursuant to this clause (s) shall cease to be deemed incurred or
     outstanding for purposes of this clause (s) but shall be deemed incurred
     pursuant to Section 4.09(a) hereof from and after the first date on which
     the Company or such Restricted Subsidiary could have incurred such
     Indebtedness, Disqualified Stock or Preferred Stock pursuant to such
     Section 4.09(a) without reliance on this clause (s));

          (t) Indebtedness consisting of Indebtedness issued by the Company or
     any Restricted Subsidiary to future, current or former officers, managers,
     directors, consultants and employees of the Company, its subsidiaries or
     its direct or indirect parent companies, their respective estates, spouses
     or former spouses, in each case to finance the purchase or redemption of
     Equity Interests of the Company or any direct or indirect parent company of
     the Company to the extent described in Section 4.07(b)(4) hereof;

          (u) Indebtedness, Disqualified Stock and Preferred Stock of the
     Company or any Restricted Subsidiary not otherwise permitted under this
     Indenture in an aggregate principal amount or liquidation preference,
     which, when aggregated with the principal amount and liquidation preference
     of all other Indebtedness, Disqualified Stock and Preferred Stock incurred
     pursuant to this clause (u) and then outstanding, does not at any one time
     outstanding exceed the sum of:

               (1) $125.0 million (it being understood that any Indebtedness,
          Disqualified Stock and Preferred Stock incurred pursuant to this
          clause (u)(1) shall cease to be deemed incurred or outstanding for
          purposes of this clause (u)(1) but shall be deemed incurred pursuant
          to Section 4.09(a) hereof from and after the first date on which the
          Company or such Restricted Subsidiary could have incurred such
          Indebtedness, Disqualified Stock or Preferred Stock pursuant to such
          Section 4.09(a) without reliance on this clause (u)(1)); plus

               (2) 100% of the net cash proceeds received by the Company since
          after the Issue Date from the issue or sale of Equity Interests of the
          Company or cash contributed to the capital of the Company (in each
          case, other than proceeds of Disqualified Stock or sales of Equity
          Interests to the Company or any of its Subsidiaries) to the extent
          such net cash proceeds or cash have not been applied to make
          Restricted Payments or to make other investments, payments or
          exchanges pursuant to Section 4.07(b) hereof or to make Permitted
          Investments (other than Permitted Investments specified in clauses (1)
          and (2) of the definition thereof);

          (v) Attributable Debt incurred by the Company or any Restricted
     Subsidiary pursuant to Sale and Lease-Back Transactions of property (real
     or personal), equipment or other

                                       75

     fixed or capital assets owned by the Company or any Restricted Subsidiary
     as of the Issue Date or acquired by the Company or any Restricted
     Subsidiary after the Issue Date in exchange for, or with the proceeds of
     the sale of, such assets owned by the Company or any Restricted Subsidiary
     as of the Issue Date, provided that the aggregate amount of Attributable
     Debt incurred under this clause (v) at any time outstanding does not exceed
     $60.0 million; and

          (w) the incurrence by the Company of Qualified Affiliate Debt.

     For purposes of determining compliance with this Section 4.09, in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock meets the
criteria of more than one of the categories of Permitted Debt described in
clauses (a) through (w) above or is entitled to be incurred pursuant to Section
4.09(a) hereof, the Company, in its sole discretion, will be permitted to
classify such item of Indebtedness, Disqualified Stock or Preferred Stock on the
date of its incurrence in any manner that complies with this Section 4.09, or
later divide, classify or reclassify all or a portion of such item of
Indebtedness, in any manner that complies with this Section 4.09 and such item
of Indebtedness, Disqualified Stock or Preferred Stock (or portion thereof, as
applicable) will be treated as having been incurred pursuant to only such clause
or clauses or Section 4.09(a). 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 (a) of the definition of Permitted
Debt. The accrual of interest, the accretion or amortization of original issue
discount, the payment or accretion 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 Preferred Stock in the form of additional shares of
the same class of Preferred Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Preferred Stock for purposes of this Section
4.09. Notwithstanding any other provision of this Section 4.09, the maximum
amount of Indebtedness that the Company 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

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

Section 4.10 Asset Sales.

     (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

                                       76

          (1) the Company (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 sold or otherwise disposed of; and

          (2) except in the case of a Permitted Asset Swap, at least 75% of the
     consideration received in the Asset Sale by the Company or such Restricted
     Subsidiary is in the form of cash or Cash Equivalents. For purposes of this
     provision, each of the following shall be deemed to be cash:

               (A) any liabilities, as shown on the Company's or such Restricted
          Subsidiary's most recent internal balance sheet or in the notes
          thereto, other than liabilities that are by their terms subordinated
          to the Notes, that are assumed by the transferee of any such assets
          (or a third party on behalf of the transferee) and for which the
          Company or such Restricted Subsidiary has been validly released by all
          creditors in writing;

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

               (C) (1) any Designated Noncash Consideration received by the
          Company or such Restricted Subsidiary in such Asset Sale in respect of
          assets or property that is collateral under a Credit Facility having
          an aggregate fair market value, taken together with all other
          Designated Noncash Consideration received pursuant to this clause
          (C)(1) that is at that time outstanding, not to exceed the greater of
          (I) $125.0 million and (II) 1.75% of Total Assets at the time of the
          receipt of such Designated Noncash Consideration; and (2) any
          Designated Noncash Consideration received by the Company or such
          Restricted Subsidiary in such Asset Sale in respect of assets or
          property that is not collateral under a Credit Facility, having an
          aggregate fair market value, taken together with all other Designated
          Noncash Consideration received pursuant to this clause (C)(2) that is
          at that time outstanding, not to exceed the greater of (I) $125.0
          million and (II) 1.75% of Total Assets at the time of the receipt of
          such Designated Noncash Consideration, in each case of (1) and (2),
          with the Fair Market Value of each item of Designated Noncash
          Consideration being measured at the time received and without giving
          effect to subsequent changes in value; and

               (D) the proceeds of any Designated Asset Sale.

     (b) Within 450 days after the receipt of any Net Proceeds from an Asset
Sale (other than any Excess Designated Proceeds), the Company (or the applicable
Restricted Subsidiary, as the case may be) may apply such Net Proceeds to, at
its option:

          (1) permanently reduce (x) Obligations under any Senior Indebtedness
     of the Company or any Guarantor and, in the case of Obligations under
     revolving credit facilities or other similar Indebtedness, to
     correspondingly permanently reduce commitments with respect thereto (other
     than Obligations owed to the Company or a Restricted Subsidiary); provided
     that if the Company or any Restricted Subsidiary shall so reduce
     Obligations under any Senior Indebtedness that is not Secured Indebtedness,
     the Company or such Guarantor will, equally and ratably, reduce Obligations
     under the Notes by, at its option, (A) redeeming Notes if the Notes are

                                       77

     then redeemable as provided under Section 3.07 hereof, (B) making an offer
     (in accordance with the procedures set forth below for an Asset Sale Offer)
     to all Holders to purchase their Notes at 100% of the principal amount
     thereof, plus the amount of accrued and unpaid interest and Additional
     Interest, if any, on the principal amount of Notes to be repurchased or (C)
     purchasing Notes through open market purchases (to the extent such
     purchases are at a price equal to or higher than 100% of the principal
     amount thereof) in a manner that complies with this Indenture and
     applicable securities law; or (y) Indebtedness of a Restricted Subsidiary
     that is not a Guarantor, other than Indebtedness owed to the Company or
     another Restricted Subsidiary; or

          (2) an investment in

               (A) any one or more businesses primarily engaged in a Similar
          Business; provided that such investment in any business is in the form
          of (w) a merger with the Company or a Restricted Subsidiary, (x) the
          acquisition of Capital Stock and results in the Company or any
          Restricted Subsidiary owning an amount of the Capital Stock of such
          business such that it constitutes a Restricted Subsidiary, (y) the
          acquisition of all or substantially all of the assets of such business
          or (z) the acquisition of Capital Stock constituting a minority
          interest in any Person that at such time is a Restricted Subsidiary
          primarily engaged in a Similar Business,

               (B) properties,

               (C) capital expenditures and

               (D) acquisitions of other assets, that in each of (A), (B), (C)
          and (D), are used or useful in a Similar Business or replace the
          businesses, properties and assets that are the subject of such Asset
          Sale.

     (c) Any Designated Noncash Consideration received by the Company or a
Restricted Subsidiary pursuant to Section 4.10(a)(2)(C) shall be deemed to have
been applied pursuant to Section 4.10(b)(2) so long as such Designated Noncash
Consideration is used in the business of the Company or a Restricted Subsidiary
within the time periods set forth in this Section 4.10.

     (d) Any Net Proceeds from the Asset Sale (other than any Excess Designated
Proceeds) that are not invested or applied in accordance with Section 4.10(b)
within 450 days from the date of the receipt of such Net Proceeds will be deemed
to constitute "Excess Proceeds"; provided that if during such 450-day period the
Company or a Restricted Subsidiary enters into a definitive binding agreement
committing it to apply such Net Proceeds in accordance with the requirements of
Section 4.10(b)(2) after such 450th day, such 450-day period will be extended
with respect to the amount of Net Proceeds so committed until such Net Proceeds
are required to be applied in accordance with such agreement (but such extension
will in no event be for a period longer than 180 days) (or, if earlier, the date
of termination of such agreement).

     (e) When the aggregate amount of Excess Proceeds exceeds $45.0 million,
within 30 days thereof, the Company will make an offer, in accordance with
Section 3.09 hereof, to (i) all Holders of Notes, (ii) all holders of
Indebtedness to be repaid pursuant to clause (1)(x) of Section 4.10(b) and (iii)
all holders of other Indebtedness that is pari passu in right of payment with
the Notes containing provisions similar to those contained 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 other pari
passu Indebtedness that may be purchased out of the Excess Proceeds (an "Asset
Sale Offer"). The offer price in any Asset Sale Offer will be equal to 100% of
the principal amount plus accrued and unpaid interest and

                                       78

Additional Interest, if any, to the date of purchase, and will be payable in
cash. The Company may satisfy the foregoing obligations with respect to any Net
Proceeds from an Asset Sale by making an Asset Sale Offer with respect to such
Net Proceeds prior to the expiration of the relevant 450 days or with respect to
Excess Proceeds of $45.0 million or less. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company and any Restricted Subsidiary
may use those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture, including, without limitation, the making of Restricted Payments
otherwise permitted under the terms of this Indenture. If the aggregate
principal amount of Notes and other pari passu Indebtedness tendered into such
Asset Sale Offer exceeds the amount of Excess Proceeds, the Notes and such other
pari passu Indebtedness shall be purchased on a pro rata basis (with such
adjustments for authorized denominations). Upon completion of each Asset Sale
Offer, the amount of Excess Proceeds will be reset at zero. The Company at its
election may retain or use any Excess Designated Proceeds for any purpose,
including, if applicable, to make any Restricted Payment otherwise permitted
under the terms of this Indenture.

     (f) Pending the final application of any Net Proceeds, the Company or its
Restricted Subsidiaries may temporarily reduce revolving credit borrowings or
otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

     (g) The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with 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 provisions of
Section 3.09 hereof or this Section 4.10, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 hereof or this Section 4.10 by
virtue of such compliance.

Section 4.11 Transactions with Affiliates.

     (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate of the Company (each an "Affiliate Transaction") involving
aggregate payments or consideration in excess of $10.0 million, unless:

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

          (2) the Company delivers to the Trustee with respect to any Affiliate
     Transaction or series of related Affiliate Transactions involving aggregate
     consideration in excess of $30.0 million, a resolution of the Board of
     Directors of the Company approving such Affiliate Transaction and set forth
     in an Officers' Certificate certifying that such Affiliate Transaction
     complies with clause (1) of this Section 4.11(a).

     (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) hereof:

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

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          (2) Restricted Payments permitted by Section 4.07 hereof and the
     definition of "Permitted Investments";

          (3) the issuance or transfer of Equity Interests (other than
     Disqualified Stock) of the Company to any Permitted Holder or to any
     director, manager, officer, employee or consultant of the Company, its
     subsidiaries or any direct or indirect parent company thereof (or their
     estates, spouses or former spouses);

          (4) the payment of reasonable and customary fees and other
     compensation paid to, and indemnities provided on behalf of, officers,
     directors, managers, employees or consultants of the Company, any of its
     direct or indirect parent companies or any Restricted Subsidiary;

          (5) payments or loans (or cancellations of loans) to officers,
     managers, directors, consultants and employees of the Company, any of its
     direct or indirect parent companies or any Restricted Subsidiary and
     employment agreements, stock option plans and other compensatory or benefit
     arrangements with such officers, managers, directors, consultants and
     employees that are, in each case, approved by the Company in good faith;

          (6) transactions in which the Company or any Restricted Subsidiary, as
     the case may be, delivers to the Trustee a letter from an Independent
     Financial Advisor stating that such transaction is fair to the Company or
     such Restricted Subsidiary from a financial point of view or meets the
     requirements of clause (1) of Section 4.11(a) hereof;

          (7) transactions with customers, clients, suppliers, or purchasers or
     sellers of goods or services, in each case in the ordinary course of
     business and otherwise in compliance with the terms of this Indenture that
     are fair to the Company and the Restricted Subsidiaries, in the good faith
     determination of the Board of Directors or the senior management of the
     Company, or are on terms at least as favorable as might reasonably have
     been obtained at such time from an unaffiliated party;

          (8) any agreement, instrument or arrangement as in effect as of the
     Issue Date, or any amendment thereto (so long as any such amendment is not
     disadvantageous to the Holders when taken as a whole in any material
     respect as compared to the applicable agreement as in effect on the Issue
     Date as reasonably determined in good faith by the Company);

          (9) payments by the Company or any Restricted Subsidiary to any of the
     Parents for any financial advisory, financing, underwriting or placement
     services or in respect of other investment banking activities, including in
     connection with acquisitions or divestitures, which payments are approved
     by a majority of the members of the Board of Directors of the Company in
     good faith;

          (10) the existence of, or the performance by the Company or any of the
     Restricted Subsidiaries of its obligations under the terms of, any
     agreement with the stockholders of the Company or any direct or indirect
     parent of the Company or its equivalent (including any registration rights
     agreement or purchase agreement related thereto) to which it is a party as
     of the Issue Date and any similar agreements which it may enter into
     thereafter; provided, however, that the existence of, or the performance by
     the Company or any Restricted Subsidiary of obligations under any future
     amendment to any such existing agreement or under any similar agreement
     entered into after the Issue Date shall only be permitted by this clause
     (10) to the extent that the terms of any such existing agreement together
     with all amendments thereto, taken as a whole, or new agreement are not
     otherwise more disadvantageous to the Holders when taken as a whole in

                                       80

     any material respect than the terms of the original agreement in effect on
     the Issue Date as reasonably determined in good faith by the Company;

          (11) the transactions among and the payment of all premiums, fees and
     expenses related to the transactions by the Company and its Restricted
     Subsidiaries described in the Offering Circular under the caption entitled
     "The Transactions";

          (12) investments by the Parents in securities of the Company or any of
     its Restricted Subsidiaries so long as (i) the investment is being offered
     generally to other investors on the same or more favorable terms and (ii)
     the investment constitutes less than 5.0% of the proposed or outstanding
     issue amount of such class of securities;

          (13) sales or repurchases of accounts receivable, payment intangibles
     and related assets or participations therein, in connection with, or any
     other transactions relating to, any Receivables Facility;

          (14) any transaction pursuant to which MFW or any of its Affiliates
     provides the Company and/or its Restricted Subsidiaries, at their request
     and at the cost to MFW, with services, including services to be purchased
     from third-party providers, such as legal and accounting, tax, consulting,
     financial advisory, corporate governance, insurance coverage and other
     services;

          (15) the issuance of Qualified Affiliate Debt and the transactions in
     connection therewith;

          (16) any transaction contemplated by Section 4.07(b)(9), (b)(15) or
     (b)(16) hereof;

          (17) any transaction with an Affiliate in which the consideration paid
     by the Company or any Restricted Subsidiary consists only of Equity
     Interests of the Company;

          (18) any merger, consolidation or reorganization of the Company with
     an Affiliate of the Company solely for the purpose of (a) reorganizing to
     facilitate an initial public offering of securities of the Company or a
     direct or indirect parent of the Company, (b) forming or collapsing a
     holding company structure or (c) reincorporating the Company in a new
     jurisdiction; and

          (19) payments to or from, and transactions with, any joint venture in
     the ordinary course of business.

Section 4.12 Liens.

     The Company will not, and will not permit any of the Guarantors to,
directly or indirectly, create, incur, assume or otherwise cause or suffer to
exist or become effective any Lien of any kind on any asset now owned or
hereafter acquired to secure obligations under any Indebtedness, except
Permitted Liens, unless:

          (1) in the case of Liens securing Subordinated Indebtedness, the Notes
     or the applicable Guarantee of a Guarantor, as the case may be, are secured
     by a Lien on such property or assets that is senior in priority to such
     Liens; and

          (2) in all other cases, the Notes or the applicable Guarantee of a
     Guarantor, as the case may be, are equally and ratably secured;

                                       81

     provided that any Lien which is granted to secure the Notes under this
Section 4.12 shall be automatically discharged at the same time as the discharge
of the Lien (other than through the exercise of remedies with respect thereto)
that gave rise to the obligation to so secure the Notes.

Section 4.13 Business Activities.

     The Company will not, and will not permit any of its Restricted
Subsidiaries to, engage to any material extent in any material line of business
substantially different from those lines of business conducted by the Company
and its Restricted Subsidiaries on the Issue Date or any Similar Businesses. For
the avoidance of doubt, for purposes of this Indenture, the lines of business
conducted by the Company and its Restricted Subsidiaries on the Issue Date shall
be such lines of business after giving effect to the Transactions.

Section 4.14 Corporate Existence.

     Subject to Article 5 hereof, the Company shall do or cause to be done all
things reasonably necessary to preserve and keep in full force and effect:

          (1) its corporate existence, and the corporate, partnership or other
     existence of each of its Restricted Subsidiaries other than its Immaterial
     Subsidiaries, in accordance with the respective organizational documents
     (as the same may be amended from time to time) of the Company or any such
     Subsidiary; and

          (2) the rights (charter and statutory), licenses and franchises of the
     Company and its Restricted Subsidiaries other than its Immaterial
     Subsidiaries (except as such would otherwise reasonably expire, be
     abandoned or permitted to lapse in the ordinary course of business),
     necessary in the normal conduct of its business);

     except in each case (other than with respect to the Company's existence) to
     the extent such failure to do so would not reasonably be expected to have a
     material adverse effect on the business, assets, operations or financial
     condition of the Company and its Subsidiaries taken as a whole or the
     ability of the Company and the Guarantors (taken as a whole) to perform
     their obligations under this Indenture or the rights of, or remedies
     available to the Trustee or the Holders under, this Indenture.

Section 4.15 Offer to Repurchase Upon Change of Control.

     (a) If a Change of Control occurs, each Holder of Notes will have the right
to require the Company to repurchase all or any part (equal to $2,000 or an
integral multiple of $1,000 in excess thereof) of that Holder's Notes pursuant
to a Change of Control Offer in accordance with this Indenture (a "Change of
Control Offer"). In the Change of Control Offer, the Company will offer a
payment (such payment, a "Change of Control Payment") in cash equal to 101% of
the aggregate principal amount of Notes repurchased plus accrued and unpaid
interest and Additional Interest, if any, on the Notes repurchased to the date
of purchase, subject to the rights of Holders of Notes on the relevant record
date to receive interest due on the relevant interest payment date. No later
than 45 days following any Change of Control, the Company shall mail a notice to
each Holder describing the transaction or transactions that constitute the
Change of Control and offering to repurchase Notes on the Change of Control
payment date specified in the notice (the "Change of Control Payment Date"),
which date shall be no earlier than 30 days and no later than 60 days from the
date such notice is mailed and stating:

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          (1) that the Change of Control Offer is being made pursuant to this
     Section 4.15 and that all Notes tendered will be accepted for payment;

          (2) the purchase price and the Change of Control Payment Date;

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

          (4) that, unless the Company defaults in the payment of the Change of
     Control Payment, all Notes accepted for payment pursuant to the Change of
     Control Offer will cease to accrue interest on and 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" attached to the Notes
     completed, or transfer by book-entry transfer, 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 $2,000 in
     principal amount or a $1,000 integral multiple in excess thereof.

     The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.15, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance.

     (b) On or before the Change of Control Payment Date, the Company 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 in cash 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 the
     Company.

     The Paying Agent will promptly mail 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

                                       83

transferred by book entry) to each Holder a new Note equal in principal amount
to any unpurchased portion of the Notes surrendered, if any.

     (c) Notwithstanding anything to the contrary in this Section 4.15, the
Company 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
or prior to the times and otherwise in compliance with the requirements set
forth in this Section 4.15 and purchases all Notes properly tendered and not
withdrawn under the Change of Control Offer (it being understood that such third
party may make a Change of Control Offer that is conditioned on and prior to the
occurrence of a Change of Control pursuant to this clause (1)), or (2) notice of
redemption has been given pursuant to Section 3.07 hereof, unless and until
there is a default in payment of the applicable redemption price.

     (d) A Change of Control Offer may be made in advance of a Change of Control
or conditional upon such Change of Control, if a definitive agreement is in
place for the Change of Control at the time of making of the Change of Control
Offer.

Section 4.16 Limitation on Sale and Lease-Back Transactions.

     The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any Sale and Lease-Back Transaction unless:

          (1) the Company or such Restricted Subsidiary, as applicable, could
     have (a) incurred Indebtedness in an amount equal to the Attributable Debt
     relating to such Sale and Lease-Back Transaction pursuant to Section 4.09
     hereof and (b) incurred a Lien to secure such Indebtedness without equally
     and ratably securing the Notes pursuant to Section 4.12 hereof;

          (2) the consideration received by the Company or any Restricted
     Subsidiary in connection with that Sale and Lease-Back Transaction is in an
     amount not less than 80% of the Fair Market Value of the property that is
     the subject of that Sale and Lease-Back Transaction; and

          (3) such Sale and Lease-Back Transaction does not violate Section 4.10
     hereof.

Section 4.17 Limitations on Guarantees of Indebtedness by Restricted
Subsidiaries.

     The Company will not permit any of its Wholly-Owned Subsidiaries that are
Restricted Subsidiaries (or any non-Wholly-Owned Subsidiaries if such
non-Wholly-Owned Subsidiaries guarantee other capital markets debt securities of
the Company or any Guarantor), other than a Guarantor or an Immaterial
Subsidiary, to guarantee the payment of any Indebtedness of the Company or any
other Guarantor unless:

          (1) such Restricted Subsidiary within 30 days executes and delivers a
     supplemental indenture to this Indenture, substantially in the form of
     Exhibit F hereto, providing for a Guarantee by such Restricted Subsidiary,
     except that with respect to a guarantee of Indebtedness of the Company or
     any Guarantor, that is by its express terms subordinated in right of
     payment to the Notes or such Guarantor's Guarantee, any such guarantee by
     such Restricted Subsidiary with respect to such Indebtedness shall be
     subordinated in right of payment to such Guarantee substantially to the
     same extent as such Indebtedness is subordinated to the Notes; and

          (2) such Restricted Subsidiary waives and will not in any manner
     whatsoever claim or take the benefit or advantage of, any rights of
     reimbursement, indemnity or subrogation or any

                                       84

     other rights against the Company or any other Restricted Subsidiary as a
     result of any payment by such Restricted Subsidiary under its Guarantee
     prior to payment in full of the Notes;

     provided that this Section 4.17 shall not be applicable to (x) any
guarantee of any Restricted Subsidiary that existed at the time such Person
became a Restricted Subsidiary and was not incurred in connection with, or in
contemplation of, such Person becoming a Restricted Subsidiary or (y) any
guarantee of any Restricted Subsidiary that was incurred at the time such Person
became a Restricted Subsidiary, in connection with Indebtedness that (A) existed
at such time or the proceeds of which were used to make such acquisition and (B)
that is permitted to be secured by clause (18), (28) or (29) of the definition
of Permitted Liens or clause (17) of the definition of Permitted Liens (but only
to the extent relating to the refinancing, refunding, extension, renewal or
replacement of the Liens permitted under any of the foregoing clauses).

                                    ARTICLE 5
                                   SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

     (a) The Company shall not: (i) consolidate or merge with or into another
Person (whether or not the Company is the surviving corporation); or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to another Person,
unless:

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

          (2) the Successor Company, if other than the Company, expressly
     assumes all the obligations of the Company 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) immediately after giving pro forma effect to such transaction, as
     if such transaction had occurred at the beginning of the applicable
     four-quarter period, either (i) the Company or the Successor Company would
     be permitted to incur at least $1.00 of additional Indebtedness pursuant to
     the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof or
     (ii) the Fixed Charge Coverage Ratio for the Company or the Successor
     Company and its respective Restricted Subsidiaries for the most recently
     ended four full fiscal quarters for which internal financial statements are
     available immediately preceding the date of such transaction would be equal
     to or greater than such ratio for the Company and its Restricted
     Subsidiaries immediately prior to such transaction.

     The Successor Company will succeed to, and be substituted for, the Company
under this Indenture and the Notes, and the Company will be released from its
obligations thereunder.

     Notwithstanding this Section 5.01(a):

                                       85

          (1) any Restricted Subsidiary may consolidate with or merge into the
     Company;

          (2) the Company or any Restricted Subsidiary may transfer all or part
     of its properties and assets to a Guarantor; and

          (3) the Company may merge with an Affiliate of the Company
     incorporated solely for the purpose of reincorporating the Company in
     another state of the United States of America so long as the amount of
     Indebtedness of the Company and the Restricted Subsidiaries is not
     increased thereby.

     (b) Each Guarantor will not, and the Company will not permit any Guarantor
to, consolidate or merge with or into or wind up into (whether or not such
Guarantor is the surviving Person), or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its properties or assets in one
or more related transactions to, any Person unless:

          (1) (a) such Guarantor is the surviving Person or the Person formed by
     or surviving any such consolidation or merger (if other than such
     Guarantor) or to which such sale, assignment, transfer, lease, conveyance
     or other disposition will have been made is a Person organized or existing
     under the laws of the United States of America, any state thereof, the
     District of Columbia, or any territory thereof (such Guarantor or such
     Person, as the case may be, being herein called the "Successor Guarantor");
     (b) the Successor Guarantor, if other than such Guarantor, expressly
     assumes all the obligations of such Guarantor under this Indenture and such
     Guarantor's Guarantee, pursuant to supplemental indentures or other
     documents or instruments in form reasonably satisfactory to the Trustee;
     and (c) immediately after such transaction, no Event of Default exists; or

          (2) the transaction does not violate Section 4.10 hereof or is not an
     Asset Sale pursuant to the definition thereof.

     The Successor Guarantor will succeed to, and be substituted for, such
Guarantor under this Indenture and such Guarantor's Guarantee, and the Guarantor
will be released from its obligations thereunder.

     (c) Notwithstanding paragraphs (a) and (b) of this Section 5.01, any
Guarantor may (x) merge into or sell, assign, transfer, lease, convey or
otherwise dispose of (each such action being referred to in this paragraph as a
"transfer") all or part of its properties and assets to another Guarantor or the
Company, (y) transfer all or part of its properties and assets to a Restricted
Subsidiary that is not a Guarantor in a transaction that (i) does not violate
Section 4.10 hereof or is not an Asset Sale pursuant to the definition thereof
or (ii) comprised of one or more non-exclusive licenses of intellectual property
for fair value (as determined in good faith by the Company), or (z) transfer all
or part of its properties and assets to a Restricted Subsidiary that is not a
Guarantor; provided that any transfer made pursuant to this clause (z) satisfies
the following conditions:

          (1) the transferor receives consideration at the time of such transfer
     at least equal to the fair value (as determined in good faith by the
     Company) of the properties and assets transferred, such consideration to be
     in the form of cash, Cash Equivalents and/or one or more promissory notes
     made by the transferee to the transferor;

          (2) the Capital Stock of the transferee is owned by the Company or a
     Restricted Subsidiary, or by a Restricted Subsidiary the Capital Stock of
     which is owned by the Company or another Restricted Subsidiary;

                                       86

          (3) the transferee (and, if the Capital Stock of the transferee is
     owned by a Foreign Subsidiary, such owner) agrees in writing not to incur
     any Indebtedness or Preferred Stock other than:

               (a) pursuant to clauses (e), (f), (g), (i), (j), (l), (p) or (q)
          of Section 4.09(b) hereof,

               (b) Indebtedness in the nature of deferred purchase price of any
          property (including Capitalized Lease Obligations) permitted pursuant
          to Section 4.09 hereof and

               (c) other Indebtedness other than for borrowed money; and

          (4) with respect to any property and assets that are owned by the
     Company or a Guarantor on the Issue Date and subsequently transferred in
     reliance on this clause (z),

               (a) the fair value of such property and assets as of the date of
          such transfer (as determined in good faith by the Company and
          evidenced by a certificate of a Responsible Officer delivered to the
          Trustee not less than five Business Days (or such shorter time as the
          Trustee may agree) prior to such transfer), plus

               (b) the fair value of any other property or assets previously
          transferred in reliance on this clause (z) as of their respective
          dates of transfer (as determined in good faith by the Company), minus

               (c) the aggregate amount of payments of principal made on or
          before the date of the transfer in question with respect to all
          promissory notes previously delivered pursuant to this clause (z)
          shall not exceed $175.0 million.

     (d) Notwithstanding the foregoing, the Transactions (including, without
limitation, the execution by Harland and the Harland Subsidiaries of this
Indenture, the Notes and the Guarantees on the Issue Date and the merger of
certain of the Guarantors with and into Harland and the Harland Subsidiaries)
will be permitted without compliance with this Section 5.01.

     (e) For purposes of this Section 5.01, the sale, lease, conveyance,
assignment, transfer or other disposition of all or substantially all of the
properties and assets of one or more of the Restricted Subsidiaries in one or
more related transactions (other than to the Company or a Guarantor), which
properties and assets if held by the Company, instead of such Restricted
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company and its Restricted Subsidiaries on a consolidated basis
(other than to the Company or a Guarantor), shall be deemed to be the transfer
of all or substantially all of the properties and assets of the Company.

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 properties or
assets of the Company in a transaction that is subject to, and that complies
with the provisions of, Section 5.01 hereof, the successor Person formed by such
consolidation or into or with which the Company 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, assignment, transfer, lease, conveyance or other
disposition, the provisions of this Indenture referring to the "Company" shall
refer instead to the successor Person and not to the Company), and may exercise
every right and power of the Company

                                       87

under this Indenture with the same effect as if such successor Person had been
named as the Company herein; provided, however, that the predecessor Company
shall not be relieved from the obligation to pay the principal of and interest
on the Notes in the case of a sale of the Company's assets (other than a sale of
all or substantially all of the Company's assets) in a transaction that is
subject to, and that complies with the provisions of, Section 5.01 hereof.

                                    ARTICLE 6
                              DEFAULTS AND REMEDIES

Section 6.01 Events of Default and Remedies.

     Each of the following is an "Event of Default":

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

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

          (3) failure by the Company or any Guarantor for 60 days after receipt
     of written notice given by the Trustee or the Holders of at least 30% in
     principal amount of the then outstanding Notes issued under this Indenture
     to comply with any of its other agreements in this Indenture or the Notes;

          (4) 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 the Company or any of the Guarantors (or
     the payment of which is guaranteed by the Company or any of the
     Guarantors), whether such Indebtedness or guarantee now exists, or is
     created after the Issue Date, if that default both:

               (a) (i) is caused by a failure to pay principal of such
          Indebtedness prior to the expiration of the grace period provided in
          such Indebtedness on the date of such default (a "Payment Default"),
          or (ii) relates to an obligation other than the obligation to pay
          principal of any such Indebtedness at its stated final maturity and
          results in the holder or holders of such Indebtedness causing such
          Indebtedness to become due prior to its stated final maturity; and

               (b) the principal amount of such Indebtedness, together with the
          principal amount of any other such Indebtedness in default for failure
          to pay principal at stated final maturity (after giving effect to any
          applicable grace periods), or the maturity of which has been so
          accelerated, aggregate $40.0 million or more at any one time
          outstanding;

          (5) failure by the Company or any Significant Subsidiary (or any group
     of Subsidiaries that together would constitute a Significant Subsidiary) to
     pay final judgments aggregating in excess of $40.0 million and not covered
     by insurance, which final judgments remain unpaid, undischarged and
     unstayed for a period of more than 60 days after such judgment becomes
     final, and in the event such judgment is covered by insurance, an
     enforcement proceeding has been commenced by any creditor upon such
     judgment or decree which is not promptly stayed;

                                       88

          (6) the Company or any of its Restricted Subsidiaries that is a
     Significant Subsidiary or any group of Restricted Subsidiaries of the
     Company that, taken together, would constitute a Significant Subsidiary
     pursuant to or within the meaning of Bankruptcy Law:

               (A) commences a voluntary case,

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

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

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

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

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

               (A) is for relief against the Company or any of its Restricted
          Subsidiaries that is a Significant Subsidiary or any group of
          Restricted Subsidiaries of the Company that, taken together, would
          constitute a Significant Subsidiary in an involuntary case;

               (B) appoints a custodian of the Company or any of its Restricted
          Subsidiaries that is a Significant Subsidiary or any group of
          Restricted Subsidiaries of the Company that, taken together, would
          constitute a Significant Subsidiary or for all or substantially all of
          the property of the Company or any of its Restricted Subsidiaries that
          is a Significant Subsidiary or any group of Restricted Subsidiaries of
          the Company that, taken together, would constitute a Significant
          Subsidiary; or

               (C) orders the liquidation of the Company or any of its
          Restricted Subsidiaries that is a Significant Subsidiary or any group
          of Restricted Subsidiaries of the Company that, taken together, would
          constitute a Significant Subsidiary;

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

          (8) the Guarantee of any Significant Subsidiary (or any group of
     Subsidiaries that together would constitute a Significant Subsidiary) shall
     for any reason cease to be in full force and effect or be declared null and
     void or any Responsible Officer of any Guarantor that is a Significant
     Subsidiary (or the Responsible Officers of any group of Subsidiaries that
     together would constitute a Significant Subsidiary), as the case may be,
     denies that it has any further liability under its Guarantee or gives
     notice to such effect, other than by reason of the termination of this
     Indenture or the release of any such Guarantee in accordance with this
     Indenture.

Section 6.02 Acceleration.

     In the case of an Event of Default specified in clause (6) or (7) 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 30% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately.

                                       89

     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 or Additional Interest, if
any, that has become due solely because of the acceleration) have been cured or
waived.

Section 6.03 Other Remedies.

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

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

Section 6.04 Waiver of Past Defaults.

     (a) Holders of 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, or compliance with any provision of this Indenture except a
continuing Default or Event of Default in the payment of the principal of,
premium and Additional Interest, 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.

     (b) In the event of any Event of Default specified in Section 6.01(4)
hereof, such Event of Default and all consequences thereof (excluding any
resulting Payment Default) shall be annulled, waived and rescinded automatically
and without any action by the Trustee or the Holders if, within 20 days after
such Event of Default arose,

          (x) the Indebtedness or guarantee that is the basis for such Event of
     Default has been discharged,

          (y) the holders thereof have rescinded or waived the acceleration,
     notice or action (as the case may be) giving rise to such Event of Default
     or

          (z) the Default that is the basis for such Event of Default has been
     cured.

Section 6.05 Control by Majority.

     Holders of a majority in aggregate 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

                                       90

that conflicts with law or this Indenture 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.

Section 6.06 Limitation on Suits.

     Except to enforce the right to receive payment of principal, premium, if
any, or interest or Additional Interest, if any, when due, no Holder may pursue
a remedy with respect to this Indenture or the Notes unless:

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

          (2) Holders of at least 30% in aggregate principal amount of the then
     outstanding Notes make a written request to the Trustee to pursue the
     remedy;

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

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

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

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

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 and Additional
Interest, if any, and interest 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) hereof occurs
and is continuing, the Trustee is authorized to recover judgment in its own name
and as trustee of an express trust against the Company for the whole amount of
principal of, premium and Additional Interest, 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 the Company
(or any other obligor

                                       91

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 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.

     If the Trustee collects any money or property pursuant to this Article 6,
it shall pay out the money 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, expenses 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 and Additional Interest, 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 and Additional
     Interest, if any, and interest, respectively; and

          Third: to the Company or to such party as a court of competent
     jurisdiction shall direct in a final, non-appealable order.

     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 and
expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant. This
Section 6.11 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
aggregate principal amount of the then outstanding Notes.

                                       92

                                    ARTICLE 7
                                     TRUSTEE

Section 7.01 Duties of Trustee.

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

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

          (1) the duties of the Trustee will 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

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

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

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

          (2) the Trustee will 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

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

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

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

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

                                       93

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 acts or refrains from acting, it may require an
Officers' Certificate or an Opinion of Counsel or both. The Trustee will 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. The Trustee may consult with
counsel of it selection and the advice of such counsel or any Opinion of Counsel
will be full and complete authorization and protection from liability in respect
of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

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

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

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

     (f) The Trustee will 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 have offered to the Trustee reasonable indemnity
or security reasonably satisfactory to it against the losses, liabilities and
expenses that might be incurred by it in compliance with such request or
direction.

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

Section 7.03 Individual Rights of Trustee.

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Company or any Affiliate of the
Company 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 (if this Indenture has been qualified under the TIA) 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 will not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company's use of the proceeds from the Notes or any money
paid to the Company or upon the Company's direction under any provision of this
Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will 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.

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Section 7.05 Notice of Defaults.

     If a Default or Event of Default occurs and is continuing and if it is
known to a Responsible Officer of the Trustee, the Trustee will mail to Holders
of Notes a notice of the Default or Event of Default within 90 days after it
occurs. Except in the case of a Default or Event of Default in payment of
principal of, premium or Additional Interest, 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.

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

     (b) A copy of each report at the time of its mailing to the Holders of
Notes will be mailed by the Trustee to the Company and filed by the Trustee with
the SEC and each stock exchange on which the Notes are listed in accordance with
TIA Section 313(d). The Company will promptly notify the Trustee when the Notes
are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

     (a) The Company will pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder. The
Trustee's compensation will not be limited by any law on compensation of a
trustee of an express trust. The Company will reimburse the Trustee promptly
upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses will
include the reasonable compensation, disbursements and expenses of the Trustee's
agents and counsel.

     (b) The Company and the Guarantors, jointly and severally, will indemnify
the Trustee against any and all losses, liabilities, claims, damages 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 the Company and the Guarantors
(including this Section 7.07) and defending itself against any claim (whether
asserted by the Company, the Guarantors, 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 is
determined by a court of competent jurisdiction to have been caused by its own
negligence or willful misconduct. The Trustee will notify the Company promptly
of any claim for which it may seek indemnity. Failure by the Trustee to so
notify the Company will not relieve the Company or any of the Guarantors of
their obligations hereunder. The Company or such Guarantor will defend the claim
and the Trustee will cooperate in the defense. To the extent there exists a
conflict or a potential conflict of interest, as determined in good faith by the
Trustee, the Trustee may have separate counsel and the Company will pay the
reasonable fees and expenses of such counsel. Neither the Company nor any
Guarantor need pay for any settlement made without its consent, which consent
will not be unreasonably withheld.

     (c) The obligations of the Company and the Guarantors under this Section
7.07 will survive the satisfaction and discharge of this Indenture.

                                       95

     (d) To secure the Company's and the Guarantors' payment obligations in this
Section 7.07, the Trustee will 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 will survive the
satisfaction and discharge of this Indenture.

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

     (f) The Trustee will comply with the provisions of TIA Section 313(b)(2) to
the extent applicable.

Section 7.08 Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor
Trustee will become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 7.08.

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

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

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

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

          (4) the Trustee becomes incapable of acting.

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

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

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

     (f) A successor Trustee will deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee will become effective, and the
successor Trustee will have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee will mail a notice of its succession
to Holders. The retiring Trustee will promptly transfer all property held by it
as Trustee to the successor Trustee; provided all sums owing to

                                       96

the Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company's obligations under Section 7.07 hereof will 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 will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

     There will 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 $100.0
million as set forth in its most recent published annual report of condition.

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

Section 7.11 Preferential Collection of Claims Against Company.

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

                                    ARTICLE 8
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may at any time, at its option evidenced by a resolution of its
Board of Directors set forth in an Officers' Certificate, elect to have either
Section 8.02 or 8.03 hereof be applied to all outstanding Notes of any
particular series upon compliance with the conditions set forth below in this
Article 8.

Section 8.02 Legal Defeasance and Discharge.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company and each of the Guarantors will,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be deemed to have been discharged from their obligations with respect to all
outstanding Notes of any particular series and all obligations of the Guarantors
with respect to their Guarantees and such Notes (to the extent they are
Co-Issuers) on the date the conditions set forth below are satisfied
(hereinafter, "Legal Defeasance"). For this purpose, Legal Defeasance means that
the Company and the Guarantors will be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes (including the
Guarantees) and cured all existing Events of Default, 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 clauses (1) and (2) below, and
to have satisfied all their other obligations under such Notes, the Guarantees
and this Indenture (and the Trustee, on demand of and

                                       97

at the expense of the Company, shall execute proper instruments acknowledging
the same), except for the following provisions which shall survive until
otherwise terminated or discharged hereunder:

          (1) the rights of Holders of outstanding Notes of any particular
     series to receive payments in respect of the principal of, or interest or
     premium and Additional Interest, if any, on, such Notes when such payments
     are due from the Funds in Trust referred to in Section 8.04 hereof;

          (2) the Company's obligations with respect any series of Notes under
     Article 2 and Section 4.02 hereof;

          (3) the rights, powers, trusts, duties and immunities of the Trustee
     hereunder and the Company's and the Guarantors' obligations in connection
     therewith; and

          (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

     Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company and each of the Guarantors will,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be released from each of their obligations with respect to a particular series
of Notes under the covenants contained in Sections 4.03, 4.04, 4.07, 4.08, 4.09,
4.10, 4.11, 4.12, 4.13, 4.14 (except with respect to the existence of the
Company), 4.15, 4.16 and 4.17 hereof, Sections 5.01(a)(3) and 5.01(a)(4) hereof,
Sections 5.01(b) through (e) hereof and Article 10 hereof with respect to the
outstanding Notes on and after the date the conditions set forth in Section 8.04
hereof are satisfied (hereinafter, "Covenant Defeasance"), any existing failure
by the Company to comply with any such obligations shall no longer constitute an
Event of Default, and such Notes will 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
will continue to be deemed "outstanding" for all other purposes hereunder (it
being understood that such Notes will not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes of a particular series and Guarantees, the Company and the
Guarantors may omit to comply with and will 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 will 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 and Guarantees
will be unaffected thereby. In addition, upon the Company's exercise under
Section 8.01 hereof of the option applicable to this Section 8.03, subject to
the satisfaction of the conditions set forth in Section 8.04 hereof, Sections
6.01(3) through 6.01(5) and 6.01(8) hereof will not constitute Events of
Default. In addition the Guarantees will be terminated and released and the
Guarantors discharged with respect to their Guarantees and such Notes (to the
extent they are Co-Issuers) upon a Covenant Defeasance.

Section 8.04 Conditions to Legal or Covenant Defeasance.

     In order to exercise either Legal Defeasance or Covenant Defeasance under
either Section 8.02 or 8.03 hereof:

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          (1) the Company must irrevocably deposit with the Trustee, in trust,
     for the benefit of the Holders of the series of Notes being defeased, cash
     in U.S. dollars, non-callable Government Securities, or a combination of
     cash in U.S. dollars and non-callable Government Securities ("Funds in
     Trust"), in amounts as will be sufficient to pay the principal of, or
     interest and premium and Additional Interest, if any, on, the outstanding
     Notes of such series on the stated date for payment thereof or on the
     applicable redemption date, as the case may be, and the Company must
     specify whether such Notes are being defeased to such stated date for
     payment or to a particular redemption date;

          (2) in the case of an election under Section 8.02 hereof, the Company
     must deliver to the Trustee an Opinion of Counsel reasonably acceptable to
     the Trustee confirming that:

               (A) the Company has received from, or there has been published
          by, the Internal Revenue Service a ruling; or

               (B) since the Issue Date, 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 being
          defeased will not recognize income, gain or loss for federal income
          tax purposes as a result of such Legal Defeasance and will be subject
          to federal income tax on the same amounts, in the same manner and at
          the same times as would have been the case if such Legal Defeasance
          had not occurred;

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

          (4) 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 the Funds in
     Trust);

          (5) such Legal Defeasance or Covenant Defeasance will not result in a
     breach or violation of, or constitute a default under, any material
     agreement or instrument (other than this Indenture) to which the Company or
     any of its Restricted Subsidiaries is a party or by which the Company or
     any of its Restricted Subsidiaries is bound;

          (6) the Company must deliver to the Trustee an Officers' Certificate
     stating that the deposit was not made by the Company with the intent of
     preferring the Holders of the Notes being defeased over the other creditors
     of the Company with the intent of defeating, hindering, delaying or
     defrauding any creditors of the Company or others; and

          (7) the Company must deliver to the Trustee an Officers' Certificate
     and an Opinion of Counsel, each stating that all conditions precedent
     relating to the Legal Defeasance or the Covenant Defeasance, as applicable,
     have been satisfied.

                                       99

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
will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company 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 and Additional Interest, if
any, and interest, but such money need not be segregated from other funds except
to the extent required by law.

     The Company will 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.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee
will deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof, which 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 Company.

     Subject to any applicable abandoned property law, any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium or Additional Interest, if any, or interest
on, any Note and remaining unclaimed for two years after such principal, premium
or Additional Interest, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) will be
discharged from such trust; and the Holder of such Note will thereafter be
permitted to look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, will thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company 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 will 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 the Company.

Section 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. 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 the Company's and the Guarantors' obligations under this
Indenture and such Notes and the Guarantees will 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 the Company makes any payment of principal of, premium or
Additional Interest, if any, or interest on, any Note following the
reinstatement of its obligations, the Company will 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.

                                      100

                                    ARTICLE 9
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

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

          (1) to cure any ambiguity, defect, inconsistency or omission;

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

          (3) to provide for the assumption of the Company's, a Co-Issuer's or a
     Guarantor's obligations to the Holders of the Notes and Guarantees by a
     successor to the Company, such Co-Issuer's or such Guarantor pursuant to
     Article 5 hereof;

          (4) 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 such Holder;

          (5) to add covenants for the benefit of the Holders or to surrender
     any right or power conferred upon the Company or a Guarantor;

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

          (7) to conform the text of this Indenture, the Guarantees or the Notes
     to any provision of the "Description of Notes" section of the Offering
     Circular, to the extent that such provision in that "Description of Notes"
     was intended to be a verbatim recitation of a provision of this Indenture,
     the Guarantees or the Notes;

          (8) to provide for the issuance of Additional Notes or Exchange Notes
     in accordance with the limitations set forth in this Indenture as of the
     Issue Date;

          (9) to allow any Guarantor or other obligor to execute a supplemental
     indenture and/or a Guarantee with respect to the Notes;

          (10) to release a Guarantor or Co-Issuer as provided in this
     Indenture;

          (11) to make any amendment to the provisions of this Indenture
     relating to the transfer and legending of Notes provided, however, that (a)
     compliance with this Indenture as so amended would not result in Notes
     being transferred in violation of the Securities Act or any applicable
     securities law and (b) such amendment does not materially and adversely
     affect the rights of Holders to transfer Notes;

          (12) to evidence and provide the acceptance of the appointment of a
     successor Trustee under this Indenture; or

          (13) to comply with the rules of any applicable securities depositary.

                                      101

     Upon the request of the Company 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
7.02 hereof, the Trustee will join with the Company 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 will 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 or as permitted by Section
9.01, the Company and the Trustee may amend or supplement this Indenture
(including, without limitation, Section 3.09, 4.10 and 4.15 hereof) and the
Notes and the Guarantees with the consent of the Holders of at least a majority
in aggregate principal amount of the then outstanding Notes (including, without
limitation, consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07
hereof, any existing Default or Event of Default or compliance with any
provision of this Indenture or the Notes or the Guarantees may be waived with
the consent of the Holders of a majority in aggregate principal amount of the
then outstanding Notes (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes); provided that (i) if any amendment, waiver or other modification would
disproportionately and adversely affect the Fixed Rate Notes or the Floating
Rate Notes, such amendment, waiver or modification shall also require the
consent of the Holders of at least a majority in aggregate principal amount of
the then outstanding Fixed Rate Notes or Floating Rate Notes, as the case may
be, and (ii) if any amendment, waiver or other modification would only affect
the Fixed Rate Notes or the Floating Rate Notes, only the consent of the Holders
of at least a majority in aggregate principal amount of the then outstanding
Fixed Rate Notes or Floating Rate Notes, as the case may be, will be required.

     Upon the request of the Company 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 7.02 hereof, the Trustee will
join with the Company and the Guarantors 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 will not be
obligated to, enter into such amended or supplemental Indenture.

     It is 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,
supplement or waiver, but it is sufficient if such consent approves the
substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company will mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, will 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 may waive
compliance in a particular instance by the Company with any provision of this
Indenture or the Notes or the Guarantees. However, without the consent of each
Holder affected, an amendment, supplement or waiver under this Section 9.02 may
not (with respect to any Notes held by a non-consenting Holder):

                                      102

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

          (2) reduce the principal of or extend the fixed maturity of any Note
     or alter any of the provisions with respect to the redemption of the Notes
     (except as provided above with respect to Sections 3.09, 4.10 and 4.15
     hereof);

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

          (4) waive a Default or Event of Default in the payment of principal
     of, or premium or Additional Interest, if any, or interest on, the Notes
     (except a rescission of acceleration of the Notes by the Holders of at
     least a majority in aggregate principal amount of the then outstanding
     Notes and a waiver of the Payment Default that resulted from such
     acceleration) or in respect of a covenant or provision contained in this
     Indenture or any Guarantee that cannot be amended or modified without the
     consent of all Holders;

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

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

          (7) except as otherwise permitted by this Indenture, release the
     Guarantee of any Significant Subsidiary (or any group of Subsidiaries that
     together would constitute a Significant Subsidiary);

          (8) make any change in these amendment and waiver provisions; or

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

Section 9.03 Compliance with Trust Indenture Act.

     Every amendment or supplement to this Indenture or the Notes will be set
forth in an 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 a Note that evidences the same debt as
the consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the amendment, supplement or waiver becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

                                      103

Section 9.05 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company 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 will not
affect the validity and effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental indenture authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. Neither the
Company nor any Co-Issuer may sign an amended or supplemental indenture until
the Board of Directors of the Company or such Co-Issuer, as applicable, approves
it. In executing any amended or supplemental indenture, the Trustee will be
provided with and (subject to Section 7.01 hereof) will be fully protected in
relying upon, in addition to the documents required by Section 12.04 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.

     Harland and the Harland Subsidiaries shall be permitted to execute this
Indenture, the Notes and the Guarantees on the Issue Date, and no amended or
supplemental indenture (or related Officers' Certificate or Opinion of Counsel)
shall be required to evidence the accession to this Indenture, the Notes or the
Guarantees on the Issue Date of Harland or the Harland Subsidiaries.

                                   ARTICLE 10
                                   GUARANTEES

Section 10.01. Guarantee.

     (a) 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 the Company hereunder or thereunder, that:

          (1) 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 the Company 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

          (2) 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 will 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.

                                      104

     (b) The Guarantors hereby agree that their obligations hereunder are
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance (other than complete performance)
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 the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenant that this Guarantee will
not be discharged except by complete performance of the obligations contained in
the Notes and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantors, any amount paid by either to the Trustee or such Holder, this
Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

     (d) Each Guarantor agrees that it will 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, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof
for the purposes of this Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) 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) will forthwith become due and payable by the Guarantors for
the purpose of this Guarantee. The Guarantors will 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 Guarantee of such
Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to any
Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and
the Guarantors hereby irrevocably agree that the obligations of such Guarantor
will be limited to the maximum amount that will, after giving effect to such
maximum amount and all other contingent and fixed liabilities of such Guarantor
that are relevant under such laws, and after giving effect to any collections
from, rights to receive contribution from or payments made by or on behalf of
any other Guarantor in respect of the obligations of such other Guarantor under
this Article 10, result in the obligations of such Guarantor under its Guarantee
not constituting a fraudulent transfer or conveyance.

Section 10.03. Execution and Delivery of Guarantee.

     To evidence its Guarantee set forth in Section 10.01 hereof, each Guarantor
hereby agrees that a notation of such Guarantee substantially in the form
attached as Exhibit E1 or Exhibit E2, as applicable, hereto will be endorsed by
an Officer of such Guarantor on each Note authenticated and delivered by the
Trustee after the time such Guarantor becomes a Guarantor and that this
Indenture will be executed on behalf of such Guarantor by one of its Officers.

                                      105

     Each Guarantor hereby agrees that its Guarantee set forth in Section 10.01
hereof will remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Guarantee.

     If an Officer whose signature is on this Indenture or on the Guarantee no
longer holds that office at the time the Trustee authenticates the Note on which
a Guarantee is endorsed, the Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof
hereunder, will constitute due delivery of the Guarantee set forth in this
Indenture on behalf of the Guarantors.

Section 10.04. Releases.

     The Guarantee of a Guarantor and such Guarantor's obligations (if any) as a
Co-Issuer shall automatically be released:

     (a) In connection with any sale, transfer 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 (after giving effect to such transaction)
the Company or a Restricted Subsidiary of the Company, if the sale, transfer or
other disposition does not violate Section 4.10 hereof or is not an Asset Sale
pursuant to the definition thereof;

     (b) In connection with any sale, transfer or other disposition of all of
the Capital Stock of that Guarantor to a Person that is not (after giving effect
to such transaction) the Company or a Restricted Subsidiary of the Company, if
the sale, transfer or other disposition does not violate Section 4.10 hereof or
is not an Asset Sale pursuant to the definition thereof;

     (c) If the Company designates such Guarantor to be an Unrestricted
Subsidiary in accordance with the applicable provisions of this Indenture;

     (d) upon Legal Defeasance or satisfaction and discharge of this Indenture
as provided in Article 8 or Article 11 hereof;

     (e) upon a sale of Capital Stock which causes such Guarantor to cease to be
a Restricted Subsidiary if such sale does not violate any of the provisions of
this Indenture;

     (f) if the Company has satisfied the conditions to Covenant Defeasance as
provided in Article 8 hereof;

     (g) if such Guarantor no longer has any obligations under any Indebtedness
that would require it to become a Guarantor pursuant to Section 4.17 hereof; or

     (h) upon a merger, sale of assets or other transaction that satisfies the
requirements of Section 5.01(c).

     Any Guarantor not released from its obligations under its Guarantee as
provided in this Section 10.04 will remain liable for the full amount of
principal of and interest and premium and Additional Interest, if any, on the
Notes and for the other obligations of any Guarantor under this Indenture as
provided in this Article 10.

                                      106

                                   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 of any particular series issued hereunder, when:

          (1) either:

               (a) all Notes of such series 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 the Company, have been delivered to the Trustee for
     cancellation; or

               (b) all Notes of such series that have not been delivered to the
     Trustee for cancellation (i) have become due and payable by reason of the
     mailing of a notice of redemption or otherwise or (ii) will become due and
     payable within one year, and the Company or any Guarantor have irrevocably
     deposited or caused to be deposited with the Trustee as trust funds in
     trust solely for the benefit of such Holders, cash in U.S. dollars,
     non-callable Government Securities, or a combination of cash in U.S.
     dollars and non-callable Government Securities, in amounts as will be
     sufficient, without consideration of any reinvestment of interest, to pay
     and discharge the entire Indebtedness on such Notes not delivered to the
     Trustee for cancellation, including principal, premium and Additional
     Interest, if any, and accrued interest to the date of maturity or
     redemption (for the avoidance of doubt, in the case of a discharge that
     occurs in connection with a redemption that is to occur on a Make-Whole
     Redemption Date, the amount to be deposited shall be the amount that, as of
     the date of such deposit, is deemed reasonably sufficient to make such
     payment and discharge on the Make-Whole Redemption Date, in the good-faith
     determination of the Board of Directors of the Company pursuant to a Board
     Resolution and as evidenced by an Officers' Certificate);

          (2) no Default or Event of Default with respect to such Notes has
     occurred and is 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) and the deposit will not result in a breach or
     violation of, or constitute a default under, any other instrument (other
     than this Indenture) to which the Company or any Guarantor is a party or by
     which the Company or any Guarantor is bound;

          (3) the Company has paid or caused to be paid all sums payable by the
     Company under this Indenture with respect to such series of Notes; and

          (4) the Company has delivered irrevocable instructions to the Trustee
     under this Indenture to apply the deposited money toward the payment of
     such Notes at maturity or on the redemption date, as the case may be.

In addition, the Company 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
has been deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section 11.01, the provisions of Sections 11.02 and 8.06 hereof will
survive. In addition, nothing in this Section 11.01 will be deemed to discharge

                                      107

those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 11.02 Application of Trust Money.

     Subject to the provisions of Section 8.06 hereof, all money deposited with
the Trustee pursuant to Section 11.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the relevant series of Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium and
Additional Interest, if any) and interest for whose payment such money has been
deposited with the Trustee; but such money need not be segregated from other
funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government
Securities in accordance with Section 11.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's and any Guarantor's obligations under this Indenture and the relevant
series of Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 11.01 hereof; provided that if the Company has made
any payment of principal of, premium or Additional Interest, if any, or interest
on, any such Notes because of the reinstatement of its obligations, the Company
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
                                  MISCELLANEOUS

Section 12.01 Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA Section 318(c), the imposed duties will control.

Section 12.02 Notices.

     Any notice or communication by the Company, any Guarantor or the Trustee to
the others is duly given if in writing and delivered in Person or by first class
mail (registered or certified, return receipt requested), facsimile transmission
or overnight air courier guaranteeing next day delivery, to the others' address:

     If to the Company and/or any Guarantor:

     Clarke American Corp.
     10931 Laureate Drive
     San Antonio, TX 78249
     Facsimile No.: (210) 558-5254
     Attention: Chief Financial Officer

     With a copy to:

     M&F Worldwide Corp.
     35 East 62nd Street
     New York, NY 10021

                                      108

     Facsimile No: (212) 572-5056
     Attention: Barry F. Schwartz

     and

     Paul, Weiss, Rifkind, Wharton & Garrison LLP
     1285 Avenue of the Americas
     New York, NY  10019
     Facsimile No.: (212) 492-0052
     Attention: Lawrence G. Wee

     If to the Trustee:

     Wells Fargo Bank, N.A.
     Corporate Trust Services
     213 Court Street, Suite 703
     Middletown, CT 06457
     Facsimile No.: (860) 704-6219
     Attention: Joseph P. O'Donnell

     The Company, 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) will be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will 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 will also be so mailed to any Person
described in TIA Section 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will 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 the Company mails a notice or communication to Holders, it will mail a
copy to the Trustee and each Agent at the same time.

Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

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

Section 12.04 Certificate and Opinion as to Conditions Precedent.

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

                                      109

          (1) an Officers' Certificate in form and substance reasonably
     satisfactory to the Trustee (which must include the statements set forth in
     Section 12.05 hereof) stating that, in the opinion of the signers, all
     conditions precedent and covenants, if any, provided for in this Indenture
     relating to the proposed action have been satisfied; and

          (2) an Opinion of Counsel in form and substance reasonably
     satisfactory to the Trustee (which must include the statements set forth in
     Section 12.05 hereof) stating that, in the opinion of such counsel, all
     such conditions precedent and covenants have been satisfied; provided that
     no such Opinion of Counsel shall be required in connection with the
     issuance of the Initial Notes on the Issue Date.

Section 12.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) must comply with the provisions of TIA
Section 314(e) and must include:

          (1) a statement that the Person making such certificate or opinion has
     read such covenant or condition;

          (2) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

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

          (4) a statement as to whether or not, in the opinion of such Person,
     such condition or covenant has been satisfied. Any opinion of Counsel may
     be subject to customary assumptions and qualifications.

Section 12.06 Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar, Paying Agent or Calculation Agent may make reasonable
rules and set reasonable requirements for its functions.

Section 12.07 No Personal Liability of Directors, Officers, Employees,
Stockholders or Controlling Persons.

     No director, officer, employee, incorporator, stockholder or controlling
person of the Company or any Guarantor or any of their parent companies, as
such, will have any liability for any obligations of the Company or the
Guarantors under the Notes, this Indenture, the Guarantees, the Registration
Rights Agreement or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of 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. The waiver may not be effective to
waive liabilities under the federal securities laws.

                                      110

Section 12.08 Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES AND THE 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 12.09 No Adverse Interpretation of Other Agreements.

     This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

Section 12.10 Successors.

     All agreements of the Company in this Indenture and the Notes will bind its
successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Guarantor and Co-Issuer, as applicable, in
this Indenture and the Notes, as applicable, will bind its successors, except as
otherwise provided in Section 10.04 hereof.

Section 12.11 Severability.

     In case any provision in this Indenture or in the Notes is invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

Section 12.12 Counterpart Originals.

     The parties may sign any number of copies of this Indenture. Each signed
copy will be an original, but all of them together represent the same agreement.

Section 12.13 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 will in no way
modify or restrict any of the terms or provisions hereof.

Section 12.14 Force Majeure.

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

                         [Signatures on following page]

                                      111

                                   SIGNATURES

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

                                        CLARKE AMERICAN CORP.

                                        By: /s/ Judy C. Norris
                                            ------------------------------------
                                            Name:  Judy C. Norris
                                            Title: Vice President, General
                                                   Counsel & Secretary

                                        B2DIRECT, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        CENTRALIA HOLDING CORP.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        CHECKS IN THE MAIL, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        CLARKE AMERICAN CHECKS, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        H ACQUISITION CORP.

                                        By: /s/ Edward P. Taibi
                                            ------------------------------------
                                            Name:  Edward P. Taibi
                                            Title: Vice President and
                                                   Assistant Secretary

                                        HARLAND CHECKS AND SERVICES, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        HARLAND FINANCIAL SOLUTIONS, INC.

                                        By: /s/ Edward P. Taibi
                                            ------------------------------------
                                            Name:  Edward P. Taibi
                                            Title: Vice President and
                                                   Assistant Secretary

                                        HFS CORE SYSTEMS, INC.

                                        By: /s/ Edward P. Taibi
                                            ------------------------------------
                                            Name:  Edward P. Taibi
                                            Title: Vice President and
                                                   Assistant Secretary

                                        HFS SCANTRON HOLDINGS CORP.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        JOHN H. HARLAND COMPANY

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name: Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        JOHN H. HARLAND COMPANY OF PUERTO RICO

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        NEW CS, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        NEW SCH, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        NEW SCSFH, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        NEW SFH, INC.

                                        By: /s/ Peter A. Fera
                                            ------------------------------------
                                            Name:  Peter A. Fera
                                            Title: Executive Vice President and
                                                   Chief Financial Officer

                                        SCANTRON CORPORATION

                                        By: /s/ Edward P. Taibi
                                            ------------------------------------
                                            Name:  Edward P. Taibi
                                            Title: Vice President and
                                                   Assistant Secretary

                                        WELLS FARGO BANK, N.A., AS TRUSTEE

                                        By: /s/ Joseph P. O'Donnell
                                            ------------------------------------
                                            Name:  Joseph P. O'Donnell
                                            Title: Vice President

                                                                      EXHIBIT A1

                                 [Face of Note]
--------------------------------------------------------------------------------

                                                         CUSIP/CINS ____________

                       Senior Floating Rate Notes due 2015

No. _____                                                          $____________

                              CLARKE AMERICAN CORP.
        AND THE CO-ISSUERS LISTED ON THE "SCHEDULE OF CO-ISSUERS" HERETO

each promise to pay to _______________ or registered assigns,

the principal sum of __________________________________________________________
DOLLARS on May 15, 2015.

Interest Payment Dates: February 15, May 15, August 15 and November 15

Record Dates: February 1, May 1, August 1 and November 1

Dated: ___________, 20-

                                        CLARKE AMERICAN CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        B2DIRECT, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        CHECKS IN THE MAIL, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        CLARKE AMERICAN CHECKS, INC.

                                      A1-1

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        H ACQUISITION CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW CS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCSFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HARLAND CHECKS AND SERVICES, INC.

                                      A1-2

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HARLAND FINANCIAL SOLUTIONS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HFS CORE SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        JOHN H. HARLAND COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        SCANTRON CORPORATION

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        [CO-ISSUER]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

WELLS FARGO BANK, N.A.,
as Trustee

                                      A1-3

By:
    ---------------------------------
          Authorized Signatory

                                      A1-4

                                 [Back of Note]
                       Senior Floating Rate Notes due 2015

[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]

[Insert the OID Legend, if applicable pursuant to the provisions of the
Indenture]

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) INTEREST. Clarke American Corp., a Delaware corporation (the
     "Company"), and the entities listed on the "Schedule of Co-Issuers" hereto
     (the "Co-Issuers"), jointly and severally, promise to pay interest on the
     principal amount of this Floating Rate Note at the Applicable LIBOR Rate
     plus 475 basis points from ________, 20__ until maturity and shall pay the
     Additional Interest, if any, payable pursuant to the Registration Rights
     Agreement referred to below. The Company and the Co-Issuers, jointly and
     severally, will pay interest and Additional Interest, if any, quarterly in
     arrears on February 15, May 15, August 15 and November 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 Floating Rate 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
     Floating Rate 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 ______, 20__. The
     Company and the Co-Issuers, jointly and severally, will pay interest
     (including post-petition interest in any proceeding under any Bankruptcy
     Law) 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 to the
     extent lawful; it will pay interest (including post-petition interest in
     any proceeding under any Bankruptcy Law) on overdue installments of
     interest and Additional Interest, if any, (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. The Company and the Co-Issuers, jointly and
     severally, will pay interest on the Floating Rate Notes (except defaulted
     interest) and Additional Interest, if any, to the Persons who are
     registered Holders of Floating Rate Notes at the close of business on the
     February 1, May 1, August 1 and November 1 next preceding the Interest
     Payment Date, even if such Floating Rate 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
     Floating Rate Notes will be payable as to principal, premium and Additional
     Interest, if any, and interest at the office or agency of the Paying Agent
     and Registrar (which initially will be the office of the Trustee), or, at
     the option of the Company, payment of interest and Additional Interest, if
     any, may be made by check mailed to the Holders at their addresses set
     forth in the register of Holders; provided that payment by wire transfer of
     immediately available funds will be required with respect to principal of
     and interest, premium and Additional Interest, if any, on, all Global Notes
     and all other Floating Rate Notes the Holders of which will have provided
     wire transfer instructions to the Company or the Paying Agent. Such payment
     will 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.

                                      A1-5

          (3) PAYING AGENT, REGISTRAR AND CALCULATION AGENT. Initially, Wells
     Fargo Bank, N.A., the Trustee under the Indenture, will act as Paying
     Agent, Registrar and Calculation Agent. The Company may change any Paying
     Agent, Registrar or Calculation Agent without notice to any Holder. The
     Company or any of its Subsidiaries may act in any such capacity.

          (4) INDENTURE. The Company and Co-Issuers issued the Floating Rate
     Notes under an Indenture dated as of May 1, 2007 (the "Indenture") among
     the Company, the Guarantors and the Trustee. The terms of the Notes include
     those stated in the Indenture and those made part of the Indenture by
     reference to the TIA. The Floating Rate Notes are subject to all such
     terms, and Holders are referred to the Indenture and the TIA for a
     statement of such terms. To the extent any provision of this Floating Rate
     Note conflicts with the express provisions of the Indenture, the provisions
     of the Indenture shall govern and be controlling. The Floating Rate Notes
     are unsecured obligations of the Company and the Co-Issuers on a joint and
     several basis. The Indenture does not limit the aggregate principal amount
     of Floating Rate Notes that may be issued thereunder.

          (5) OPTIONAL REDEMPTION.

               (a) Except as set forth below in this Paragraph 5, the Company
     will not have the option to redeem the Floating Rate Notes prior to May 15,
     2009. On or after May 15, 2009, the Company may redeem the Floating Rate
     Notes, in whole or in part, upon not less than 30 nor more than 60 days'
     notice (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 Floating Rate Notes or a satisfaction and discharge of
     the Indenture), 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 Floating Rate Notes redeemed to the
     applicable redemption date, if redeemed during the twelve-month period
     beginning on May 15 of the years indicated below, subject to the right of
     Holders of Floating Rate Notes on the relevant record date to receive
     interest on the relevant Interest Payment Date:

     Year                     Percentage
     ----                     ----------
     2009..................    102.000%
     2010..................    101.000%
     2011 and thereafter...    100.000%

               (b) At any time prior to May 15, 2009, the Company may, on any
     one or more occasions, redeem up to 35% of the sum of the aggregate
     principal amount of all Floating Rate Notes issued under the Indenture
     (including the principal amount of any Additional Floating Rate Notes
     issued under the Indenture and without duplication with respect to Exchange
     Floating Rate Notes issued under the Indenture) at a redemption price equal
     to 100% of the aggregate principal amount of the Floating Rate Notes
     redeemed, plus a premium equal to the interest rate per annum on the
     Floating Rate Notes in effect on the date on which notice of redemption is
     given, plus accrued and unpaid interest, and Additional Interest, if any,
     thereon to the redemption date, with the net cash proceeds of one or more
     Equity Offerings of the Company; provided that at least 50% of the
     aggregate principal amount of Floating Rate Notes issued under the
     Indenture (excluding Floating Rate Notes held by the Company and its
     Subsidiaries, but including any Additional Floating Rate Notes and without
     duplication with respect to Exchange Floating Rate Notes issued under the
     Indenture) remain outstanding immediately after the occurrence of each such
     redemption; and each such redemption occurs within 90 days of the closing
     of each such Equity Offering.

                                      A1-6

               (c) At any time prior to May 15, 2009, the Company may, in one or
     more instances, also redeem all or a part of the Floating Rate Notes, upon
     not less than 30 nor more than 60 days' prior notice mailed by first-class
     mail to each Holder's registered address, at a redemption price equal to
     100% of the principal amount of Floating Rate Notes redeemed plus the
     Applicable Premium as of the date of redemption, and accrued and unpaid
     interest and Additional Interest, if any, to such redemption date (the
     "Make-Whole Redemption Date"), subject to the rights of Holders of the
     Floating Rate Notes on the relevant record date to receive interest due on
     the relevant Interest Payment Date.

          (6) MANDATORY REDEMPTION. The Company and the Co-Issuers are not
     required to make mandatory redemption or sinking fund payments with respect
     to the Floating Rate Notes.

          (7) REPURCHASE AT THE OPTION OF HOLDER.

               (a) If a Change of Control occurs, the Company will make an offer
     (a "Change of Control Offer") to each Holder to repurchase all or any part
     (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
     that Holder's Floating Rate Notes at a purchase price in cash equal to 101%
     of the aggregate principal amount of Floating Rate Notes repurchased plus
     accrued and unpaid interest and Additional Interest, if any, on the
     Floating Rate Notes repurchased to the date of purchase, subject to the
     rights of Holders of Floating Rate Notes on the relevant record date to
     receive interest due on the relevant Interest Payment Date (the "Change of
     Control Payment"). No later than 45 days following any Change of Control,
     the Company will mail a notice to each Holder setting forth the procedures
     governing the Change of Control Offer as required by the Indenture.

               (b) If the Company or a Restricted Subsidiary of the Company
     consummates any Asset Sale and the aggregate amount of Excess Proceeds
     exceeds $45.0 million, within 30 days thereof, the Company will make an
     offer to (i) all Holders of Notes (ii) all holders of Indebtedness to be
     repaid pursuant to Section 4.10(b)(1)(x) of the Indenture and (iii) all
     holders of other Indebtedness that is pari passu in right of payment with
     the Notes containing provisions similar to Section 3.09 of the 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 other
     pari passu Indebtedness that may be purchased out of the Excess Proceeds
     (the "Asset Sale Offer"). 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. The Company may satisfy the foregoing obligations with respect to
     any Net Proceeds from an Asset Sale by making an Asset Sale Offer with
     respect to such Net Proceeds prior to the expiration of the relevant 450
     days or with respect to Excess Proceeds of $45.0 million or less. If any
     Excess Proceeds remain after consummation of an Asset Sale Offer, the
     Company and any Restricted Subsidiary may use those Excess Proceeds for any
     purpose not otherwise prohibited by the Indenture, including, without
     limitation, the making of Restricted Payments otherwise permitted under the
     terms of the Indenture. If the aggregate principal amount of Notes and
     other pari passu Indebtedness tendered into such Asset Sale Offer exceeds
     the amount of Excess Proceeds, the Notes and such other pari passu
     Indebtedness shall be purchased on a pro rata basis (with such adjustments
     for authorized denominations). Upon completion of each Asset Sale Offer,
     the amount of Excess Proceeds will be reset at zero. The Company at its
     election may retain or use any Excess Designated Proceeds for any purpose,
     including, if applicable, to make any Restricted Payment otherwise
     permitted under the terms of the Indenture. Holders of Floating Rate Notes
     that are the subject of an offer to purchase will receive an Asset Sale
     Offer from the Company prior to any related purchase date and may elect to
     have such

                                      A1-7

     Floating Rate Notes purchased by completing the form entitled "Option of
     Holder to Elect Purchase" attached to the Floating Rate Notes.

          (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 Floating Rate 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 Floating Rate Notes or a satisfaction or discharge of the Indenture.
     Floating Rate Notes in denominations larger than $2,000 may be redeemed in
     part but only in whole multiples of $1,000, unless all of the Floating Rate
     Notes held by a Holder are to be redeemed.

          (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Floating Rate Notes are in
     registered form without coupons in denominations of $2,000 and integral
     multiples of $1,000 in excess thereof. The transfer of Floating Rate Notes
     may be registered and Floating Rate Notes may be exchanged as provided in
     the Indenture. The Registrar and the Trustee may require a Holder, among
     other things, to furnish appropriate endorsements and transfer documents
     and the Company may require a Holder to pay any taxes and fees required by
     law or permitted by the Indenture. The Company need not exchange or
     register the transfer of any Note or portion of a Note selected for
     redemption, except for the unredeemed portion of any Note being redeemed in
     part. Also, the Company need not exchange or register the transfer of any
     Floating Rate Notes for a period of 15 days before a selection of Floating
     Rate 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 Floating Rate
     Note may be treated as its owner for all purposes.

          (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
     the Indenture or the Notes or the Guarantees may be amended or supplemented
     with the consent of the Holders of at least a majority in aggregate
     principal amount of the then outstanding Notes (including, without
     limitation, consents obtained in connection with a tender offer or exchange
     offer for, or purchase of, the Notes), and any existing Default or Event or
     Default or compliance with any provision of the Indenture or the Notes or
     the Guarantees may be waived with the consent of the Holders of a majority
     in aggregate principal amount of the then outstanding Notes (including,
     without limitation, consents obtained in connection with a tender offer or
     exchange offer for, or purchase of, the Notes). Without the consent of any
     Holder of a Note, the Indenture or the Notes or the Guarantees may be
     amended or supplemented to cure any ambiguity, defect, inconsistency or
     omission; to provide for uncertificated Notes in addition to or in place of
     certificated Notes; to provide for the assumption of the Company's, a
     Co-Issuer's or a Guarantor's obligations to Holders of the Notes and
     Guarantees by a successor to the Company, such Co-Issuer or such Guarantor
     pursuant to Article 5 of the Indenture; 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 under the Indenture of any
     such Holder; to add covenants for the benefit of the Holders or to
     surrender any right or power conferred upon the Company or a Guarantor; to
     comply with the requirements of the SEC in order to effect or maintain the
     qualification of the Indenture under the TIA; to conform the text of the
     Indenture, the Guarantees or the Notes to any provision of the "Description
     of Notes" section of the Offering Circular to the extent that such
     provision in that "Description of Notes" was intended to be a verbatim
     recitation of a provision of the Indenture, the Guarantees or the Notes; to
     provide for the issuance of Additional Notes or Exchange Notes in
     accordance with the limitations set forth in the Indenture as of the Issue
     Date; to allow any Guarantor or other obligor to execute a supplemental
     indenture to the Indenture and/or a Guarantee with respect to the Notes; to
     release a Guarantor or Co-Issuer

                                      A1-8

     as provided in the Indenture; to make any amendment to the provisions of
     the Indenture relating to the transfer and legending of Notes provided,
     however, that (a) compliance with the Indenture as so amended would not
     result in Notes being transferred in violation of the Securities Act or any
     applicable securities law and (b) such amendment does not materially and
     adversely affect the rights of Holders to transfer Notes; to evidence and
     provide the acceptance of the appointment of a successor Trustee under the
     Indenture; or to comply with the rules of any applicable securities
     depositary.

          (12) DEFAULTS AND REMEDIES. Events of Default include: (i) default for
     30 days in the payment when due and payable of interest on, or Additional
     Interest, if any, with respect to, the Floating Rate Notes; (ii) default in
     the payment when due and payable (at maturity, upon redemption or
     otherwise) of the principal of, or premium, if any, on, the Floating Rate
     Notes; (iii) failure by the Company or any Guarantor for 60 days after
     receipt of written notice given by the Trustee or the Holders of at least
     30% in principal amount of the then outstanding Notes issued under the
     Indenture to comply with any of its other agreements in the Indenture or
     the Floating Rate Notes; (iv) 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 the Company or any of
     the Guarantors (or the payment of which is guaranteed by the Company or any
     of the Guarantors), whether such Indebtedness or guarantee now exists, or
     is created after the Issue Date, if that default both: (a) (A) is caused by
     a failure to pay principal of 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) relates to an obligation other than the
     obligation to pay principal of any such Indebtedness at its stated final
     maturity and results in the holder or holders of such Indebtedness causing
     such Indebtedness to become due prior to its stated final maturity; and (b)
     the principal amount of such Indebtedness, together with the principal
     amount of any other such Indebtedness in default for failure to pay
     principal at stated final maturity (after giving effect to any applicable
     grace periods), or the maturity of which has been so accelerated, aggregate
     $40.0 million or more at any one time outstanding; (v) failure by the
     Company or any Significant Subsidiary (or any group of Subsidiaries that
     together would constitute a Significant Subsidiary) to pay final judgments
     aggregating in excess of $40.0 million and not covered by insurance, which
     final judgments remain unpaid, undischarged and unstayed for a period of
     more than 60 days after such judgment becomes final, and in the event such
     judgment is covered by insurance, an enforcement proceeding has been
     commenced by any creditor upon such judgment or decree which is not
     promptly stayed; (vi) certain events of bankruptcy or insolvency with
     respect to the Company or any Significant Subsidiary (or any group of
     Subsidiaries that together would constitute a Significant Subsidiary); or
     (vii) the Guarantee of any Significant Subsidiary (or any group of
     Subsidiaries that together would constitute a Significant Subsidiary) shall
     for any reason cease to be in full force and effect or be declared null and
     void or any Responsible Officer of any Guarantor that is a Significant
     Subsidiary (or the Responsible Officers of any group of Subsidiaries that
     together would constitute a Significant Subsidiary), as the case may be,
     denies that it has any further liability under its Guarantee or gives
     notice to such effect, other than by reason of the termination of the
     Indenture or the release of any such Guarantee in accordance with the
     Indenture. If any Event of Default occurs and is continuing, the Trustee or
     the Holders of at least 30% in aggregate principal amount of the then
     outstanding Notes may declare all the Notes to be due and payable
     immediately. Notwithstanding the foregoing, in the case of an Event of
     Default arising from certain events of bankruptcy or insolvency, all
     outstanding Notes will become due and payable immediately without further
     action or notice. Holders may not enforce the Indenture or the Notes except
     as provided in the Indenture. Subject to certain limitations, Holders of a
     majority in aggregate principal amount of the then outstanding Notes may
     direct the Trustee in its exercise of any trust or power. The Company is
     required to deliver to the Trustee annually a statement

                                      A1-9

     regarding compliance with the Indenture, and the Company is required,
     within 10 Business Days of any Officer becoming aware of any Default or
     Event of Default, to deliver to the Trustee an Officers' Certificate
     specifying such Default or Event of Default and what action the Company is
     taking or proposes to take with respect thereto.

          (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

          (14) NO RECOURSE AGAINST OTHERS. No director, officer, employee,
     incorporator, stockholder or controlling person of the Company or any of
     the Guarantors or any of their parent companies, as such, will have any
     liability for any obligations of the Company or the Guarantors under the
     Floating Rate Notes, the Guarantees, the Indenture or the Registration
     Rights Agreement or for any claim based on, in respect of, or by reason of,
     such obligations or their creation. Each Holder of Floating Rate Notes by
     accepting a Floating Rate Note waives and releases all such liability. The
     waiver and release are part of the consideration for the issuance of the
     Floating Rate Notes. The waiver may not be effective to waive liabilities
     under the federal securities laws.

          (15) AUTHENTICATION. This Floating Rate Note will 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. In addition to the rights provided
     to Holders of Floating Rate Notes under the Indenture, Holders of
     Restricted Global Notes and Restricted Definitive Notes will have all the
     rights set forth in the Registration Rights Agreement dated as of May 1,
     2007, among the Company, the Guarantors and the other parties named on the
     signature pages thereof or, in the case of Additional Notes, Holders of
     Restricted Global Notes and Restricted Definitive Notes will have the
     rights set forth in one or more registration rights agreements, if any,
     among the Company, the Guarantors and the other parties thereto, relating
     to rights given by the Company and the Guarantors to the purchasers of any
     Additional Notes (collectively, the "Registration Rights Agreement").

          (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Floating Rate 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 Floating Rate Notes or as contained in any notice
     of redemption, and reliance may be placed only on the other identification
     numbers placed thereon.

          (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
     GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS FLOATING RATE NOTE AND
     THE 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.

                                     A1-10

     The Company 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:

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249
Attention: Chief Financial Officer

                                     A1-11

                                 ASSIGNMENT FORM

     To assign this Floating Rate Note, fill in the form below:

(I) or (we) assign and transfer this Floating Rate 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 Floating Rate Note on the books of the Company. The agent may
substitute another to act for him.

Date: _______________

                                        Your Signature:
                                                        ------------------------
                                        (Sign exactly as your name appears on
                                        the face of this Floating Rate Note)

Signature Guarantee*:
                      ---------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A1-12

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Floating Rate Note purchased by the
Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate
box below:

                        [_] Section 4.10 [_] Section 4.15

     If you want to elect to have only part of this Floating Rate Note purchased
by the Company pursuant to Section 4.10 or Section 4.15 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 Floating Rate Note)

                                           Tax Identification No.:
                                                                   -------------

Signature Guarantee*:
                      ---------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A1-13

             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:

                       Amount of          Amount of       Principal Amount
                      decrease in        increase in     of this Global Note      Signature of
                   Principal Amount   Principal Amount     following such      authorized officer
                          of                 of               decrease            of Trustee or
Date of Exchange   this Global Note   this Global Note      (or increase)           Custodian
----------------   ----------------   ----------------   -------------------   ------------------

                             SCHEDULE OF CO-ISSUERS

     The following are the Co-Issuers of the Floating Rate Notes represented by
this Note:

Name                                                   Jurisdiction of Formation
----                                                   -------------------------

*    This schedule should be included only if the Floating Rate Note is issued
     in global form.

                                      A1-14

                                                                      EXHIBIT A2

                                 [Face of Note]
--------------------------------------------------------------------------------

                                                         CUSIP/CINS ____________

                     9.50% Senior Fixed Rate Notes due 2015

No. ___                                                            $____________

                              CLARKE AMERICAN CORP.
        AND THE CO-ISSUERS LISTED ON THE "SCHEDULE OF CO-ISSUERS" HERETO

each promise to pay to _____________________ or registered assigns,

the principal sum of __________________________________________________________
DOLLARS on May 15, 2015.

Interest Payment Dates: May 15 and November 15

Record Dates: May 1 and November 1

Dated: _________, 20-

                                        CLARKE AMERICAN CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        B2DIRECT, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        CHECKS IN THE MAIL, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        CLARKE AMERICAN CHECKS, INC.

                                      A2-1

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        H ACQUISITION CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW CS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCSFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HARLAND CHECKS AND SERVICES, INC.

                                      A2-2

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HARLAND FINANCIAL SOLUTIONS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HFS CORE SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        JOHN H. HARLAND COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        SCANTRON CORPORATION

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        [CO-ISSUER]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

WELLS FARGO BANK, N.A.,
   as Trustee

                                      A2-3

By:
    ---------------------------------
           Authorized Signatory

                                      A2-4

                                 [Back of Note]
                     9.50% Senior Fixed Rate Notes due 2015

[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]

[Insert the OID Legend, if applicable pursuant to the provisions of the
Indenture]

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) INTEREST. Clarke American Corp., a Delaware corporation (the
     "Company"), and the entities listed on the "Schedule of Co-Issuers" hereto
     (the "Co-Issuers"), jointly and severally, promise to pay interest on the
     principal amount of this Fixed Rate Note at 9.50% per annum from ________,
     20__ until maturity and shall pay the Additional Interest, if any, payable
     pursuant to the Registration Rights Agreement referred to below. The
     Company and the Co-Issuers, jointly and severally, will pay interest and
     Additional Interest, if any, semi-annually in arrears on May 15 and
     November 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 Fixed Rate 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 Fixed Rate 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 _____________, 20__. The Company and the Co-Issuers, jointly and
     severally, will pay interest (including post-petition interest in any
     proceeding under any Bankruptcy Law) 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 to the extent lawful; it will pay interest
     (including post-petition interest in any proceeding under any Bankruptcy
     Law) on overdue installments of interest and Additional Interest, if any,
     (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. The Company and the Co-Issuers, jointly and
     severally, will pay interest on the Fixed Rate Notes (except defaulted
     interest) and Additional Interest, if any, to the Persons who are
     registered Holders of Fixed Rate Notes at the close of business on the May
     1 or November 1 next preceding the Interest Payment Date, even if such
     Fixed Rate 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 Fixed Rate Notes will be payable as
     to principal, premium and Additional Interest, if any, and interest at the
     office or agency of the Paying Agent and Registrar (which initially will be
     the office of the Trustee), or, at the option of the Company, payment of
     interest and Additional Interest, if any, may be made by check mailed to
     the Holders at their addresses set forth in the register of Holders;
     provided that payment by wire transfer of immediately available funds will
     be required with respect to principal of and interest, premium and
     Additional Interest, if any, on, all Global Notes and all other Fixed Rate
     Notes the Holders of which will have provided wire transfer instructions to
     the Company or the Paying Agent. Such payment will 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.

                                      A2-5

          (3) PAYING AGENT AND REGISTRAR. Initially, Wells Fargo Bank, N.A., the
     Trustee under the Indenture, will act as Paying Agent and Registrar. The
     Company may change any Paying Agent and Registrar without notice to any
     Holder. The Company or any of its Subsidiaries may act in any such
     capacity.

          (4) INDENTURE. The Company and Co-Issuers issued the Fixed Rate Notes
     under an Indenture dated as of May 1, 2007 (the "Indenture") among the
     Company, the Guarantors and the Trustee. The terms of the Fixed Rate Notes
     include those stated in the Indenture and those made part of the Indenture
     by reference to the TIA. The Fixed Rate Notes are subject to all such
     terms, and Holders are referred to the Indenture and the TIA for a
     statement of such terms. To the extent any provision of this Fixed Rate
     Note conflicts with the express provisions of the Indenture, the provisions
     of the Indenture shall govern and be controlling. The Fixed Rate Notes are
     unsecured obligations of the Company and the Co-Issuers on a joint and
     several basis. The Indenture does not limit the aggregate principal amount
     of Fixed Rate Notes that may be issued thereunder.

          (5) OPTIONAL REDEMPTION.

               (a) Except as set forth below in this Paragraph 5, the Company
     will not have the option to redeem the Fixed Rate Notes prior to May 15,
     2011. On or after May 15, 2011, the Company may, in one or more instances,
     redeem all or a part of the Fixed Rate Notes upon not less than 30 nor more
     than 60 days' notice (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 the Indenture), at the redemption prices (expressed as percentages of
     principal amount of the Fixed Rate Notes to be redeemed) set forth below
     plus accrued and unpaid interest and Additional Interest, if any, on the
     Fixed Rate Notes redeemed, to the applicable redemption date, if redeemed
     during the twelve-month period beginning on May 15 of the years indicated
     below, subject to the rights of Holders of Fixed Rate Notes on the relevant
     record date to receive interest on the relevant Interest Payment Date:

     Year                                                             Percentage
     --------------------------------------------------------------   ----------
     2011 .........................................................    104.750%
     2012 .........................................................    102.375%
     2013 and thereafter...........................................    100.000%

               (b) At any time prior to May 15, 2010, the Company may, on any
     one or more occasions, redeem up to 35% of the aggregate principal amount
     of Fixed Rate Notes issued under the Indenture (including the principal
     amount of any Additional Fixed Rate Notes issued under the Indenture and
     without duplication with respect to Exchange Fixed Rate Notes issued under
     the Indenture) at a redemption price equal to 109.500% of the principal
     amount of the Fixed Rate Notes redeemed, plus accrued and unpaid interest
     and Additional Interest, if any, to the redemption date, with the net cash
     proceeds of one or more Equity Offerings of the Company; provided that at
     least 50% of the aggregate principal amount of Fixed Rate Notes issued
     under the Indenture (excluding Fixed Rate Notes held by the Company and its
     Subsidiaries, but including any Additional Fixed Rate Notes and without
     duplication with respect to Exchange Fixed Rate Notes issued under the
     Indenture) remains outstanding immediately after the occurrence of such
     redemption; and that such redemption occurs within 90 days after the date
     of the closing of any such Equity Offering.

               (c) At any time prior to May 15, 2011, the Company may, in one or
     more instances, also redeem all or a part of the Fixed Rate Notes, upon not
     less than 30 nor more than 60 days' prior notice mailed by first-class mail
     to each Holder's registered address, at a

                                      A2-6

     redemption price equal to 100% of the principal amount of Fixed Rate Notes
     redeemed plus the Applicable Premium as of the date of redemption, and
     accrued and unpaid interest and Additional Interest, if any, to such
     redemption date (the "Make-Whole Redemption Date"), subject to the rights
     of Holders of the Fixed Rate Notes on the relevant record date to receive
     interest due on the relevant Interest Payment Date.

          (6) MANDATORY REDEMPTION. The Company and the Co-Issuers are not
     required to make mandatory redemption or sinking fund payments with respect
     to the Fixed Rate Notes.

          (7) REPURCHASE AT THE OPTION OF HOLDER.

               (a) If a Change of Control occurs, the Company will make an offer
     (a "Change of Control Offer") to each Holder to repurchase all or any part
     (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
     that Holder's Fixed Rate Notes at a purchase price in cash equal to 101% of
     the aggregate principal amount of Fixed Rate Notes repurchased plus accrued
     and unpaid interest and Additional Interest, if any, on the Fixed Rate
     Notes repurchased to the date of purchase, subject to the rights of Holders
     of Fixed Rate Notes on the relevant record date to receive interest due on
     the relevant Interest Payment Date (the "Change of Control Payment"). No
     later than 45 days following any Change of Control, the Company will mail a
     notice to each Holder setting forth the procedures governing the Change of
     Control Offer as required by the Indenture.

               (b) If the Company or a Restricted Subsidiary of the Company
     consummates any Asset Sale and the aggregate amount of Excess Proceeds
     exceeds $45.0 million, within 30 days thereof, the Company will make an
     offer to (i) all Holders of Notes (ii) all holders of Indebtedness to be
     repaid pursuant to Section 4.10(b)(1)(x) of the Indenture and (iii) all
     holders of other Indebtedness that is pari passu in right of payment with
     the Notes containing provisions similar to Section 3.09 of the 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 other
     pari passu Indebtedness that may be purchased out of the Excess Proceeds
     (the "Asset Sale Offer"). 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. The Company may satisfy the foregoing obligations with respect to
     any Net Proceeds from an Asset Sale by making an Asset Sale Offer with
     respect to such Net Proceeds prior to the expiration of the relevant 450
     days or with respect to Excess Proceeds of $45.0 million or less. If any
     Excess Proceeds remain after consummation of an Asset Sale Offer, the
     Company and any Restricted Subsidiary may use those Excess Proceeds for any
     purpose not otherwise prohibited by the Indenture, including, without
     limitation, the making of Restricted Payments otherwise permitted under the
     terms of the Indenture. If the aggregate principal amount of Notes and
     other pari passu Indebtedness tendered into such Asset Sale Offer exceeds
     the amount of Excess Proceeds, the Notes and such other pari passu
     Indebtedness shall be purchased on a pro rata basis (with such adjustments
     for authorized denominations). Upon completion of each Asset Sale Offer,
     the amount of Excess Proceeds will be reset at zero. The Company at its
     election may retain or use any Excess Designated Proceeds for any purpose,
     including, if applicable, to make any Restricted Payment otherwise
     permitted under the terms of the Indenture. Holders of Fixed Rate Notes
     that are the subject of an offer to purchase will receive an Asset Sale
     Offer from the Company prior to any related purchase date and may elect to
     have such Fixed Rate Notes purchased by completing the form entitled
     "Option of Holder to Elect Purchase" attached to the Fixed Rate Notes.

                                      A2-7

          (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 Fixed Rate 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 Fixed Rate Notes or a satisfaction or discharge of the Indenture. Fixed
     Rate Notes in denominations larger than $2,000 may be redeemed in part but
     only in whole multiples of $1,000, unless all of the Fixed Rate Notes held
     by a Holder are to be redeemed.

          (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Fixed Rate Notes are in
     registered form without coupons in denominations of $2,000 and integral
     multiples of $1,000 in excess thereof. The transfer of Fixed Rate Notes may
     be registered and Fixed Rate Notes may be exchanged as provided in the
     Indenture. The Registrar and the Trustee may require a Holder, among other
     things, to furnish appropriate endorsements and transfer documents and the
     Company may require a Holder to pay any taxes and fees required by law or
     permitted by the Indenture. The Company need not exchange or register the
     transfer of any Fixed Rate Note or portion of a Fixed Rate Note selected
     for redemption, except for the unredeemed portion of any Fixed Rate Note
     being redeemed in part. Also, the Company need not exchange or register the
     transfer of any Fixed Rate Notes for a period of 15 days before a selection
     of Fixed Rate 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 Fixed Rate Note
     may be treated as its owner for all purposes.

          (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
     the Indenture or the Notes or the Guarantees may be amended or supplemented
     with the consent of the Holders of at least a majority in aggregate
     principal amount of the then outstanding Notes (including, without
     limitation, consents obtained in connection with a tender offer or exchange
     offer for, or purchase of, the Notes), and any existing Default or Event or
     Default or compliance with any provision of the Indenture or the Notes or
     the Guarantees may be waived with the consent of the Holders of a majority
     in aggregate principal amount of the then outstanding Notes (including,
     without limitation, consents obtained in connection with a tender offer or
     exchange offer for, or purchase of, the Notes). Without the consent of any
     Holder of a Note, the Indenture or the Notes or the Guarantees may be
     amended or supplemented to cure any ambiguity, defect, inconsistency or
     omission; to provide for uncertificated Notes in addition to or in place of
     certificated Notes; to provide for the assumption of the Company's, a
     Co-Issuer's or a Guarantor's obligations to Holders of the Notes and
     Guarantees by a successor to the Company, such Co-Issuer or such Guarantor
     pursuant to Article 5 of the Indenture; 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 under the Indenture of any
     such Holder; to add covenants for the benefit of the Holders or to
     surrender any right or power conferred upon the Company or a Guarantor; to
     comply with the requirements of the SEC in order to effect or maintain the
     qualification of the Indenture under the TIA; to conform the text of the
     Indenture, the Guarantees or the Notes to any provision of the "Description
     of Notes" section of the Offering Circular to the extent that such
     provision in that "Description of Notes" was intended to be a verbatim
     recitation of a provision of the Indenture, the Guarantees or the Notes; to
     provide for the issuance of Additional Notes or Exchange Notes in
     accordance with the limitations set forth in the Indenture as of the Issue
     Date; to allow any Guarantor or other obligor to execute a supplemental
     indenture to the Indenture and/or a Guarantee with respect to the Notes; to
     release a Guarantor or Co-Issuer as provided in the Indenture; to make any
     amendment to the provisions of the Indenture relating to the transfer and
     legending of Notes provided, however, that (a) compliance with the
     Indenture

                                      A2-8

     as so amended would not result in Notes being transferred in violation of
     the Securities Act or any applicable securities law and (b) such amendment
     does not materially and adversely affect the rights of Holders to transfer
     Notes; to evidence and provide the acceptance of the appointment of a
     successor Trustee under the Indenture; or to comply with the rules of any
     applicable securities depositary.

          (12) DEFAULTS AND REMEDIES. Events of Default include: (i) default for
     30 days in the payment when due and payable of interest on, or Additional
     Interest, if any, with respect to, the Fixed Rate Notes; (ii) default in
     the payment when due and payable (at maturity, upon redemption or
     otherwise) of the principal of, or premium, if any, on, the Fixed Rate
     Notes; (iii) failure by the Company or any Guarantor for 60 days after
     receipt of written notice given by the Trustee or the Holders of at least
     30% in principal amount of the then outstanding Notes issued under the
     Indenture to comply with any of its other agreements in the Indenture or
     the Fixed Rate Notes; (iv) 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 the Company or any of
     the Guarantors (or the payment of which is guaranteed by the Company or any
     of the Guarantors), whether such Indebtedness or guarantee now exists, or
     is created after the Issue Date, if that default both: (a) (A) is caused by
     a failure to pay principal of 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) relates to an obligation other than the
     obligation to pay principal of any such Indebtedness at its stated final
     maturity and results in the holder or holders of such Indebtedness causing
     such Indebtedness to become due prior to its stated final maturity; and (b)
     the principal amount of such Indebtedness, together with the principal
     amount of any other such Indebtedness in default for failure to pay
     principal at stated final maturity (after giving effect to any applicable
     grace periods), or the maturity of which has been so accelerated, aggregate
     $40.0 million or more at any one time outstanding; (v) failure by the
     Company or any Significant Subsidiary (or any group of Subsidiaries that
     together would constitute a Significant Subsidiary) to pay final judgments
     aggregating in excess of $40.0 million and not covered by insurance, which
     final judgments remain unpaid, undischarged and unstayed for a period of
     more than 60 days after such judgment becomes final, and in the event such
     judgment is covered by insurance, an enforcement proceeding has been
     commenced by any creditor upon such judgment or decree which is not
     promptly stayed; (vi) certain events of bankruptcy or insolvency with
     respect to the Company or any Significant Subsidiary (or any group of
     Subsidiaries that together would constitute a Significant Subsidiary); or
     (vii) the Guarantee of any Significant Subsidiary (or any group of
     Subsidiaries that together would constitute a Significant Subsidiary) shall
     for any reason cease to be in full force and effect or be declared null and
     void or any Responsible Officer of any Guarantor that is a Significant
     Subsidiary (or the Responsible Officers of any group of Subsidiaries that
     together would constitute a Significant Subsidiary), as the case may be,
     denies that it has any further liability under its Guarantee or gives
     notice to such effect, other than by reason of the termination of the
     Indenture or the release of any such Guarantee in accordance with the
     Indenture. If any Event of Default occurs and is continuing, the Trustee or
     the Holders of at least 30% in aggregate principal amount of the then
     outstanding Notes may declare all the Notes to be due and payable
     immediately. Notwithstanding the foregoing, in the case of an Event of
     Default arising from certain events of bankruptcy or insolvency, all
     outstanding Notes will become due and payable immediately without further
     action or notice. Holders may not enforce the Indenture or the Notes except
     as provided in the Indenture. Subject to certain limitations, Holders of a
     majority in aggregate principal amount of the then outstanding Notes may
     direct the Trustee in its exercise of any trust or power. The Company is
     required to deliver to the Trustee annually a statement regarding
     compliance with the Indenture, and the Company is required, within 10
     Business Days of any Officer becoming aware of any Default or Event of
     Default, to deliver to the Trustee an

                                      A2-9

     Officers' Certificate specifying such Default or Event of Default and what
     action the Company is taking or proposes to take with respect thereto.

          (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

          (14) NO RECOURSE AGAINST OTHERS. No director, officer, employee,
     incorporator, stockholder or controlling person of the Company or any of
     the Guarantors or any of their parent companies, as such, will have any
     liability for any obligations of the Company or the Guarantors under the
     Fixed Rate Notes, the Guarantees, the Indenture or the Registration Rights
     Agreement or for any claim based on, in respect of, or by reason of, such
     obligations or their creation. Each Holder of Fixed Rate Notes by accepting
     a Fixed Rate Note waives and releases all such liability. The waiver and
     release are part of the consideration for the issuance of the Fixed Rate
     Notes. The waiver may not be effective to waive liabilities under the
     federal securities laws.

          (15) AUTHENTICATION. This Fixed Rate Note will 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. In addition to the rights provided
     to Holders of Fixed Rate Notes under the Indenture, Holders of Restricted
     Global Notes and Restricted Definitive Notes will have all the rights set
     forth in the Registration Rights Agreement dated as of May 1, 2007, among
     the Company, the Guarantors and the other parties named on the signature
     pages thereof or, in the case of Additional Notes, Holders of Restricted
     Global Notes and Restricted Definitive Notes will have the rights set forth
     in one or more registration rights agreements, if any, among the Company,
     the Guarantors and the other parties thereto, relating to rights given by
     the Company and the Guarantors to the purchasers of any Additional Notes
     (collectively, the "Registration Rights Agreement").

          (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Fixed Rate 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 Fixed Rate Notes or as contained in any notice of
     redemption, and reliance may be placed only on the other identification
     numbers placed thereon.

          (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
     GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS FIXED RATE NOTE AND THE
     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.

     The Company 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:

                                     A2-10

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249
Attention: Chief Financial Officer

                                     A2-11

                                 ASSIGNMENT FORM

     To assign this Fixed Rate Note, fill in the form below:

(I) or (we) assign and transfer this Fixed Rate 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 Fixed Rate Note on the books of the Company. The agent may
substitute another to act for him.

Date: _______________

                                        Your Signature:
                                                        ------------------------
                                        (Sign exactly as your name appears on
                                        the face of this Fixed Rate Note)

Signature Guarantee*:
                      -------------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A2-12

Option of Holder to Elect Purchase

     If you want to elect to have this Fixed Rate Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                       [_] Section 4.10   [_] Section 4.15

     If you want to elect to have only part of this Fixed Rate Note purchased by
the Company pursuant to Section 4.10 or Section 4.15 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 Fixed Rate Note)

                                           Tax Identification No.:
                                                                   -------------

Signature Guarantee*:
                      -------------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A2-13

             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:

                       Amount of          Amount of       Principal Amount
                      decrease in        increase in     of this Global Note      Signature of
                   Principal Amount   Principal Amount     following such      authorized officer
                          of                 of               decrease             of Trustee
Date of Exchange   this Global Note   this Global Note      (or increase)         or Custodian
----------------   ----------------   ----------------   -------------------   ------------------

                             SCHEDULE OF CO-ISSUERS

     The following are the Co-Issuers of the Fixed Rate Notes represented by
this Note:

Name                                                   Jurisdiction of Formation
----                                                   -------------------------

*    This schedule should be included only if the Fixed Rate Note is issued in
     global form.

                                      A2-14

                                                                      EXHIBIT A3

                  [Face of Regulation S Temporary Global Note]
--------------------------------------------------------------------------------

                                                           CUSIP/CINS __________

                       Senior Floating Rate Notes due 2015

No. ___                                                              $__________

                              CLARKE AMERICAN CORP.
        AND THE CO-ISSUERS LISTED ON THE "SCHEDULE OF CO-ISSUERS" HERETO

promises to pay to ____________ or registered assigns,

the principal sum of __________________________________________________________
DOLLARS on May 15, 2005.

Interest Payment Dates: February 15, May 15, August 15 and November 15

Record Dates: February 1, May 1, August 1 and November 1

Dated: _______________, 200_

                                             CLARKE AMERICAN CORP.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             B2DIRECT, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             CHECKS IN THE MAIL, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                      A3-1

                                             CLARKE AMERICAN CHECKS, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             H ACQUISITION CORP.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             NEW CS, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             NEW SCH, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             NEW SCSFH, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             NEW SFH, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                      A3-2

                                             HARLAND CHECKS AND SERVICES, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             HARLAND FINANCIAL SOLUTIONS, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             HFS CORE SYSTEMS, INC.

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             JOHN H. HARLAND COMPANY

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             SCANTRON CORPORATION

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                             [CO-ISSUER]

                                             By:
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                      A3-3

This is one of the Notes referred to
in the within-mentioned Indenture:

WELLS FARGO BANK, N.A.,
   as Trustee

By:
    ---------------------------------
           Authorized Signatory

                                      A3-4

                  [Back of Regulation S Temporary Global Note]
                       Senior Floating Rate Notes due 2015

[Insert the OID Legend, if applicable pursuant to the provisions of the
Indenture]

THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY 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 TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.

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 (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF CLARKE AMERICAN CORP.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS

                                      A3-5

OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO CLARKE AMERICAN
CORP. THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF CLARKE AMERICAN CORP. SO
REQUESTS), (2) TO CLARKE AMERICAN CORP. OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE.

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) INTEREST. Clarke American Corp., a Delaware corporation (the
     "Company"), and the entities listed on the "Schedule of Co-Issuers" hereto
     (the "Co-Issuers"), jointly and severally, promise to pay interest on the
     principal amount of this Floating Rate Note at the Applicable LIBOR Rate
     plus 475 basis points from ________________, 20__ until maturity and shall
     pay the Additional Interest, if any, payable pursuant to the Registration
     Rights Agreement referred to below. The Company and the Co-Issuers, jointly
     and severally, will pay interest and Additional Interest, if any, quarterly
     in arrears on February 15, May 15, August 15 and November 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 Floating Rate 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
     Floating Rate 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 _______, 20__. The
     Company and the Co-Issuers, jointly and severally, will pay interest
     (including post-petition interest in any proceeding under any Bankruptcy
     Law) 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 to the
     extent lawful; it will pay interest (including post-petition interest in
     any proceeding under any Bankruptcy Law) on overdue installments of
     interest and Additional Interest, if any, (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.

          Until this Regulation S Temporary Global Note is exchanged for one or
     more Regulation S Permanent Global Notes, the Holder hereof shall not be
     entitled to receive payments of interest hereon; until so exchanged in
     full, this Regulation S Temporary Global Note shall in all other respects
     be entitled to the same benefits as other Notes under the Indenture.

                                      A3-6

          (2) METHOD OF PAYMENT. The Company and the Co-Issuers, jointly and
     severally, will pay interest on the Floating Rate Notes (except defaulted
     interest) and Additional Interest, if any, to the Persons who are
     registered Holders of Floating Rate Notes at the close of business on the
     February 1, May 1, August 1 and November 1 next preceding the Interest
     Payment Date, even if such Floating Rate 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
     Floating Rate Notes will be payable as to principal, premium and Additional
     Interest, if any, and interest at the office or agency of the Paying Agent
     and Registrar (which initially will be the office of the Trustee), or, at
     the option of the Company, payment of interest and Additional Interest, if
     any, may be made by check mailed to the Holders at their addresses set
     forth in the register of Holders; provided that payment by wire transfer of
     immediately available funds will be required with respect to principal of
     and interest, premium and Additional Interest, if any, on, all Global Notes
     and all other Floating Rate Notes the Holders of which will have provided
     wire transfer instructions to the Company or the Paying Agent. Such payment
     will 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, REGISTRAR AND CALCULATION AGENT. Initially, Wells
     Fargo Bank, N.A., the Trustee under the Indenture, will act as Paying
     Agent, Registrar and Calculation Agent. The Company may change any Paying
     Agent, Registrar or Calculation Agent without notice to any Holder. The
     Company or any of its Subsidiaries may act in any such capacity.

          (4) INDENTURE. The Company and Co-Issuers issued the Floating Rate
     Notes under an Indenture dated as of May 1, 2007 (the "Indenture") among
     the Company, the Guarantors and the Trustee. The terms of the Notes include
     those stated in the Indenture and those made part of the Indenture by
     reference to the TIA. The Floating Rate Notes are subject to all such
     terms, and Holders are referred to the Indenture and the TIA for a
     statement of such terms. To the extent any provision of this Floating Rate
     Note conflicts with the express provisions of the Indenture, the provisions
     of the Indenture shall govern and be controlling. The Floating Rate Notes
     are unsecured obligations of the Company and the Co-Issuers on a joint and
     several basis. The Indenture does not limit the aggregate principal amount
     of Floating Rate Notes that may be issued thereunder.

          (5) OPTIONAL REDEMPTION.

               (a) Except as set forth below in this Paragraph 5, the Company
     will not have the option to redeem the Floating Rate Notes prior to May 15,
     2009. On or after May 15, 2009, the Company may redeem the Floating Rate
     Notes, in whole or in part, upon not less than 30 nor more than 60 days'
     notice (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 Floating Rate Notes or a satisfaction and discharge of
     the Indenture), 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 Floating Rate Notes redeemed to the
     applicable redemption date, if redeemed during the twelve-month period
     beginning on May 15 of the years indicated below, subject to the right of
     Holders of Floating Rate Notes on the relevant record date to receive
     interest on the relevant Interest Payment Date:

     Year                                                    Percentage
     ----                                                    ----------
     2009.................................................    102.000%
     2010.................................................    101.000%
     2011 and thereafter..................................    100.000%

                                      A3-7

               (b) At any time prior to May 15, 2009, the Company may, on any
     one or more occasions, redeem up to 35% of the sum of the aggregate
     principal amount of all Floating Rate Notes issued under the Indenture
     (including the principal amount of any Additional Floating Rate Notes
     issued under the Indenture and without duplication with respect to Exchange
     Floating Rate Notes issued under the Indenture) at a redemption price equal
     to 100% of the aggregate principal amount of the Floating Rate Notes
     redeemed, plus a premium equal to the interest rate per annum on the
     Floating Rate Notes in effect on the date on which notice of redemption is
     given, plus accrued and unpaid interest, and Additional Interest, if any,
     thereon to the redemption date, with the net cash proceeds of one or more
     Equity Offerings of the Company; provided that at least 50% of the
     aggregate principal amount of Floating Rate Notes issued under the
     Indenture (excluding Floating Rate Notes held by the Company and its
     Subsidiaries, but including any Additional Floating Rate Notes and without
     duplication with respect to Exchange Floating Rate Notes issued under the
     Indenture) remain outstanding immediately after the occurrence of each such
     redemption; and each such redemption occurs within 90 days of the closing
     of each such Equity Offering.

               (c) At any time prior to May 15, 2009, the Company may, in one or
     more instances, also redeem all or a part of the Floating Rate Notes, upon
     not less than 30 nor more than 60 days' prior notice mailed by first-class
     mail to each Holder's registered address, at a redemption price equal to
     100% of the principal amount of Floating Rate Notes redeemed plus the
     Applicable Premium as of the date of redemption, and accrued and unpaid
     interest and Additional Interest, if any, to such redemption date (the
     "Make-Whole Redemption Date"), subject to the rights of Holders of the
     Floating Rate Notes on the relevant record date to receive interest due on
     the relevant Interest Payment Date.

          (6) MANDATORY REDEMPTION. The Company and the Co-Issuers are not
     required to make mandatory redemption or sinking fund payments with respect
     to the Floating Rate Notes.

          (7) REPURCHASE AT THE OPTION OF HOLDER.

               (a) If a Change of Control occurs, the Company will make an offer
     (a "Change of Control Offer") to each Holder to repurchase all or any part
     (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
     that Holder's Floating Rate Notes at a purchase price in cash equal to 101%
     of the aggregate principal amount of Floating Rate Notes repurchased plus
     accrued and unpaid interest and Additional Interest, if any, on the
     Floating Rate Notes repurchased to the date of purchase, subject to the
     rights of Holders of Floating Rate Notes on the relevant record date to
     receive interest due on the relevant Interest Payment Date (the "Change of
     Control Payment"). No later than 45 days following any Change of Control,
     the Company will mail a notice to each Holder setting forth the procedures
     governing the Change of Control Offer as required by the Indenture.

               (b) If the Company or a Restricted Subsidiary of the Company
     consummates any Asset Sale and the aggregate amount of Excess Proceeds
     exceeds $45.0 million, within 30 days thereof, the Company will make an
     offer to (i) all Holders of Notes (ii) all holders of Indebtedness to be
     repaid pursuant to Section 4.10(b)(1)(x) of the Indenture and (iii) all
     holders of other Indebtedness that is pari passu in right of payment with
     the Notes containing provisions similar to Section 3.09 of the 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 other
     pari passu Indebtedness that may be purchased out of the Excess Proceeds
     (the "Asset Sale Offer"). The offer price in any Asset Sale Offer will be
     equal to 100% of the principal amount

                                      A3-8

     plus accrued and unpaid interest and Additional Interest, if any, to the
     date of purchase, and will be payable in cash. The Company may satisfy the
     foregoing obligations with respect to any Net Proceeds from an Asset Sale
     by making an Asset Sale Offer with respect to such Net Proceeds prior to
     the expiration of the relevant 450 days or with respect to Excess Proceeds
     of $45.0 million or less. If any Excess Proceeds remain after consummation
     of an Asset Sale Offer, the Company and any Restricted Subsidiary may use
     those Excess Proceeds for any purpose not otherwise prohibited by the
     Indenture, including, without limitation, the making of Restricted Payments
     otherwise permitted under the terms of the Indenture. If the aggregate
     principal amount of Notes and other pari passu Indebtedness tendered into
     such Asset Sale Offer exceeds the amount of Excess Proceeds, the Notes and
     such other pari passu Indebtedness shall be purchased on a pro rata basis
     (with such adjustments for authorized denominations). Upon completion of
     each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.
     The Company at its election may retain or use any Excess Designated
     Proceeds for any purpose, including, if applicable, to make any Restricted
     Payment otherwise permitted under the terms of the Indenture. Holders of
     Floating Rate Notes that are the subject of an offer to purchase will
     receive an Asset Sale Offer from the Company prior to any related purchase
     date and may elect to have such Floating Rate Notes purchased by completing
     the form entitled "Option of Holder to Elect Purchase" attached to the
     Floating Rate Notes.

          (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 Floating Rate 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 Floating Rate Notes or a satisfaction or discharge of the Indenture.
     Floating Rate Notes in denominations larger than $2,000 may be redeemed in
     part but only in whole multiples of $1,000, unless all of the Floating Rate
     Notes held by a Holder are to be redeemed.

          (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Floating Rate Notes are in
     registered form without coupons in denominations of $2,000 and integral
     multiples of $1,000 in excess thereof. The transfer of Floating Rate Notes
     may be registered and Floating Rate Notes may be exchanged as provided in
     the Indenture. The Registrar and the Trustee may require a Holder, among
     other things, to furnish appropriate endorsements and transfer documents
     and the Company may require a Holder to pay any taxes and fees required by
     law or permitted by the Indenture. The Company need not exchange or
     register the transfer of any Note or portion of a Note selected for
     redemption, except for the unredeemed portion of any Note being redeemed in
     part. Also, the Company need not exchange or register the transfer of any
     Floating Rate Notes for a period of 15 days before a selection of Floating
     Rate Notes to be redeemed or during the period between a record date and
     the corresponding Interest Payment Date.

          This Regulation S Temporary Global Note is exchangeable in whole or in
     part for one or more Global Notes only (i) on or after the termination of
     the 40-day distribution compliance period (as defined in Regulation S) and
     (ii) upon presentation of certificates (accompanied by an Opinion of
     Counsel, if applicable) required by Article 2 of the Indenture. Upon
     exchange of this Regulation S Temporary Global Note for one or more Global
     Notes, the Trustee shall cancel this Regulation S Temporary Global Note.

          (10) PERSONS DEEMED OWNERS. The registered Holder of a Floating Rate
     Note may be treated as its owner for all purposes.

          (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
     the Indenture or the Notes or the Guarantees may be amended or supplemented
     with the consent of

                                      A3-9

     the Holders of at least a majority in aggregate principal amount of the
     then outstanding Notes (including, without limitation, consents obtained in
     connection with a tender offer or exchange offer for, or purchase of, the
     Notes), and any existing Default or Event or Default or compliance with any
     provision of the Indenture or the Notes or the Guarantees may be waived
     with the consent of the Holders of a majority in aggregate principal amount
     of the then outstanding Notes (including, without limitation, consents
     obtained in connection with a tender offer or exchange offer for, or
     purchase of, the Notes). Without the consent of any Holder of a Note, the
     Indenture or the Notes or the Guarantees may be amended or supplemented to
     cure any ambiguity, defect, inconsistency or omission; to provide for
     uncertificated Notes in addition to or in place of certificated Notes; to
     provide for the assumption of the Company's, a Co-Issuer's or a Guarantor's
     obligations to Holders of the Notes and Guarantees by a successor to the
     Company, such Co-Issuer or such Guarantor pursuant to Article 5 of the
     Indenture; 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 under the Indenture of any such Holder; to add covenants for
     the benefit of the Holders or to surrender any right or power conferred
     upon the Company or a Guarantor; to comply with the requirements of the SEC
     in order to effect or maintain the qualification of the Indenture under the
     TIA; to conform the text of the Indenture, the Guarantees or the Notes to
     any provision of the "Description of Notes" section of the Offering
     Circular to the extent that such provision in that "Description of Notes"
     was intended to be a verbatim recitation of a provision of the Indenture,
     the Guarantees or the Notes; to provide for the issuance of Additional
     Notes or Exchange Notes in accordance with the limitations set forth in the
     Indenture as of the Issue Date; to allow any Guarantor or other obligor to
     execute a supplemental indenture to the Indenture and/or a Guarantee with
     respect to the Notes; to release a Guarantor or Co-Issuer as provided in
     the Indenture; to make any amendment to the provisions of the Indenture
     relating to the transfer and legending of Notes provided, however, that (a)
     compliance with the Indenture as so amended would not result in Notes being
     transferred in violation of the Securities Act or any applicable securities
     law and (b) such amendment does not materially and adversely affect the
     rights of Holders to transfer Notes; to evidence and provide the acceptance
     of the appointment of a successor Trustee under the Indenture; or to comply
     with the rules of any applicable securities depositary.

          (12) DEFAULTS AND REMEDIES. Events of Default include: (i) default for
     30 days in the payment when due of interest on, or Additional Interest, if
     any, with respect to, the Floating Rate Notes; (ii) default in the payment
     when due (at maturity, upon redemption or otherwise) of the principal of,
     or premium, if any, on, the Floating Rate Notes; (iii) failure by the
     Company or any Guarantor for 60 days after receipt of written notice given
     by the Trustee or the Holders of at least 30% in principal amount of the
     then outstanding Notes issued under the Indenture to comply with any of its
     other agreements in the Indenture or the Floating Rate Notes; (iv) 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 the Company or any of the Guarantors (or the payment of which
     is guaranteed by the Company or any of the Guarantors), whether such
     Indebtedness or guarantee now exists, or is created after the Issue Date,
     if that default both: (a) (A) is caused by a failure to pay principal of
     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)
     relates to an obligation other than the obligation to pay principal of any
     such Indebtedness at its stated final maturity and results in the holder or
     holders of such Indebtedness causing such Indebtedness to become due prior
     to its stated final maturity; and (b) the principal amount of such
     Indebtedness, together with the principal amount of any other such
     Indebtedness in default for failure to pay principal at stated final
     maturity (after giving effect to any applicable grace periods), or the
     maturity of which has been so accelerated, aggregate $40.0 million or more
     at any one time outstanding; (v) failure by the Company or any Significant

                                      A3-10

     Subsidiary (or any group of Subsidiaries that together would constitute a
     Significant Subsidiary) to pay final judgments aggregating in excess of
     $40.0 million and not covered by insurance, which final judgments remain
     unpaid, undischarged and unstayed for a period of more than 60 days after
     such judgment becomes final, and in the event such judgment is covered by
     insurance, an enforcement proceeding has been commenced by any creditor
     upon such judgment or decree which is not promptly stayed; (vi) certain
     events of bankruptcy or insolvency with respect to the Company or any
     Significant Subsidiary (or any group of Subsidiaries that together would
     constitute a Significant Subsidiary); or (vii) the Guarantee of any
     Significant Subsidiary (or any group of Subsidiaries that together would
     constitute a Significant Subsidiary) shall for any reason cease to be in
     full force and effect or be declared null and void or any Responsible
     Officer of any Guarantor that is a Significant Subsidiary (or the
     Responsible Officers of any group of Subsidiaries that together would
     constitute a Significant Subsidiary), as the case may be, denies that it
     has any further liability under its Guarantee or gives notice to such
     effect, other than by reason of the termination of the Indenture or the
     release of any such Guarantee in accordance with the Indenture. If any
     Event of Default occurs and is continuing, the Trustee or the Holders of at
     least 30% in aggregate principal amount of the then outstanding Notes may
     declare all the Notes to be due and payable immediately. Notwithstanding
     the foregoing, in the case of an Event of Default arising from certain
     events of bankruptcy or insolvency, all outstanding Notes will become due
     and payable immediately without further action or notice. Holders may not
     enforce the Indenture or the Notes except as provided in the Indenture.
     Subject to certain limitations, Holders of a majority in aggregate
     principal amount of the then outstanding Notes may direct the Trustee in
     its exercise of any trust or power. The Company is required to deliver to
     the Trustee annually a statement regarding compliance with the Indenture,
     and the Company is required, within 10 Business Days of any Officer
     becoming aware of any Default or Event of Default, to deliver to the
     Trustee an Officers' Certificate specifying such Default or Event of
     Default and what action the Company is taking or proposes to take with
     respect thereto.

          (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

          (14) NO RECOURSE AGAINST OTHERS. No director, officer, employee,
     incorporator, stockholder or controlling person of the Company or any of
     the Guarantors or any of their parent companies, as such, will have any
     liability for any obligations of the Company or the Guarantors under the
     Floating Rate Notes, the Guarantees, the Indenture or the Registration
     Rights Agreement or for any claim based on, in respect of, or by reason of,
     such obligations or their creation. Each Holder of Floating Rate Notes by
     accepting a Floating Rate Note waives and releases all such liability. The
     waiver and release are part of the consideration for the issuance of the
     Floating Rate Notes. The waiver may not be effective to waive liabilities
     under the federal securities laws.

          (15) AUTHENTICATION. This Floating Rate Note will 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).

                                      A3-11

          (17) ADDITIONAL RIGHTS OF HOLDERS. In addition to the rights provided
     to Holders of Floating Rate Notes under the Indenture, Holders of this
     Regulation S Temporary Global Note will have all the rights set forth in
     the Registration Rights Agreement dated as of May 1, 2007, among the
     Company, the Guarantors and the other parties named on the signature pages
     thereof or, in the case of Additional Notes, Holders of Restricted Global
     Notes and Restricted Definitive Notes will have the rights set forth in one
     or more registration rights agreements, if any, among the Company, the
     Guarantors and the other parties thereto, relating to rights given by the
     Company and the Guarantors to the purchasers of any Additional Notes
     (collectively, the "Registration Rights Agreement").

          (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Floating Rate 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 Floating Rate Notes or as contained in any notice
     of redemption, and reliance may be placed only on the other identification
     numbers placed thereon.

          (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
     GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS FLOATING RATE NOTE AND
     THE 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.

     The Company 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:

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249
Attention: Chief Financial Officer

                                      A3-12

                                 ASSIGNMENT FORM

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: __________________________________
                                                (Insert assignee's legal name)

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

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Company. 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).

                                     A3-13

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Floating Rate Note purchased by the
Company pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate
box below:

                      [_] Section 4.10   [_] Section 4.15

     If you want to elect to have only part of this Floating Rate Note purchased
by the Company pursuant to Section 4.10 or Section 4.15 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 Floating Rate Note)

                                        Tax Identification No.: ________________

Signature Guarantee*:
                      ---------------------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A3-14

  SCHEDULE OF EXCHANGES OF INTERESTS IN THE REGULATION S TEMPORARY GLOBAL NOTE

     The following exchanges of a part of this Regulation S Temporary Global
Note for an interest in another Global Note, or exchanges of a part of another
other Restricted Global Note for an interest in this Regulation S Temporary
Global Note, have been made:

                       Amount of             Amount of           Principal Amount
                      decrease in           increase in         of this Global Note   Signature of
                   Principal Amount       Principal Amount       following such     authorized officer
                           of                   of                   decrease        of Trustee or
Date of Exchange      Global Note          Global Note            (or increase)        Custodian
----------------   ------------------   ------------------   ----------------------   ------------

                             SCHEDULE OF CO-ISSUERS

     The following are the Co-Issuers of the Floating Rate Notes represented by
this Note:

                  Name                      Jurisdiction of Formation
                  ----                      -------------------------

                                     A3-15

                                                                      EXHIBIT A4

                  [Face of Regulation S Temporary Global Note]
--------------------------------------------------------------------------------

                                                           CUSIP/CINS __________

                     9.50% Senior Fixed Rate Notes due 2015

No. ___                                                            $____________

                              CLARKE AMERICAN CORP.
        AND THE CO-ISSUERS LISTED ON THE "SCHEDULE OF CO-ISSUERS" HERETO

each promise to pay to ______________ or registered assigns,

the principal sum of __________________________________________________________
DOLLARS on May 15, 2015.

Interest Payment Dates: May 15 and November 15

Record Dates: May 1 and November 1

Dated: _________, 20-

                                        CLARKE AMERICAN CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        B2DIRECT, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        CHECKS IN THE MAIL, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      A4-1

                                        CLARKE AMERICAN CHECKS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        H ACQUISITION CORP.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW CS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SCSFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        NEW SFH, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      A4-2

                                        HARLAND CHECKS AND SERVICES, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HARLAND FINANCIAL SOLUTIONS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HFS CORE SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        JOHN H. HARLAND COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        SCANTRON CORPORATION

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        [CO-ISSUER]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

                                      A4-3

WELLS FARGO BANK, N.A.,
as Trustee

By:
    ------------------------------------
            Authorized Signatory

                                      A4-4

                  [Back of Regulation S Temporary Global Note]
                     9.50% Senior Fixed Rate Notes due 2015

[Insert the OID Legend, if applicable pursuant to the provisions of the
Indenture]

THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY 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 TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.

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 (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF CLARKE AMERICAN CORP.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS

                                      A4-5

OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF
NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO CLARKE AMERICAN
CORP. THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF CLARKE AMERICAN CORP. SO
REQUESTS), (2) TO CLARKE AMERICAN CORP. OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE.

     Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

          (1) INTEREST. Clarke American Corp., a Delaware corporation (the
     "Company"), and the entities listed on the "Schedule of Co-Issuers" hereto
     (the "Co-Issuers"), jointly and severally, promise to pay interest on the
     principal amount of this Fixed Rate Note at 9.50% per annum from ________,
     20__ until maturity and shall pay the Additional Interest, if any, payable
     pursuant to the Registration Rights Agreement referred to below. The
     Company and the Co-Issuers, jointly and severally, will pay interest and
     Additional Interest, if any, semi-annually in arrears on May 15 and
     November 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 Fixed Rate 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 Fixed Rate 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 _____________, 20__. The Company and the Co-Issuers, jointly and
     severally, will pay interest (including post-petition interest in any
     proceeding under any Bankruptcy Law) 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 to the extent lawful; it will pay interest
     (including post-petition interest in any proceeding under any Bankruptcy
     Law) on overdue installments of interest and Additional Interest, if any,
     (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.

          Until this Regulation S Temporary Global Note is exchanged for one or
     more Regulation S Permanent Global Notes, the Holder hereof shall not be
     entitled to receive payments of interest hereon; until so exchanged in
     full, this Regulation S Temporary Global Note shall in all other respects
     be entitled to the same benefits as other Notes under the Indenture.

                                      A4-6

          (2) METHOD OF PAYMENT. The Company and the Co-Issuers, jointly and
     severally, will pay interest on the Fixed Rate Notes (except defaulted
     interest) and Additional Interest, if any, to the Persons who are
     registered Holders of Fixed Rate Notes at the close of business on the May
     1 or November 1 next preceding the Interest Payment Date, even if such
     Fixed Rate 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 Fixed Rate Notes will be payable as
     to principal, premium and Additional Interest, if any, and interest at the
     office or agency of the Paying Agent and Registrar (which initially will be
     the office of the Trustee), or, at the option of the Company, payment of
     interest and Additional Interest, if any, may be made by check mailed to
     the Holders at their addresses set forth in the register of Holders;
     provided that payment by wire transfer of immediately available funds will
     be required with respect to principal of and interest, premium and
     Additional Interest, if any, on, all Global Notes and all other Fixed Rate
     Notes the Holders of which will have provided wire transfer instructions to
     the Company or the Paying Agent. Such payment will 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. The
     Company may change any Paying Agent and Registrar without notice to any
     Holder. The Company or any of its Subsidiaries may act in any such
     capacity.

          (4) INDENTURE. The Company and Co-Issuers issued the Fixed Rate Notes
     under an Indenture dated as of May 1, 2007 (the "Indenture") among the
     Company, the Guarantors and the Trustee. The terms of the Fixed Rate Notes
     include those stated in the Indenture and those made part of the Indenture
     by reference to the TIA. The Fixed Rate Notes are subject to all such
     terms, and Holders are referred to the Indenture and the TIA for a
     statement of such terms. To the extent any provision of this Fixed Rate
     Note conflicts with the express provisions of the Indenture, the provisions
     of the Indenture shall govern and be controlling. The Fixed Rate Notes are
     unsecured obligations of the Company and the Co-Issuers on a joint and
     several basis. The Indenture does not limit the aggregate principal amount
     of Fixed Rate Notes that may be issued thereunder.

          (5) OPTIONAL REDEMPTION.

               (a) Except as set forth below in this Paragraph 5, the Company
     will not have the option to redeem the Fixed Rate Notes prior to May 15,
     2011. On or after May 15, 2011, the Company may, in one or more instances,
     redeem all or a part of the Fixed Rate Notes upon not less than 30 nor more
     than 60 days' notice (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 the Indenture), at the redemption prices (expressed as percentages of
     principal amount of the Fixed Rate Notes to be redeemed) set forth below
     plus accrued and unpaid interest and Additional Interest, if any, on the
     Fixed Rate Notes redeemed, to the applicable redemption date, if redeemed
     during the twelve-month period beginning on May 15 of the years indicated
     below, subject to the rights of Holders of Fixed Rate Notes on the relevant
     record date to receive interest on the relevant Interest Payment Date:

     Year                                                     Percentage
     -----------------------                                  ----------
     2011 .................................................    104.750%
     2012 .................................................    102.375%
     2013 and thereafter ..................................    100.000%

                                      A4-7

               (b) At any time prior to May 15, 2010, the Company may, on any
     one or more occasions, redeem up to 35% of the aggregate principal amount
     of Fixed Rate Notes issued under the Indenture (including the principal
     amount of any Additional Fixed Rate Notes issued under the Indenture and
     without duplication with respect to Exchange Fixed Rate Notes issued under
     the Indenture) at a redemption price equal to 109.500% of the principal
     amount of the Fixed Rate Notes redeemed, plus accrued and unpaid interest
     and Additional Interest, if any, to the redemption date, with the net cash
     proceeds of one or more Equity Offerings of the Company; provided that at
     least 50% of the aggregate principal amount of Fixed Rate Notes issued
     under the Indenture (excluding Fixed Rate Notes held by the Company and its
     Subsidiaries, but including any Additional Fixed Rate Notes and without
     duplication with respect to Exchange Fixed Rate Notes issued under the
     Indenture) remains outstanding immediately after the occurrence of such
     redemption; and that such redemption occurs within 90 days after the date
     of the closing of any such Equity Offering.

               (c) At any time prior to May 15, 2011, the Company may, in one or
     more instances, also redeem all or a part of the Fixed Rate Notes, upon not
     less than 30 nor more than 60 days' prior notice mailed by first-class mail
     to each Holder's registered address, at a redemption price equal to 100% of
     the principal amount of Fixed Rate Notes redeemed plus the Applicable
     Premium as of the date of redemption, and accrued and unpaid interest and
     Additional Interest, if any, to such redemption date (the "Make-Whole
     Redemption Date"), subject to the rights of Holders of the Fixed Rate Notes
     on the relevant record date to receive interest due on the relevant
     Interest Payment Date.

          (6) MANDATORY REDEMPTION. The Company and the Co-Issuers are not
     required to make mandatory redemption or sinking fund payments with respect
     to the Fixed Rate Notes.

          (7) REPURCHASE AT THE OPTION OF HOLDER.

               (a) If a Change of Control occurs, the Company will make an offer
     (a "Change of Control Offer") to each Holder to repurchase all or any part
     (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
     that Holder's Fixed Rate Notes at a purchase price in cash equal to 101% of
     the aggregate principal amount of Fixed Rate Notes repurchased plus accrued
     and unpaid interest and Additional Interest, if any, on the Fixed Rate
     Notes repurchased to the date of purchase, subject to the rights of Holders
     of Fixed Rate Notes on the relevant record date to receive interest due on
     the relevant Interest Payment Date (the "Change of Control Payment"). No
     later than 45 days following any Change of Control, the Company will mail a
     notice to each Holder setting forth the procedures governing the Change of
     Control Offer as required by the Indenture.

               (b) If the Company or a Restricted Subsidiary of the Company
     consummates any Asset Sale and the aggregate amount of Excess Proceeds
     exceeds $45.0 million, within 30 days thereof, the Company will make an
     offer to (i) all Holders of Notes (ii) all holders of Indebtedness to be
     repaid pursuant to Section 4.10(b)(1)(x) of the Indenture and (iii) all
     holders of other Indebtedness that is pari passu in right of payment with
     the Notes containing provisions similar to Section 3.09 of the 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 other
     pari passu Indebtedness that may be purchased out of the Excess Proceeds
     (the "Asset Sale Offer"). 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. The Company may satisfy the foregoing obligations with respect to
     any Net Proceeds from an Asset Sale by making an Asset Sale Offer with
     respect to such Net Proceeds

                                      A4-8

     prior to the expiration of the relevant 450 days or with respect to Excess
     Proceeds of $45.0 million or less. If any Excess Proceeds remain after
     consummation of an Asset Sale Offer, the Company and any Restricted
     Subsidiary may use those Excess Proceeds for any purpose not otherwise
     prohibited by the Indenture, including, without limitation, the making of
     Restricted Payments otherwise permitted under the terms of the Indenture.
     If the aggregate principal amount of Notes and other pari passu
     Indebtedness tendered into such Asset Sale Offer exceeds the amount of
     Excess Proceeds, the Notes and such other pari passu Indebtedness shall be
     purchased on a pro rata basis (with such adjustments for authorized
     denominations). Upon completion of each Asset Sale Offer, the amount of
     Excess Proceeds will be reset at zero. The Company at its election may
     retain or use any Excess Designated Proceeds for any purpose, including, if
     applicable, to make any Restricted Payment otherwise permitted under the
     terms of the Indenture. Holders of Fixed Rate Notes that are the subject of
     an offer to purchase will receive an Asset Sale Offer from the Company
     prior to any related purchase date and may elect to have such Fixed Rate
     Notes purchased by completing the form entitled "Option of Holder to Elect
     Purchase" attached to the Fixed Rate Notes.

          (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 Fixed Rate 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 Fixed Rate Notes or a satisfaction or discharge of the Indenture. Fixed
     Rate Notes in denominations larger than $2,000 may be redeemed in part but
     only in whole multiples of $1,000, unless all of the Fixed Rate Notes held
     by a Holder are to be redeemed.

          (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Fixed Rate Notes are in
     registered form without coupons in denominations of $2,000 and integral
     multiples of $1,000 in excess thereof. The transfer of Fixed Rate Notes may
     be registered and Fixed Rate Notes may be exchanged as provided in the
     Indenture. The Registrar and the Trustee may require a Holder, among other
     things, to furnish appropriate endorsements and transfer documents and the
     Company may require a Holder to pay any taxes and fees required by law or
     permitted by the Indenture. The Company need not exchange or register the
     transfer of any Fixed Rate Note or portion of a Fixed Rate Note selected
     for redemption, except for the unredeemed portion of any Fixed Rate Note
     being redeemed in part. Also, the Company need not exchange or register the
     transfer of any Fixed Rate Notes for a period of 15 days before a selection
     of Fixed Rate Notes to be redeemed or during the period between a record
     date and the corresponding Interest Payment Date.

          This Regulation S Temporary Global Note is exchangeable in whole or in
     part for one or more Global Notes only (i) on or after the termination of
     the 40-day distribution compliance period (as defined in Regulation S) and
     (ii) upon presentation of certificates (accompanied by an Opinion of
     Counsel, if applicable) required by Article 2 of the Indenture. Upon
     exchange of this Regulation S Temporary Global Note for one or more Global
     Notes, the Trustee shall cancel this Regulation S Temporary Global Note.

          (10) PERSONS DEEMED OWNERS. The registered Holder of a Fixed Rate Note
     may be treated as its owner for all purposes.

          (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
     the Indenture or the Notes or the Guarantees may be amended or supplemented
     with the consent of the Holders of at least a majority in aggregate
     principal amount of the then outstanding Notes (including, without
     limitation, consents obtained in connection with a tender offer or exchange

                                      A4-9

     offer for, or purchase of, the Notes), and any existing Default or Event or
     Default or compliance with any provision of the Indenture or the Notes or
     the Guarantees may be waived with the consent of the Holders of a majority
     in aggregate principal amount of the then outstanding Notes (including,
     without limitation, consents obtained in connection with a tender offer or
     exchange offer for, or purchase of, the Notes). Without the consent of any
     Holder of a Note, the Indenture or the Notes or the Guarantees may be
     amended or supplemented to cure any ambiguity, defect, inconsistency or
     omission; to provide for uncertificated Notes in addition to or in place of
     certificated Notes; to provide for the assumption of the Company's, a
     Co-Issuer's or a Guarantor's obligations to Holders of the Notes and
     Guarantees by a successor to the Company, such Co-Issuer or such Guarantor
     pursuant to Article 5 of the Indenture; 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 under the Indenture of any
     such Holder; to add covenants for the benefit of the Holders or to
     surrender any right or power conferred upon the Company or a Guarantor; to
     comply with the requirements of the SEC in order to effect or maintain the
     qualification of the Indenture under the TIA; to conform the text of the
     Indenture, the Guarantees or the Notes to any provision of the "Description
     of Notes" section of the Offering Circular to the extent that such
     provision in that "Description of Notes" was intended to be a verbatim
     recitation of a provision of the Indenture, the Guarantees or the Notes; to
     provide for the issuance of Additional Notes or Exchange Notes in
     accordance with the limitations set forth in the Indenture as of the Issue
     Date; to allow any Guarantor or other obligor to execute a supplemental
     indenture to the Indenture and/or a Guarantee with respect to the Notes; to
     release a Guarantor or Co-Issuer as provided in the Indenture; to make any
     amendment to the provisions of the Indenture relating to the transfer and
     legending of Notes provided, however, that (a) compliance with the
     Indenture as so amended would not result in Notes being transferred in
     violation of the Securities Act or any applicable securities law and (b)
     such amendment does not materially and adversely affect the rights of
     Holders to transfer Notes; to evidence and provide the acceptance of the
     appointment of a successor Trustee under the Indenture; or to comply with
     the rules of any applicable securities depositary.

          (12) DEFAULTS AND REMEDIES. Events of Default include: (i) default for
     30 days in the payment when due and payable of interest on, or Additional
     Interest, if any, with respect to, the Fixed Rate Notes; (ii) default in
     the payment when due and payable (at maturity, upon redemption or
     otherwise) of the principal of, or premium, if any, on, the Fixed Rate
     Notes; (iii) failure by the Company or any Guarantor for 60 days after
     receipt of written notice given by the Trustee or the Holders of at least
     30% in principal amount of the then outstanding Notes issued under the
     Indenture to comply with any of its other agreements in the Indenture or
     the Fixed Rate Notes; (iv) 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 the Company or any of
     the Guarantors (or the payment of which is guaranteed by the Company or any
     of the Guarantors), whether such Indebtedness or guarantee now exists, or
     is created after the Issue Date, if that default both: (a) (A) is caused by
     a failure to pay principal of 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) relates to an obligation other than the
     obligation to pay principal of any such Indebtedness at its stated final
     maturity and results in the holder or holders of such Indebtedness causing
     such Indebtedness to become due prior to its stated final maturity; and (b)
     the principal amount of such Indebtedness, together with the principal
     amount of any other such Indebtedness in default for failure to pay
     principal at stated final maturity (after giving effect to any applicable
     grace periods), or the maturity of which has been so accelerated, aggregate
     $40.0 million or more at any one time outstanding; (v) failure by the
     Company or any Significant Subsidiary (or any group of Subsidiaries that
     together would constitute a Significant Subsidiary) to pay final judgments
     aggregating in excess of $40.0 million

                                      A4-10

     and not covered by insurance, which final judgments remain unpaid,
     undischarged and unstayed for a period of more than 60 days after such
     judgment becomes final, and in the event such judgment is covered by
     insurance, an enforcement proceeding has been commenced by any creditor
     upon such judgment or decree which is not promptly stayed; (vi) certain
     events of bankruptcy or insolvency with respect to the Company or any
     Significant Subsidiary (or any group of Subsidiaries that together would
     constitute a Significant Subsidiary); or (vii) the Guarantee of any
     Significant Subsidiary (or any group of Subsidiaries that together would
     constitute a Significant Subsidiary) shall for any reason cease to be in
     full force and effect or be declared null and void or any Responsible
     Officer of any Guarantor that is a Significant Subsidiary (or the
     Responsible Officers of any group of Subsidiaries that together would
     constitute a Significant Subsidiary), as the case may be, denies that it
     has any further liability under its Guarantee or gives notice to such
     effect, other than by reason of the termination of the Indenture or the
     release of any such Guarantee in accordance with the Indenture. If any
     Event of Default occurs and is continuing, the Trustee or the Holders of at
     least 30% in aggregate principal amount of the then outstanding Notes may
     declare all the Notes to be due and payable immediately. Notwithstanding
     the foregoing, in the case of an Event of Default arising from certain
     events of bankruptcy or insolvency, all outstanding Notes will become due
     and payable immediately without further action or notice. Holders may not
     enforce the Indenture or the Notes except as provided in the Indenture.
     Subject to certain limitations, Holders of a majority in aggregate
     principal amount of the then outstanding Notes may direct the Trustee in
     its exercise of any trust or power. The Company is required to deliver to
     the Trustee annually a statement regarding compliance with the Indenture,
     and the Company is required, within 10 Business Days of any Officer
     becoming aware of any Default or Event of Default, to deliver to the
     Trustee an Officers' Certificate specifying such Default or Event of
     Default and what action the Company is taking or proposes to take with
     respect thereto.

          (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
     any other capacity, may make loans to, accept deposits from, and perform
     services for the Company or its Affiliates, and may otherwise deal with the
     Company or its Affiliates, as if it were not the Trustee.

          (14) NO RECOURSE AGAINST OTHERS. No director, officer, employee,
     incorporator, stockholder or controlling person of the Company or any of
     the Guarantors or any of their parent companies, as such, will have any
     liability for any obligations of the Company or the Guarantors under the
     Fixed Rate Notes, the Guarantees, the Indenture or the Registration Rights
     Agreement or for any claim based on, in respect of, or by reason of, such
     obligations or their creation. Each Holder of Fixed Rate Notes by accepting
     a Fixed Rate Note waives and releases all such liability. The waiver and
     release are part of the consideration for the issuance of the Fixed Rate
     Notes. The waiver may not be effective to waive liabilities under the
     federal securities laws.

          (15) AUTHENTICATION. This Fixed Rate Note will 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. In addition to the rights provided
     to Holders of Fixed Rate Notes under the Indenture, Holders of this
     Regulation S Temporary Global Note will have all the rights set forth in
     the Registration Rights Agreement dated as of May 1, 2007,

                                      A4-11

     among the Company, the Guarantors and the other parties named on the
     signature pages thereof or, in the case of Additional Notes, Holders of
     Restricted Global Notes and Restricted Definitive Notes will have the
     rights set forth in one or more registration rights agreements, if any,
     among the Company, the Guarantors and the other parties thereto, relating
     to rights given by the Company and the Guarantors to the purchasers of any
     Additional Notes (collectively, the "Registration Rights Agreement").

          (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
     Committee on Uniform Security Identification Procedures, the Company has
     caused CUSIP numbers to be printed on the Fixed Rate 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 Fixed Rate Notes or as contained in any notice of
     redemption, and reliance may be placed only on the other identification
     numbers placed thereon.

          (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
     GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS FIXED RATE NOTE AND THE
     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.

     The Company 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:

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249
Attention: Chief Financial Officer

                                      A4-12

                                 ASSIGNMENT FORM

                          To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: __________________________________
                                                (Insert assignee's legal name)

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

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Company. 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).

                                     A4-13

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Fixed Rate Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                        [_] Section 4.10 [_] Section 4.15

     If you want to elect to have only part of this Fixed Rate Note purchased by
the Company pursuant to Section 4.10 or Section 4.15 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 Fixed Rate Note)

                                         Tax Identification No.:
                                                                 ---------------

Signature Guarantee*:
                      -------------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                     A4-14

  SCHEDULE OF EXCHANGES OF INTERESTS IN THE REGULATION S TEMPORARY GLOBAL NOTE

     The following exchanges of a part of this Regulation S Temporary Global
Note for an interest in another Global Note, or exchanges of a part of another
other Restricted Global Note for an interest in this Regulation S Temporary
Global Note, have been made:

                      Amount of           Amount of       Principal Amount
                     decrease in        increase in      of this Global Note      Signature of
                   Principal Amount   Principal Amount     following such      authorized officer
                          of                 of               decrease            of Trustee or
Date of Exchange   this Global Note   this Global Note      (or increase)           Custodian
----------------   ----------------   ----------------      -------------           ---------

                             SCHEDULE OF CO-ISSUERS

     The following are the Co-Issuers of the Fixed Rate Notes represented by
this Note:

           Name                          Jurisdiction of Formation
           ----                          -------------------------

                                     A4-15

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249

Wells Fargo Bank, N.A.
Corporate Trust Services
213 Court Street, Suite 703
Middletown, CT 06457

     Re:  Senior Floating Rate Notes due 2015
          9.50% Senior Fixed Rate Notes due 2015

     Reference is hereby made to the Indenture, dated as of May 1, 2007 (the
"Indenture"), among Clarke American Corp., as issuer (the "Company"), the
Guarantors and Co-Issuers party thereto 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
[9.50% Senior Fixed Rate Note[s]] [Senior Floating Rate Note[s]] (the "Note[s]")
or interest in such Note[s] specified in Annex A hereto, in the principal amount
of $___________ in such Note[s] or interests (the "Transfer"), to
___________________________ (the "Transferee"), as further specified in Annex A
hereto. In connection with the Transfer, the Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

  1. [_] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
144A GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO RULE 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act"), and, accordingly,
the Transferor hereby further certifies that the beneficial interest or
Definitive Note is being transferred to a Person that the Transferor reasonably
believes is purchasing the beneficial interest or Definitive Note for its own
account, or for one or more accounts with respect to which such Person exercises
sole investment discretion, and such Person and each such account is a
"qualified institutional buyer" within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A, and such Transfer is in compliance with
any applicable blue sky securities laws of any state of the United States. 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 Restricted Definitive Note and
in the Indenture and the Securities Act.

     2. [_] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE REGULATION S TEMPORARY GLOBAL NOTE, THE REGULATION S PERMANENT GLOBAL NOTE
OR A RESTRICTED 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

                                      B-1

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 enumerated in the Private Placement Legend printed on the Regulation S
Permanent Global Note, the Regulation S Temporary Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

     3. [_] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE IAI GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

          (a) [_] such Transfer is being effected pursuant to and in accordance
     with Rule 144 under the Securities Act;

                                       or

          (b) [_] such Transfer is being effected to the Company or a subsidiary
     thereof;

                                       or

          (c) [_] such Transfer is being effected pursuant to an effective
     registration statement under the Securities Act and in compliance with the
     prospectus delivery requirements of the Securities Act;

                                       or

          (d) [_] 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, Rule 903 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 D1 or D2 to the Indenture and (2) if such
     Transfer is in respect of a principal amount of Notes at the time of
     transfer of less than $250,000, 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 Restricted Definitive Notes and in the Indenture and the
     Securities Act.

     4. [_] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

                                      B-2

     (a) [_] 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) [_] 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) [_] 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 the Company.

                                        ________________________________________
                                           [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) [_] a beneficial interest in the:

                    (i)   [_] 144A Global Note (CUSIP _________), or

                    (ii)  [_] Regulation S Global Note (CUSIP _________), or

                    (iii) [_] IAI Global Note (CUSIP _________); or

               (b) [_] a Restricted Definitive Note.

     2.   After the Transfer the Transferee will hold:

                                   [CHECK ONE]

               (a) [_] a beneficial interest in the:

                    (i)   [_] 144A Global Note (CUSIP _________), or

                    (ii)  [_] Regulation S Global Note (CUSIP _________), or

                    (iii) [_] IAI Global Note (CUSIP _________); or

                    (iv)  [_] Unrestricted Global Note (CUSIP _________); or

               (b) [_] a Restricted Definitive Note; or

               (c) [_] an Unrestricted Definitive Note,

               in accordance with the terms of the Indenture.

                                      B-4

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249

Wells Fargo Bank, N.A.
Corporate Trust Services
213 Court Street, Suite 703
Middletown, CT 06457

     Re:  Senior Floating Rate Notes due 2015
          9.50% Senior Fixed Rate Notes due 2015

                              (CUSIP ____________)

     Reference is hereby made to the Indenture, dated as of May 1, 2007 (the
"Indenture"), among Clarke American Corp., as issuer (the "Company"), the
Guarantors and Co-Issuers party thereto 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
[9.50% Senior Fixed Rate Note[s]] [Senior Floating Rate Note[s]] (the "Note[s]")
or interest in such Note[s] specified herein, in the principal amount of
$____________ in such Note[s] or interests (the "Exchange"). In connection with
the Exchange, the Owner hereby certifies that:

     1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

     (a) [_] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection
with the Exchange of the Owner's beneficial interest in a Restricted Global Note
for a beneficial interest in an Unrestricted Global Note in an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner's own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Global
Notes and pursuant to and in accordance with the Securities Act of 1933, as
amended (the "Securities Act"), (iii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in
an Unrestricted Global Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

     (b) [_] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with 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-1

     (c) [_] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner's Exchange
of a Restricted Definitive Note for a beneficial interest in an Unrestricted
Global Note, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

     (d) [_] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

     2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

     (a) [_] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for a Restricted
Definitive Note with an equal principal amount, the Owner hereby certifies that
the Restricted Definitive Note is being acquired for the Owner's own account
without transfer. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the Restricted Definitive Note issued will continue
to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Definitive Note and in the Indenture
and the Securities Act.

     (b) [_] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange of the
Owner's Restricted Definitive Note for a beneficial interest in the [CHECK ONE]
144A Global Note, Regulation S Global Note, 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 the Company.

                                      C-2

                                        ________________________________________
                                            [Insert Name of Transferor]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

Dated: ______________________

                                      C-3

                                                                      EXHIBIT D1

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249

Wells Fargo Bank, N.A.
Corporate Trust Services
213 Court Street, Suite 703
Middletown, CT 06457

     Re:  Senior Floating Rate Notes due 2015

     Reference is hereby made to the Indenture, dated as of May 1, 2007 (the
"Indenture"), among Clarke American Corp., as issuer (the "Company"), the
Guarantors and Co-Issuers party thereto 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) [_] a beneficial interest in a Global Note, or

     (b) [_] 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 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 the Company 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 the Company a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount of Notes, at the time of transfer of less than $250,000, an
Opinion of Counsel in form reasonably acceptable to the Company 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 the Company such
certifications, legal opinions and other

                                      D1-1

information as you and the Company may reasonably require to confirm that the
proposed sale complies with the foregoing restrictions. We further understand
that the Notes purchased by us will bear a legend to the foregoing effect.

     4. We are an 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 the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                        ________________________________________
                                          [Insert Name of Accredited Investor]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

Dated: _______________________

                                      D1-2

                                                                      EXHIBIT D2

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Clarke American Corp.
10931 Laureate Drive
San Antonio, TX 78249

Wells Fargo Bank, N.A.
Corporate Trust Services
213 Court Street, Suite 703
Middletown, CT 06457

     Re:  9.50% Senior Fixed Rate Notes due 2015

     Reference is hereby made to the Indenture, dated as of May 1, 2007 (the
"Indenture"), among Clarke American Corp., as issuer (the "Company"), the
Guarantors and Co-Issuers party thereto 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) [_] a beneficial interest in a Global Note, or

     (b) [_] 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 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 the Company 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 the Company a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount of Notes, at the time of transfer of less than $250,000, an
Opinion of Counsel in form reasonably acceptable to the Company 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.

                                      D2-1

     3. We understand that, on any proposed resale of the Notes or beneficial
interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

     4. We are an 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 the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                        ________________________________________
                                          [Insert Name of Accredited Investor]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

Dated: _______________________

                                      D2-2

                                                                      EXHIBIT E1

              FORM OF NOTATION OF GUARANTEE FOR FLOATING RATE NOTES

     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, and subject to the provisions of, the
Indenture dated as of May 1, 2007 (the "Indenture") among Clarke American Corp.,
(the "Company"), the Guarantors and Co-Issuers party thereto and Wells Fargo
Bank, N.A., as trustee (the "Trustee"), (a) the due and punctual payment of the
principal of, premium and Additional Interest, if any, and interest on, the
Floating Rate Notes, whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal of and
interest on the Floating Rate Notes, if any, if lawful, and the due and punctual
performance of all other obligations of the Company 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 Floating Rate 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 Floating Rate Notes and to the Trustee pursuant to the
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 Guarantee. To the extent the provisions of this Notation of Guarantee
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.

     Capitalized terms used but not defined herein have the meanings given to
them in the Indenture.

                                        [NAME OF GUARANTOR(S)]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      E1-1

                                                                      EXHIBIT E2

               FORM OF NOTATION OF GUARANTEE FOR FIXED RATE NOTES

     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, and subject to the provisions of, the
Indenture dated as of May 1, 2007 (the "Indenture") among Clarke American Corp.,
(the "Company"), the Guarantors and Co-Issuers party thereto and Wells Fargo
Bank, N.A., as trustee (the "Trustee"), (a) the due and punctual payment of the
principal of, premium and Additional Interest, if any, and interest on, the
Fixed Rate Notes, whether at maturity, by acceleration, redemption or otherwise,
the due and punctual payment of interest on overdue principal of and interest on
the Fixed Rate Notes, if any, if lawful, and the due and punctual performance of
all other obligations of the Company 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 Fixed Rate 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 Fixed Rate Notes and to the Trustee pursuant to the 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 Guarantee. To the
extent the provisions of this Notation of Guarantee conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling.

     Capitalized terms used but not defined herein have the meanings given to
them in the Indenture.

                                        [NAME OF GUARANTOR(S)]

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      E2-1

                                                                       EXHIBIT F

                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

     SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
________________, 200__, among __________________ (the "Guaranteeing
Subsidiary"), a subsidiary of Clarke American Corp. (or its permitted
successor), a Delaware corporation (the "Company"), the Company, the Co-Issuers
(as defined in the Indenture referred to herein) 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").

                                   WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee
an indenture (the "Indenture"), dated as of May 1, 2007 providing for the
issuance of Senior Floating Rate Notes due 2015 and 9.50% Senior Fixed Rate
Notes due 2015 (together, the "Notes");

     WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Guarantee"); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
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 to
provide an unconditional Guarantee on the terms and subject to the conditions
set forth in the Guarantee and in the Indenture including but not limited to
Article 10 thereof.

     3. NO RECOURSE AGAINST OTHERS. No director, officer, employee,
incorporator, stockholder or controlling person of the Guaranteeing Subsidiary,
as such, shall have any liability for any obligations of the Company or any
Guaranteeing Subsidiary under the Notes, any 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.

     4. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE 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.

     5. 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.

                                      F-1

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

     7. 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 the Company.

                                      F-2

     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: _______________, 20___

                                        [GUARANTEEING SUBSIDIARY]

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        CLARKE AMERICAN CORP.

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        [EXISTING CO-ISSUERS]

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        [EXISTING GUARANTORS]

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        WELLS FARGO BANK, N.A.,
                                        as Trustee

                                        By:
                                           -------------------------------------
                                           Authorized Signatory

                                      F-3

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