exv4w2






Exhibit 4.2




EXECUTION VERSION




 





LIBBEY GLASS INC.




AND




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

AS TRUSTEE




10% Senior Secured Notes due 2015




 






INDENTURE




Dated as of February 8, 2010




 






 





 









 








Table of Contents




	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.1. Definitions
	 	 	1	 
	SECTION 1.2. Other Definitions
	 	 	35	 
	SECTION 1.3. Incorporation by Reference of Trust Indenture Act
	 	 	36	 
	SECTION 1.4. Rules of Construction
	 	 	37	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	THE SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.1. Form, Dating and Terms
	 	 	37	 
	SECTION 2.2. Execution and Authentication
	 	 	45	 
	SECTION 2.3. Registrar and Paying Agent
	 	 	46	 
	SECTION 2.4. Paying Agent to Hold Money in Trust
	 	 	47	 
	SECTION 2.5. Holder Lists
	 	 	47	 
	SECTION 2.6. Transfer and Exchange
	 	 	48	 
	SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to IAIs
	 	 	51	 
	SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S
	 	 	53	 
	SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities
	 	 	54	 
	SECTION 2.10. Outstanding Securities
	 	 	55	 
	SECTION 2.11. Temporary Securities
	 	 	55	 
	SECTION 2.12. Cancellation
	 	 	56	 
	SECTION 2.13. Payment of Interest; Defaulted Interest
	 	 	56	 
	SECTION 2.14. Computation of Interest
	 	 	57	 
	SECTION 2.15. CUSIP, Common Code and ISIN Numbers
	 	 	57	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.1. Payment of Securities
	 	 	57	 
	SECTION 3.2. Limitation on Indebtedness
	 	 	58	 
	SECTION 3.3. Limitation on Restricted Payments
	 	 	63	 
	SECTION 3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	68	 
	SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock
	 	 	70	 
	SECTION 3.6. Limitation on Liens
	 	 	74	 
	SECTION 3.7. [Reserved]
	 	 	74	 
	SECTION 3.8. Limitation on Affiliate Transactions
	 	 	74	 
	SECTION 3.9. Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	76	 
	SECTION 3.10. Limitation on Lines of Business
	 	 	77	 






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	 	 	Page	 
	SECTION 3.11. Change of Control
	 	 	77	 
	SECTION 3.12. SEC Reports
	 	 	78	 
	SECTION 3.13. Future Subsidiary Guarantors
	 	 	79	 
	SECTION 3.14. Maintenance of Office or Agency
	 	 	80	 
	SECTION 3.15. Corporate Existence
	 	 	80	 
	SECTION 3.16. Payment of Taxes and Other Claims
	 	 	81	 
	SECTION 3.17. [Reserved]
	 	 	81	 
	SECTION 3.18. Compliance Certificate
	 	 	81	 
	SECTION 3.19. Further Instruments and Acts
	 	 	81	 
	SECTION 3.20. Statement by Officers as to Default
	 	 	81	 
	SECTION 3.21. Effectiveness of Certain Covenants
	 	 	82	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	SUCCESSOR COMPANY
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.1. Merger and Consolidation
	 	 	82	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	REDEMPTION OF SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.1. Redemption
	 	 	85	 
	SECTION 5.2. Applicability of Article
	 	 	85	 
	SECTION 5.3. Election to Redeem; Notice to Trustee
	 	 	85	 
	SECTION 5.4. Selection by Trustee of Securities to Be Redeemed
	 	 	85	 
	SECTION 5.5. Notice of Redemption
	 	 	86	 
	SECTION 5.6. Deposit of Redemption Price
	 	 	87	 
	SECTION 5.7. Securities Payable on Redemption Date
	 	 	87	 
	SECTION 5.8. Securities Redeemed in Part
	 	 	87	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.1. Events of Default
	 	 	88	 
	SECTION 6.2. Acceleration
	 	 	90	 
	SECTION 6.3. Other Remedies
	 	 	91	 
	SECTION 6.4. Waiver of Past Defaults
	 	 	91	 
	SECTION 6.5. Control by Majority
	 	 	91	 
	SECTION 6.6. Limitation on Suits
	 	 	92	 
	SECTION 6.7. Rights of Holders to Receive Payment
	 	 	92	 
	SECTION 6.8. Collection Suit by Trustee
	 	 	92	 
	SECTION 6.9. Trustee May File Proofs of Claim
	 	 	92	 
	SECTION 6.10. Priorities
	 	 	93	 
	SECTION 6.11. Undertaking for Costs
	 	 	93	 






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	 	 	Page	 
	ARTICLE VII
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.1. Duties of Trustee
	 	 	93	 
	SECTION 7.2. Rights of Trustee
	 	 	95	 
	SECTION 7.3. Individual Rights of Trustee
	 	 	96	 
	SECTION 7.4. Trustee’s Disclaimer
	 	 	96	 
	SECTION 7.5. Notice of Defaults
	 	 	96	 
	SECTION 7.6. Reports by Trustee to Holders
	 	 	97	 
	SECTION 7.7. Compensation and Indemnity
	 	 	97	 
	SECTION 7.8. Replacement of Trustee
	 	 	98	 
	SECTION 7.9. Successor Trustee by Merger
	 	 	99	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	100	 
	SECTION 7.11. Preferential Collection of Claims Against the Company
	 	 	100	 
	SECTION 7.12. Trustee’s Application for Instruction from the Company
	 	 	100	 
	SECTION 7.13. Paying Agents
	 	 	100	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	DISCHARGE OF INDENTURE; DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.1. Discharge of Liability on Securities; Defeasance
	 	 	101	 
	SECTION 8.2. Conditions to Defeasance
	 	 	102	 
	SECTION 8.3. Application of Trust Money
	 	 	103	 
	SECTION 8.4. Repayment to the Company
	 	 	103	 
	SECTION 8.5. Indemnity for U.S. Government Obligations
	 	 	104	 
	SECTION 8.6. Reinstatement
	 	 	104	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	AMENDMENTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.1. Without Consent of Holders
	 	 	104	 
	SECTION 9.2. With Consent of Holders
	 	 	106	 
	SECTION 9.3. Compliance with Trust Indenture Act
	 	 	107	 
	SECTION 9.4. Revocation and Effect of Consents and Waivers
	 	 	107	 
	SECTION 9.5. Notation on or Exchange of Securities
	 	 	108	 
	SECTION 9.6. Trustee to Sign Amendments
	 	 	108	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	NOTE GUARANTEES
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.1. Note Guarantees
	 	 	108	 
	SECTION 10.2. Limitation on Liability; Termination, Release and Discharge
	 	 	110	 
	SECTION 10.3. Right of Contribution
	 	 	111	 
	SECTION 10.4. No Subrogation
	 	 	111	 






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	 	 	Page	 
	ARTICLE XI
	 	 	 	 
	COLLATERAL
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.1. Collateral and Collateral Documents
	 	 	112	 
	SECTION 11.2. Release of Collateral
	 	 	113	 
	SECTION 11.3. Certificates of the Trustee
	 	 	114	 
	SECTION 11.4. Suits to Protect the Collateral
	 	 	114	 
	SECTION 11.5. Authorization of Receipt of Funds by the Trustee Under the
	 	 	115	 
	SECTION 11.6. Purchase Protected
	 	 	115	 
	SECTION 11.7. Powers Exercisable by Receiver or Trustee
	 	 	115	 
	SECTION 11.8. Release upon Termination of the Company’s Obligations
	 	 	115	 
	SECTION 11.9. Collateral Agent
	 	 	116	 
	SECTION 11.10. Designations
	 	 	120	 
	SECTION 11.11. Compensation and Indemnification
	 	 	120	 
	SECTION 11.12. Intercreditor Agreement and Collateral Documents
	 	 	120	 
	SECTION 11.13. Further Assurances
	 	 	121	 
	SECTION 11.14. Impairment of Security Interest
	 	 	121	 
	SECTION 11.15. Information Regarding Collateral
	 	 	121	 
	SECTION 11.16. Maintenance of Properties and Insurance
	 	 	122	 
	 
	 	 	 	 
	ARTICLE XII
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 12.1. Trust Indenture Act Controls
	 	 	122	 
	SECTION 12.2. Notices
	 	 	123	 
	SECTION 12.3. Communication by Holders with other Holders
	 	 	124	 
	SECTION 12.4. Certificate and Opinion as to Conditions Precedent
	 	 	124	 
	SECTION 12.5. Statements Required in Certificate or Opinion
	 	 	124	 
	SECTION 12.6. When Securities Disregarded
	 	 	125	 
	SECTION 12.7. Rules by Trustee, Paying Agent and Registrar
	 	 	125	 
	SECTION 12.8. Legal Holidays
	 	 	125	 
	SECTION 12.9. Governing Law
	 	 	125	 
	SECTION 12.10. No Recourse Against Others
	 	 	125	 
	SECTION 12.11. Successors
	 	 	126	 
	SECTION 12.12. Multiple Originals
	 	 	126	 
	SECTION 12.13. Qualification of Indenture
	 	 	126	 
	SECTION 12.14. Table of Contents; Headings
	 	 	126	 
	SECTION 12.15. [Reserved]
	 	 	126	 
	SECTION 12.16. Force Majeure
	 	 	126	 
	SECTION 12.17. Waiver of Jury Trial
	 	 	126	 
	SECTION 12.18. Severability
	 	 	126	 






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	SCHEDULE 3.8 Existing Affiliate Transactions
	 	 	 	 
	SCHEDULE
11.5 Premises and Leased Premises
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT A            Form of the Series A Note
	 	 	 	 
	EXHIBIT B            Form of the Series B Note
	 	 	 	 
	EXHIBIT C            Form of Indenture Supplement to Add Subsidiary Guarantors
	 	 	 	 






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CROSS-REFERENCE TABLE




	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310 (a)(1)
	 	7.10
	  (a)(2)
	 	7.10
	  (a)(3)
	 	N.A.
	  (a)(4)
	 	N.A.
	  (a)(5)
	 	7.10
	  (b)
	 	7.3; 7.8; 7.10
	  (c)
	 	N.A.
	311 (a)
	 	7.11
	  (b)
	 	7.11
	  (c)
	 	N.A.
	312 (a)
	 	2.5
	  (b)
	 	12.3
	  (c)
	 	12.3
	313 (a)
	 	7.6
	  (b)(1)
	 	7.6
	  (b)(2)
	 	7.6
	  (c)
	 	7.6
	  (d)
	 	7.6
	314 (a)
	 	3.12; 3.18; 12.5
	  (b)
	 	N.A.
	  (c)(1)
	 	8.1; 11.7; 12.4
	  (c)(2)
	 	8.1; 11.7; 12.4
	  (c)(3)
	 	N.A.
	  (d)
	 	12.5
	  (e)
	 	12
	315 (a)
	 	7.1
	  (b)
	 	7.5
	  (c)
	 	7.1
	  (d)
	 	7.1
	  (e)
	 	6.11
	316 (a)(last
sentence)
	 	12.6
	  (a)(1)(A)
	 	6.5
	  (a)(1)(B)
	 	6.4
	  (a)(2)
	 	N.A.
	  (b)
	 	6.7
	  (c)
	 	9.4
	317 (a)(1)
	 	6.8
	  (a)(2)
	 	6.9
	  (b)
	 	2.4
	318 (a)
	 	12.1





N.A. means Not Applicable.





	Note:	 	 This Cross-Reference Table shall not, for any purpose, be deemed to be part of this
Indenture.






-vi-











 





          INDENTURE, dated as of February 8, 2010, among LIBBEY GLASS INC., a Delaware corporation
(the “Company” or “Libbey Glass”), LIBBEY, INC. (“Parent”) and certain
subsidiaries of the Company (the “Subsidiary Guarantors” and together with Libbey Inc., the
“Note Guarantors”) from time to time parties hereto and THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., a national banking association, as Trustee (the “Trustee”).




          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, each party hereto covenants and agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of all Holders of (i) the Company’s 10% Senior Secured Notes due
2015 issued on the date hereof (the “Initial Securities”), (ii) if and when issued, an
unlimited principal amount of additional 10% Senior Secured Notes, Series A, due 2015 in a
non-registered offering or 10% Senior Secured Notes, Series B, due 2015 in a registered offering of
the Company, which may be offered from time to time subsequent to the Issue Date (the
“Additional Securities”), and (iii) if and when issued, the Company’s 10% Senior Secured
Notes, Series B, due 2015 that may be issued from time to time in exchange for Initial Securities
or any Additional Securities in an offer registered under the Securities Act as provided in a
Registration Rights Agreement (as hereinafter defined) (the “Exchange Securities”; together
with the Initial Securities and Additional Securities, the “Securities”).




ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE




          SECTION
1.1. Definitions.




          “Acquired Indebtedness” means Indebtedness (i) of a Person or any of its Subsidiaries
existing at the time such Person is merged with or into or becomes a Restricted Subsidiary of the
Company or (ii) assumed in connection with the acquisition of assets from such Person, in each case
whether or not Incurred by such Person in connection with, or in anticipation or contemplation of,
such Person merging into, or becoming a Restricted Subsidiary of the Company or such acquisition.
Acquired Indebtedness shall be deemed to have been Incurred, with respect to clause (i) of the
preceding sentence, on the date such Person becomes a Restricted Subsidiary and, with respect to
clause (ii) of the preceding sentence, on the date of consummation of such acquisition of assets.




          “Added Historical Amount” means the special charges in the amounts and for periods set
forth in and described in “Management’s Discussion and Analysis of Financial Condition and Results
of Operations—Overview—Special Charges” in the Offering Memorandum, but only to the extent such
special charges occurred in the consecutive four-quarter reference period referred to in the
definition of Consolidated Coverage Ratio.




          “Additional Assets” means:





     (1) any property, plant or equipment or other asset (excluding working capital for the
avoidance of doubt) to be used by the Company or a Restricted Subsidiary in a Related
Business;



 









 






     (2) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or




     (3) Capital Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary;


provided, however, that, in the case of clauses (2) and (3), such Restricted Subsidiary is
primarily engaged in a Related Business.




          “Additional Securities” has the meaning ascribed to it in the second introductory
paragraph of this Indenture.




          “Affiliate” of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any Person means
the possession, directly or indirectly, of the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; provided that exclusively for purposes of Section 3.8, beneficial ownership of
10% or more of the Voting Stock of a Person shall be deemed to be control. For purpose of this
definition, terms “controlling” and “controlled” have meanings correlative to the
foregoing.




          “Asset Disposition” means any direct or indirect sale, lease (other than an operating
lease entered into in the ordinary course of business), transfer, issuance or other disposition, or
a series of related sales, leases, transfers, issuances or dispositions that are part of a common
plan, of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each referred to for the purposes of this definition as a
“disposition”) by the Company or any of its Restricted Subsidiaries, including any
disposition by means of a merger, consolidation or similar transaction.




          Notwithstanding the preceding, the following items shall not be deemed to be Asset
Dispositions:





     (1) a disposition of assets by a Restricted Subsidiary to the Company or by the Company
or a Restricted Subsidiary to a Restricted Subsidiary;




     (2) the sale of Cash Equivalents in the ordinary course of business;




     (3) a disposition of inventory or products or a sale of services in the ordinary course
of business;




     (4) a disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of the Company and its Restricted Subsidiaries and
that is disposed of in each case in the ordinary course of business;




     (5) transactions permitted under Section 4.1;



-2-









 






     (6) an issuance of Capital Stock by a Restricted Subsidiary to the Company or by a
Restricted Subsidiary to a Restricted Subsidiary (other than a Receivables Entity);




     (7) for purposes of Section 3.5 only, the making of a Permitted Investment
(other than a Permitted Investment to the extent such transaction results in the receipt of
cash or Cash Equivalents by the Company or its Restricted Subsidiaries) or a disposition
subject to Section 3.3;




     (8) sales of accounts receivable and related assets or an interest therein;




     (9) dispositions of assets or issuance or sale of Capital Stock of any Restricted
Subsidiary in any transaction or series of related transactions with an aggregate fair
market value of less than $2.5 million (with unused amounts in any calendar year being
carried over to the next succeeding calendar year subject to a maximum of $5 million in such
next succeeding calendar year);




     (10) the creation of a Permitted Lien and dispositions in connection with Permitted
Liens;




     (11) dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;




     (12) the issuance by a Restricted Subsidiary of Preferred Stock that is permitted by
Section 3.2;




     (13) the licensing or sublicensing of intellectual property or other general
intangibles and licenses, leases, subleases or assignments of other property in the ordinary
course of business;




     (14) any sale of Capital Stock, Indebtedness or other securities of an Unrestricted
Subsidiary (with the exception of Investments in Unrestricted Subsidiaries acquired pursuant
to clause (11) or (13) of the definition of “Permitted Investments” or clause (14) of the
second paragraph of Section 3.3);




     (15) the sale of any property built or acquired by the Company or any Restricted
Subsidiary after the Issue Date in a Sale/Leaseback Transaction within three months of the
construction or acquisition of such property;




     (16) foreclosure, condemnation or similar action on assets; and




     (17) the sale, transfer or assignment of assets of a Foreign Subsidiary (including
Capital Stock) to a joint venture; provided that the aggregate fair market value of such
assets shall not exceed $75.0 million;


provided that for purposes of this definition of “Asset Disposition” the fair market value of
property or assets shall be determined by the Board of Directors of the Company in good faith, if
less






-3-









 







than $25.0 million and if greater than or equal to $25.0 million, such determination shall be made
by an Independent Financial Advisor.




          “Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as at
the time of determination, the present value (discounted at the interest rate implicit in the
transaction) of the total obligations of the lessee for net rental payments during the remaining
term of the lease included in such Sale/Leaseback Transaction (including any period for which such
lease has been extended), determined in accordance with GAAP; provided, however, that if such
Sale/Leaseback Transaction results in a Capitalized Lease Obligation, the amount of Indebtedness
represented thereby will be determined in accordance with the definition of “Capitalized Lease
Obligations.”




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




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




          “Board of Directors” means, as to any Person, the board of directors or managers, as
applicable, of such Person or any duly authorized committee thereof.




          “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of a Person to have been duly adopted by the Board of Directors of such Person
and to be in full force and effect on the date of such certification, and delivered to the Trustee.




          “Borrowing Base” means, as of the date of determination, an amount equal to the sum,
without duplication of (1) 85% of the net book value of the Company’s and its Restricted
Subsidiaries’ accounts receivable at such date and (2) 65% of the net book value of the Company’s
and its Restricted Subsidiaries’ inventory at such date. Net book value shall be determined in
accordance with GAAP and shall be calculated using amounts reflected on the most recent available
balance sheet (it being understood that the accounts receivable and inventories of an acquired
business may be included if such acquisition has been completed on or prior to the date of
determination).




          “Business Day” means each day that is not a Saturday, Sunday or other day on which
banking institutions in New York, New York, Chicago, Illinois or a place of payment under this
Indenture are authorized or required by law to close.




          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock and limited liability or partnership






-4-









 







interests (whether general or limited), but excluding any debt securities convertible into
such equity.




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




          “Cash Equivalents” means:





     (1) U.S. dollars, or in the case of the Company or any Foreign Subsidiary, such local
currencies held by it from time to time in the ordinary course of business;




     (2) securities issued or directly and fully guaranteed or insured by the U.S.
Government or any agency or instrumentality of the United States (provided that the full
faith and credit of the U.S. Government is pledged in support thereof), having maturities of
not more than one year from the date of acquisition;




     (3) marketable general obligations issued by any state of the United States of America
or any political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition of the United States (provided that
the full faith and credit of the United States is pledged in support thereof) and, at the
time of acquisition, having a credit rating of “A” or better from either Standard & Poor’s
Ratings Services or Moody’s Investors Service, Inc.;




     (4) certificates of deposit, time deposits, eurodollar time deposits, overnight bank
deposits or bankers’ acceptances having maturities of not more than one year from the date
of acquisition thereof issued by any commercial bank having combined capital and surplus in
excess of $500.0 million;




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




     (6) commercial paper rated at the time of acquisition thereof at least “A-2” or the
equivalent thereof by Standard & Poor’s Ratings Services or “P-2” or the equivalent thereof
by Moody’s Investors Service, Inc., or carrying an equivalent rating by a nationally
recognized rating agency, if both of the two named rating agencies cease publishing ratings
of investments, and in any case maturing within one year after the date of acquisition
thereof; and




     (7) interests in any investment company or money market fund that invests 95% or more
of its assets in instruments of the type specified in clauses (1) through (6) above.



-5-









 





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





     (1) the consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any “person” or “group” of related persons (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act) becomes the beneficial
owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person
or group shall be deemed to have “beneficial ownership” of all shares that any such person
or group has the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 50% of the total voting
power of the Voting Stock of the Company or the Parent (or its successor by merger,
consolidation or purchase of all or substantially all of its assets) (for the purposes of
this clause, such person or group shall be deemed to beneficially own any Voting Stock of
the Company or the Parent held by a parent entity, if such person or group “beneficially
owns” (as defined above), directly or indirectly, more than 50% of the voting power of the
Voting Stock of such parent entity); or




     (2) the sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Parent or the Company and its Restricted Subsidiaries
taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) other than the Parent, the Company or any of its Restricted Subsidiaries; or




     (3) the adoption by the stockholders of the Company or the Parent of a plan or proposal
for the liquidation or dissolution of the Company or the Parent.



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




          “Collateral” means all property and tangible and intangible assets, whether now owned
or hereafter acquired, in which Liens are, from time to time, granted to secure the Securities and
the Note Guarantees pursuant to the Collateral Documents. The “Collateral” as of the Issue Date
shall not include any owned real property that is held for sale at the Issue Date.




          “Collateral Agent” means The Bank of New York Mellon Trust Company, N.A., acting as
the collateral agent for the holders of the Securities, the Trustee and any holders of Pari Passu
Secured Indebtedness (including any agent therefor) under the Collateral Documents.




          “Collateral Documents” means the Mortgages, security agreements, pledge agreements,
agency agreements and other instruments and documents executed and delivered pursuant to this
Indenture or any of the foregoing, as the same may be amended, supplemented or otherwise modified
from time to time and pursuant to which Collateral is pledged, assigned or granted to or on behalf
of the Collateral Agent for the ratable benefit of the holders of the Securities and the Trustee
and the holders of any Pari Passu Secured Indebtedness or notice of such pledge, assignment or
grant is given.




          “Commodity Agreement” means any commodity futures contract, commodity option or other
similar agreement or arrangement entered into by the Company or any Restricted






-6-









 







Subsidiary designed to protect the Company or any of its Restricted Subsidiaries against
fluctuations in the price of commodities actually used in the ordinary course of business of the
Company and its Restricted Subsidiaries.




          “Common Stock” means with respect to any Person, any and all shares, interests or
other participations in, and other equivalents (however designated and whether voting or nonvoting)
of such Person’s common stock whether or not outstanding on the Issue Date, and includes, without
limitation, all series and classes of such common stock.




          “Company” means Libbey Glass Inc., or its successors and assigns.




          “Consolidated Coverage Ratio” means as of any date of determination, with respect to
any Person, the ratio of (x) the aggregate amount of Consolidated EBITDA of such Person for the
period of the most recent four consecutive fiscal quarters ending prior to the date of such
determination for which financial statements are in existence to (y) Consolidated Interest Expense
for such four fiscal quarters, provided, however, that:




          (1) if the Company or any Restricted Subsidiary:





     (a) has Incurred any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction giving rise
to the need to calculate the Consolidated Coverage Ratio is an Incurrence of
Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such period
will be calculated after giving effect on a pro forma basis to such Indebtedness as
if such Indebtedness had been Incurred on the first day of such period (except that
in making such computation, the amount of Indebtedness under any revolving credit
facility outstanding on the date of such calculation will be deemed to be (i) the
average daily balance of such Indebtedness during such four fiscal quarters or such
shorter period for which such facility was outstanding or (ii) if such facility was
created after the end of such four fiscal quarters, the average daily balance of
such Indebtedness during the period from the date of creation of such facility to
the date of such calculation) and the discharge of any other Indebtedness repaid,
repurchased, defeased or otherwise discharged with the proceeds of such new
Indebtedness as if such discharge had occurred on the first day of such period; or




     (b) has repaid, repurchased, defeased or otherwise discharged any Indebtedness
since the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case other
than Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and the related commitment terminated),
Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving effect on a pro forma basis to such discharge of such
Indebtedness, including with the proceeds of such new Indebtedness, as if such
discharge had occurred on the first day of such period;



-7-









 






     (2) if since the beginning of such period the Company or any Restricted Subsidiary will
have made any Asset Disposition or disposed of any company, division, operating unit,
segment, business, group of related assets or line of business or if the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio is such an Asset Disposition:




     (a) the Consolidated EBITDA for such period will be reduced by an amount equal
to the Consolidated EBITDA (if positive) directly attributable to the assets that
are the subject of such disposition for such period or increased by an amount equal
to the Consolidated EBITDA (if negative) directly attributable thereto for such
period; and




     (b) Consolidated Interest Expense for such period will be reduced by an amount
equal to the Consolidated Interest Expense directly attributable to any Indebtedness
of the Company or any Restricted Subsidiary repaid, repurchased, defeased or
otherwise discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such disposition for such period (or, if the Capital
Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period directly attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Company and its continuing Restricted Subsidiaries are no longer
liable for such Indebtedness after such sale);




     (3) if since the beginning of such period the Company or any Restricted Subsidiary (by
merger or otherwise) will have made an Investment in any Restricted Subsidiary (or any
Person that becomes a Restricted Subsidiary or is merged with or into the Company) or an
acquisition of assets, including any acquisition of assets occurring in connection with a
transaction causing a calculation to be made hereunder, which constitutes all or
substantially all of a company, division, operating unit, segment, business, group of
related assets or line of business, Consolidated EBITDA and Consolidated Interest Expense
for such period will be calculated after giving pro forma effect thereto (including the
Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first
day of such period;




     (4) 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) will have Incurred any Indebtedness or discharged any
Indebtedness, made any disposition or any Investment or acquisition of assets that would
have required an adjustment pursuant to clause (1), (2) or (3) above if made by the Company
or a Restricted Subsidiary during such period, Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving pro forma effect thereto as if such
transaction occurred on the first day of such period; and




     (5) any Person that is a Restricted Subsidiary on the date of determination will be
deemed to have been a Restricted Subsidiary at all times during such four-quarter period and
any Person that is not a Restricted Subsidiary on the date of determination will



-8-









 






be deemed not to have been a Restricted Subsidiary at any time during such four-quarter
period.



          For purposes of this definition, whenever pro forma effect is to be given to any calculation
under this definition, the pro forma calculations will be determined in good faith by a responsible
financial or accounting officer of the Company (including pro forma expense and cost reductions
calculated on a basis consistent with Regulation S-X under the Securities Act). If any
Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest
expense on such Indebtedness will be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement has a remaining term
in excess of 12 months). If any Indebtedness that is being given pro forma effect bears an
interest rate at the option of the Company, the interest rate shall be calculated by applying such
optional rate chosen by the Company.




          “Consolidated EBITDA” for any period means, without duplication, the Consolidated Net
Income for such period, plus the following to the extent deducted in calculating such Consolidated
Net Income:





     (1) Consolidated Interest Expense; plus




     (2) Consolidated Income Taxes; plus




     (3) consolidated depreciation expense; plus




     (4) impairment charges, asset write-offs or acquisition costs recorded in accordance
with GAAP; plus




     (5) any expenses or charges related to any Equity Offering, Permitted Investment,
acquisition, recapitalization or Indebtedness permitted to be incurred under this Indenture
(in each case whether or not consummated), deducted in such period in computing Consolidated
Net Income; plus or minus




     (6) any fees, expenses or charges Incurred in connection with the Transactions; plus




     (7) the amount of any restructuring charges or reserves (including retention,
severance, systems establishment cost, pension settlement or curtailment charges, contract
termination costs, future lease commitments, and costs to consolidate facilities and
relocate employees) deducted in such period in computing Consolidated Net Income; plus




     (8) any net after-tax income or loss from discontinued operations and any net after-tax
gains or losses on disposal of discontinued operations; plus




     (9) Receivables Fees to the extent deducted in calculating Consolidated Net Income for
such period; plus



-9-









 






     (10) any extraordinary expenses and charges Incurred by the Company or any of its
Restricted Subsidiaries; plus




     (11) net after-tax gains or losses (less all fees and expenses or charges relating
thereto) attributable to the early extinguishment of Indebtedness; plus or minus




     (12) unrealized gains or losses relating to hedging transactions and mark-to-market
Indebtedness denominated in foreign currencies resulting from the application of GAAP; plus




     (13) non-cash compensation charges, including any such non-cash charges arising from
stock options, restricted stock grants or other equity incentive programs; plus




     (14) the Added Historical Amount; plus




     (15) other non-cash charges reducing Consolidated Net Income (excluding any such
non-cash charge to the extent it represents an accrual of or reserve for cash charges in any
future period or amortization of a prepaid cash expense that was paid in a prior period not
included in the calculation); less




     (16) non-cash items increasing Consolidated Net Income of such Person for such period
(excluding any items which represent the reversal of any accrual of, or reserve for,
anticipated cash charges made in any prior period and excluding the accrual of revenue in
the ordinary course of business).



          Notwithstanding the preceding sentence, clauses (2) through (11) relating to amounts of a
Restricted Subsidiary of a Person will be added to Consolidated Net Income to compute Consolidated
EBITDA of such Person only to the extent (and in the same proportion) that the net income (loss) of
such Restricted Subsidiary was included in calculating the Consolidated Net Income of such Person
and, to the extent the amounts set forth in clauses (2) through (11) are in excess of those
necessary to offset a net loss of such Restricted Subsidiary or if such Restricted Subsidiary has
net income for such period included in Consolidated Net Income, only if a corresponding amount
would be permitted at the date of determination to be dividended to the Company by such Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its
charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its stockholders.




          “Consolidated Income Taxes” means, with respect to any Person for any period, taxes
imposed upon such Person or other payments required to be made by such Person by any governmental
authority which taxes or other payments are calculated by reference to the income or profits of
such Person or such Person and its Restricted Subsidiaries (to the extent such income or profits
were included in computing Consolidated Net Income for such period), regardless of whether such
taxes or payments are required to be remitted to any governmental authority.







-10-









 








          “Consolidated Interest Expense” means, for any period, the total interest expense of
the Company and its consolidated Restricted Subsidiaries, whether paid or accrued, plus, to the
extent not included in such interest expense:





     (1) interest expense attributable to Capitalized Lease Obligations and the interest
portion of rent expense associated with Attributable Indebtedness in respect of the relevant
lease giving rise thereto, determined as if such lease were a capitalized lease in
accordance with GAAP and the interest component of any deferred payment obligations;




     (2) amortization of debt discount, debt issuance cost or deferred financing costs
(provided that any amortization of bond premium will be credited to reduce Consolidated
Interest Expense unless, pursuant to GAAP, such amortization of bond premium has otherwise
reduced Consolidated Interest Expense);




     (3) non-cash interest expense;




     (4) commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing;




     (5) the interest expense on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person
or one of its Restricted Subsidiaries;




     (6) costs associated with Hedging Obligations (including amortization of fees)
provided, however, that if Hedging Obligations result in net benefits rather than costs,
such benefits shall be credited to reduce Consolidated Interest Expense unless, pursuant to
GAAP, such net benefits are otherwise reflected in Consolidated Net Income;




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




     (8) the product of (a) all dividends paid or payable, in cash, Cash Equivalents or
Indebtedness or accrued during such period on any series of Disqualified Stock of such
Person or on Preferred Stock of its Restricted Subsidiaries that are not Subsidiary
Guarantors payable to a party other than the Company or a Restricted Subsidiary, times (b) a
fraction, the numerator of which is one and the denominator of which is one minus the then
current combined federal, state, provincial and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance with GAAP.



          For the purpose of calculating the Consolidated Coverage Ratio, the calculation of
Consolidated Interest Expense shall include all interest expense (including any amounts described
in clauses (1) through (8) above) relating to any Indebtedness of the Company or any Restricted
Subsidiary described in the final paragraph of the definition of “Indebtedness.”




          For purposes of the foregoing, total interest expense will be determined (i) after giving
effect to any net payments made or received by the Company and its Subsidiaries with






-11-









 







respect to Interest Rate Agreements and (ii) exclusive of amounts classified as other
comprehensive income in the balance sheet of the Company. Notwithstanding anything to the contrary
contained herein, commissions, discounts, yield and other fees and charges Incurred in connection
with any transaction pursuant to which the Company or its Restricted Subsidiaries may sell, convey
or otherwise transfer or grant a security interest in any accounts receivable or related assets
shall be included in Consolidated Interest Expense.




          “Consolidated Net Income” means, for any period, the net income (loss) of the Company
and its consolidated Restricted Subsidiaries determined in accordance with GAAP; provided, however,
that there will not be included in such Consolidated Net Income:




     (1) any net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that:



     (a) subject to the limitations contained in clauses (3), (4) and (5) below, the
Company’s equity in the net income of any such Person for such period will be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a dividend
or other distribution to a Restricted Subsidiary, to the limitations contained in
clause (2) below); and




     (b) the Company’s equity in a net loss of any such Person (other than an
Unrestricted Subsidiary) for such period will be included in determining such
Consolidated Net Income only to the extent such loss has been funded with cash from
the Company or a Restricted Subsidiary;




     (2) solely for the purpose of determining the amounts set forth in clause (4)(c) of
Section 3.3 any net income (but not loss) of any Restricted Subsidiary if such
Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends
or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the
Company, except that:




     (a) subject to the limitations contained in clauses (3), (4) and (5) below and
subject, in the case of a dividend to another Restricted Subsidiary, to the
limitation contained in this clause (2), the Company’s equity in the net income of
any such Restricted Subsidiary for such period will be included in such Consolidated
Net Income up to the aggregate amount of cash (x) that could have been distributed
by such Restricted Subsidiary during such period to the Company or another
Restricted Subsidiary as a dividend, for purposes of the calculation of Consolidated
EBITDA and (y) that actually is paid in cash or converted into cash, for purposes of
calculating clause (c)(i) of Section 3.3; and




     (b) the Company’s equity in a net loss of any such Restricted Subsidiary for
such period will be included in determining such Consolidated Net Income;



-12-









 






     (3) any gain (loss) realized upon the sale or other disposition of any property, plant
or equipment of the Company or its consolidated Restricted Subsidiaries (including pursuant
to any Sale/Leaseback Transaction) that is not sold or otherwise disposed of in the ordinary
course of business and any gain (loss) realized upon the sale or other disposition of any
Capital Stock of any Person;




     (4) effects of adjustments in any line item in any Person’s consolidated financial
statements pursuant to GAAP resulting from the application of purchase accounting in
relation to any consummated acquisition;




     (5) after-tax effect of nonrecurring restructuring, closure, plant consolidation or
similar charges relating to property, plant and equipment acquired in future acquisitions
that are contemplated at the time of and incurred within 12 months of the closing of such
transaction;




     (6) any extraordinary gain or loss; and




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



          Any amounts distributed or otherwise transferred to Parent pursuant to clause (9) of the
second paragraph of Section 3.3, without duplication of any amounts otherwise deducted in
calculating Consolidated Net Income, the funds for which are provided by the Company and/or its
Restricted Subsidiaries, shall be deducted in calculating the Consolidated Net Income of the
Company and its Restricted Subsidiaries.




          “Credit Agreement Priority Collateral” has the meaning assigned to the term “ABL
Priority Collateral” in the Intercreditor Agreement.




          “Credit Facility” means, with respect to the Company or any Subsidiary Guarantor or
any Restricted Subsidiary that is a Foreign Subsidiary, one or more debt facilities (including,
without limitation, the Senior Secured Credit Agreement) or commercial paper facilities with banks
or other institutional lenders providing for revolving credit loans, term loans, receivables
financing (including through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of credit, in each case, as
amended, restated, modified, renewed, refunded, replaced (whether upon or after termination or
otherwise) or refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time (and whether or not with the original
administrative agent and lenders or another administrative agent or agents or other lenders and
whether provided under the original Senior Secured Credit Agreement or any other credit or other
agreement or indenture).




          “Currency Agreement” means in respect of a Person any foreign exchange contract,
currency swap agreement, futures contract, option contract or other similar agreement as to which
such Person is a party or a beneficiary.




          “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.







-13-









 








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




          “Definitive Securities” means certificated Securities.




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




          “Discharge of Credit Agreement Obligations” means the date on which the Lenders Debt
has been paid in full, in cash, all commitments to extend credit thereunder shall have been
terminated and the Lenders Debt is no longer secured by the Credit Agreement Priority Collateral;
provided that the Discharge of Credit Agreement Obligations shall not be deemed to have occurred in
connection with a refinancing of such Lenders Debt with Indebtedness secured by such Credit
Agreement Priority Collateral on a first-priority basis under an agreement that has been designated
as a Credit Facility in writing by the administrative agent under the Credit Facility so
refinancing the Senior Secured Credit Agreement in accordance with the terms of the Intercreditor
Agreement.



          “Disqualified Stock” means, with respect to any Person, any Capital Stock of such
Person that by its terms (or by the terms of any security into which it is convertible or for which
it is exchangeable) or upon the happening of any event:





     (1) matures or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;




     (2) is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding
Capital Stock that is convertible or exchangeable solely at the option of the Company or a
Restricted Subsidiary); or




     (3) is redeemable at the option of the holder of the Capital Stock in whole or in part,


in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Securities or (b) on which there are no Securities outstanding, provided
that only the portion of Capital Stock that so matures or is mandatorily redeemable, is so
convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such
date will be deemed to be Disqualified Stock; provided further that any Capital Stock that would
constitute Disqualified Stock solely because the holders thereof have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a change of control or asset sale
(each defined in a substantially similar manner to the corresponding definitions in this Indenture)
shall not constitute Disqualified Stock if the terms of such Capital Stock (and all such securities
into which it is convertible or for which it is ratable or exchangeable) provide that the Company
may not repurchase or redeem any such Capital Stock (and all such
securities into which it is convertible






-14-









 







or for which it is ratable or exchangeable) pursuant to such provision prior to compliance
by the Company with Section 3.5 and Section 3.11 of this Indenture and such
repurchase or redemption complies with Section 3.3.




          “DTC” means The Depository Trust Company, its nominees and their respective successors
and assigns, or such other depository institution hereinafter appointed by the Company.




          “Environmental Law” means the Comprehensive Environmental Response, Compensation and
Liability Act, as amended (“CERCLA”), the Resource Conservation and Recovery Act of 1976, as
amended, and any other applicable federal, state, local, or foreign statute, rule, regulation,
order, judgment, directive, decree, permit, license or common law as in effect now, previously, or
at any time during the term of this Indenture, and regulating or imposing liability or standards of
conduct concerning air emissions, water discharges, noise emissions, the release or threatened
release or discharge ‘of any Hazardous Material into the environment, the use, manufacture,
production, refinement, generation, handling, treatment, storage, transport or disposal of any
Hazardous Material or otherwise concerning pollution or the protection of the outdoor or indoor
environment, or human health or safety in relation to exposure to Hazardous Materials.




          “Equity Offering” means a public offering for cash by the Company or the Parent, as
the case may be, of its Common Stock, or options, warrants or rights with respect to its Common
Stock, other than (x) public offerings with respect to the Company’s or the Parent’s, as the case
may be, Common Stock, or options, warrants or rights, registered on Form S-4 or S-8, (y) an
issuance to any Subsidiary or (z) any offering of Common Stock issued in connection with a
transaction that constitutes a Change of Control.




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




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




          “Exchange Securities” has the meaning ascribed to it in the second introductory
paragraph of this Indenture.




          “Foreign Assets” means the aggregate assets held by, or related to, the Foreign
Subsidiaries of the Company determined in accordance with GAAP as disclosed in the financial
statements or in the footnotes to the financial statements of the Company most recently made
available in accordance with this Indenture.




          “Foreign Subsidiary” means any Restricted Subsidiary that is not organized under the
laws of the United States of America or any state thereof or the District of Columbia and any
Subsidiary of such Restricted Subsidiary.




          “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time, including those set forth in the
opinions and pronouncements






-15-









 







of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as approved by a significant segment of the accounting
profession. All ratios and computations based on GAAP contained in this Indenture will be computed
in conformity with GAAP, except that in the event the Company is acquired in a transaction in which
purchase accounting is applied to the Company’s financial statements, the effects of the
application of purchase accounting in such instance shall be disregarded in the calculation of such
ratios and other computations.




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





     (1) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or
by agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise); or




     (2) entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided, however, that the term “Guarantee” will not include
endorsements for collection or deposit in the ordinary course of business. The term
“Guarantee” used as a verb has a corresponding meaning.



          “Guarantor Pari Passu Indebtedness” means Indebtedness of a Subsidiary Guarantor that
ranks equally in right of payment to its Subsidiary Guarantee.



          “Guarantor Subordinated Obligation” means, with respect to a Subsidiary Guarantor, any
Indebtedness of such Subsidiary Guarantor (whether outstanding on the Issue Date or thereafter
Incurred) that is expressly subordinated in right of payment to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee, including the Guarantees of the Private Placement Notes,
pursuant to a written agreement, without giving effect to collateral arrangements.




          “Hazardous Materials” means any pollutant, contaminant or hazardous, toxic, medical,
biohazardous, or dangerous waste, substance, constituent or material regulated as such pursuant to
any applicable Environmental Law, including, without limitation, any asbestos, any petroleum, oil
(including crude oil or any fraction thereof), any radioactive substance, any polychlorinated
biphenyls, any toxin, chemical, disease-causing agent or pathogen, and any other substance that
gives rise to liability under any applicable Environmental Law.




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




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







-16-









 








          “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act.




          “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for;
provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such
person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise)
will be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary; and
the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.




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





     (1) the principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;




     (2) the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;




     (3) the principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates
to a trade payable or similar obligation to a trade creditor in each case incurred in the
ordinary course of business);




     (4) the principal component of all obligations of such Person to pay the deferred and
unpaid purchase price of property (except trade payables), which purchase price is due more
than six months after the date of placing such property in service or taking delivery and
title thereto;




     (5) Capitalized Lease Obligations and all Attributable Indebtedness of such Person;




     (6) the principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any Disqualified Stock of
the Company or a Restricted Subsidiary or Preferred Stock of a Subsidiary that is not a
Subsidiary Guarantor (but excluding, in each case, any accrued dividends);




     (7) the principal component of all Indebtedness of other Persons secured by a Lien on
any asset of such Person, whether or not such Indebtedness is assumed by such Person;
provided, however, that the amount of such Indebtedness will be the lesser of (a) the fair
market value of such asset at such date of determination and (b) the amount of such
Indebtedness of such other Persons;




     (8) the principal component of Indebtedness of other Persons to the extent Guaranteed
by such Person;



-17-









 






     (9) to the extent not otherwise included in this definition, net obligations of such
Person under Hedging Obligations (the amount of any such obligations to be equal at any time
to the termination value of such agreement or arrangement giving rise to such obligation
that would be payable by such Person at such time); and




     (10) to the extent not otherwise included in this definition, the principal amount of
any Indebtedness outstanding in connection with a securitization transaction is the amount
of obligations outstanding under the legal documents entered into as part of such
securitization that would be characterized as principal on any date of determination if such
securitization transaction were structured as a secured lending transaction.



          The amount of Indebtedness of any Person at any date will be the outstanding balance at such
date of all unconditional obligations as described above and the maximum liability, upon the
occurrence of the contingency giving rise to the obligation, of any contingent obligations at such
date; provided that contingent obligations arising in the ordinary course of business and not with
respect of borrowed money shall be deemed not to constitute Indebtedness. Notwithstanding the
foregoing, money borrowed and set aside at the time of the Incurrence of any Indebtedness in order
to pre-fund the payment of interest on such Indebtedness shall not be deemed to be “Indebtedness”;
provided that such money is held to secure the payment of such interest.




          In addition, “Indebtedness” of any Person shall include Indebtedness described in the
preceding paragraph that would not appear as a liability on the balance sheet of such Person if:





     (1) such Indebtedness is the obligation of a partnership or joint venture that is not a
Restricted Subsidiary (a “Joint Venture”);




     (2) such Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture (a “General Partner”); and




     (3) there is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted Subsidiary of such
Person; and then such Indebtedness shall be included in an amount not to exceed:




     (a) the lesser of (i) the net assets of the General Partner and (ii) the amount
of such obligations to the extent that there is recourse, by contract or operation
of law, to the property or assets of such Person or a Restricted Subsidiary of such
Person; or




     (b) if less than the amount determined pursuant to clause (a) immediately
above, the actual amount of such Indebtedness that is recourse to such Person or a
Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a writing
and is for a determinable amount.



          “Indenture” means this Indenture as amended or supplemented from time to time.







-18-









 








          “Independent Financial Advisor” means an accounting, appraisal or investment banking
firm or consultant 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.




          “Initial Purchasers” means, together, Barclays Capital Inc., Banc of America
Securities LLC and CJS Securities Inc.




          “Initial Securities” has the meaning ascribed to it in the second introductory
paragraph of this Indenture.




          “Intercreditor Agreement” means the Intercreditor Agreement, dated as of the date
hereof, by and among J.P. Morgan Chase Bank, N.A., in its capacity as administrative agent under
the Senior Secured Credit Agreement, the holders of any Pari Passu Secured Indebtedness from time
to time (or any agent or representative on their behalf), the Trustee, the Collateral Agent, the
Company and the Note Guarantors.




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




          “Investment” means, with respect to any Person, all investments by such Person in
other Persons (including Affiliates) in the form of any direct or indirect advance, loan (other
than advances or extensions of credit to customers in the ordinary course of business) or other
extensions of credit (including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition of Capital
Stock, Indebtedness or other similar instruments issued by, such Person and all other items that
are or would be classified as investments on a balance sheet prepared in accordance with GAAP;
provided that none of the following will be deemed to be an Investment:





     (1) Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture;




     (2) endorsements of negotiable instruments and documents in the ordinary course of
business; and




     (3) an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock of
the Company or the Parent.




     For purposes of Section 3.3,




     (1) “Investment” will include the portion (proportionate to the Company’s equity
interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of



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the fair market value of the net assets of such Restricted Subsidiary at the time that
such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that
upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company will be
deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an
amount (if positive) equal to (a) the Company’s “Investment” in such Subsidiary at the time
of such redesignation less (b) the portion (proportionate to the Company’s equity interest
in such Subsidiary) of the fair market value of the net assets (as conclusively determined
by the Board of Directors of the Company in good faith) of such Subsidiary at the time that
such Subsidiary is so redesignated a Restricted Subsidiary;




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




     (3) if the Company or any Restricted Subsidiary sells or otherwise disposes of any
Voting Stock of any Restricted Subsidiary such that, after giving effect to any such sale or
disposition, such entity is no longer a Subsidiary of the Company, the Company shall be
deemed to have made an Investment on the date of any such sale or disposition equal to the
fair market value (as conclusively determined by the Board of Directors of the Company in
good faith) of the Capital Stock of such Subsidiary not sold or disposed of.



          “Issue Date” means February 8, 2010.




          “Joint Venture” means any Person, other than an individual or a Subsidiary of the
Company, (i) in which the Company or a Restricted Subsidiary holds or acquires a security interest
(whether by way of Capital Stock or otherwise) and (ii) which is engaged in a Related Business.




          “Legal Holiday” has the meaning ascribed to it under Section 12.8.




          “Lenders Debt” means any (i) Indebtedness outstanding from time to time under the
Senior Secured Credit Agreement, (ii) any Indebtedness which has a first-priority security interest
in the Credit Agreement Priority Collateral (subject to Permitted Liens), and (iii) all cash
management Obligations and related banking services and Hedging Obligations incurred with any agent
or lender under the Senior Secured Credit Agreement (or their Affiliates).




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




          “Mortgages” means the mortgages, deeds of trust, deeds to secure Indebtedness or other
similar documents securing Liens on the Premises, as well as the other Collateral secured by and
described in the mortgages, deeds of trust, deeds to secure Indebtedness or other similar
documents.







-20-









 








          “Net Available Cash” from an Asset Disposition means cash payments received (including
any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and net proceeds from the sale or other disposition of any
securities received as consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring person of Indebtedness or other
obligations relating to the properties or assets that are the subject of such Asset Disposition or
received in any other non-cash form) therefrom, in each case net of:





     (1) all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all Federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing agreements),
as a consequence of such Asset Disposition;




     (2) all payments made on any Indebtedness that is secured by any assets subject to such
Asset Disposition, in accordance with the terms of any Lien upon or any other security
agreement of any kind with respect to such assets, or that must by its terms, or in order to
obtain a necessary consent to such Asset Disposition, or by applicable law be repaid out of
the proceeds from such Asset Disposition;




     (3) all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and




     (4) the deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the property or other assets
disposed of in such Asset Disposition and retained by the Company or any Restricted
Subsidiary after such Asset Disposition.



          “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the
cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other
fees and charges actually Incurred in connection with such issuance or sale and net of taxes paid
or payable as a result of such issuance or sale (after taking into account any available tax credit
or deductions and any tax sharing arrangements); provided that the cash proceeds of an Equity
Offering by Parent shall not be deemed Net Cash Proceeds, except to the extent such cash proceeds
are contributed to the Company.




          “Non-Conforming Plan of Reorganization” means any plan of reorganization that grants
any Noteholder Secured Party any right or benefit, directly or indirectly, which right or benefit
is prohibited at such time by the provisions of the Intercreditor Agreement.




          “Non-Guarantor Restricted Subsidiary” means any Restricted Subsidiary that is not a
Subsidiary Guarantor.







-21-









 








          “Non-Recourse Debt” means Indebtedness of a Person:





     (1) as to which neither the Company nor any Restricted Subsidiary (a) provides any
Guarantee or credit support of any kind (including any undertaking, guarantee, indemnity,
agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly
liable (as a guarantor or otherwise);




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




     (3) the explicit terms of which provide there is no recourse against any of the assets
of the Company or its Restricted Subsidiaries, except that Standard Securitization
Undertakings shall not be considered recourse.



          “Non-U.S. Person” means a Person who is not a U.S. Person (as defined in Regulation
S).




          “Note Guarantee” means, individually, any Guarantee of payment of the Securities and
Exchange Securities issued in a registered Exchange Offer pursuant to the Registration Rights
Agreement by a Note Guarantor pursuant to the terms of this Indenture and any supplemental
indenture thereto, and, collectively, all such Note Guarantees. Each such Note Guarantee will be
in the form prescribed by this Indenture.




          “Note Guarantor” has the meaning ascribed to it in the introductory paragraph of this
Indenture.




          “Notes Priority Collateral” has the meaning assigned to the term “Notes Priority
Collateral” in the Intercreditor Agreement.




          “Noteholder Secured Parties” means the Trustee, Collateral Agent, each Holder of the
Securities and each other Holder of, or obligee in respect of, any Obligations in respect of the
Securities outstanding at such time.




          “Obligations” means any principal, interest (including any interest accruing
subsequent to the filing of a petition in bankruptcy, reorganization or similar proceeding at the
rate provided for in the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable state, federal or foreign law), penalties, fees, indemnifications,
reimbursements (including, without limitation, reimbursement obligations with respect to letters of
credit and bankers’ acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities, payable under the documentation governing any Indebtedness, Hedging Obligations or
cash management and related banking services.







-22-









 








          “Offering Memorandum” means the Offering Memorandum dated as of January 28, 2010
relating to the offering of the Securities.




          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company or,
if the Company is a partnership or a limited liability company that has no such officers, a person
duly authorized under applicable law by the general partner, managers, members or a similar body to
act on behalf of the Company. Officer of any Note Guarantor has a correlative meaning.




          “Officers’ Certificate” means a certificate signed by two Officers or by an Officer
and either an Assistant Treasurer or an Assistant Secretary of the Company.




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




          “Parent” means Libbey Inc., a Delaware corporation, or any successor thereto.




          “Parent Common Stock” means the common stock, par value $ .01 per share of the Parent.




          “Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to
the Securities (without giving effect to collateral arrangements).




          “Pari Passu Secured Indebtedness” means any Indebtedness of the Company or any Note
Guarantor that ranks pari passu in right of payment with the Securities or the relevant Note
Guarantee and is secured by a Lien on the Collateral that has the same priority as the Lien
securing the Securities and that is designated in writing as such by the Company to the Trustee and
the holders of which enter into an appropriate agency agreement with the Collateral Agent.




          “Permitted Asset Swap” means any transfer of property or assets by the Company or any
of its Restricted Subsidiaries in which at least 90% of the consideration received by the
transferor consists of properties or assets (other than cash and Investments) that will be used in
a Related Business; provided that the aggregate fair market value of the property or assets being
transferred by the Company or such Restricted Subsidiary is not greater than the aggregate fair
market value of the property or assets received by the Company or such Restricted Subsidiary in
such exchange (provided, however, that in the event such aggregate fair market value of the
property or assets being transferred or received by the Company is (x) less than $25.0 million,
such determination shall be made in good faith by the Board of Directors of the Company and (y)
greater than or equal to $25.0 million, such determination shall be made by an Independent
Financial Advisor).







-23-









 








          “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary
in:





     (1) a Restricted Subsidiary or a Person that will, upon the making of such Investment,
become a Restricted Subsidiary; provided, however, that the primary business of such
Restricted Subsidiary (other than a Receivables Entity) is a Related Business;




     (2) another Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its assets to,
the Company or a Restricted Subsidiary (other than a Receivables Entity); provided, however,
that such Person’s primary business is a Related Business;




     (3) cash and Cash Equivalents;




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




     (5) payroll, travel and similar advances to cover matters that are expected at the time
of such advances ultimately to be treated as expenses for accounting purposes and that are
made in the ordinary course of business;




     (6) loans or advances to employees of the Company and its Restricted Subsidiaries, (i)
the proceeds of which are used to purchase Capital Stock of the Company or the Parent (to
the extent such proceeds are actually received by the Company or the Parent), or (ii) made
in the ordinary course of business consistent with past practices of the Company or such
Restricted Subsidiary in an aggregate amount at any one time outstanding not to exceed $5.0
million (loans or advances that are forgiven shall continue to be deemed outstanding);




     (7) Capital Stock, obligations or securities received in settlement of debts created in
the ordinary course of business and owing to the Company or any Restricted Subsidiary or in
satisfaction of judgments or pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of a debtor;




     (8) Investments made as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 3.5;




     (9) Investments in existence on the Issue Date and any modification, replacement,
renewal, or extension thereof; provided, however, that the amount of such Investment may be
increased (x) as required by the terms of such Investment as in existence on the Issue Date
or (y) as otherwise permitted under this Indenture;



-24-









 






     (10) Currency Agreements, Interest Rate Agreements, Commodity Agreements and related
Hedging Obligations, which transactions or obligations are Incurred in compliance with
Section 3.2;




     (11) Investments by the Company or any of its Restricted Subsidiaries, together with
all other Investments pursuant to this clause (11), in an aggregate amount at the time of
such Investment not to exceed the greater of (a) $20.0 million or (b) 2.5% of Total Assets
outstanding at any one time (with the fair market value of such Investment being measured at
the time made and without giving effect to subsequent changes in value);




     (12) Guarantees issued in accordance with Section 3.2;




     (13) Investments by the Company or a Restricted Subsidiary in a Receivables Entity or
any Investment by a Receivables Entity in any other Person, in each case, in connection with
a Receivables securitization transaction, provided, however, that any Investment in any such
Person is in the form of a purchase money note, or any equity interest or interests in
Receivables and related assets generated by the Company or a Restricted Subsidiary and
transferred to any Person in connection with a Receivables securitization transaction or any
such Person owning such Receivables;




     (14) Investments consisting of licensing of intellectual property pursuant to joint
marketing arrangements with other Persons;




     (15) Investments in Joint Ventures of the Company or any of its Restricted Subsidiaries
not to exceed $40.0 million at any time outstanding (with the fair market value of such
Investment being measured at the time made and without giving effect to subsequent changes
in value); provided, however, that the aggregate amount of all such Investments made by the
Company and its Restricted Subsidiaries (other than Foreign Subsidiaries) shall not exceed
$25.0 million at any time outstanding;




     (16) Investments the payment for which consists of Capital Stock of the Company or the
Parent (exclusive of Disqualified Stock);




     (17) guarantees (including Guarantees) of Indebtedness permitted under Section
3.2 and performance guarantees in the ordinary course of business;




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




     (19) Investments resulting from the receipt of non-cash consideration in an Asset
Disposition received in compliance with Section 3.5;


provided that for purposes of this definition of “Permitted Investment” the fair market value of
any property or assets shall be determined by the Board of Directors of Company in good faith, if
less than $25.0 million and if greater than or equal to $25.0 million, such determination shall be
made by an Independent Financial Advisor.







-25-









 








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





     (1) Liens securing Indebtedness and other obligations under the Senior Secured Credit
Agreement, Hedging Obligations owing to agents or lenders under the Senior Secured Credit
Agreement (or their Affiliates) and related banking services and cash management Obligations
owing to agents or lenders under the Senior Secured Credit Agreement (or their Affiliates)
and Liens on assets of Restricted Subsidiaries securing Guarantees of Indebtedness and other
Obligations of the Company and/or Libbey Europe B.V. under the Senior Secured Credit
Agreement permitted to be Incurred under this Indenture, provided that (i) in the case of
any such Liens granted by the Company or the Note Guarantors on any Notes Priority
Collateral, such Liens secure the notes and the Note Guarantees on at least a first-priority
basis and (ii) in the case of any such Liens granted by the Company or the Note Guarantors
on any Credit Agreement Priority Collateral, such Liens secure the notes and the Note
Guarantees on at least a second-priority basis (other than Foreign Assets or Capital Stock
which by the terms of the Collateral Documents is expressly permitted to be subject to a
Lien securing Lenders Debt without also being subject to a Lien securing the notes and the
Note Guarantees);




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




     (3) Liens imposed by law, including carriers’, warehousemen’s, mechanics’,
materialmen’s and repairmen’s Liens, Incurred in the ordinary course of business;




     (4) Liens for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or that are being contested in good faith by appropriate
proceedings provided appropriate reserves required pursuant to GAAP have been made in
respect thereof;




     (5) Liens in favor of issuers of surety or performance bonds or letters of credit or
bankers’ acceptances issued pursuant to the request of and for the account of such Person in
the ordinary course of its business;




     (6) survey exceptions, encumbrances, ground leases, easements or reservations of, or
rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other restrictions
(including, without limitation, minor defects or irregularities in title and similar
encumbrances) 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 that do not in the aggregate
materially adversely affect the value of said properties or materially impair their use in
the



-26-









 






operation of the business of such Person; provided that the Person complies with the
applicable provisions of the Collateral Documents relating to such Liens;




     (7) Liens securing 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 Obligation;




     (8) leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) that do not materially interfere
with the ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;




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




     (10) Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capitalized Lease Obligations, purchase money obligations or other payments
Incurred to finance the acquisition, lease, improvement or construction of, assets or
property acquired or constructed in the ordinary course of business; provided that:




     (a) the Incurrence of the aggregate principal amount of Indebtedness secured by
such Liens is otherwise permitted to be Incurred under this Indenture and does not
exceed the cost of the assets or property so acquired or constructed; and




     (b) such Liens are created within 180 days of construction or acquisition of
such assets or property and do not encumber any other assets or property of the
Company or any Restricted Subsidiary other than such assets or property and assets
affixed or appurtenant thereto;




     (11) Liens arising solely by virtue of any statutory or common law provisions relating
to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts
or other funds maintained with a depositary institution;




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




     (13) Liens existing on the Issue Date (other than Liens permitted under clause (1));




     (14) Liens on property or shares of stock of a Person at the time such Person is merged
into or consolidated with the Company or becomes a Restricted Subsidiary; provided, however,
that any such Lien may not extend to any other property owned by the Company or any
Restricted Subsidiary;



-27-









 






     (15) 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, however, that such Liens may not extend to
any other property owned by the Company or any Restricted Subsidiary;




     (16) Liens in favor of the Company or any Restricted Subsidiary;




     (17) Liens securing the Securities and Subsidiary Guarantees;




     (18) Liens securing Refinancing Indebtedness Incurred to refinance, refund, replace,
amend, extend or modify, as a whole or in part, Indebtedness that was previously so secured;
provided that any such Lien is limited to all or part of the same property or assets (plus
improvements, accessions, proceeds or dividends or distributions in respect thereof) that
secured (or, under the written arrangements under which the original Lien arose, could
secure) the Indebtedness being refinanced or is in respect of property that is the security
for a Permitted Lien hereunder;




     (19) any interest or title of a lessor under any Capitalized Lease Obligation or
operating lease;




     (20) Liens under industrial revenue, municipal or similar bonds;




     (21) Liens securing Indebtedness (other than Subordinated Obligations and Guarantor
Subordinated Obligations) in an aggregate principal amount outstanding at any one time not
to exceed $25.0 million; and




     (22) Liens securing Indebtedness and other obligations of Foreign Subsidiaries that are
Incurred in accordance with Section 3.2; provided that any such Lien may not extend
to any property of the Company or any Restricted Subsidiary that is not a Foreign
Subsidiary.



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




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




          “QIB” means any “qualified institutional buyer” as such term is defined in Rule 144A.




          “Rating Agencies” means Standard & Poor’s Ratings Group, Inc. and Moody’s Investors
Service, Inc. or if Standard & Poor’s Ratings Group, Inc. or Moody’s Investors Service, Inc. or
both shall not make a rating on the Securities publicly available, a nationally






-28-









 







recognized statistical rating agency or agencies, as the case may be, selected by the Company (as
certified by a resolution of the Board of Directors) which shall be substituted for Standard &
Poor’s Ratings Group, Inc. or Moody’s Investors Service, Inc. or both, as the case may be.




          “Receivable” means a right to receive payment arising from a sale or lease of goods or
the performance of services by a Person pursuant to an arrangement with another Person pursuant to
which such other Person is obligated to pay for goods or services under terms that permit the
purchase of such goods and services on credit and shall include, in any event, any items of
property that would be classified as an “account,” “chattel paper,” “payment intangible” or
“instrument” under the Uniform Commercial Code as in effect in the State of New York and any
“supporting obligations” as so defined.




          “Receivables Entity” means a Wholly-Owned Subsidiary (or another Person in which the
Company or any Restricted Subsidiary makes an Investment and to which the Company or any Restricted
Subsidiary transfers Receivables and related assets) which engages in no activities other than in
connection with the financing of Receivables and which is designated by the Board of Directors of
the Company (as provided below) as a Receivables Entity:





     (1) no portion of the Indebtedness or any other obligations (contingent or otherwise)
of which:




     (a) is guaranteed by the Company or any Restricted Subsidiary (excluding
guarantees of obligations (other than the principal of, and interest on,
Indebtedness) pursuant to Standard Securitization Undertakings);




     (b) is recourse to or obligates the Company or any Restricted Subsidiary in any
way other than pursuant to Standard Securitization Undertakings; or




     (c) subjects any property or asset of the Company or any Restricted Subsidiary,
directly or indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings;




     (2) with which neither the Company nor any Restricted Subsidiary has any material
contract, agreement, arrangement or understanding other than on terms no less favorable to
the Company or such Restricted Subsidiary than those that might be obtained at the time from
Persons that are not Affiliates of the Company, other than fees payable in the ordinary
course of business in connection with servicing Receivables; and




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



          Any such designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors of
the Company giving effect to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.







-29-









 








          “Receivables Fees” means any fees or interest paid to purchasers or lenders providing
the financing in connection with a securitization transaction, factoring agreement or other similar
agreement, including any such amounts paid by discounting the face amount of Receivables or
participations therein transferred in connection with a securitization transaction, factoring
agreement or other similar arrangement, regardless of whether any such transaction is structured as
on-balance sheet or off-balance sheet or through a Restricted Subsidiary or an Unrestricted
Subsidiary.




          “Redemption Date” means, with respect to any redemption of Securities, the date of
redemption with respect thereto.




          “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance,
replace, exchange, renew, repay or extend (including pursuant to any defeasance or discharge
mechanism) (collectively, “refinance,” “refinances” and “refinanced” shall
have a correlative meaning) any Indebtedness existing on the Issue Date or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances Indebtedness of any
Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that refinances Indebtedness of
another Restricted Subsidiary) including Indebtedness that refinances Refinancing Indebtedness,
provided, however, that:





     (1) (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the
Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the Stated
Maturity of the Indebtedness being refinanced is later than the Stated Maturity of the
Securities, the Refinancing Indebtedness has a Stated Maturity at least 91 days later than
the Stated Maturity of the Securities;




     (2) the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;




     (3) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to or less than
the sum of the aggregate principal amount (or if issued with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being refinanced (plus,
without duplication, any additional Indebtedness Incurred to pay interest or premiums
required by the instruments governing such existing Indebtedness and fees Incurred in
connection therewith); and




     (4) if the Indebtedness being refinanced is subordinated in right of payment to the
Securities or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated in
right of payment to the Securities or the Subsidiary Guarantee on terms at least as
favorable to the Holders as those contained in the documentation governing the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded.



          “Registration Rights Agreement” means that certain registration rights agreement dated
as of the Issue Date by and among the Company, the Note Guarantors and the Initial






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Purchasers set forth therein and, with respect to any Additional Securities, one or more
substantially similar registration rights agreements among the Company and the other parties
thereto, as such agreements may be amended from time to time.




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




          “Related Business” means any business that is the same as or related, ancillary or
complementary to any of the businesses of the Company and its Restricted Subsidiaries, on the Issue
Date.




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




          “Restricted Period,” with respect to any Securities, means the period of 40
consecutive days beginning on and including the later of (A) the day on which the Securities are
first offered to Persons other than distributors (as defined in Regulation S), notice of which day
shall be promptly given by the Company to the Trustee, and (B) the issue date with respect to such
Securities.




          “Restricted Securities Legend” means the Private Placement Legend set forth in
Section 2.1(d)(A) or the Regulation S Legend set forth in Section 2.1(d)(B), as
applicable.




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




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




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




          “SEC” means the United States Securities and Exchange Commission.




          “Securities” has the meaning ascribed to it in the second introductory paragraph of
this Indenture.




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




          “Securities Custodian” means the custodian with respect to the Global Securities (as
appointed by DTC), or any successor Person thereto and shall initially be the Trustee.




          “Securities Documents” means this Indenture, the Securities, the Note Guarantees, the
Collateral Documents and the Intercreditor Agreement.




          “Securities Register” means the register of Securities, maintained by the Registrar,
pursuant to Section 2.3.







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          “Senior Secured Credit Agreement” means the Amended and Restated Credit Agreement to
be entered into among the Company, Libbey Europe B.V., a Netherlands corporation, the other Loan
Parties party thereto, J.P. Morgan Securities Inc., as sole lead arranger and bookrunner, JPMorgan
Chase Bank, N.A., as Administrative Agent, and the lenders parties thereto from time to time, as
the same may be amended, restated, modified, renewed, refunded, replaced (whether upon termination
or otherwise) or refinanced in whole or in part from time to time (including increasing the amount
loaned thereunder; provided that such additional Indebtedness is Incurred in accordance with
Section 3.2; provided that a Senior Secured Credit Agreement shall not (x) include
Indebtedness issued, created or Incurred pursuant to a registered offering of securities under the
Securities Act or a private placement of securities (including under Rule 144A or Regulation S)
pursuant to an exemption from the registration requirements of the Securities Act or (y) relate to
Indebtedness that does not consist exclusively of Pari Passu Indebtedness or Guarantor Pari Passu
Indebtedness or Indebtedness of a Foreign Subsidiary.




          “Senior Secured Credit Agreement Obligations” means Indebtedness outstanding under the
Senior Secured Credit Agreement that is secured by a Permitted Lien described in clause (1) of the
definition thereof, and all other obligations (not constituting Indebtedness) of the Company or any
Note Guarantor under the Senior Secured Credit Agreement.




          “Shelf Registration Statement” shall have the meaning set forth in the Registration
Rights Agreement.




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




          “Standard Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Company or any Restricted Subsidiary that are reasonably
customary in securitization of Receivables transactions.




          “Stated Maturity” means, with respect to any Indebtedness, the date specified in the
agreement governing or certificate relating to such Indebtedness as the fixed date on which the
final payment of principal of such security is due and payable, including pursuant to any mandatory
redemption provision, but shall not include any contingent obligations to repay, redeem or
repurchase any such principal prior to the date originally scheduled for the payment thereof.




          “Subordinated Obligation” means any Indebtedness of the Company (whether outstanding
on the Issue Date or thereafter Incurred) that is subordinated or junior in right of payment to the
Securities pursuant to a written agreement, without giving effect to collateral arrangements.




          “Subsidiary” of any Person means (a) 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 ordinary voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof (or persons performing similar functions) or (b) any partnership, joint






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venture limited liability company or similar entity of which more than 50% of the capital
accounts, distribution rights, total equity and voting interests or general or limited partnership
interests, as applicable, is, in the case of clauses (a) and (b), at the time owned or controlled,
directly or indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such
Person or (3) one or more Subsidiaries of such Person. Unless otherwise specified herein, each
reference to a Subsidiary will refer to a Subsidiary of the Company.




          “Subsidiary Guarantee” means, individually, any Guarantee of payment of the Securities
and Exchange Securities issued in an Exchange Offer by a Subsidiary Guarantor pursuant to the terms
of this Indenture and any supplemental indenture hereto (which shall be substantially in the form
of Exhibit C), and, collectively, all such Guarantees. Each such Subsidiary Guarantee will be in
the form prescribed by this Indenture.




          “Subsidiary Guarantor” means each Restricted Subsidiary in existence on the Issue Date
that provides a Subsidiary Guarantee on the Issue Date (and any other Restricted Subsidiary that
provides a Subsidiary Guarantee in accordance with this Indenture); provided that upon release or
discharge of such Restricted Subsidiary from its Subsidiary Guarantee in accordance with this
Indenture, such Restricted Subsidiary ceases to be a Subsidiary Guarantor.




          “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as in
effect on the date of this Indenture.




          “Total Assets” means, with respect to any Person, the total assets of such Person and
its Restricted Subsidiaries determined in accordance with GAAP, as shown on its most recent balance
sheet.




          “Transactions” means the issuance and sale of the notes, the refinancing of certain
existing Indebtedness, the entering into of the new Senior Secured Credit Agreement and payment of
fees and expenses related to each of the foregoing.




          “Trust Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, who has direct responsibility for the administration
of this Indenture or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have direct responsibility
for the administration of this Indenture.




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




          “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from
time to time.




          “Unrestricted Subsidiary” means:




     (1) any Subsidiary of the Company that at the time of determination shall be designated
an Unrestricted Subsidiary by the Board of Directors of the Company in the manner provided
below; and



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          (2) Subsidiary of an Unrestricted Subsidiary.




          The Board of Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary through merger or
consolidation or Investment therein) to be an Unrestricted Subsidiary only if:





     (1) such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of, any
other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary;




     (2) all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and will at all times thereafter, consist of Non-Recourse Debt;




     (3) such designation and the Investment of the Company in such Subsidiary complies with
Section 3.3;




     (4) such Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially all of the
business of the Company and its Subsidiaries;




     (5) such Subsidiary is a Person with respect to which neither the Company nor any of
its Restricted Subsidiaries has any direct or indirect obligation:




     (a) to subscribe for additional Capital Stock of such Person; or




     (b) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results; and




     (6) on the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or understanding with the
Company or any Restricted Subsidiary with terms substantially less favorable to the Company
than those that might have been obtained from Persons who are not Affiliates of the Company.



          Any such designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a resolution of the Board of Directors of the Company giving
effect to such designation and an Officers’ Certificate certifying that such designation complies
with the foregoing conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the
foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary
shall be deemed to be Incurred as of such date.




          The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing or would occur as a





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consequence thereof and the Company could Incur at least $1.00 of additional Indebtedness
pursuant to the first paragraph of Section 3.2 on a pro forma basis taking into account
such designation.




          “U.S. Government Obligations” 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 of the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also include a depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of principal of or interest
on any such U.S. Government Obligations held by such custodian for the account of the holder of
such depositary 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 depositary receipt from any
amount received by the custodian in respect of the U.S. Government Obligations or the specific
payment of principal of or interest on the U.S. Government Obligations evidenced by such depositary
receipt.




          “Voting Stock” of a Person means all classes of Capital Stock of such Person then
outstanding and normally entitled to vote in the election of directors, managers or trustees, as
applicable, of such Person.




          “Wholly-Owned Subsidiary” means a Restricted Subsidiary, all of the Capital Stock of
which (other than directors’ qualifying shares) is owned by the Company or another Wholly-Owned
Subsidiary.




          SECTION 1.2. Other Definitions.




	 	 	 
	Term	 	Defined in Section
	“Additional Restricted Securities”
	 	2.1(b)
	“Affiliate Transaction”
	 	3.8
	“Agent”
	 	3.14
	“Agent Members”
	 	2.1(e)
	“Asset Disposition Offer”
	 	3.5
	“Asset Disposition Offer Amount”
	 	3.5
	“Asset Disposition Offer Period”
	 	3.5
	“Asset Disposition Purchase Date”
	 	3.5
	“Authenticating Agent”
	 	2.2
	“Change of Control Offer”
	 	3.11
	“Change of Control Payment”
	 	3.11
	“Change of Control Payment Date”
	 	3.11
	“Company Order”
	 	2.2
	“covenant defeasance option”
	 	8.1(b)
	“cross-acceleration provision”
	 	6.1(6)(b)
	“Defaulted Interest”
	 	2.13






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	Term	 	Defined in Section
	“Event of Default”
	 	6.1
	“Excess Proceeds”
	 	3.5
	“Exchange Global Note”
	 	2.1(b)
	“Global Securities”
	 	2.1(b)
	“Guarantor Obligations”
	 	10.1
	“Institutional Accredited Investor Global Note”
	 	2.1(b)
	“Institutional Accredited Investor Notes”
	 	2.1(b)
	“legal defeasance option”
	 	8.1(b)
	“Pari Passu Notes”
	 	3.5
	“payment default”
	 	6.1(6)(a)
	“Paying Agent”
	 	2.3
	“Private Placement Legend”
	 	2.1(d)
	“protected purchaser”
	 	2.9
	“Registrar”
	 	2.3
	“Regulation S Global Note”
	 	2.1(b)
	“Regulation S Legend”
	 	2.1(d)
	“Regulation S Notes”
	 	2.1(b)
	“Resale Restriction Termination Date”
	 	2.6(a)
	“Restricted Payment”
	 	3.3
	“Restricted Securities”
	 	2.1(a)
	“Rule 144A Global Note”
	 	2.1(b)
	“Rule 144A Notes”
	 	2.1(b)
	“Special Interest Payment Date”
	 	2.13(a)
	“Special Record Date”
	 	2.13(a)
	“Successor Company”
	 	4.1






          SECTION 1.3. Incorporation by Reference of Trust Indenture Act. This Indenture is
subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:




          “Commission” means the SEC.




          “indenture securities” means the Securities.




          “indenture security holder” means a Holder.




          “indenture to be qualified” means this Indenture.




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





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



-36-









 





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




          SECTION 1.4. 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) “including” means including without limitation;




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




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




     (6) the principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater;




     (7) all amounts expressed in this Indenture or in any of the Securities in terms of
money refer to the lawful currency of the United States of America; and




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



ARTICLE II

THE SECURITIES




          SECTION 2.1. Form, Dating and Terms.




          (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Initial Securities issued on the date hereof will be in an
aggregate principal amount of $400,000,000. In addition, the Company may issue, from time to time
in accordance with the provisions of this Indenture, Additional Securities and Exchange Securities.
Furthermore, Securities may be authenticated and delivered upon registration or transfer, or in
lieu of, other Securities pursuant to Section 2.6, 2.9, 2.11, 5.8
or 9.5 or in connection with a Change of Control Offer pursuant to Section 3.11 or
an Asset Disposition Offer under Section 3.5.




          The Initial Securities shall be known and designated as “10% Senior Secured Notes, Series A,
due 2015” of the Company. Additional Securities issued as securities bearing one of the
restrictive legends described under Section 2.1(d) (“Restricted Securities”) shall
be






-37-









 







known and designated as “10% Senior Secured Notes, Series A, due 2015” of the Company.
Additional Securities issued other than as Restricted Securities shall be known and designated as
“10% Senior Secured Notes, Series B, due 2015” of the Company, and Exchange Securities shall be
known and designated as “10% Senior Secured Notes, Series B, due 2015” of the Company.




          With respect to any Additional Securities, the Company shall set forth in (a) a Board
Resolution of the Company and (b) (i) an Officers’ Certificate or (ii) one or more indentures
supplemental hereto, the following information:





     (1) the aggregate principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture which may be in an unlimited aggregate principal
amount;




     (2) the issue price and the issue date of such Additional Securities, including the
date from which interest shall accrue; and




     (3) whether such Additional Securities shall be Restricted Securities issued in the
form of Exhibit A hereto and/or shall be issued in the form of Exhibit B hereto.



          The Initial Securities, the Additional Securities and the Exchange Securities shall be
considered collectively as a single class for all purposes of this Indenture. Holders of the
Initial Securities, the Additional Securities and the Exchange Securities will vote and consent
together on all matters to which such Holders are entitled to vote or consent as one class, and
none of the Holders of the Initial Securities, the Additional Securities or the Exchange Securities
shall have the right to vote or consent as a separate class on any matter to which such Holders are
entitled to vote or consent.




          If any of the terms of any Additional Securities are established by action taken pursuant to a
Board Resolution of the Company, a copy of an appropriate record of such action shall be certified
by the Secretary or any Assistant Secretary of the Company and delivered to the Trustee upon
request by the Trustee at or prior to the delivery of the Officers’ Certificate or the indenture
supplemental hereto setting forth the terms of the Additional Securities.




          (b) The Initial Securities are being offered and sold by the Company pursuant to a Purchase
Agreement, dated January 28, 2010, among the Company and the Initial Purchasers. The Initial
Securities and any Additional Securities (if issued as Restricted Securities) (the “Additional
Restricted Securities”) will be resold initially only to (A) QIBs in reliance on Rule 144A and
(B) Non-U.S. Persons in reliance on Regulation S. Such Initial Securities and Additional
Restricted Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance
on Regulation S and IAIs in accordance with Rule 501 of the Securities Act, in each case, in
accordance with the procedures described herein. Additional Securities offered after the date
hereof may be offered and sold by the Company from time to time pursuant to one or more purchase
agreements in accordance with applicable law.




          Initial Securities and Additional Restricted Securities offered and sold to QIBs in the United
States of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the
form of a permanent global Security, without interest coupons, substantially in the form of






-38-









 







Exhibit A, which is hereby incorporated by reference and made a part of this Indenture,
including appropriate legends as set forth under Section 2.1(d) (the “Rule 144A Global
Note”), deposited with the Trustee, as custodian for DTC, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Rule 144A Global Note may be represented
by more than one certificate, if so required by DTC’s rules regarding the maximum principal amount
to be represented by a single certificate. The aggregate principal amount of the Rule 144A Global
Note may from time to time be increased or decreased by adjustments made on the Rule 144A Global
Note and on the records of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.




          Initial Securities and Additional Securities offered and sold outside the United States of
America (the “Regulation S Notes”) in reliance on Regulation S shall be issued in the form
of a permanent global Security, without interest coupons, substantially in the form of Exhibit A
including appropriate legends as set forth under Section 2.1(d) (the “Regulation S
Global Note”). The Regulation S Global Note will be deposited upon issuance with the Trustee,
as custodian for DTC, duly executed by the Company and authenticated by the Trustee as hereinafter
provided. During the Restricted Period, interests in the Regulation S Global Note may be
transferred to Non-U.S. Persons pursuant to Regulation S or to QIBs and IAIs in accordance with
this Indenture. The Regulation S Global Note may be represented by more than one certificate, if
so required by DTC’s rules regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Regulation S Global Note may from time to time
be increased or decreased by adjustments made on the Regulation S Global Note and on the records of
the Trustee, as custodian for DTC or its nominee, as hereinafter provided.




          Initial Securities and Additional Securities resold to IAIs (the “Institutional Accredited
Investor Notes”) in the United States of America shall be issued in the form of a permanent
global Security, without interest coupons, substantially in the form of Exhibit A including
appropriate legends as set forth under Section 2.1(d) (the “Institutional Accredited
Investor Global Note”) deposited with the Trustee, as custodian for DTC, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The Institutional Accredited
Investor Global Note may be represented by more than one certificate, if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single certificate. The aggregate
principal amount of the Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the Institutional Accredited Investor Note and on the
records of the Trustee, as custodian for DTC or its nominee, as hereinafter provided.




          Exchange Securities exchanged for interests in the Rule 144A Notes, the Regulation S Notes and
the Institutional Accredited Investor Notes will be issued in the form of a permanent global
Security, without interest coupons, substantially in the form of Exhibit B, which is hereby
incorporated by reference and made a part of this Indenture, deposited with the Trustee as
hereinafter provided, including the appropriate legend set forth under Section 2.1(d) (the
“Exchange Global Note”). The Exchange Global Note will be deposited upon issuance with, or
on behalf of, the Trustee as custodian for DTC, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The Exchange Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal amount to be represented
by a single certificate.







-39-









 








          The Rule 144A Global Note, the Regulation S Global Note, the Institutional Accredited Investor
Global Note and the Exchange Global Note are sometimes collectively herein referred to as the
“Global Securities.”




          The principal of (and premium, if any) and interest on the Securities shall be payable at the
office or agency of the Company maintained for such purpose in the Borough of Manhattan, The City
of New York, State of New York, or at such other office or agency of the Company as may be
maintained for such purpose pursuant to Section 2.3; provided, however, that, at the option
of the Company, each installment of interest may be paid by (i) check mailed to addresses of the
Persons entitled thereto as such addresses shall appear on the Securities Register or (ii) wire
transfer to an account located in the United States maintained by the payee. Payments in respect
of Securities represented by a Global Security (including principal, premium, if any, and interest)
will be made by wire transfer of immediately available funds to the accounts specified by DTC.
Payments in respect of Securities represented by Definitive Securities (including principal,
premium, if any, and interest) held by a Holder of at least $1,000,000 aggregate principal amount
of Securities represented by Definitive Securities will be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder elects payment by
wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).




          The Securities may have notations, legends or endorsements required by law, stock exchange
rule or usage, in addition to those set forth on Exhibit A and Exhibit B and under
Section 2.1(d). The Company and the Trustee shall approve the forms of the Securities and
any notation, endorsement or legend on them. Each Security shall be dated the date of its
authentication. The terms of the Securities set forth in Exhibit A and Exhibit B
are part of the terms of this Indenture and, to the extent applicable, the Company and the Trustee
by their execution and delivery of this Indenture, expressly agree to be bound by such terms.




          (c) Denominations. The Securities shall be issuable only in fully registered form,
without interest coupons, and in minimum denominations of $2,000 and integral multiples of $1,000
in excess thereof.




          (d) Restrictive Legends. Unless and until (i) an Initial Security is sold under an
effective registration statement or (ii) an Initial Security is exchanged for an Exchange Security
in connection with an effective registration statement, in each case pursuant to the Registration
Rights Agreement or a similar agreement,




     (A) The Rule 144A Global Note and the Institutional Accredited Investor Global Note
shall bear the following legend (the “Private Placement Legend”) on the face
thereof:





THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED,



-40-









 






TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT
HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,
ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BECOME OR BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED
INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH
AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, (F) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (G) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E), (F) OR (G) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.



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     (B) The Regulation S Global Note shall bear the following legend (the “Regulation S
Legend”) on the face thereof:




THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION, AND MAY NOT BE OFFERED, SOLD OR DELIVERED IN THE UNITED STATES
OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY US PERSON, UNLESS SUCH NOTES ARE
REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS THEREOF IS AVAILABLE. THIS LEGEND WILL BE REMOVED AFTER THE
EXPIRATION OF FORTY DAYS FROM THE LATER OF (i) THE DATE ON WHICH THESE NOTES
WERE FIRST OFFERED AND (ii) THE DATE OF ISSUE OF THESE NOTES.THE HOLDER OF
THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON
BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) THAT IS 40 DAYS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR
SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER
THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED
INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (F)



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PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. BY
ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT IT IS NOT A U.S.
PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS ACQUIRING
THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S
UNDER THE SECURITIES ACT.




     (C) Each Global Security, whether or not an Initial Security, shall bear the following
legend on the face thereof:




UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
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.




TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR’S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.



          (e) Book-Entry Provisions.




          (i) This Section 2.1(e) shall apply only to Global Securities deposited with the
Trustee, as custodian for DTC.







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          (ii) Each Global Security initially shall (x) be registered in the name of DTC or the nominee
of DTC, (y) be delivered to the Trustee as custodian for DTC and (z) bear legends as set forth
under Section 2.1(d).




          (iii) Members of, or participants in, DTC (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by DTC or by the Trustee as
the custodian of DTC or under such Global Security, and DTC may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Security
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by DTC or impair, as between DTC and its
Agent Members, the operation of customary practices of DTC governing the exercise of the rights of
a Holder of a beneficial interest in any Global Security.




          (iv) In connection with any transfer of a portion of the beneficial interest in a Global
Security pursuant to subsection (f) of this Section 2.1 to beneficial owners who are
required to hold Definitive Securities, the Securities Custodian shall reflect on its books and
records the date and a decrease in the principal amount of such Global Security in an amount equal
to the principal amount of the beneficial interest in the Global Security to be transferred, and
the Company shall execute, and the Trustee shall authenticate and make available for delivery, one
or more Definitive Securities of like tenor and amount.




          (v) In connection with the transfer of an entire Global Security to beneficial owners pursuant
to subsection (f) of this Section 2.1, such Global Security shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall
authenticate and make available for delivery, to each beneficial owner identified by DTC in
exchange for its beneficial interest in such Global Security, an equal aggregate principal amount
of Definitive Securities of authorized denominations.




          (vi) The registered Holder of a Global Security may grant proxies and otherwise authorize any
person, including Agent Members and persons that may hold interests through Agent Members, to take
any action which a Holder is entitled to take under this Indenture or the Securities.




          (vii) Any Holder of a Global Security shall, by acceptance of such Global Security, agree that
transfers of beneficial interests in such Global Security may be effected only through a book-entry
system maintained by (a) the Holder of such Global Security (or its agent) or (b) any Holder of a
beneficial interest in such Global Security, and that ownership of a beneficial interest in such
Global Security shall be required to be reflected in a book entry.




          (f) Definitive Securities. (a) Except as provided below, owners of beneficial
interests in Global Securities will not be entitled to receive Definitive Securities. If required
to do so pursuant to any applicable law or regulation, beneficial owners may obtain Definitive
Securities in exchange for their beneficial interests in a Global Security upon written request in
accordance with DTC’s and the Registrar’s procedures. In addition, Definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in a Global
Security if (A) DTC notifies the Company at any time that it is unwilling or unable to continue as






-44-









 







depositary for such Global Security or DTC ceases to be a clearing agency registered under the
Exchange Act, at a time when DTC is required to be so registered in order to act as depositary, and
in each case a successor depositary is not appointed by the Company within 90 days of such notice
or (B) the Company in its sole discretion executes and delivers to the Trustee and Registrar an
Officers’ Certificate stating that such Global Security shall be so exchangeable or (C) an Event of
Default has occurred and is continuing and the Registrar has received a request from DTC. In the
event of the occurrence of any of the events specified in clause (A), (B) or (C) of the preceding
sentence, the Company shall promptly make available to the Trustee a reasonable supply of
Definitive Securities in fully registered form without interest coupons.




          (i) Any Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(e)(iv) or (v) shall, except as otherwise provided by
Section 2.6(c), bear the applicable legend regarding transfer restrictions applicable to
the Definitive Security set forth under Section 2.1(d).




          (ii) In connection with the exchange of a portion of a Definitive Security for a beneficial
interest in a Global Security, the Trustee shall cancel such Definitive Security, and the Company
shall execute, and the Trustee shall authenticate and make available for delivery, to the
transferring Holder a new Definitive Security representing the principal amount not so transferred.




          (g) OID Legend. Each Security issued with “original issue discount” as defined in
Section 1273 of the Code, whether an Initial Security, Additional Security or Exchange Security,
shall bear the following legend on the face thereof:





THIS SECURITY WAS ISSUED WITH “ORIGINAL ISSUE DISCOUNT” AS DEFINED IN SECTION 1273
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. YOU MAY OBTAIN INFORMATION
REGARDING THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE PRICE, THE ISSUE DATE AND
THE YIELD TO MATURITY BY CONTACTING THE CHIEF FINANCIAL OFFICER OF LIBBEY GLASS
INC. AT 300 MADISON AVENUE, P.O. BOX 10060, TOLEDO, OHIO 43699-0060, OR AT (419)
325-2100.



          SECTION 2.2. Execution and Authentication. One Officer shall sign the Securities for
the Company by manual or facsimile signature. If an Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security, the Security shall be
valid nevertheless.




          A Security shall not be valid until an authorized signatory of the Trustee manually
authenticates the Security. The signature of the Trustee on a Security shall be conclusive
evidence that such Security has been duly and validly authenticated and issued under this
Indenture. A Security shall be dated the date of its authentication.




          At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Securities for original
issue on the Issue Date in an aggregate principal amount of $400,000,000, (2) subject to






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the terms of this Indenture, Additional Securities for original issue in an unlimited
principal amount and (3) Exchange Securities for issue only in an Exchange Offer or upon resale
under an effective Shelf Registration Statement, and only in exchange for Initial Securities or
Additional Securities of an equal principal amount, in each case upon a written order of the
Company signed by one Officer of the Company (the “Company Order”). Such Company Order
shall specify whether the Securities will be in the form of Definitive Securities or Global
Securities, the amount of the Securities to be authenticated and the date on which the original
issue of Securities is to be authenticated and whether the Securities are to be Initial Securities,
Additional Securities or Exchange Securities.




          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to
the Company to authenticate the Securities. Any such appointment shall be evidenced by an
instrument signed by a Trust Officer, a copy of which shall be furnished to the Company. Unless
limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee
includes authentication by the Authenticating Agent. An Authenticating Agent has the same rights
as any Registrar, Paying Agent or agent for service of notices and demands.




          In case the Company, pursuant to Article IV, shall be consolidated or merged with or
into any other Person or shall convey, transfer, lease or otherwise dispose of its properties and
assets substantially as an entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have been merged, or the
Person which shall have received a conveyance, transfer, lease or other disposition as aforesaid,
shall have executed an indenture supplemental hereto with the Trustee pursuant to Article
IV, any of the Securities authenticated or delivered prior to such consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the request of the
successor Person, be exchanged for other Securities executed in the name of the successor Person
with such changes in phraseology and form as may be appropriate, but otherwise in substance of like
tenor as the Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Order of the successor Person, shall authenticate and make available for
delivery Securities as specified in such order for the purpose of such exchange. If Securities
shall at any time be authenticated and delivered in any new name of a successor Person pursuant to
this Section 2.2 in exchange or substitution for or upon registration of transfer of any
Securities, such successor Person, at the option of the Holders but without expense to them, shall
provide for the exchange of all Securities at the time outstanding for Securities authenticated and
delivered in such new name.




          SECTION 2.3. Registrar and Paying Agent. The Company shall maintain an office or
agency where Securities may be presented for registration of transfer or for exchange (the
“Registrar”) and an office or agency where Securities may be presented for payment (the
“Paying Agent”). The Company shall cause each of the Registrar and the Paying Agent to
maintain an office or agency in New York, New York. The Registrar shall keep a register of the
Securities and of their transfer and exchange. The Company may have one or more co-registrars and
one or more additional paying agents. The term “Paying Agent” includes any additional paying
agent, and the term “Registrar” includes any co-registrar.







-46-









 








          The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture, which shall incorporate the terms of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of each such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate
compensation therefor pursuant to Section 7.7. Any of the Company’s Restricted
Subsidiaries organized in the United States may act as Paying Agent, Registrar or transfer agent.




          The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.
The Company may remove any Registrar or Paying Agent without notice to any Holder upon written
notice to such Registrar or Paying Agent and to the Trustee; provided, however, that no such
removal shall become effective until (i) acceptance of any appointment by a successor as evidenced
by an appropriate agreement entered into by the Company and such successor Registrar or Paying
Agent, as the case may be, and delivered to the Trustee or (ii) notification to the Trustee that
the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in
accordance with clause (i) above. The Registrar or Paying Agent may resign at any time upon
written notice to the Company and the Trustee.




          SECTION 2.4. Paying Agent to Hold Money in Trust. By no later than 10:00 a.m. (New
York City time) on the date on which any principal of, premium, if any, or interest on any Security
is due and payable, the Company shall deposit with the Paying Agent a sum sufficient in immediately
available funds to pay such principal, premium, if any, or interest when due. The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall
hold in trust for the benefit of the Holders or the Trustee all money held by such Paying Agent for
the payment of principal, premium, if any, of or interest on the Securities (whether such assets
have been distributed to it by the Company or other obligors on the Securities) and shall notify
the Trustee in writing of any default by the Company or any Subsidiary Guarantor in making any such
payment. If any Subsidiary Guarantor of the Company acts as Paying Agent, it shall segregate the
money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may
require a Paying Agent (other than the Trustee) to pay all money held by it to the Trustee and to
account for any funds or assets disbursed by such Paying Agent. Upon complying with this
Section 2.4, the Paying Agent (if other than a Subsidiary Guarantor of the Company) shall
have no further liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying
Agent for the Securities.




          SECTION 2.5. Holder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Holders
and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, or to the
extent otherwise required under the TIA, the Company, on its own behalf and on behalf of each of
the Subsidiary Guarantors, if any, shall furnish or cause the Registrar to furnish to the Trustee,
in writing at least five 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, and the Company and the Subsidiary
Guarantors shall otherwise comply with TIA § 312(a).







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          SECTION 2.6. Transfer and Exchange.




          (a) The following provisions shall apply with respect to any proposed transfer of a Rule 144A
Note or an Institutional Accredited Investor Note prior to the date which is one year after the
later of the date of its original issue and the last date on which the Company or any Affiliate of
the Company was the owner of such Securities (or any predecessor thereto) (the “Resale
Restriction Termination Date”):





     (i) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a QIB shall be made upon the representation of the
transferee, in the form of assignment as set forth on the reverse of the Security, that it
is purchasing the Security for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from registration
provided by Rule 144A;




     (ii) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to an IAI shall be made upon receipt by the Trustee or its agent
of a certificate substantially in the form set forth under Section 2.7 from the
proposed transferee and, if requested by the Company or the Trustee, the receipt by the
Trustee or its agent of an opinion of counsel, certification and/or other information
satisfactory to each of them; and




     (iii) a transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a Non-U.S. Person shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth under Section 2.8
from the proposed transferor and, if requested by the Company or the Trustee, the delivery
of an opinion of counsel, certification and/or other information satisfactory to each of
them.



          After the Resale Restriction Termination Date, interests in a Rule 144A Note or an
Institutional Accredited Investor Note may be transferred in accordance with applicable law without
requiring the certifications set forth under Section 2.7 or 2.8 or any additional
certification.




          (b) The following provisions shall apply with respect to any proposed transfer of a Regulation
S Note prior to the expiration of the Restricted Period:





     (i) a transfer of a Regulation S Note or a beneficial interest therein to a QIB shall
be made upon the representation of the transferee, in the form of assignment as set forth on
the reverse of the Security, that it is purchasing the Security for its own account or an
account with respect to which it exercises sole investment discretion and that it and any
such account is a “qualified institutional buyer” within the meaning of Rule 144A,



-48-









 






and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such information and
that it is aware that the transferor is relying upon its foregoing representations in order
to claim the exemption from registration provided by Rule 144A;




     (ii) a transfer of a Regulation S Note or a beneficial interest therein to an IAI shall
be made upon receipt by the Trustee or its agent of a certificate substantially in the form
set forth under Section 2.7 from the proposed transferee and, if requested by the
Company or the Trustee, the delivery of an opinion of counsel, certification and/or other
information satisfactory to each of them; and




     (iii) a transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate substantially
in the form set forth under Section 2.8 hereof from the proposed transferor and, if
requested by the Company or the Trustee, receipt by the Trustee or its agent of an opinion
of counsel, certification and/or other information satisfactory to each of them.



          After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred in accordance with applicable law without requiring the certifications set forth under
Section 2.7 or 2.8 or any additional certification.




          (c) Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities not bearing a Restricted Securities Legend, the Registrar shall deliver Securities that
do not bear a Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities bearing a Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless (i) Initial Securities are being exchanged for Exchange
Securities in an Exchange Offer, in which case the Exchange Securities shall not bear a Restricted
Securities Legend, (ii) an Initial Security is being transferred pursuant to the Shelf Registration
Statement or other effective registration statement or (iii) there is delivered to the Registrar an
Opinion of Counsel reasonably satisfactory to the Company and the Trustee to the effect that
neither such legend nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act. Any Additional Securities sold in a
registered offering shall not be required to bear the Restricted Securities Legend.




          (d) The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.1 or this Section 2.6. The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable prior written notice to the Registrar.




          (e) Obligations with Respect to Transfers and Exchanges of Securities.




          (i) To permit registrations of transfers and exchanges, the Company shall, subject to the
other terms and conditions of this Article II, execute, and the Trustee shall authenticate,
Definitive Securities and Global Securities at the Registrar’s request.







-49-









 








          (ii) No service charge shall be made to a Holder for any registration of transfer or exchange,
but the Company may require the Holder to pay a sum sufficient to cover any transfer tax,
assessment or similar governmental charge payable in connection therewith (other than any such
transfer taxes, assessments or similar governmental charges payable upon exchange or transfer
pursuant to Section 9.5).




          (iii) The Company (and the Registrar) shall not be required to register the transfer of or
exchange of any Security for a period beginning 15 days before the mailing of a notice of an offer
to repurchase or redeem Securities and ending at the close of business on the day of such mailing.
The Company (and the Registrar) shall not be required to register the transfer of or exchange of
any Security selected for redemption.




          (iv) Prior to the due presentation for registration of transfer of any Security, the Company,
the Trustee, the Paying Agent or the Registrar may deem and treat the person in whose name a
Security is registered as the absolute owner of such Security for the purpose of receiving payment
of principal of, premium, if any, and interest on such Security and for all other purposes
whatsoever, including the transfer or exchange of such Security, whether or not such Security is
overdue, and none of the Company, the Trustee, the Paying Agent or the Registrar shall be affected
by notice to the contrary.




          (v) All Securities issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under this
Indenture as the Securities surrendered upon such transfer or exchange.




          (f) No Obligation of the Trustee.




          (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in, DTC or other Person with respect to the accuracy of the
records of DTC or its nominee or of any participant or member thereof, with respect to any
ownership interest in the Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than DTC) of any notice (including any notice of
redemption) or the payment of any amount or delivery of any Securities (or other security or
property) under or with respect to such Securities. All notices and communications to be given to
the Holders and all payments to be made to Holders in respect of the Securities shall be given or
made only to or upon the order of the registered Holders (which shall be DTC or its nominee in the
case of a Global Security). The rights of beneficial owners in any Global Security shall be
exercised only through DTC subject to the applicable rules and procedures of DTC. The Trustee may
rely and shall be fully protected in relying upon information furnished by DTC with respect to its
members, participants and any beneficial owners.




          (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Security (including any transfers between or
among DTC participants, members or beneficial owners in any Global Security) other than to require
delivery of such certificates and other documentation or evidence as are expressly required by, and
to do so if and when expressly required by, the terms of this Indenture,





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and to examine the same to determine substantial compliance as to form with the express
requirements hereof.




          SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to IAIs.



[Date]




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

2 North LaSalle Street; Suite 1020

Chicago, IL 60602

Attention: Global Corporate Trust




	 	 	 
	Re:

	 	Libbey Glass Inc.
	 

	 	Senior Secured Notes, Series A, due 2015





Ladies and Gentlemen:




          This certificate is delivered to request a transfer of $                     principal amount of the
Senior Secured Notes, Series A, due 2015 (the “Securities”) of Libbey Glass Inc. (the
“Company”).




          Upon transfer, the Securities would be registered in the name of the new beneficial owner as
follows:




	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Taxpayer ID Number:
	 	 	 	 
	 

	 	 	 	 	 	 

	 	 







     The undersigned represents and warrants to you that:




     1. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act of 1933, as amended (the “Securities Act”)),
purchasing for our own account or for the account of such an institutional “accredited
investor” at least $250,000 principal amount of the Securities, and we are acquiring the
Securities not with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risk of our investment in the
Securities, and we invest in or purchase securities similar to the Securities in the normal
course of our business. We and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.




     2. We understand that the Securities have not been registered under the Securities Act
and, unless so registered, may not be sold except as permitted in the following sentence.
We agree on our own behalf and on behalf of any investor account for which we are purchasing
Securities to offer, sell or otherwise transfer such Securities



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prior to the date that is one year after the later of the date of original issue and the last
date on which the Company or any affiliate of the Company was the owner of such Securities
(or any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to
the Company, (b) pursuant to a registration statement that has been declared effective under
the Securities Act, (c) in a transaction complying with the requirements of Rule 144A under
the Securities Act, to a person we reasonably believe is a “qualified institutional buyer”
under Rule 144A under the Securities Act (a “QIB”) that is purchasing for its own
account or for the account of a QIB and to whom notice is given that the transfer is being
made in reliance on Rule 144A, (d) pursuant to offers and sales that occur outside the
United States within the meaning of Regulation S under the Securities Act, (e) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act that is purchasing for its own account or for the account of such
an institutional “accredited investor,” in each case in a minimum principal amount of
Securities of $250,000, for investment purposes and not with a view to or for offer or sale
in connection with any distribution in violation of the Securities Act or (f) pursuant to
any other available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the disposition of our
property or the property of such investor account or accounts be at all times within our or
their control and in compliance with any applicable state securities laws. The foregoing
restrictions on resale will not apply subsequent to the Resale Restriction Termination Date.
If any resale or other transfer of the Securities is proposed to be made pursuant to clause
(e) above prior to the Resale Restriction Termination Date, the transferor shall deliver a
letter from the transferee substantially in the form of this letter to the Company and The
Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”), which shall
provide, among other things, that the transferee is an institutional “accredited investor”
(within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and that it
is acquiring such Securities for investment purposes and not for distribution in violation
of the Securities Act. Each purchaser acknowledges that the Company and the Trustee reserve
the right prior to any offer, sale or other transfer prior to the Resale Termination Date of
the Securities pursuant to clause (d), (e) or (f) above to require the delivery of an
opinion of counsel, certifications and/or other information satisfactory to the Company and
the Trustee.



          The Trustee 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.




	 	 	 	 	 	 	 	 	 
	 	 	TRANSFEREE:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 	 	 
	 	 	 	 	 	 	 




cc: Libbey Glass Inc.







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          SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.



[Date]




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

2 North LaSalle Street; Suite 1020

Chicago, IL 60602

Attention: Global Corporate Trust




	 	 	 
	Re:

	 	Libbey Glass Inc.
	 

	 	Senior Secured Notes, Series A, due 2015





Ladies and Gentlemen:




          In connection with our proposed sale of $                     aggregate principal amount of the Senior
Secured Notes, Series A, due 2015 (the “Securities”) of Libbey Glass Inc. (the
“Company”), we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the United States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:





     (a) the offer of the Securities was not made to a person in the United States;




     (b) either (i) at the time the buy order was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (ii) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged with a buyer in
the United States;




     (c) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S, as applicable; and




     (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.



          In addition, if the sale is made during a restricted period and the provisions of Rule
903(b)(2) or Rule 904(b)(1) of Regulation S are applicable thereto, we confirm that such sale has
been made in accordance with the applicable provisions of Rule 903(b)(2) or Rule 904(b)(1), as the
case may be.




          The Bank of New York Mellon Trust Company, N.A., as Trustee, 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. Terms used in this certificate have the meanings set forth in Regulation
S.







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	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	[Name of Transferor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Authorized Signature
	 	 





cc: Libbey Glass Inc.




          SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the Security has been
lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met,
such that the Holder (a) notifies the Company or the Trustee within a reasonable time after such
Holder has notice of such loss, destruction or wrongful taking and the Registrar has not registered
a transfer prior to receiving such notification, (b) makes such request to the Company or the
Trustee prior to the Security being acquired by a protected purchaser as defined in Section 8-303
of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies any other
reasonable requirements of the Trustee. If required by the Trustee or the Company, such Holder
shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee, the Paying Agent and the Registrar from any loss which any of
them may suffer if a Security is replaced, and, in the absence of notice to the Company, any
Subsidiary Guarantor or the Trustee that such Security has been acquired by a bona fide purchaser,
the Company shall execute and, upon receipt of a Company Order, the Trustee shall authenticate and
make available for delivery, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a
number not contemporaneously outstanding.




          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.




          Upon the issuance of any new Security under this Section, the Company may require that such
Holder pay a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of counsel and of the
Trustee) in connection therewith.




          Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost
or stolen Security shall constitute an original additional contractual obligation of the Company,
any Subsidiary Guarantor (if applicable) and any other obligor upon the Securities, whether or not
the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately with any and all
other Securities duly issued hereunder.







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          The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.




          SECTION 2.10. Outstanding Securities. Securities outstanding at any time are all
Securities authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section as not outstanding. A Security does not cease to
be outstanding in the event either of the Company or an Affiliate of the Company holds the
Security; provided, however, that (i) for purposes of determining which are outstanding for consent
or voting purposes hereunder, the provisions of Section 11.7 shall apply and (ii) in
determining whether the Trustee shall be protected in making a determination whether the Holders of
the requisite principal amount of outstanding Securities are present at a meeting of Holders of
Securities for quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification hereunder, or relying
upon any such quorum, consent or vote, only Securities which a Trust Officer of the Trustee
actually knows to be held by the Company or an Affiliate of the Company shall not be considered
outstanding.




          If a Security is replaced pursuant to Section 2.9 (other than a mutilated Security
surrendered for replacement), it ceases to be outstanding and interest on it ceases to accrue
unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is
held by a protected purchaser. A mutilated Security ceases to be outstanding upon surrender of
such Security and replacement pursuant to Section 2.9.




          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal, premium, if any, and
accrued interest payable on that date with respect to the Securities (or portions thereof) to be
redeemed or maturing, as the case may be, and the Paying Agent is not prohibited from paying such
money to the Holders on that date pursuant to the terms of this Indenture, then on and after that
date such Securities (or portions thereof) cease to be outstanding and interest on them ceases to
accrue.




          SECTION 2.11. Temporary Securities. In the event that Definitive Securities are to be
issued under the terms of this Indenture, until such Definitive Securities are ready for delivery,
the Company may prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form, and shall carry all rights, of Definitive Securities
but may have variations that the Company considers appropriate for temporary Securities. Without
unreasonable delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities. After the preparation of Definitive Securities, the temporary Securities shall be
exchangeable for Definitive Securities upon surrender of the temporary Securities at any office or
agency maintained by the Company for that purpose and such exchange shall be without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall
execute, and the Trustee shall authenticate and make available for delivery in exchange therefor,
one or more Definitive Securities representing an equal principal amount of Securities. Until so
exchanged, the Holder of temporary Securities shall in all respects be entitled to the same
benefits under this Indenture as a Holder of Definitive Securities.







-55-









 








          SECTION 2.12. Cancellation. The Company at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and
no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment
or cancellation and dispose of such Securities in accordance with its internal policies and
customary procedures and shall deliver canceled Securities to the Company pursuant to written
direction by an Officer of the Company. If the Company or any Subsidiary Guarantor acquires any of
the Securities, such acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are surrendered to the
Trustee for cancellation pursuant to this Section 2.12. The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for cancellation for any
reason other than in connection with a transfer or exchange.




          At such time as all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such Global Security shall
be returned by DTC to the Trustee for cancellation or retained and canceled by the Trustee. At any
time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for
Definitive Securities, transferred in exchange for an interest in another Global Security,
redeemed, repurchased or canceled, the principal amount of Securities represented by such Global
Security shall be reduced and an adjustment shall be made on the books and records of the Trustee
(if it is then the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such reduction.




          SECTION 2.13. Payment of Interest; Defaulted Interest. Interest on any Security which
is payable, and is punctually paid or duly provided for, on any interest payment date shall be paid
to the Person in whose name such Security (or one or more predecessor Securities) is registered at
the close of business on the regular record date for such payment at the office or agency of the
Company maintained for such purpose pursuant to Section 2.3.




          Any interest on any Security which is payable, but is not paid when the same becomes due and
payable and such nonpayment continues for a period of 30 days shall forthwith cease to be payable
to the Holder on the regular record date, and such defaulted interest and (to the extent lawful)
interest on such defaulted interest at the rate borne by the Securities (such defaulted interest
and interest thereon herein collectively called “Defaulted Interest”) shall be paid by the
Company, at its election in each case, as provided in clause (a) or (b) below:





     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective predecessor Securities) are registered at
the close of business on a Special Record Date (as defined below) for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security and the date (not less than 30 days after such notice) of the proposed payment (the
“Special Interest Payment Date”), and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit prior to the date of the proposed payment, such



-56-









 






money when deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
record date (the “Special Record Date”) for the payment of such Defaulted Interest,
which date shall be not more than 15 days and not less than 10 days prior to the Special
Interest Payment Date and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company of such
Special Record Date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record Date and Special
Interest Payment Date therefor to be given in the manner provided for under Section
11.2 not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date and Special Interest Payment
Date therefor having been so given, such Defaulted Interest shall be paid on the Special
Interest Payment Date to the Persons in whose names the Securities (or their respective
predecessor Securities) are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following clause (b).




     (b) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Securities
may be listed, and upon such notice as may be required by such exchange, if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.



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




          SECTION 2.14. Computation of Interest. Interest on the Securities will be computed on
the basis of a 360-day year of twelve 30-day months.




          SECTION 2.15. CUSIP, Common Code and ISIN Numbers. The Company in issuing the
Securities may use “CUSIP,” “Common Code” or “ISIN” numbers and, if so, the Trustee shall use
“CUSIP,” “Common Code” or “ISIN” numbers in notices of redemption or purchase as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained in any notice of a
redemption or purchase and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption or purchase shall not be affected by any defect
in or omission of such CUSIP, Common Code or ISIN number. The Company shall promptly notify the
Trustee in writing of any change in any CUSIP, Common Code or ISIN number.




ARTICLE III

COVENANTS




          SECTION 3.1. Payment of Securities. The Company shall promptly pay the principal of,
premium, if any, and interest on the Securities on the dates and in the manner






-57-









 







provided in the Securities and in this Indenture. Principal, premium, if any, and interest shall
be considered paid on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture immediately available funds sufficient to pay all principal,
premium, if any, and interest then due and the Trustee or the Paying Agent, as the case may be, is
not prohibited from paying such money to the Holders on that date pursuant to the terms of this
Indenture.




          The Company shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.




          The Company and any Subsidiary Guarantors will pay any present or future stamp, court or
documentary taxes or any other excise or property taxes, charges or similar levies that arise in
any jurisdiction from the execution, delivery, enforcement or registration of the Securities, the
Subsidiary Guarantees (if any), this Indenture or any other document or instrument in relation
thereof, or the receipt of any payments with respect to the Securities or any Subsidiary
Guarantees, excluding such taxes, charges or similar levies imposed by any jurisdiction outside of
the United States, the jurisdiction of incorporation of any successor of the Company or any
Subsidiary Guarantor or any jurisdiction in which a Paying Agent is located, other than those
resulting from, or required to be paid in connection with, the enforcement of the Securities, the
Subsidiary Guarantees or any other such document or instrument following the occurrence of any
Event of Default with respect to the Securities. The Company or the Subsidiary Guarantors, if any,
will agree to indemnify the Holders for any such taxes paid by such Holders.




          Notwithstanding anything to the contrary contained in this Indenture, the Company or any
Subsidiary Guarantor may, to the extent it is required to do so by law, deduct or withhold income
or other similar taxes imposed by the United States of America from principal, premium or interest
payments hereunder.




          SECTION 3.2. Limitation on Indebtedness. The Company will not, and will not permit
any of its Restricted Subsidiaries to, Incur any Indebtedness (including Acquired Indebtedness);
provided, however, that the Company and the Subsidiary Guarantors may Incur Indebtedness if on the
date thereof the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is at
least 2.00 to 1.00.




          The first paragraph of this Section 3.2 will not prohibit the Incurrence of the
following Indebtedness:





     (1) Indebtedness of the Company, any Subsidiary Guarantor or any Restricted Subsidiary
that is a Foreign Subsidiary Incurred pursuant to a Credit Facility in an aggregate amount
up to the greater of (a) $110.0 million and (b) the Borrowing Base;




     (2) Guarantees by (x) the Company or its Subsidiary Guarantors of Indebtedness Incurred
by the Company or a Restricted Subsidiary in accordance with the provisions of this
Indenture, provided that in the event such Indebtedness that is being Guaranteed is a
Subordinated Obligation or a Guarantor Subordinated Obligation, then the related Guarantee
shall be subordinated in right of payment to the Securities or the Subsidiary Guarantee, as
the case may be, and (y) Non-Guarantor Restricted Subsidiaries of



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Indebtedness Incurred by Non-Guarantor Restricted Subsidiaries in accordance with the
provisions of this Indenture;




     (3) Indebtedness of the Company owing to and held by any Restricted Subsidiary or
Indebtedness of a Restricted Subsidiary owing to and held by the Company or any other
Restricted Subsidiary; provided, however,




     (a) if the Company is the obligor on such Indebtedness and a Subsidiary
Guarantor is not the obligee, such Indebtedness is expressly subordinated to the
prior payment in full in cash of all obligations with respect to the Securities;




     (b) if a Subsidiary Guarantor is the obligor on such Indebtedness and the
Company or a Subsidiary Guarantor is not the obligee, such Indebtedness is expressly
subordinated in right of payment to the Subsidiary Guarantees of such Subsidiary
Guarantor; and




     (c) (i) any subsequent issuance or transfer of Capital Stock or any other
event that results in any such Indebtedness being beneficially held by a Person
other than the Company or a Restricted Subsidiary of the Company; and




          (ii) any sale or other transfer of any such Indebtedness to a Person other than the
Company or a Restricted Subsidiary of the Company


shall be deemed, in each case, to constitute an Incurrence of such Indebtedness by the Company or
such Subsidiary, as the case may be.





     (4) Indebtedness represented by (a) the Securities issued on the Issue Date, the
Subsidiary Guarantees and the related Exchange Securities and exchange guarantees issued
pursuant to the Registration Rights Agreement, (b) any Indebtedness (other than the
Indebtedness described in clauses (1) or (4)(a)) outstanding on the Issue Date and (c) any
Refinancing Indebtedness Incurred in respect of Indebtedness described in the first
paragraph of this Section 3.2 or any of clauses (4), (5) and (7);




     (5) Indebtedness of a Restricted Subsidiary Incurred and outstanding on the date on
which such Restricted Subsidiary was acquired by, or merged into, the Company or any
Restricted Subsidiary (whether or not such Indebtedness was Incurred (a) to provide all or
any portion of the funds utilized to consummate the transaction or series of related
transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or
was otherwise acquired by the Company or (b) otherwise in connection with, or in
contemplation of, such acquisition); provided, however, that at the time such Restricted
Subsidiary is acquired by the Company, the Company would have been able to Incur $1.00 of
additional Indebtedness pursuant to the first paragraph of this Section 3.2 after
giving effect to the Incurrence of such Indebtedness pursuant to this clause (5);




     (6) Indebtedness under Hedging Obligations that are Incurred in the ordinary course of
business (and not for speculative purposes) and Obligations in connection with



-59-









 






cash management and related banking services Incurred in the ordinary course of
business;




     (7) the Incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capitalized Lease Obligations, mortgage financings or purchase money
obligations Incurred pursuant to this clause (7), and Attributable Indebtedness, in an
aggregate principal amount (including all Refinancing Indebtedness Incurred to refund,
defease, renew, extend, refinance or replace any Indebtedness Incurred pursuant to this
clause (7)) not to exceed $15.0 million at any time outstanding, plus an amount equal to the
aggregate of all Attributable Indebtedness Incurred in connection with any Sale/Leaseback
Transaction with respect to Libbey Glass’s distribution center located in Laredo, Texas and
any Sale/Leaseback Transaction to enable the construction and leaseback of office and
related space on land located within the Monterrey, Mexico manufacturing complex owned and
operated by a Restricted Subsidiary of Libbey Glass;




     (8) Indebtedness Incurred in respect of workers’ compensation claims, self-insurance
obligations, letters of credit, performance, surety and similar bonds, warranties,
indemnities and completion guarantees provided by the Company or a Restricted Subsidiary in
the ordinary course of business;




     (9) Indebtedness arising from agreements of the Company or a Restricted Subsidiary
providing for customary guarantees, indemnification, adjustment of purchase price or similar
obligations, in each case, Incurred or assumed in connection with the disposition of any
business, assets or Capital Stock of a Restricted Subsidiary, provided that the maximum
aggregate liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds actually received by the Company and its Restricted Subsidiaries in connection with
such disposition;




     (10) Indebtedness represented by earnout provisions, contingent payments in respect of
purchase price or adjustment of purchase price or similar obligations in acquisition
agreements; provided that this clause (10) shall not extend to Indebtedness Incurred to
finance an earnout or any such obligations or other component of such Investment;




     (11) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business, provided, however, that such
Indebtedness is extinguished within five business days of Incurrence;




     (12) Indebtedness Incurred by Foreign Subsidiaries that are not Subsidiary Guarantors
(other than Libbey Glassware (China) Co., Ltd. or a Restricted Subsidiary that is a Foreign
Subsidiary organized under the laws of the People’s Republic of China) in an aggregate
principal amount, together with all other Indebtedness (including Refinancing Indebtedness)
Incurred pursuant to this clause (12), not to exceed at any time outstanding the greater of
(x) $45.0 million and (y) 10% of Foreign Assets (determined as of the end of the most recent
fiscal quarter immediately preceding the date of such Incurrence);



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     (13) Indebtedness of Libbey Glassware (China) Co., Ltd. or a Restricted Subsidiary that
is a Foreign Subsidiary organized under the laws of the People’s Republic of China Incurred
pursuant to a Credit Facility in an aggregate principal amount, together with all other
Indebtedness Incurred pursuant to this clause (13), not to exceed $50.0 million at any time
outstanding, and any Guarantee of such Indebtedness issued by the Company; and




     (14) in addition to the items referred to in clauses (1) through (13) above,
Indebtedness of the Company or any of its Restricted Subsidiaries in an aggregate principal
amount, together with all other Indebtedness Incurred pursuant to this clause (14), not to
exceed $25.0 million at any time outstanding.



          For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness Incurred pursuant to and in compliance with, this Section 3.2:





     (1) subject to clause (2) below, in the event that Indebtedness meets the criteria of
more than one of the types of Indebtedness described in the first and second paragraphs of
this Section 3.2, the Company, in its sole discretion, will classify such item of
Indebtedness on the date of Incurrence and, may later classify such item of Indebtedness in
any manner that complies with this Section 3.2 and only be required to include the
amount and type of such Indebtedness in one of such clauses;




     (2) all Indebtedness outstanding on the Issue Date under the Senior Secured Credit
Agreement shall be deemed Incurred on the Issue Date under clause (1) of the second
paragraph of this Section 3.2;




     (3) Guarantees of, or obligations in respect of letters of credit relating to,
Indebtedness that is otherwise included in the determination of a particular amount of
Indebtedness shall not be included;




     (4) if obligations in respect of letters of credit are Incurred pursuant to a Credit
Facility and are being treated as Incurred pursuant to clause (1) of the second paragraph
above and the letters of credit relate to other Indebtedness, then such other Indebtedness
shall not be included;




     (5) the principal amount of any Disqualified Stock of the Company or a Restricted
Subsidiary, or Preferred Stock of a Restricted Subsidiary that is not a Subsidiary
Guarantor, will be equal to the greater of the maximum mandatory redemption or repurchase
price (not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;




     (6) Indebtedness permitted by this Section 3.2 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by one
such provision and in part by one or more other provisions of this Section 3.2
permitting such Indebtedness;



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     (7) the principal amount of any Indebtedness outstanding in connection with a
securitization transaction is the amount of obligations outstanding under the legal
documents entered into as part of such securitization that would be characterized as
principal on any date of determination if such securitization transaction were structured as
a secured lending transaction; and




     (8) the amount of Indebtedness issued at a price that is less than the principal amount
thereof will be equal to the amount of the liability in respect thereof determined in
accordance with GAAP.



          Accrual of interest, accrual of dividends, the accretion of accreted value, the payment of
interest in the form of additional Indebtedness and the payment of dividends in the form of
additional shares of Preferred Stock or Disqualified Stock will not be deemed to be an Incurrence
of Indebtedness for purposes of this Section 3.2. The amount of any Indebtedness
outstanding as of any date shall be (i) the accreted value thereof in the case of any Indebtedness
issued with original issue discount or the aggregate principal amount outstanding in the case of
Indebtedness issued with interest payable-in-kind and (ii) the principal amount or liquidation
preference thereof, in the case of any other Indebtedness.




          In addition, the Company will not permit any of its Unrestricted Subsidiaries to Incur any
Indebtedness or issue any shares of Disqualified Stock, other than Non Recourse Debt. If at any
time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such
Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary as of such date (and, if the
Incurrence of such Indebtedness as of such date violates this Section 3.2, the Company
shall be in Default of this Section 3.2).




          For purposes of determining compliance with any U.S. dollar denominated restriction on the
Incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in
the case of revolving credit Indebtedness; provided that the U.S. dollar-equivalent principal
amount of Indebtedness of Libbey Glassware (China) Co., Ltd. under the Credit Facility to which it
is a party as of the Issue Date shall be calculated based on the relevant currency exchange rate in
effect on the date first committed; and provided further that if any such Indebtedness is Incurred
to refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause
the applicable U.S. dollar denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar denominated
restriction shall be deemed not to have been exceeded so long as the principal amount of such
refinancing Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced. Notwithstanding any other provision of this Section 3.2, the maximum amount of
Indebtedness that the Company may Incur pursuant to this Section 3.2 shall not be deemed to
be exceeded solely as a result of fluctuations in the exchange rate of currencies. The principal
amount of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a different
currency from the Indebtedness being refinanced, shall be calculated based on the currency
exchange rate applicable to the currencies in which such Refinancing Indebtedness is denominated
that is in effect on the date of such refinancing.







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          SECTION 3.3. Limitation on Restricted Payments. The Company will not, and will not
permit any of its Restricted Subsidiaries, directly or indirectly, to:





     (1) declare or pay any dividend or make any distribution (whether made in cash,
securities or other property) on or in respect of its Capital Stock (including any payment
in connection with any merger or consolidation involving the Company or any of its
Restricted Subsidiaries) except:




     (a) dividends or distributions payable in Capital Stock of the Company (other
than Disqualified Stock) or in options, warrants or other rights to purchase such
Capital Stock of the Company; and




     (b) dividends or distributions payable to the Company, any Restricted
Subsidiary or to the holders of common Capital Stock of Restricted Subsidiaries on a
pro rata basis);




     (2) purchase, redeem, retire or otherwise acquire for value any Capital Stock of the
Company or any direct or indirect parent of the Company held by Persons other than the
Company or a Restricted Subsidiary (other than in exchange for Capital Stock of the Company
(other than Disqualified Stock));




     (3) purchase, repurchase, redeem, defease or otherwise acquire or retire for value,
prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than (x) Indebtedness
of the Company owing to and held by any Subsidiary Guarantor or Indebtedness of a Subsidiary
Guarantor owing to and held by the Company or any other Subsidiary Guarantor permitted under
clause (3) of the second paragraph of Section 3.2 or (y) the purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Subordinated Obligations or
Guarantor Subordinated Obligations 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, redemption, defeasance or other acquisition or retirement); or




     (4) make any Restricted Investment in any Person


(any such dividend, distribution, purchase, redemption, repurchase, defeasance, other acquisition,
retirement or Restricted Investment referred to in clauses (1) through (4) shall be referred to
herein as a “Restricted Payment”), if at the time the Company or such Restricted Subsidiary
makes such Restricted Payment:





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




     (b) the Company is not able to Incur $1.00 of additional Indebtedness pursuant to the
first paragraph of Section 3.2 after giving effect, on a pro forma basis, to such
Restricted Payment; or



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     (c) the aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made subsequent to the Issue Date (excluding Restricted Payments permitted by
clauses (1), (2), (3), (4), (6), (7), (8), (9), (11), (13) and (14) of the next succeeding
paragraph) would exceed the sum of, without duplication:




     (i) 50% of Consolidated Net Income for the period (treated as one accounting period)
from the beginning of the first fiscal quarter commencing after the Issue Date to the end of
the most recent fiscal quarter ending prior to the date of such Restricted Payment for which
financial statements are in existence (or, in case such Consolidated Net Income is a
deficit, minus 100% of such deficit); plus




     (ii) 100% of the aggregate Net Cash Proceeds received by the Company, plus the fair
market value of property other than cash or of marketable securities (such fair market value
to be determined on the date of contractually agreeing to such sale as determined in good
faith by the Board of Directors) received by the Company from the issue or sale of its
Capital Stock (other than Disqualified Stock) or other capital contributions subsequent to
the Issue Date (other than Net Cash Proceeds received from an issuance or sale of such
Capital Stock to a Subsidiary of the Company or an employee stock ownership plan, option
plan or similar trust to the extent such sale to an employee stock ownership plan or similar
trust is financed by loans from or Guaranteed by the Company or any Restricted Subsidiary
unless such loans have been repaid with cash on or prior to the date of determination);




     (iii) the amount by which Indebtedness of the Company or its Restricted Subsidiaries is
reduced on the Company’s balance sheet upon the conversion or exchange (other than by a
Subsidiary of the Company) subsequent to the Issue Date of any Indebtedness of the Company
or its Restricted Subsidiaries convertible or exchangeable for Capital Stock (other than
Disqualified Stock) of the Company or the Parent (less the amount of any cash, or the fair
market value of any other property, distributed by the Company upon such conversion or
exchange);




     (iv) 100% of the Net Cash Proceeds and the fair market value of property other than
cash and marketable securities (such fair market value to be determined in good faith by the
Board of Directors) from the sale or other disposition (other than to the Company or a Note
Guarantor or to an employee stock ownership plan or trust established by the Company or any
Restricted Subsidiary) of Restricted Investments made after the Issue Date and redemptions
and repurchases of such Restricted Investments from the Company or its Restricted
Subsidiaries and repayment of loans or advances from the Company and its Restricted
Subsidiaries (other than in each case to the extent the Restricted Investment was made
pursuant to clause (14) of the next succeeding paragraph);




     (v) to the extent that any Unrestricted Subsidiary of the Company designated as such
after the Issue Date is redesignated as a Restricted Subsidiary or any Unrestricted
Subsidiary of the Company merges into or consolidates with the Company or any of its
Restricted Subsidiaries, in each case after the Issue Date, the fair market value of such
Subsidiary as of the date of such redesignation or such merger or consolidation, or in the
case of the transfer of assets of an Unrestricted Subsidiary to the Company or a Restricted



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Subsidiary, the fair market value of the Investment in such Unrestricted Subsidiary, as
determined by the Board of Directors of the Company in good faith at the time of the
redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary or at the time of
such merger, consolidation or transfer of assets (other than an Unrestricted Subsidiary to
the extent the Investment in such Unrestricted Subsidiary was made by a Restricted
Subsidiary pursuant to clause (14) of the next succeeding paragraph or to the extent such
Investment constituted a Permitted Investment); and




     (vi) 50% of any cash dividends received by the Company or a Restricted Subsidiary of
the Company after the Issue Date from an Unrestricted Subsidiary of the Company, to the
extent that such dividends were not otherwise included in the Consolidated Net Income of the
Company.




     The provisions of the preceding paragraph will not prohibit:




     (1) any Restricted Payment (including Restricted Payments by Libbey Glass or a
Restricted Subsidiary) made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Capital Stock of the Company or the Parent (other than Disqualified
Stock and other than Capital Stock issued or sold to a Subsidiary or an employee stock
ownership plan or similar trust to the extent such sale to an employee stock ownership plan
or similar trust is financed by loans from or Guaranteed by the Company or any Restricted
Subsidiary unless such loans have been repaid with cash on or prior to the date of
determination); provided, however, that the Net Cash Proceeds from such sale of Capital
Stock will be excluded from clause (c)(ii) of the preceding paragraph;




     (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations of the Company or Guarantor Subordinated Obligations of any
Subsidiary Guarantor made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Subordinated Obligations of the Company or any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Guarantor Subordinated
Obligations made by exchange for or out of the proceeds of the substantially concurrent sale
of Guarantor Subordinated Obligations that, in each case, constitutes Refinancing
Indebtedness;




     (3) any purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Disqualified Stock of the Company or a Restricted Subsidiary made by exchange for or out
of the proceeds of the sale within 60 days of Disqualified Stock of the Company, the Parent
or such Restricted Subsidiary, as the case may be, that, in each case, is permitted to be
Incurred pursuant to Section 3.2 and that in each case constitutes Refinancing
Indebtedness;




     (4) any purchase or redemption of Subordinated Obligations or Guarantor Subordinated
Obligations of a Subsidiary Guarantor from Net Available Cash to the extent permitted under
Section 3.5 below;




     (5) dividends paid within 60 days after the date of declaration if at such date of
declaration such dividend would have complied with this provision;



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     (6) Restricted Payments, cash dividends or loans to the Parent, for the purchase,
redemption or other acquisition, cancellation or retirement for value of Capital Stock, or
options, warrants, equity appreciation rights or other rights to purchase or acquire Capital
Stock, of the Company or any Restricted Subsidiary or any direct or indirect parent of the
Company held by any existing or former directors, officers, employees or consultants of the
Company or the Parent or any Subsidiary of the Company or their assigns, estates or heirs,
in each case in connection with the repurchase provisions under stock option or stock
purchase agreements or other agreements to compensate such Persons; provided that such
redemptions, repurchases or payments pursuant to this clause shall not be permitted with
respect to the compensation or issuance of securities for any services that were not related
to, or for the benefit of, the Company and its Restricted Subsidiaries; provided, further,
that such redemptions or repurchases pursuant to this clause will not exceed $3.0 million in
the aggregate during any calendar year; provided, further, that (x) the Company may carry
over and make in subsequent calendar years, in addition to the $3.0 million amount permitted
for such calendar year, the amount of such purchases, redemptions or other acquisitions or
retirements for value permitted to be made, but not made, in any preceding calendar year, up
to a maximum amount of $8.0 million in any calendar year and (y) the maximum amount in any
calendar year may be increased by the amount of any capital contributions to the Company as
a result of sales of such shares of Capital Stock of the Company or any direct or indirect
parent of the Company to such persons (provided that the Net Cash Proceeds from such sale of
Capital Stock will be excluded from clause (c)(ii) of the preceding paragraph of this
Section 3.3) to the extent not so previously applied, plus the amount of any “key
man” insurance proceeds, received by the Company or any Restricted Subsidiary to the extent
not so previously applied;




     (7) the declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company issued in accordance with the terms of this Indenture to
the extent such dividends are included in the definition of “Consolidated Interest Expense”;




     (8) repurchases of Capital Stock deemed to occur upon (x) the exercise of stock
options, warrants or other convertible securities if such Capital Stock represents a portion
of the exercise price thereof or (y) cash dividends or loans to the Parent in amounts
sufficient to pay taxes of directors, officers, employees or consultants relating to the
withholding of a portion of the Capital Stock granted or awarded to a director, officer,
employee or consultant in exchange for the payment of taxes payable by such Person upon such
grant or award;




     (9) cash dividends or loans to the Parent in amounts equal to:




     (a) the amounts required for the Parent to pay any Federal, state or local
income taxes to the extent that such income taxes are directly attributable to the
income of the Company and its Restricted Subsidiaries and, to the extent of amounts
actually received from Unrestricted Subsidiaries, in amounts required to



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pay such taxes to the extent attributable to the income of the Unrestricted
Subsidiaries;




     (b) the amounts required for the Parent to pay franchise taxes and other fees
required to maintain its legal existence; or




     (c) amounts to pay corporate overhead expenses (including professional fees and
expenses payable to third parties) of the Parent Incurred in the ordinary course of
business (including (x) financing transactions (of debt or equity) that benefit, or
are intended to benefit, the Company and its Restricted Subsidiaries and (y) in
connection with reporting obligations under or otherwise in connection with
applicable laws, rules or regulations of any governmental, regulatory or
self-regulatory body or stock exchange, this Indenture or any other agreement or
instrument of Indebtedness of the Parent, the Company or any Restricted Subsidiary),
and to pay salaries, benefits or other compensation of directors, officers,
employees and consultants who perform services for the Parent, the Company or any
Restricted Subsidiary, including with respect to any financing transaction to pay
such expenses on an interim basis so long as such expenses are repaid out of the
proceeds of such transaction upon completion of such transaction;




     (10) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Subordinated Obligation (i) at a purchase price not greater than
101% of the principal amount of such Subordinated Obligation in the event of a Change of
Control in accordance with provisions similar to Section 3.11 or (ii) at a purchase
price not greater than 100% of the principal amount thereof in accordance with provisions
similar to Section 3.5; provided that, prior to or simultaneously with such
purchase, repurchase, redemption, defeasance or other acquisition or retirement, the Company
has made the Change of Control Offer or Asset Disposition Offer, as applicable, as provided
in such covenant with respect to the Securities and has completed the repurchase or
redemption of all Securities validly tendered for payment in connection with such Change of
Control Offer or Asset Disposition Offer;




     (11) the repurchase or redemption of the Company’s or the Parent’s preferred stock
purchase rights, or any substitute therefor, in an aggregate amount not to exceed the
product of (x) the number of outstanding shares of Common Stock of the Parent and (y) $0.01
per share, as such amount may be adjusted in accordance with any rights agreement relating
to the Parent Common Stock;




     (12) so long as no Event of Default exists and has not been cured or waived, cash
dividends or loans to the Parent in amounts required for the Parent to declare and pay cash
dividends on Parent Common Stock in an amount not to exceed $0.20 per share in any fiscal
year, which amount will be reduced to reflect any subdivision of the Parent Common Stock by
means of a stock split, stock dividend or otherwise;




     (13) the repurchase, redemption or other acquisition for value of Capital Stock of the
Company or any direct or indirect parent of the Company representing fractional shares of
such Capital Stock in connection with a merger, consolidation, amalgamation or



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other combination involving the Company or any direct or indirect parent of the
Company; and



          (14) Restricted Payments in an amount not to exceed $15.0 million;



provided, however, that at the time of and after giving effect to any Restricted Payment permitted
under clause (4), (7) or (14), no Default shall have occurred and be continuing or would occur as a
consequence thereof.




          The amount of all Restricted Payments (other than cash) shall be the fair market value on the
date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The fair market value of any cash Restricted Payment shall be its face amount
and any non-cash Restricted Payment shall be determined conclusively by the Board of Directors of
the Company acting in good faith, whose resolution with respect thereto shall be delivered to the
Trustee. Not later than the date of making any Restricted Payment, the Company shall deliver to
the Trustee an Officers’ Certificate stating that such Restricted Payment is permitted and setting
forth the basis upon which the calculations required by this Section 3.3 were computed.




          SECTION 3.4. Limitation on Restrictions on Distributions from Restricted Subsidiaries.
The Company will not, and will not permit any Restricted Subsidiary to, create or otherwise cause
or permit to exist or become effective any consensual encumbrance or consensual restriction on the
ability of any Restricted Subsidiary to:





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




     (2) make any loans or advances to the Company or any Restricted Subsidiary (it being
understood that the subordination of loans or advances made to the Company or any Restricted
Subsidiary to other Indebtedness Incurred by the Company or any Restricted Subsidiary shall
not be deemed a restriction on the ability to make loans or advances); or




     (3) transfer any of its property or assets to the Company or any Restricted Subsidiary
(it being understood that such transfers shall not include any type of transfer described in
clause (1) or (2) above).




     The provisions of the preceding paragraph will not prohibit:




     (i) any encumbrance or restriction pursuant to an agreement in effect at or entered
into on the Issue Date, including, without limitation, this Indenture, the Securities, the
Exchange Securities, the Subsidiary Guarantees, the Collateral Documents, the Intercreditor



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Agreement and the Senior Secured Credit Agreement (and related documentation)
in effect on such date;




     (ii) any encumbrance or restriction with respect to a Person pursuant to an agreement
relating to any Capital Stock or Indebtedness Incurred by such Person on or before the date
on which such Person became a Restricted Subsidiary or was acquired by, merged into or
consolidated with the Company or a Restricted Subsidiary (other than Capital Stock or
Indebtedness Incurred as consideration in, or to provide all or any portion of the funds
utilized to consummate, the transaction or series of related transactions pursuant to which
such Person became a Restricted Subsidiary or was acquired by, merged into or consolidated
with the Company or in contemplation of the transaction) and outstanding on such date,
provided that any such encumbrance or restriction shall not extend to any assets or property
of the Company or any other Restricted Subsidiary other than the assets and property so
acquired and that, in the case of Indebtedness, was permitted to be Incurred pursuant to
this Indenture;




     (iii) any encumbrance or restriction pursuant to an agreement effecting a refunding,
replacement or refinancing of Indebtedness Incurred pursuant to an agreement referred to in
clause (i) or (ii) of this paragraph or this clause (iii) or contained in any amendment,
restatement, modification, renewal, supplement, refunding, replacement or refinancing of an
agreement referred to in clause (i) or (ii) of this paragraph or this clause (iii);
provided, however, that the encumbrances and restrictions with respect to such Restricted
Subsidiary contained in any such agreement are no less favorable in any material respect,
taken as a whole, to the Holders of the Securities than the encumbrances and restrictions
contained in such agreements referred to in clause (i) or (ii) of this paragraph on the
Issue Date or the date such Restricted Subsidiary became a Restricted Subsidiary or was
merged into a Restricted Subsidiary, whichever is applicable;




     (iv) in the case of clause (3) of the first paragraph of this Section 3.4,
Liens permitted to be incurred under the provisions of Section 3.6;




     (v) (a) purchase money obligations or mortgage financings for property acquired in the
ordinary course of business and (b) Capitalized Lease Obligations permitted under this
Indenture, in each case, that impose encumbrances or restrictions of the nature described in
clause (3) of the first paragraph of this Section 3.4 on the property so acquired;




     (vi) any restriction with respect to a Restricted Subsidiary (or any of its property or
assets) imposed pursuant to an agreement entered into for the direct or indirect sale or
disposition of the Capital Stock or assets of such Restricted Subsidiary (or the property or
assets that are subject to such restriction) pending the closing of such sale or
disposition;




     (vii) any customary provisions relating to the disposition or distribution of assets or
property in joint venture agreements, asset sales agreements, stock sale agreements and
other similar agreements entered into in the ordinary course of business;



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     (viii) net worth provisions in leases and other agreements and provisions restricting
cash or other deposits in agreements entered into by the Company or any Restricted
Subsidiary in the ordinary course of business;




     (ix) encumbrances or restrictions arising or existing by reason of applicable law or
any applicable rule, regulation or order;




     (x) encumbrances or restrictions contained in indentures or debt instruments or other
debt arrangements Incurred or Preferred Stock issued by Subsidiary Guarantors in accordance
with Section 3.2, that are not more restrictive, taken as a whole, than those
applicable to the Company in either this Indenture or the Senior Secured Credit Agreement on
the Issue Date (which results in encumbrances or restrictions comparable to those applicable
to the Company at a Restricted Subsidiary level);




     (xi) encumbrances or restrictions contained in indentures or other debt instruments or
debt arrangements Incurred or Preferred Stock issued by Restricted Subsidiaries that are not
Subsidiary Guarantors subsequent to the Issue Date pursuant to clauses (5), (12), (13) or
(14) of the second paragraph of Section 3.2; provided that such encumbrances and
restrictions contained in any agreement or instrument will not materially affect the
Company’s ability to make anticipated principal or interest payments on the Securities (as
determined by the Board of Directors of the Company);




     (xii) encumbrances or restrictions contained in customary non-assignment provisions in
leases, contracts, licenses or other agreements entered into in the ordinary course of
business; and




     (xiii) encumbrances or restrictions arising or agreed to in the ordinary course of
business, not relating to Indebtedness, that do not, individually or in the aggregate,
detract from the value of property or assets of Libbey Glass or any Restricted Subsidiary
thereof in any manner material to Libbey Glass or any Restricted Subsidiary.



          SECTION 3.5. Limitation on Sales of Assets and Subsidiary Stock. The Company will
not, and will not permit any of its Restricted Subsidiaries to, make any Asset Disposition unless:





     (1) the Company or such Restricted Subsidiary, as the case may be, receives
consideration at least equal to the fair market value (such fair market value to be
determined on the date of contractually agreeing to such Asset Disposition), as determined
in good faith by the Board of Directors (including as to the value of all non-cash
consideration), of the shares and assets subject to such Asset Disposition;




     (2) except for any Permitted Asset Swap, at least 75% of the consideration from such
Asset Disposition received by the Company or such Restricted Subsidiary, as the case may be,
is in the form of cash or Cash Equivalents;




     (3) if such Asset Disposition involves the disposition of Notes Priority Collateral or,
after the Discharge of Credit Agreement Obligations, the disposition of Credit




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Agreement Priority Collateral, the Net Available Cash from such Asset Disposition, pending application
in accordance with the provisions described under clause (4) below, shall be paid directly
by the purchaser of such Collateral to the Collateral Agent for deposit into the Collateral
Account, and any portion of the consideration therefor other than cash or Cash Equivalents
shall be made subject to the Lien of this Indenture and the applicable Collateral Documents;
and




     (4) an amount equal to 100% of the Net Available Cash from such Asset Disposition is
applied by the Company or such Restricted Subsidiary, as the case may be:




     (a) to the extent such Net Available Cash constitute proceeds from the sale of
Credit Agreement Priority Collateral, to repay Indebtedness under the Credit
Agreement secured by such Credit Agreement Priority Collateral within 365 days from
the later of the date of such Asset Disposition or the receipt of such Net Available
Cash;




     (b) to the extent such Net Cash Proceeds constitutes proceeds from the sale of
Notes Priority Collateral, to permanently repay, equally and ratably, the notes and
any Pari Passu Secured Indebtedness, within 365 days from the later of the date of
such Asset Disposition or the receipt of such Net Available Cash;




     (c) to permanently reduce obligations under other Indebtedness secured by a
Lien (provided that if Libbey Glass or any Note Guarantor shall so reduce such
obligations, Libbey Glass will equally and ratably reduce obligations under the
notes and any Pari Passu Secured Indebtedness if the notes and such Pari Passu
Secured Indebtedness are then prepayable or, if the notes may not then be prepaid,
by making an offer (in accordance with the procedures set forth below for an Asset
Disposition Offer) to all holders to purchase at a purchase price equal to 100% of
the principal amount thereof, plus accrued and unpaid interest and additional
interest, if any, the pro rata principal amount of notes that would otherwise be
prepaid) or Indebtedness of a Non-Guarantor Restricted Subsidiary, in each case
other than Indebtedness owed to Libbey Glass or an Affiliate of Libbey Glass within
365 days from the later of the date of such Asset Disposition or the receipt of such
Net Available Cash; or




     (d) to invest in Additional Assets within 365 days from the later of the date
of such Asset Disposition or the receipt of such Net Available Cash; provided,
however, that with respect to Asset Dispositions of Notes Priority Collateral, such
Additional Assets are added to the Notes Priority Collateral with the exception of
Net Available Cash not to exceed $15.0 million that is invested in Additional Assets
of Non-Guarantor Restricted Subsidiaries;




provided that pending the final application of any such Net Available Cash in accordance
with clauses (a) through (d) above, the Company and its Restricted Subsidiaries may
temporarily reduce Indebtedness or otherwise invest such Net Available Cash in any manner
not prohibited by this Indenture; provided further that in the case of an Asset



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Disposition of Notes Priority Collateral, any cash will be deposited in accordance with clause (3)
above.



          Any Net Available Cash from Asset Dispositions that are not applied or invested as provided in
the preceding paragraph will be deemed to constitute “Excess Proceeds.” To the extent that
the aggregate amount of Excess Proceeds exceeds $20.0 million on the 366th day after an Asset
Disposition, the Company will be required to make an offer (“Asset Disposition Offer”) to
all Holders of Securities and to the extent required by the terms of other Pari Passu Secured
Indebtedness, to all holders of other Pari Passu Secured Indebtedness outstanding with similar
provisions requiring the Company to make an offer to purchase such Pari Passu Secured Indebtedness
with the proceeds from any Asset Disposition (“Pari Passu Notes”), to purchase the maximum
principal amount of Securities and any such Pari Passu Notes to which the Asset Disposition Offer
applies that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount
equal to 100% of the principal amount of the Securities and Pari Passu Notes plus accrued and
unpaid interest to the date of purchase, in accordance with the procedures set forth in this
Indenture or the agreements governing the Pari Passu Notes, as applicable, and in compliance with
the Intercreditor Agreement in each case in integral multiples of $1,000. To the extent that the
aggregate amount of Securities and Pari Passu Notes so validly tendered and not properly withdrawn
pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the Company may use any
remaining Excess Proceeds for general corporate purposes, subject to other covenants contained in
this Indenture. If the aggregate principal amount of Securities surrendered by Holders thereof and
other Pari Passu Notes surrendered by holders or lenders, collectively, exceeds the amount of
Excess Proceeds, the Trustee shall select the Securities and Pari Passu Notes to be purchased on a
pro rata basis on the basis of the aggregate principal amount of tendered Securities and Pari Passu
Notes. Upon completion of such Asset Disposition Offer, the amount of Excess Proceeds shall be
reset at zero.



          The Asset Disposition Offer will remain open for a period of 20 Business Days following its
commencement, except to the extent that a longer period is required by applicable law (the
“Asset Disposition Offer Period”). The Company will mail a notice of an Asset Disposition
Offer first class, postage prepaid, to the record holders shown on the register of Holders within
20 days following the 366th day referred to in the second paragraph of this Section 3.5
with a copy to the Trustee, offering to purchase the Securities and Pari Passu Notes as described
above. Each notice of an Asset Disposition Offer shall state, among other things, the purchase
date, which must be no earlier than 30 days nor later than 60 days from the date the notice is
mailed, subject to applicable law (the “Asset Disposition Purchase Date”). No later than
five Business Days after the termination of the Asset Disposition Offer Period, the Company will
purchase the principal amount of Securities and Pari Passu Notes required to be purchased pursuant
to this Section 3.5 (the “Asset Disposition Offer Amount”) or, if less than the
Asset Disposition Offer Amount has been so validly tendered, all Securities and Pari Passu Notes
validly tendered in response to the Asset Disposition Offer.



          If the Asset Disposition Purchase Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest will be paid to the Person in
whose name a Security is registered at the close of business on such record date, and



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no additional interest will be payable to Holders who tender Securities pursuant to the Asset Disposition Offer.




          On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Securities and Pari Passu Notes or portions of Securities and Pari Passu Notes so validly
tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all Securities
and Pari Passu Notes so validly tendered and not properly withdrawn, in each case in integral
multiples of $1,000. The Company will deliver to the Trustee an Officers’ Certificate stating that
such Securities or portions thereof were accepted for payment by the Company in accordance with the
terms of this Section 3.5 and, in addition, the Company will deliver all certificates and
securities required, if any, by the agreements governing the Pari Passu Notes. The Company or the
Paying Agent, as the case may be, will promptly (but in any case not later than five Business Days
after the Asset Disposition Purchase Date) mail or deliver to each tendering Holder of Securities
or holder or lender of Pari Passu Notes, as the case may be, an amount equal to the purchase
price of the Securities or Pari Passu Notes so validly tendered and not properly withdrawn by
such holder or lender, as the case may be, and accepted by the Company for purchase, and the
Company will promptly issue a new Security, and the Trustee, upon delivery of an Officers’
Certificate from the Company, will authenticate and mail or deliver such new Security to such
Holder, in a principal amount equal to any unpurchased portion of the Security surrendered;
provided that each such new Security will be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof. In addition, the Company will take any and all other actions
required by the agreements governing the Pari Passu Notes. Any Security not so accepted will be
promptly mailed or delivered by the Company to the Holder thereof. The Company will publicly
announce the results of the Asset Disposition Offer on the Asset Disposition Purchase Date.



          For the purposes of clause (2) of this Section 3.5, the following will be deemed to be
cash:




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




     (2) any securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are converted by the Company or such
Restricted Subsidiary into cash, to the extent of the cash received in that conversion, with
180 days following the closing of such Asset Disposition; and




     (3) any Designated Non-cash Consideration received by Libbey Glass or any Restricted
Subsidiary in such Asset Disposition having an aggregate fair market value, taken together
with all other Designated Non-cash Consideration received pursuant to this clause (3) that
is at the time outstanding, not to exceed $15.0 million at the time of the receipt of such
Designated Non-cash Consideration, with the fair market value of



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each item of Designated Non-cash Consideration being measured at the time received and without giving effect to
subsequent changes in value.



          The Company will comply, to the extent applicable, with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws or regulations in connection with the repurchase of
Securities pursuant to this Indenture. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 3.5, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under this Indenture by virtue of any conflict.



          SECTION 3.6. Limitation on Liens. The Company will not, and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, create, Incur or suffer to exist any Lien
(other than Permitted Liens) upon any of its property or assets (including Capital Stock of
Restricted Subsidiaries), whether owned on the Issue Date or acquired after that date, other than:




     (1) in the case of Liens on any Notes Priority Collateral, any Lien if (i) such Lien
ranks expressly junior in priority to the Lien securing the Securities with respect to such
Notes Priority Collateral; or (ii) such Lien is a Permitted Lien; and




     (2) in the case of any other asset or property, any Lien if (i) the Securities are
equally and ratably secured with (or, in the case such Lien secures any Subordinated
Obligations the Securities are secured on a senior basis to) the Obligations secured by such
Lien or (ii) such Lien is a Permitted Lien.



          In addition, if the Company or any Subsidiary Guarantor, directly or indirectly, shall create,
Incur or suffer to exist any Lien (other than Permitted Liens) securing any Lenders Debt, the
Company or such Subsidiary Guarantor, as the case may be, must concurrently grant at least a
second-priority Lien in the case of assets constituting ABL Priority Collateral or a first-priority
Lien in the case of assets constituting Notes Priority Collateral upon such property as security
for the Securities, excluding any Foreign Assets or Capital Stock which by the terms of the
Collateral Documents are expressly permitted to be subject to a Lien securing Lenders Debt without
also being subject to a Lien securing the Indebtedness due under this Indenture and the Securities.



          SECTION 3.7. [Reserved].



          SECTION 3.8. Limitation on Affiliate Transactions. The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or conduct any
transaction (including the purchase, sale, lease or exchange of any property or the rendering of
any service) involving aggregate consideration in excess of $2.5 million with any Affiliate of the
Company (an “Affiliate Transaction”) unless:




     (1) the terms of such Affiliate Transaction are no less favorable to the Company or
such Restricted Subsidiary, as the case may be, than those that could be obtained in a
comparable transaction at the time of such transaction in arm’s-length dealings with a
Person who is not such an Affiliate;



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     (2) in the event such Affiliate Transaction involves an aggregate consideration in
excess of $10.0 million, the terms of such transaction have been approved by a majority of
the members of the Board of Directors of the Company and by a majority of the members of
such Board having no personal stake in such transaction, if any (and such majority or
majorities, as the case may be, determines that such Affiliate Transaction satisfies the
criteria in clause (1) above); and




     (3) in the event such Affiliate Transaction involves an aggregate consideration in
excess of $25.0 million, the Company has received a written opinion from an independent
investment banking, accounting or appraisal firm of nationally recognized standing that such
Affiliate Transaction is not materially less favorable than those that might reasonably have
been obtained in a comparable transaction at such time on an arm’s-length basis from a
Person that is not an Affiliate.


The preceding paragraph will not apply to:





     (1) any Restricted Payment (other than a Restricted Investment) permitted to be made
pursuant to Section 3.3;




     (2) any issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements and other compensation
arrangements, options to purchase Capital Stock of the Company restricted stock plans,
long-term incentive plans, stock appreciation rights plans, participation plans or similar
employee benefits plans, pension plans or similar plans and/or indemnity provided on behalf
of current or former directors, officers and employees approved by the Board of Directors of
the Company;




     (3) loans or advances to employees, officers or directors of the Company or any
Restricted Subsidiary of the Company in the ordinary course of business consistent with past
practices, in an aggregate amount outstanding at any time not in excess of $5.0 million
(without giving effect to the forgiveness of any such loan);




     (4) any transaction between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries and any Guarantees issued by the Company or a Restricted Subsidiary
for the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance
with Section 3.2;




     (5) the payment of reasonable and customary fees paid to, and indemnity provided on
behalf of, current, former and future directors of the Company or any Restricted Subsidiary;




     (6) the existence of, and the performance of obligations of the Company or any of its
Restricted Subsidiaries under the terms of any agreement to which the Company or any of its
Restricted Subsidiaries is a party as of or on the Issue Date, as these agreements may be
amended, modified, supplemented, extended or renewed from time to time; provided, however,
that any future amendment, modification, supplement, extension or renewal entered into after
the Issue Date will be permitted to the extent that its



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terms are not more disadvantageous
to the Holders of the Securities than the terms of the agreements in effect on the Issue
Date;




     (7) transactions with customers, clients, suppliers or purchasers or sellers of goods
or services, in each case in the ordinary course of the business of the Company and its
Restricted Subsidiaries and otherwise in compliance with the terms of this Indenture;
provided that in the reasonable determination of the members of the Board of Directors or
senior management of the Company, such transactions are on terms that are no 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 an
unrelated Person;




     (8) any issuance or sale of Capital Stock (other than Disqualified Stock) to Affiliates
of the Company and the granting and performance of registration and other customary rights
in connection therewith;




     (9) transactions with a Person that is an Affiliate of Libbey Glass solely because
Libbey Glass, directly or indirectly, owns Capital Stock of, or controls, such Person;




     (10) transactions with Affiliates solely in their capacity as holders of the
Indebtedness or Capital Stock of Libbey Glass or any of its Subsidiaries, so long as such
transaction is with all holders of such class (and there are such non-Affiliate holders) and
such Affiliates are treated no more favorably than all other holders of such class
generally;




     (11) any contribution to the common equity capital of Libbey Glass;




     (12) the pledge of Capital Stock of any Unrestricted Subsidiary to lenders to support
the Indebtedness of such Unrestricted Subsidiary owed to such lenders;




     (13) payments by Libbey Glass or any of its Restricted Subsidiaries pursuant to any tax
sharing, allocation or similar agreement; and




     (14) transactions permitted by, and complying with, the provisions of Section
4.1.



          SECTION 3.9. Limitation on Sale of Capital Stock of Restricted Subsidiaries. The
Company will not, and will not permit any Restricted Subsidiary to, transfer, convey, sell, lease
or otherwise dispose of any Voting Stock of any Restricted Subsidiary or to issue any of the Voting
Stock of a Restricted Subsidiary (other than, if necessary, shares of its Voting Stock constituting
directors’ qualifying shares) to any Person except:




     (1) to the Company or a Wholly Owned Subsidiary; or




     (2) in compliance with Section 3.5 and immediately after giving effect to such
issuance or sale, such Restricted Subsidiary either continues to be a Restricted Subsidiary
or if such Restricted Subsidiary would no longer be a Restricted Subsidiary, then the



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Investment of the Company in such Person (after giving effect to such issuance or sale)
would have been permitted to be made under Section 3.3 as if made on the date of
such issuance or sale.



          Notwithstanding the preceding paragraph, the Company and any Restricted Subsidiary may sell
all the Voting Stock of a Restricted Subsidiary as long as the Company and its Restricted
Subsidiaries comply with the terms of Section 3.5.



          SECTION 3.10. Limitation on Lines of Business. The Company will not, and will not
permit any Restricted Subsidiary to, engage in any business other than a Related Business.



          SECTION 3.11. Change of Control. If a Change of Control occurs, each Holder shall
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 such Holder’s Securities at a purchase price in cash equal
to 101% of the principal amount of the Securities plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date).



          Within 30 days following any Change of Control, the Company shall mail a notice (the
“Change of Control Offer”) to each Holder, with a copy to the Trustee, stating:




     (1) that a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Securities at a purchase price in cash equal to 101%
of the principal amount of such Securities plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date) (the “Change of Control Payment”);




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




     (3) the procedures determined by the Company, consistent with this Indenture, that a
Holder must follow in order to have its Securities repurchased.




     On the Change of Control Payment Date, the Company shall, to the extent lawful:




     (1) accept for payment all Securities or portions of Securities (in minimum
denominations of $2,000 or integral multiples of $1,000 in excess thereof) properly tendered
pursuant to the Change of Control Offer;




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



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



          The Paying Agent shall promptly mail to each Holder of Securities so tendered the Change of
Control Payment for such Securities, and the Trustee shall promptly authenticate and mail (or cause
to be transferred by book entry) to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any; provided that each such new Security
shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof.



          If the Change of Control Payment Date is on or after an interest record date and on or before
the related interest payment date, any accrued and unpaid interest, if any, will be paid to the
Person in whose name a Security is registered at the close of business on such record date, and no
additional interest shall be payable to Holders who tender pursuant to the Change of Control Offer.



          The Company will publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.



          The Company will not be required to make a Change of Control Offer upon a Change of Control if
(i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to a Change of Control
Offer made by the Company and purchases all Securities validly tendered and not withdrawn under
such Change of Control Offer or (ii) a notice of redemption has been given pursuant to Article
V of this Indenture, unless and until there is a default in payment of the applicable
redemption price.



          The Company shall comply, to the extent applicable, with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws or regulations thereunder in connection with the
repurchase of Securities pursuant to this Section 3.11. To the extent that the provisions
of any securities laws or regulations conflict with provisions of this Indenture, the Company shall
comply with the applicable securities laws and regulations and shall not be deemed to have breached
its obligations described in this Indenture by virtue of the conflict.



          SECTION 3.12. SEC Reports. Notwithstanding that the Company may not be subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, to the extent permitted by the
Exchange Act, the Company will file with the SEC, and make available to the Trustee and the
registered Holders of the Securities:




     (1) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual information only, a report on the
annual financial statements by the Company’s certified independent accountants; and



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     (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.



          In the event that the Company is not permitted to file such reports, documents and information
with the SEC pursuant to the Exchange Act, the Company will nevertheless make available such
Exchange Act information to the Trustee and the Holders of the Securities as if the Company were
subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act (a) in the case of
quarterly reports, within 15 days after the time period specified in the SEC’s rules and
regulations and (b) in the case of annual reports, within 30 days after the time period specified
in the SEC’s rules and regulations; provided that the Company shall not be required to furnish any
information, certifications or reports required by Items 307 or 308 of Regulation S-K prior to the
commencement of the Exchange Offer or the effectiveness of the Shelf Registration Statement.



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



          In addition, the Company and the Guarantors have agreed that they will make available to the
Holders and to prospective investors, upon the request of such Holders, the information required to
be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as the Securities are not
freely transferable under the Securities Act. For purposes of this Section 3.12,
the Company and the Note Guarantors will be deemed to have furnished the reports to the Trustee and
the Holders of Securities as required by this Section 3.12 if it has filed such reports
with the SEC via the EDGAR filing system and such reports are publicly available.



          The filing requirements set forth above for the applicable period shall be deemed satisfied by
the Company prior to the commencement of the Exchange Offer or the effectiveness of the Shelf
Registration Statement by the filing with the SEC of the exchange offer registration statement
and/or Shelf Registration Statement, and any amendments thereto, with such financial information
that satisfies Regulation S-X of the Securities Act; provided that this paragraph shall not
supersede or in any manner suspend or delay the Company’s reporting obligations set forth in the
first three paragraphs of this Section 3.12.



          The Parent may satisfy the obligations of the Company set forth above; provided that (x) the
financial information filed with the SEC or delivered to Holders pursuant to this covenant should
include consolidating financial statements for the Parent, the Company, the Subsidiary Guarantors
and the Subsidiaries that are not Subsidiary Guarantors in the form prescribed by the SEC and (y)
the Parent is not engaged in any business in any material respect other than incidental to its
ownership, directly or indirectly, of the Company.



          SECTION 3.13. Future Subsidiary Guarantors. The Company will cause each Restricted
Subsidiary that Guarantees, on the Issue Date or any time thereafter, any Indebtedness of the
Company or any Subsidiary Guarantor to execute and deliver to the Trustee a supplemental



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indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint and several
basis, the full and prompt payment of the principal of, premium, if any, and interest (including
Additional Interest, if any) in respect of the Securities on a senior secured basis and all other
obligations under this Indenture. Each Restricted Subsidiary that becomes a Subsidiary Guarantor
after the Issue Date will also become a party to the Collateral Documents and the Intercreditor
Agreement and will take such actions as are necessary or advisable to grant to the Collateral Agent for
the benefit of the Trustee, the Collateral Agent and the Holders of the Securities a perfected and
at least second-priority security interest in any Collateral held by such Restricted Subsidiary,
subject to Permitted Liens. Notwithstanding the foregoing, in the event (a) a Subsidiary Guarantor
is released and discharged in full from all of its obligations under its Guarantee of (1) Lenders
Debt and (2) all other Indebtedness of the Company and its Restricted Subsidiaries, including a
Guarantee under the indenture governing the Private Placement Notes, and (b) such Subsidiary
Guarantor has not Incurred any Indebtedness in reliance on its status as a Subsidiary Guarantor
under Section 3.2 or such Subsidiary Guarantor’s obligations under such Indebtedness are
satisfied in full and discharged or are otherwise permitted to be Incurred by a Restricted
Subsidiary (other than a Subsidiary Guarantor) under the second paragraph of Section 3.2,
then the Subsidiary Guarantee and the obligations of such Subsidiary Guarantor under the Collateral
Documents and Intercreditor Agreement of such Subsidiary Guarantor shall be automatically and
unconditionally released or discharged.




          SECTION 3.14. Maintenance of Office or Agency. The Company shall maintain an office
or agency where the Securities may be presented or surrendered for payment, where, if applicable,
the Securities may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
agency of The Bank of New York Mellon Trust Company, N.A. (the “Agent”), currently located
at 101 Barclay Street, New York, NY 10286, Attention: Global Corporate Trust (or at such address
in the Borough of Manhattan, The City of New York as the Agent shall designate upon request
therefor from the Company or any Holder), shall be such office or agency of the Company, unless the
Company shall designate and maintain some other office or agency for one or more of such purposes.
The Company shall give prompt written notice to the Trustee of any change in the location of any
such office or agency. If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Agent of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.



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



          SECTION 3.15. Corporate Existence. Except as otherwise provided in Article
III, Article IV and Section 10.2(b), the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate existence and the
corporate, partnership, limited liability company or other existence of each Subsidiary Guarantor, if any, in accordance



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with their respective organizational documents (as the same may be amended
from time to time) and the rights (charter and statutory) licenses and franchises of the Company
and each such Subsidiary Guarantor; provided, however, that the Company shall not be required to
preserve any such right, license or franchise or the corporate, partnership, limited liability
company or other existence of any Subsidiary Guarantor if the Board of Directors of the Company
shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and each of its Restricted Subsidiaries, taken as a whole, and that the loss thereof
is not, and will not be, disadvantageous in any material respect to the Holders; provided, further,
that the foregoing shall not prohibit a sale, transfer, or conveyance of a Restricted Subsidiary or
any of its assets in compliance with the terms of this Indenture.




          SECTION 3.16. Payment of Taxes and Other Claims. The Company shall pay or discharge
or cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon the Company or any Restricted
Subsidiary or upon the income, profits or property of the Company or any Restricted Subsidiary and
(ii) all lawful claims for labor, materials and supplies, which, if unpaid, might by law become a
material liability or lien upon the property of the Company or any Restricted Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim the amount, applicability or validity of which
is being contested in good faith by appropriate actions and for which appropriate reserves, if
necessary (in the good faith judgment of management of the Company), are being maintained in
accordance with GAAP or where the failure to effect such payment will not be disadvantageous to the
Holders.



          SECTION 3.17. [Reserved].



          SECTION 3.18. Compliance Certificate. The Company shall deliver to the Trustee within
120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company they would
normally have knowledge of any Default or Event of Default and whether or not the signers know of
any Default or Event of Default that occurred during the previous fiscal year. If they do, the
certificate shall describe the Default or Event of Default, its status and the action the Company
is taking or proposes to take with respect thereto. The Company also shall comply with TIA §
314(a)(4).



          SECTION 3.19. Further Instruments and Acts. Upon request of the Trustee or as
necessary to comply with any future developments or requirements, the Company shall execute and
deliver such further instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Indenture with respect to such future
developments or requirements.



          SECTION 3.20. Statement by Officers as to Default. The Company shall deliver to the
Trustee, as soon as possible and in any event within 30 days after the occurrence of any Event of
Default or an event which, with notice or the lapse of time or both, would constitute an Event of
Default, an Officers’ Certificate setting forth the details of such Event of Default or Default,
its status and the actions which the Company is taking or proposes to take with respect thereto
unless such Default has been cured before the end of the 30-day period.



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          SECTION 3.21. Effectiveness of Certain Covenants. If on any date following the date
of this Indenture:




     (1) the Securities are rated Baa3 or better by Moody’s Investors Service, Inc. and BBB-
or better by Standard & Poor’s Ratings Group, Inc. (or, if either such entity ceases to rate
the notes for reasons outside of the control of the Company, the equivalent investment grade
credit rating from any other nationally recognized statistical rating agency selected by the
Company as a replacement agency); and




     (2) no Default or Event of Default shall have occurred and be continuing,



          then, beginning on that day and subject to the provisions of the following paragraph, the
covenants specifically listed below will be suspended:




     (1) Section 3.2 hereof;




     (2) Section 3.3 hereof;




     (3) Section 3.4 hereof;




     (4) Section 3.5 hereof;




     (5) Section 3.8 hereof ;




     (6) Section 3.9 hereof;




     (7) Section 3.12 hereof;




     (8) clause (3) with respect to Section 4.1;




     (9) Section 3.13 hereof (but only with respect to the obligation to create
future Subsidiary Guarantors); and




     (10) Section 3.10 hereof.



          Notwithstanding the foregoing, if the rating assigned by either such rating agency should
subsequently decline to below Baa3 or BBB-, respectively, the foregoing covenants will be
reinstituted as of and from the date of such rating decline. Calculations under the reinstated
Section 3.3 will be made as if Section 3.3 had been in effect since the date of
this Indenture except that no Default will be deemed to have occurred solely by reason of a
Restricted Payment made while Section 3.3 was suspended.



ARTICLE IV

SUCCESSOR COMPANY




     SECTION 4.1. Merger and Consolidation. The Company will not consolidate with or merge
with or into, or convey, transfer or lease all or substantially all its assets to, any Person,
unless:



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     (1) the resulting, surviving or transferee Person (the “Successor Company”)
will be a corporation organized and existing under the laws of the United States of America,
any State of the United States or the District of Columbia and the Successor Company (if not
the Company) will expressly assume, by supplemental indenture, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the
Securities and this Indenture and will expressly assume, by written agreement all the
obligations of the Company under the Registration Rights Agreement, the Collateral Documents
and the Intercreditor Agreement;




     (2) immediately after giving effect to such transaction (and treating any Indebtedness
that becomes an obligation of the Successor Company or any Subsidiary of the Successor
Company as a result of such transaction as having been Incurred by the Successor Company or
such Subsidiary at the time of such transaction), no Default or Event of Default would exist
that shall not have been cured or waived;




     (3) immediately after giving effect to such transaction, the Successor Company would
(i) be able to Incur at least $1.00 of additional Indebtedness pursuant to the first
paragraph of Section 3.2 or (ii) have a Consolidated Coverage Ratio of not less than
the Consolidated Coverage Ratio of the Company immediately prior to such transaction;




     (4) each Note Guarantor (unless it is the other party to the transactions above, in
which case clause (1) shall apply) shall have by supplemental indenture confirmed that its
Note Guarantee shall apply to such Person’s obligations in respect of this Indenture and the
Securities; and




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


Notwithstanding the preceding clause (3), (x) any Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to the Company and (y) the Company may
merge with an Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction; provided that, in the case of a Restricted Subsidiary that merges into the
Company, the Company will not be required to comply with the preceding clauses (2), (3) or (5).




          Parent will not consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, unless:




     (1) (a) the resulting, surviving or transferee Person (the “Successor Parent”)
will be a corporation organized and existing under the laws of the United States of America,
any State of the United States or the District of Columbia and (b) the Successor Parent (if
not the Parent) will expressly assume, by supplemental indenture (and other applicable
documents), executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Parent under its Note Guarantee, this Indenture, the Collateral
Documents, the Intercreditor Agreement and the Registration Rights Agreement;



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     (2) immediately after giving effect to such transaction (and treating any Indebtedness
that becomes an obligation of the Successor Parent or any Subsidiary of the Successor Parent
as a result of such transaction as having been Incurred by the Successor Parent or such
Subsidiary at the time of such transaction), no Default or Event of Default would exist that
shall not have been cured or waived; and




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



          For purposes of this Section 4.1, the sale, lease, conveyance, assignment, transfer,
or other disposition of all or substantially all of the properties and assets of one or more
Subsidiaries of the Company, which properties and assets, if held by the Parent or the Company
instead of such Subsidiaries, would constitute all or substantially all of the properties and
assets of the Parent or the Company on a consolidated basis, shall be deemed to be the transfer of
all or substantially all of the properties and assets of the Parent and the Company.



          The predecessor company will be released from its obligations under this Indenture and the
Successor Company will succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture, the Collateral Documents and the Intercreditor Agreement,
but, in the case of a lease of all or substantially all its assets, the predecessor company will
not be released from the obligation to pay the principal of and interest on the Securities or any
obligation under the Collateral Documents and the Intercreditor Agreement.



          In addition, the Company will not permit any Subsidiary Guarantor to consolidate with or merge
with or into any Person (other than another Subsidiary Guarantor) and will not permit the
conveyance, transfer or lease of all or substantially all of the assets of any Subsidiary Guarantor
(other than to another Subsidiary Guarantor) unless: (1) if such entity remains a Subsidiary
Guarantor, the resulting, surviving or transferee Person will be a corporation, partnership, trust
or limited liability company organized and existing under the laws of the United States of America,
any State of the United States or the District of Columbia; (2) immediately after giving effect to
such transaction (and treating any Indebtedness that becomes an obligation of the resulting,
surviving or transferee Person or any Restricted Subsidiary as a result of such transaction as
having been Incurred by such Person or such Restricted Subsidiary at the time of such transaction),
no Default or Event of Default would exist that shall not have been cured or waived; (3) the
resulting, surviving or transferee Person assumes all the obligations of such Subsidiary Guarantor
pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee
under the Securities, this Indenture, the Collateral Documents, the Intercreditor Agreement and the
Registration Rights Agreement; and (4) the Company will have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and
such supplemental indenture (if any) comply with this Indenture.



          Notwithstanding the foregoing, (1) a Subsidiary Guarantor may merge with an Affiliate
incorporated solely for the purpose of reincorporating such Subsidiary Guarantor in another
jurisdiction, so long as the amount of Indebtedness of such Subsidiary Guarantor is not



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increased thereby, and (2) any Subsidiary Guarantor may merge into or transfer or lease all or part of its
properties and assets to Libbey Glass or another Subsidiary Guarantor.




ARTICLE V

REDEMPTION OF SECURITIES




          SECTION 5.1. Redemption. The Securities may be redeemed, as a whole or from time to
time in part, subject to the conditions and at the redemption prices specified in paragraph 5 of
the form of Securities set forth in Exhibit A and Exhibit B hereto, which are
hereby incorporated by reference and made a part of this Indenture, together with accrued and
unpaid interest, if any, to the Redemption Date.



          SECTION 5.2. Applicability of Article. Redemption of Securities at the election of
the Company or otherwise, as permitted or required by any provision of this Indenture, shall be
made in accordance with such provision and this Article.



          SECTION 5.3. Election to Redeem; Notice to Trustee. The election of the Company to
redeem any Securities pursuant to Section 5.1 shall be evidenced by a Board Resolution of
the Company. In case of any redemption at the election of the Company, the Company shall, upon not
later than the earlier of the date that is 45 days prior to the Redemption Date fixed by the
Company or the date on which notice is given to the Holders (except as provided under Section
5.5 or unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Securities to be redeemed and shall deliver to
the Trustee such documentation and records as shall enable the Trustee to select the Securities to
be redeemed pursuant to Section 5.4. Any such notice may be cancelled at any time prior to
notice of such redemption being mailed to any Holder and shall thereby be void and of no effect.



          SECTION 5.4. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities are to be redeemed at any time pursuant to an optional redemption, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee, from the outstanding Securities not previously called for redemption, in compliance
with the requirements of the principal national securities exchange, if any, on which such
Securities are listed, or, if such Securities are not so listed, on a pro rata basis, by lot or by
such other method as the Trustee in its sole discretion shall deem fair and appropriate (and in
such manner as complies with applicable legal requirements) and which may provide for the selection
for redemption of portions of the principal of the Securities; provided, however, that no such
partial redemption shall reduce the portion of the principal amount of a Security not redeemed to
less than $2,000.



          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the method it has
chosen for the selection of Securities and the principal amount thereof to be redeemed.



          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Securities shall relate, in the case of any Security redeemed or to



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be redeemed only in part, to the portion of the principal amount of such Security which has been or is
to be redeemed.




          SECTION 5.5. Notice of Redemption. Notice of redemption shall be given in the manner
provided for under Section 12.2 not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed. At the Company’s request, the
Trustee shall give notice of redemption in the Company’s name and at the Company’s expense;
provided, however, that the Company shall deliver to the Trustee, at least 45 days prior to the
Redemption Date, an Officers’ Certificate requesting that the Trustee give such notice at the
Company’s expense and the form of notice that shall include the following items.




     All notices of redemption shall state:




     (1) the Redemption Date,




     (2) the redemption price and the amount of accrued interest to the Redemption Date
payable as provided under Section 5.7, if any,




     (3) if less than all outstanding Securities are to be redeemed, the identification of
the particular Securities (or portion thereof) to be redeemed, as well as the aggregate
principal amount of Securities to be redeemed and the aggregate principal amount of
Securities to be outstanding after such partial redemption,




     (4) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder will receive, without charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,




     (5) that on the Redemption Date the redemption price (and accrued interest, if any, to
the Redemption Date payable as provided under Section 5.7) will become due and
payable upon each such Security, or the portion thereof, to be redeemed, and, unless the
Company defaults in making the redemption payment, that interest on Securities called for redemption (or the portion thereof)
will cease to accrue on and after said date,




     (6) the place or places where such Securities are to be surrendered for payment of the
redemption price and accrued interest, if any,




     (7) the name and address of the Paying Agent,




     (8) that Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price,




     (9) the CUSIP, Common Code and ISIN numbers, if applicable, and that no representation
is made as to the accuracy or correctness of the CUSIP, Common Code and ISIN numbers, if
applicable, if any, listed in such notice or printed on the Securities, and



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     (10) the paragraph of the Securities pursuant to which the Securities are to be
redeemed.



          SECTION 5.6. Deposit of Redemption Price. Prior to 10:00 a.m., New York City time, on
any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company or any of the Company’s Subsidiaries is acting as its own Paying Agent, segregate and hold
in trust as provided under Section 2.4) an amount of money sufficient to pay the redemption
price of, and accrued interest on, all the Securities which are to be redeemed on that date, other
than Securities or portions of Securities called for redemption that are beneficially owned by the
Company and have been delivered by the Company to the Trustee for cancellation.



          SECTION 5.7. Securities Payable on Redemption Date. Notice of redemption having been
given as aforesaid, the Securities or portions of Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the redemption price therein specified (together with
accrued interest, if any, to the Redemption Date), and on and after such date (unless the Company
shall default in the payment of the redemption price and accrued interest) such Securities shall
cease to bear interest and the only right of the Holders thereof will be to receive payment of the
redemption price and, subject to the next sentence, unpaid interest on such Securities to the
Redemption Date. Upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Company at the redemption price, together with accrued
interest, if any, to the Redemption Date (subject to the rights of Holders of record on the
relevant record date to receive interest due on the relevant interest payment date).



          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the unpaid principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate borne by the Securities.



          SECTION 5.8. Securities Redeemed in Part. Any Security which is to be redeemed only
in part (pursuant to the provisions of this Article) shall be surrendered at the office or agency
of the Company maintained for such purpose pursuant to Section 3.14 (with, if the Company
or the Trustee so require, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by the Holder thereof or such Holder’s
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Security at the expense of the
Company, a new Security or Securities, of any authorized denomination as requested by such Holder,
in an aggregate principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered, provided that each such new Security will be in a
principal amount of $1,000 or an integral multiple thereof.



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ARTICLE VI

DEFAULTS AND REMEDIES




          SECTION 6.1. Events of Default. Each of the following is an event of default (an
“Event of Default”):




     (1) default in any payment of interest or additional interest (as required by the
Registration Rights Agreement) on any Security when due, continued for 30 days;




     (2) default in the payment of principal of or premium, if any, on any Security when due
at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration
or otherwise;




     (3) failure by the Company or any Note Guarantor to comply with its obligations under
Section 4.1;




     (4) failure by the Company or any Note Guarantor to comply for 45 days after notice as
provided below with (a) any of its obligations under Article III (in each case,
other than a failure to purchase Securities, which will constitute an Event of Default under
clause (2) above, and other than a failure to comply with Section 4.1, which is
covered by clause (3) of this Section 6.1) or (b) any of its agreements contained in
the Collateral Documents or Intercreditor Agreement;




     (5) failure by the Company or any Note Guarantor to comply for 60 days after notice as
provided below with its other agreements contained in this Indenture;




     (6) 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 its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company
or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is created
after the Issue Date, which default:




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




     (b) results in the acceleration of such Indebtedness prior to its maturity (the
“cross-acceleration provision”);




and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a payment default
or the maturity of which has been so accelerated, aggregates $20.0 million or more;




     (7) (a) the Company or a Significant Subsidiary or group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial statements for



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the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary,
pursuant to or within the meaning of any Bankruptcy Law:




     (i) commences a voluntary case or proceeding;




     (ii) consents to the entry of judgment, decree or order for relief against it
in an involuntary case or proceeding;




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




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




     (v) consents to or acquiesces in the institution of a bankruptcy or an
insolvency proceeding against it;




     (vi) takes any corporate action to authorize or effect any of the foregoing;




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




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




     (i) is for relief in an involuntary case against the Company or a Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest
audited consolidated financial statements for the Company and its Restricted Subsidiaries),
would constitute a Significant Subsidiary, pursuant to or within the meaning of any
Bankruptcy Law;




     (ii) appoints a Custodian for all or substantially all of the property of the Company
or a Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of
the latest audited consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary, pursuant to or within the meaning
of any Bankruptcy Law; or




     (iii) orders the winding up or liquidation of the Company or a Significant Subsidiary
or group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy
Law; and




     (vi) in each case the order, decree or relief remains unstayed and in effect for 60
days;




     (8) failure by the Company or any Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial



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statements for the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $20.0 million (net of any amounts
that a reputable and creditworthy insurance company has acknowledged liability for in
writing), which judgments are not paid, discharged or stayed for a period of 60 days (the
“judgment default provision”);




     (9) any Subsidiary Guarantee, Collateral Document or obligation under the Intercreditor
Agreement of a Significant Subsidiary or group of Restricted Subsidiaries that taken
together as of the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be in full force
and effect (except as contemplated by the terms of this Indenture) or is declared null and
void in a judicial proceeding or any Subsidiary Guarantor that is a Significant Subsidiary
or group of Subsidiary Guarantors that taken together as of the latest audited consolidated
financial statements of the Company and its Restricted Subsidiaries would constitute a
Significant Subsidiary denies or disaffirms its obligations under this Indenture, its
Subsidiary Guarantee, any Collateral Document or the Intercreditor Agreement; or




     (10) with respect to any Collateral having a fair market value in excess of $20.0
million, individually or in the aggregate, (A) the security interest under the Collateral
Documents, at any time, ceases to be in full force and effect for any reason other than in
accordance with their terms and the terms of this Indenture and other than the satisfaction
in full of all obligations under this Indenture and discharge of this Indenture, (B) any
security interest created thereunder or under this Indenture is declared invalid or
unenforceable or (C) the Company or any Note Guarantor asserts, in any pleading in any court
of competent jurisdiction, that any such security interest is invalid or unenforceable.


However, a default under clauses (4) and (5) of this paragraph will not constitute an Event of
Default until the Trustee or the Holders of 25% in principal amount of the outstanding Securities
notify the Company of the default and the Company does not cure such default within the time specified in clauses (4) and (5) of this
paragraph after receipt of such notice.




          The foregoing shall constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body.



          SECTION 6.2. Acceleration. If an Event of Default (other than an Event of Default
described in clause (7) of Section 6.1) occurs and is continuing, the Trustee by notice to
the Company, or the Holders of at least 25% in principal amount of the outstanding Securities by
notice to the Company and the Trustee, may, and the Trustee at the request of such Holders shall,
declare the principal of, premium, if any, and accrued and unpaid interest, if any, on all the
Securities to be due and payable. Upon such a declaration, such principal, premium and accrued and
unpaid interest will be due and payable immediately.



          In the event of a declaration of acceleration of the Securities because an Event of Default
described in clause (6) of Section 6.1 has occurred and is continuing, the declaration of



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acceleration of the Securities shall be automatically annulled if (i) the default triggering such
Event of Default pursuant to clause (6) of Section 6.1 shall be remedied or cured by the
Company or a Restricted Subsidiary or waived by the Holders of the relevant Indebtedness within 20
days after the declaration of acceleration with respect thereto; and (ii) the annulment of the
acceleration of the Securities would not conflict with any judgment or decree of a court of
competent jurisdiction.




          If an Event of Default described in clause (7) of Section 6.1 occurs and is
continuing, the principal of, premium, if any, and accrued and unpaid interest on all the
Securities will become and be immediately due and payable without any declaration or other act on
the part of the Trustee or any Holders.



          SECTION 6.3. Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of (or premium, if any) or interest on the Securities or to enforce the performance of
any provision of the Securities or this Indenture.



          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
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. No remedy is exclusive
of any other remedy. All available remedies are cumulative.



          SECTION 6.4. Waiver of Past Defaults. The Holders of a majority in principal amount
of the outstanding Securities by notice to the Trustee may (a) waive, by their consent (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for,
Securities), an existing Default or Event of Default and its consequences, except a Default or
Event of Default in the payment of the principal of, or premium, if any, or interest on a Security,
and (b) rescind any such acceleration with respect to the Securities and its consequences if (1)
rescission would not conflict with any judgment or decree of a court of competent jurisdiction and
(2) all existing Events of Default, other than the nonpayment of the principal of, premium, if any,
and interest on the Securities that have become due solely by such declaration of acceleration,
have been cured or waived. When a Default or Event of Default is waived, it is deemed cured, but
no such waiver shall extend to any subsequent or other Default or Event of Default or impair any
consequent right.



          SECTION 6.5. Control by Majority. The Holders of a majority in principal amount of
the outstanding Securities may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or the Collateral Agent or of exercising any trust or power
conferred on the Trustee or the Collateral Agent. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, the Collateral Documents or the Intercreditor
Agreement or, subject to Sections 7.1 and 7.2, that the Trustee determines is
unduly prejudicial to the rights of any other Holder or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against all losses and expenses caused by
taking or not taking such action.



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          SECTION 6.6. Limitation on Suits. Subject to the provisions of this Indenture
relating to the duties of the Trustee or the Collateral Agent, if an Event of Default occurs and is
continuing, the Trustee or the Collateral Agent will be under no obligation to exercise any of the
rights or powers under this Indenture or the Collateral Documents at the request or direction of
any of the Holders unless such Holders have offered to the Trustee or the Collateral Agent
reasonable indemnity or security against any loss, liability or expense. Except to enforce the
right to receive payment of principal, premium, if any, or interest when due, no Holder may pursue
any remedy with respect to this Indenture or the Securities unless:




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




     (2) Holders of at least 25% in principal amount of the outstanding Securities have made
a written request to the Trustee to pursue the remedy;




     (3) such Holders have offered the Trustee reasonable security or indemnity against any
loss, liability or expense;




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




     (5) the Holders of a majority in principal amount of the outstanding Securities have
not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with
such request within such 60-day period.



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



          SECTION 6.7. Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture (including Section 6.6), the right of any Holder to receive
payment of principal of, premium, if any, or interest on the Securities held by such Holder, on or
after the respective due dates expressed in the Securities, 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 6.8. Collection Suit by Trustee. If an Event of Default specified in clause
(1) or (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company for the whole amount then due and
owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided
for under Section 7.7.



          SECTION 6.9. Trustee May File Proofs of Claim. The Trustee may 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 allowed in any judicial
proceedings relative to the Company, its Subsidiaries or its or their respective creditors or
properties and, unless prohibited by law or applicable regulations, may be entitled and empowered



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to participate as a member of any official committee of creditors appointed in such matter and may
vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing
similar functions, and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make 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 it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its
counsel, and any other amounts due the Trustee under Section 7.7.




          SECTION 6.10. Priorities. If the Trustee collects any money or property pursuant to
this Article VI, it shall pay out the money or property in the following order:




     FIRST: to the Trustee and Collateral Agent for amounts due under Section 7.7
and to the Collateral Agent for any other amounts due under the Collateral Documents;




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




     THIRD: to the Company or to whomever may be lawfully entitled to receive the same.



          The Trustee may fix a record date and payment date for any payment to Holders 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 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 pursuant to Section 6.7 or a suit by Holders of more than 10% in outstanding
principal amount of the Securities.



ARTICLE VII

TRUSTEE




          SECTION 7.1. Duties of Trustee.



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



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




     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture 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, opinions or orders furnished to the Trustee and conforming to the requirements
of this Indenture. However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine such certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).



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




     (1) this paragraph does not limit the effect of paragraph (b) of this Section
7.1;




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




     (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5.



          (d) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.



          (e) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.



          (f) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.



          (g) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 7.1
and to the provisions of the TIA.



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



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




     SECTION 7.2. Rights of Trustee. Subject to Section 7.1:




     (a) The Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably 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. The Trustee shall receive and retain financial reports and statements of the
Company as provided herein, but shall have no duty to review or analyze such reports or
statements to determine compliance under covenants or other obligations of the Company.




     (b) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate and/or an Opinion of Counsel. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on an Officers’ Certificate or Opinion of
Counsel.




     (c) The Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care. The Trustee shall
have no obligation to monitor such attorneys or agents provided each was appointed with due
care.




     (d) The Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers, unless the
Trustee’s conduct constitutes willful misconduct or negligence.




     (e) The Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Securities shall be
full and complete authorization and protection from liability in respect of any action
taken, omitted or suffered by it hereunder in good faith and in accordance with the advice
or opinion of such counsel.




     (f) The Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Trust Officer of the Trustee has actual knowledge thereof or unless written notice
of any event which is in fact such a default is received by the Trustee at the corporate trust office of the
Trustee specified under Section 12.2, and such notice references the Securities and
this Indenture.




     (g) In the event the Trustee receives inconsistent or conflicting requests and
indemnity from two or more groups of Holders of Securities , each representing less than a
majority in aggregate principal amount of the Securities outstanding, pursuant to the
provisions of this Indenture, the Trustee, in its sole discretion, may determine what
action, if any, will be taken.




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     (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and to each agent, custodian and other Person
employed to act hereunder.




     (i) The Trustee shall not be deemed to have knowledge of any fact or matter unless such
fact or matter is known to a Trust Officer of the Trustee.




     (j) Whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may
request, and in the absence of bad faith or willful misconduct on its part, rely upon an
Officers’ Certificate and an Opinion of Counsel.




     (k) The Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by
any person specified as so authorized in any such certificate previously delivered and not
superseded.




     (l) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.



          SECTION 7.3. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company, the
Subsidiary Guarantors or their Affiliates with the same rights it would have if it were not
Trustee. However, the Trustee must comply with Sections 7.10 and 7.11. In
addition, the Trustee shall be permitted to engage in transactions with the Company; provided,
however, that if the Trustee acquires any conflicting interest, as defined in TIA § 310(b), the
Trustee must (i) eliminate such conflict within 90 days of acquiring such conflicting interest,
(ii) apply to the SEC for permission to continue acting as Trustee or (iii) resign. Any Paying
Agent, Registrar, co-registrar or co-paying agent may do the same with like rights.




          SECTION 7.4. Trustee’s Disclaimer. The Trustee shall not be responsible for and makes
no representation as to the validity or adequacy of this Indenture or the Securities, shall not be
accountable for the Company’s use of the proceeds from the sale of the Securities, shall not be
responsible for the use or application of any money received by any Paying Agent other than the
Trustee or any money paid to the Company pursuant to the terms of this Indenture and shall not be
responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the Trustee’s
certificate of authentication.




          SECTION 7.5. Notice of Defaults. If a Default occurs and is continuing and is known
to the Trustee, the Trustee must mail to each Holder notice of the Default within 90 days after it
occurs. Except in the case of a Default in the payment of principal of, premium, if






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any, or interest on any Security, the Trustee may withhold notice if and so long as a
committee of Trust Officers of the Trustee in good faith determines that withholding notice is in
the interests of the Holders.




          SECTION 7.6. Reports by Trustee to Holders. As promptly as practicable after each
February 15 following the date of this Indenture, beginning February 15, 2011, and in any event
prior to April 15 in each year, the Trustee shall mail to each Holder a brief report dated as of
such mail date that complies with TIA § 313(a) if and to the extent required thereby. The Trustee
also shall comply with TIA § 313(b) and TIA § 313(c).




          A copy of each report at the time of its mailing to Holders shall be filed with the SEC and
each stock exchange (if any) on which the Securities are listed. The Company agrees to notify
promptly the Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof and the Trustee shall comply with TIA § 313(d).




          SECTION 7.7. Compensation and Indemnity. The Company and each Subsidiary Guarantor,
if any, shall be jointly and severally liable for paying to each of the Trustee and Collateral
Agent from time to time reasonable compensation for the Trustee’s acceptance of this Indenture and
services hereunder and the Collateral Agent’s acceptance of the Collateral Documents and services
thereunder, respectively, as the Company and the Trustee or the Collateral Agent, respectively,
shall from time to time agree in writing. The Trustee’s compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Company and each Subsidiary Guarantor,
if any, shall be jointly and severally liable for reimbursing the Trustee and the Collateral Agent
upon request for all reasonable out-of-pocket expenses incurred or made by each of them, including
costs of collection, costs of preparing and reviewing reports, certificates and other documents,
costs of preparation and mailing of notices to Holders and reasonable fees and expenses of counsel
retained by the Trustee or the Collateral Agent, as applicable, in addition to the compensation for
each agent’s services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee’s or Collateral Agent’s (as applicable) agents, counsel,
accountants and experts.




          The Company and each Subsidiary Guarantor (if any), jointly and severally, shall indemnify the
Trustee against any and all loss, liability, damages, claims or expense (including reasonable
attorneys’ fees and expenses) incurred by it without negligence, bad faith or willful misconduct on
its part in connection with the administration of this trust and the performance of its duties
hereunder, including the costs and expenses of enforcing this Indenture (including this Section
7.7) and of defending itself against any claims (whether asserted by any Holder, the Company or
otherwise) or liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company or any
Subsidiary Guarantor of its obligations hereunder, except to the extent that they were prejudiced
by such failure to notify. The Company shall defend the claim and the Trustee shall provide
reasonable cooperation at the Company’s expense in the defense. The Trustee may have separate
counsel and the Company and the Subsidiary Guarantors, if any, shall pay the fees and expenses of
such counsel; provided that the Company shall not be required to pay such fees and expenses if they
assume the Trustee’s defense, and, in the reasonable judgment






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of outside counsel to the Trustee, there is no conflict of interest between the Company and
the Trustee in connection with such defense. Notwithstanding the foregoing, the Company and the
Subsidiary Guarantors, if any, need not reimburse any expense or indemnify against any loss,
liability or expense which is finally determined by a court of competent jurisdiction to have been
caused by the Trustee’s own willful misconduct, negligence or bad faith.




          The Trustee shall have no responsibility to prepare, make or to see to the making of, and
shall be indemnified in connection with, any recording, filing or registration of any instrument or
notice (including any financing or continuation statement or any tax or securities form) (or any
rerecording, refiling or reregistration of any thereof); at any time in any public office or
elsewhere for the purpose of perfecting, maintaining the perfection of or otherwise making
effective the Lien of this Indenture or for any other purpose and shall have no responsibility for
seeing to the insurance on the property encumbered by the Mortgages or for paying any taxes,
changes or assessments on or relating to the property encumbered by the Mortgages or for otherwise
maintaining of any such property, including, but not limited to the investigation or remediation of
Hazardous Materials affecting the Company or any property encumbered by the Mortgages or any part
thereof, it being understood that none of the foregoing shall be construed as permitting the
Trustee to engage in negligence or willful misconduct with respect to property subject to the Lien
of the Indenture or affect any obligation or duty of the Trustee to comply with applicable
Environmental Laws.




          To secure the Company’s and the Subsidiary Guarantors’ payment obligations in this Section
7.7, each of the Trustee and the Collateral Agent shall have a lien prior to the Securities on
all money or property held or collected by the Trustee or Collateral Agent other than money or
property held in trust to pay principal of and interest on particular Securities. Such lien shall
survive the satisfaction and discharge of this Indenture. Each of the Trustee’s and Collateral
Agent’s rights to receive payment of any amounts due under this Section 7.7 shall not be
subordinate to any other liability or Indebtedness of the Company or the Subsidiary Guarantors (if
any).




          The Company’s and the Subsidiary Guarantors’ payment obligations pursuant to this Section
7.7 shall survive the discharge of this Indenture. When the Trustee or Collateral Agent incurs
expenses after the occurrence of a Default specified in clause (7) of Section 6.1 with
respect to the Company, the expenses are intended to constitute expenses of administration under
any Bankruptcy Law.




          SECTION 7.8. Replacement of Trustee. The Trustee may resign at any time by so
notifying the Company in writing. The Holders of a majority in principal amount of the Securities
may remove the Trustee by so notifying the removed Trustee in writing and may appoint a successor
Trustee with the Company’s written consent, which consent will not be unreasonably withheld. The
Company shall remove the Trustee if:





     (1) the Trustee fails to comply with Section 7.10;




     (2) the Trustee is adjudged bankrupt or insolvent;



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     (3) a receiver or other public officer takes charge of the Trustee or its property; or




     (4) the Trustee otherwise becomes incapable of acting as trustee hereunder.



          If the Trustee resigns or is removed by the Company or by the Holders of a majority in
principal amount of the Securities and such Holders do not reasonably promptly appoint a successor
Trustee as described in the preceding paragraph, or if a vacancy exists in the office of the
Trustee for any reason (the Trustee in such event being referred to herein as the retiring
Trustee), the Company shall promptly appoint a successor Trustee.




          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee, upon payment of its charges hereunder, shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien provided for under
Section 7.7.




          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the
Securities may petition, at the Company’s expense, any court of competent jurisdiction for the
appointment of a successor Trustee.




          If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed as provided in TIA § 310(b), any Holder, who has been a bona fide holder of a Security
for at least six months, may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.




          Notwithstanding the replacement of the Trustee pursuant to this Section 7.8, the
Company’s obligations under Section 7.7 shall continue for the benefit of the retiring
Trustee.




          SECTION 7.9. Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.




          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture, any of the Securities shall have
been authenticated but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the
name of the successor to the Trustee; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Securities in the name of any predecessor
Trustee shall only apply to its successor or successors by merger, consolidation or conversion.







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          SECTION 7.10. Eligibility; Disqualification. This Indenture shall always have a
Trustee that satisfies the requirements of TIA § 310 in every respect. The Trustee shall have a
combined capital and surplus of at least $100 million as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA § 310(b); provided, however, that
there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures under
which other securities or certificates of interest or participation in other securities of the
Company are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met.




          SECTION 7.11. Preferential Collection of Claims Against the Company. The Trustee
shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A
Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.




          SECTION 7.12. Trustee’s Application for Instruction from the Company. Any application
by the Trustee for written instructions from the Company may, at the option of the Trustee, set
forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and
the date on and/or after which such action shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee in accordance with
a proposal included in such application on or after the date specified in such application (which
date shall not be less than three Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in writing to any earlier
date) unless prior to taking any such action (or the effective date in the case of an omission),
the Trustee shall have received written instructions in response to such application specifying the
action to be taken or omitted.




          SECTION 7.13. Paying Agents. The Company shall cause each Paying Agent other than the
Trustee to execute and deliver to it and the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section 7.13:





     (1) that it will hold all sums held by it as agent for the payment of principal of, or
premium, if any, or interest on, the Securities (whether such sums have been paid to it by
the Company or by any obligor on the Securities) in trust for the benefit of Holders of the
Securities or the Trustee;




     (2) that it will at any time during the continuance of any Event of Default, upon
written request from the Trustee, deliver to the Trustee all sums so held in trust by it
together with a full accounting thereof; and




     (3) that it will give the Trustee written notice within three Business Days of any
failure of the Company (or by any obligor on the Securities) in the payment of any
installment of the principal of, premium, if any, or interest on, the Securities when the
same shall be due and payable.



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ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE




          SECTION 8.1. Discharge of Liability on Securities; Defeasance.




          (a) Subject to Section 8.1(c), when (i) (x) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section 2.9) for
cancellation or (y) all outstanding Securities not theretofore delivered for cancellation have
become due and payable, whether at maturity or upon redemption, or will become due and payable
within one year or are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption pursuant to Article V hereof and the
Company or any Subsidiary Guarantor irrevocably deposits or causes to be deposited with the Trustee
as trust funds in trust solely for the benefit of the Holders money in U.S. dollars, U.S.
Government Obligations, or a combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation for principal, premium, if
any, and accrued interest to the date of maturity or redemption; (ii) no Default or Event of
Default shall have occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit (other than a default resulting from borrowing of funds to be applied to
such deposit and the grant of any Lien securing such borrowing) and such deposit will not result in
a breach or violation of, or constitute a default under, the Senior Secured Credit Agreement or any
other material instrument to which the Company or any Significant Subsidiary is a party or by which
the Company or any Significant Subsidiary is bound; (iii) the Company or any Subsidiary Guarantor
has paid or caused to be paid all sums payable to the Trustee under this Indenture and the
Securities; and (iv) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of such Securities at maturity or the
Redemption Date, as the case may be, then upon demand of the Company (accompanied by an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent specified herein
relating to the satisfaction and discharge of this Indenture have been complied with) this
Indenture shall cease to be of further effect with respect to the Securities and the Trustee shall
acknowledge satisfaction and discharge of this Indenture, at the cost and expense of the Company.




          (b) Subject to Sections 8.1(c) and 8.2, the Company and the Subsidiary
Guarantors at any time may terminate (i) all their obligations under the Securities, this
Indenture, the Collateral Documents and the Intercreditor Agreement, and cause the release of all
Collateral under the Collateral Documents (“legal defeasance option”), and after giving
effect to such legal defeasance, any omission to comply with such obligations shall no longer
constitute a Default or Event of Default or (ii) their obligations under Sections 3.2,
3.3, 3.4, 3.5, 3.6, 3.8, 3.9, 3.10,
3.11, 3.12, 3.13 and 4.1(3), and the Company may omit to comply
with and shall have no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any
such covenant or by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply with such covenants shall no longer constitute a
Default or an Event of Default under Sections 6.1(3) (only with respect to Section
4.1(3)), 6.1(4) (only with respect to such covenants), 6.1(5) (only with
respect to such covenants), 6.1(6), 6.1(7) (with respect only to Significant
Subsidiaries), 6.1(8) or 6.1(10) and the events specified in such Sections shall
no longer






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constitute an Event of Default (clause (ii) being referred to as the “covenant defeasance
option”), but except as specified above, the remainder of this Indenture and the Securities
shall be unaffected thereby. The Company may exercise its legal defeasance option notwithstanding
its prior exercise of its covenant defeasance option.




          If the Company exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default and the Subsidiary Guarantees in effect at such time
shall terminate. If the Company exercises its covenant defeasance option, payment of the
Securities may not be accelerated because of an Event of Default specified under Section
6.1(3) (other than an Event of Default resulting from failure to comply with Section
4.1(1)), 6.1(4) (only with respect to such covenants), 6.1(5) (only with
respect to such covenants), 6.1(6), 6.1(7) (with respect only to Significant
Subsidiaries), 6.1(8) or 6.1(9).




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




          Notwithstanding the provisions of Sections 8.1(a) and (b), the Company’s
obligations under Sections 2.2, 2.3, 2.4, 2.5, 2.6,
2.9, 2.10, 2.11, 2.12, 3.1, 3.14, 3.15,
3.16, 3.18, 3.19, 3.20, 6.7, 7.7 and 7.8
and in this Article VIII shall survive until the Securities have been paid in full. After
the Securities have been paid in full, the Company’s obligations under Sections 7.7,
8.5 and 8.6 shall survive such satisfaction and discharge or defeasance.




          SECTION 8.2. Conditions to Defeasance. The Company may exercise its legal defeasance
option or its covenant defeasance option only if:





     (1) the Company irrevocably deposits in trust with the Trustee for the benefit of the
Holders money in U.S. dollars or U.S. Government Obligations or a combination thereof, the
principal of and interest (without reinvestment) on which will be sufficient, or a
combination thereof sufficient, for the payment of principal of, premium, if any, and
interest on the Securities to maturity or redemption, as the case may be;




     (2) the Company delivers to the Trustee an Officers’ Certificate stating that the
payments of principal and interest when due and without reinvestment of the deposited U.S.
Government Obligations plus any deposited money without investment will provide cash at such
times and in such amounts as will be sufficient to pay principal and interest when due on
all the Securities to maturity or redemption, as the case may be;




     (3) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit and the grant of any Lien securing such borrowings) or insofar
as Events of Default specified in Section 6.1(7) are concerned, at any time in the
period ending on the 91st day after such date of deposit;




     (4) such legal defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a Default under, this Indenture or any other material



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agreement or instrument to which the Company or any of its Significant Subsidiaries is a
party or by which the Company or any of its Significant Subsidiaries is bound;




     (5) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that (A) the Securities and (B) assuming no intervening bankruptcy of the Company between
the date of deposit and the 91st day following the deposit and that no Holder of the
Securities is an insider of the Company, after the 91st day following the deposit, the trust
funds will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally;




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




     (7) in the case of the legal defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States stating that (i) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture there
has been a change in the applicable federal income tax law, in either case to the effect
that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not
recognize income, gain or loss for federal income tax purposes as a result of such deposit
and legal defeasance and will be subject to federal income tax on the same amount, in the
same manner and at the same times as would have been the case if such deposit and legal
defeasance had not occurred;




     (8) in the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States to the effect that the Holders will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and covenant defeasance and will be
subject to federal income tax on the same amount, in the same manner and at the same times
as would have been the case if such deposit and covenant defeasance had not occurred; and




     (9) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to either the legal defeasance or
covenant defeasance, as the case may be, as contemplated by this Article VIII have
been complied with.



          SECTION 8.3. Application of Trust Money. The Trustee shall hold in trust all money or
U.S. Government Obligations (including proceeds thereof) deposited with it pursuant to this
Article VIII. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture and the Securities to
the Holders of the Securities of all sums due in respect of the payment of principal of, premium,
if any, and accrued interest on the Securities.




          SECTION 8.4. Repayment to the Company. The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money, U.S.
Government






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Obligations or securities held by them upon payment of all the obligations under this
Indenture.




          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Securities that remains unclaimed by the Holders thereof for two years,
and, thereafter, Holders entitled to the money must look to the Company for payment as unsecured
general creditors.




          SECTION 8.5. Indemnity for U.S. Government Obligations. The Company shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest received on such U.S.
Government Obligations other than any such tax, fee or other charge that is for the account of the
Holder of the Securities.




          SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article VIII 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 obligations of the Company
and each Subsidiary Guarantor, if any, under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until such time
as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with this Article VIII; provided, however, that, if the Company or the
Subsidiary Guarantors have made any payment of principal, premium, if any, interest on or principal
of any Securities because of the reinstatement of its obligations, the Company or Subsidiary
Guarantors, as the case may be, shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.




          The Trustee’s rights under this Article VIII shall survive termination of this
Indenture.




ARTICLE IX

AMENDMENTS




          SECTION 9.1. Without Consent of Holders. The Company, the Note Guarantors and the
Trustee may amend or supplement this Indenture, the Securities, the Collateral Documents, the
Intercreditor Agreement, or any Note Guarantees without the consent of any Holder to:





     (1) cure any ambiguity, omission, defect or inconsistency;




     (2) provide for the assumption by a successor corporation of the obligations of the
Company or any Note Guarantor under this Indenture;




     (3) provide for uncertificated Securities in addition to or in place of certificated
Securities (provided that the uncertificated Securities are issued in registered form



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for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated
Securities are described in Section 163(f) (2) (B) of the Code);




     (4) add Guarantees with respect to the Securities or release a Subsidiary Guarantor
upon its designation as an Unrestricted Subsidiary; provided, however, that the designation
is in accordance with the applicable provisions of this Indenture;




     (5) expand the collateral securing the Securities;




     (6) add to the covenants of the Company and the Restricted Subsidiaries for the benefit
of the Holders or surrender any right or power conferred upon the Company or any Restricted
Subsidiary;




     (7) make any change that does not adversely affect the rights of any Holder;




     (8) comply with any requirement of the SEC in connection with the qualification of this
Indenture under the TIA;




     (9) release a Note Guarantor from its obligations under its Note Guarantee or this
Indenture in accordance with the applicable provisions of this Indenture;




     (10) make, complete or confirm any Collateral permitted or required by this Indenture
or the Collateral Documents or any release of Liens in favor of the Collateral Agent on the
Collateral as provided under Section 11.3 or otherwise in accordance with the terms
of this Indenture, the Collateral Documents or the Intercreditor Agreement;




     (11) provide for the appointment of a successor trustee; provided that the successor
trustee is otherwise qualified and eligible to act as such under the terms of this
Indenture;




     (12) provide for the issuance of Additional Securities (and the grant of security for
the benefit of the Additional Securities) in accordance with the terms of this Indenture and
provide for the issuance of Exchange Securities that shall have terms substantially
identical in all respects to the Securities (except that the transfer restrictions contained
in the Securities shall be modified or eliminated as appropriate) and that shall be treated,
together with any outstanding Securities, as a single class of securities;




     (13) conform the text of this Indenture, the Securities or the Note Guarantees to any
provision of the “Description of senior secured notes” section of the Offering Memorandum to
the extent that such provision in the “Description of senior secured notes” was intended to
be a verbatim recitation of a provision of this Indenture, the Securities or the Note
Guarantees;




     (14) add additional secured parties to the extent Liens securing obligations held by
such parties are permitted under this Indenture;



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     (15) provide for the succession of any parties to the Collateral Documents (and other
amendments that are administrative or ministerial in nature) in connection with an
amendment, renewal, extension, substitution, refinancing, restructuring, replacement,
supplementing or other modification from time to time of any agreement in accordance with
the terms of this Indenture and the relevant Collateral Document;




     (16) provide for a reduction in the minimum denominations of the Securities; or




     (17) comply with the rules of any applicable securities depositary.



          After an amendment or supplement under this Section, the Collateral Documents, or the
Intercreditor Agreement becomes effective, the Company shall mail to Holders a notice briefly
describing such amendment or supplement. The failure to give such notice to all Holders, or any
defect therein, shall not impair or affect the validity of an amendment or supplement under this
Section 9.1.




          SECTION 9.2. With Consent of Holders. The Company, the Subsidiary Guarantors and the
Trustee may amend or supplement this Indenture, the Securities or any Subsidiary Guarantee with the
consent of the Holders of at least a majority in principal amount of the Securities then
outstanding (including consents obtained in connection with a purchase of, or tender offer or
exchange offer for, Securities). Any existing default or compliance with any provision of this
Indenture, the Securities or any Subsidiary Guarantee (other than a Default or an Event of Default
in the payment of the principal of, or premium, if any, or interest on a Security (except in
accordance with Section 6.4)) may be waived with the consent of the Holders of a majority
in principal amount of the Securities then outstanding (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities). However, without the
consent of each Holder affected, an amendment, supplement or waiver may not (with respect to any
Securities held by a non-consenting Holder of Securities):





     (1) reduce the amount of Securities whose Holders must consent to an amendment;




     (2) change the method of calculating the rate of interest or extend the stated time for
payment of interest on any Security;




     (3) reduce the principal of or extend the Stated Maturity of any Security;




     (4) reduce the premium payable upon the redemption or repurchase of any Security or
change the time at which any Security may be redeemed or repurchased pursuant to Article
V or Section 3.11, whether through an amendment or waiver of provisions in the
covenants or otherwise; provided that amendments to the definition of “Change of Control”
shall not require the consent of each Holder affected;




     (5) make any Security payable in money other than that stated in the Security;



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     (6) impair the right of any Holder to receive payment of principal, premium, if any,
and interest on such Holder’s Securities 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 Securities;




     (7) make any change to the amendment provisions that require each Holder’s consent or
to the waiver provisions;




     (8) modify the Note Guarantees in any manner adverse to the Holders of the Securities;
or




     (9) modify the provisions of the Collateral Documents or the Intercreditor Agreement in
any manner materially adverse to the holders of the Securities or release all or
substantially all of the Collateral from the Lien under the Collateral Documents or the
Intercreditor Agreement other than in accordance with this Indenture, the Collateral
Documents or the Intercreditor Agreement.



          In addition, without the consent of holders of sixty-six and two-thirds percent (66 2/3%) in
aggregate principal amount of the Securities outstanding, an amendment or waiver may not (with
respect to any Securities held by a non-consenting holder) release Collateral other than in
accordance with this Indenture, the Collateral Documents and the Intercreditor Agreement.




          It shall not be necessary for the consent of the Holders under this Section 9.2 to
approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. A consent to any amendment, supplement
or waiver under this Indenture by any Holder of the Securities given in connection with a tender or
exchange of such Holder’s Securities will not be rendered invalid by such tender or exchange.




          After an amendment or supplement under this Section becomes effective, the Company shall mail
to Holders a notice briefly describing such amendment or supplement. The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the validity of an
amendment or supplement under this Section 9.2.




          SECTION 9.3. Compliance with Trust Indenture Act. Every amendment or supplement to
this Indenture or the Securities shall comply with the TIA as then in effect.




          SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an
amendment, supplement or a waiver by a Holder of a Security shall bind the Holder and every
subsequent Holder of that Security or portion of the Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent or waiver is not made on the
Security. Any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation
before the date the amendment, supplement or waiver becomes effective or otherwise in accordance
with any related solicitation documents. After an amendment, supplement or waiver becomes
effective, it shall bind every Holder unless it makes a change described in any of clauses (1)
through (9) of Section 9.2, in which case the amendment, supplement, waiver or other action shall bind






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each Holder who has consented to it and every subsequent Holder that evidences the
same debt as the consenting Holder’s Securities. An amendment, supplement or waiver shall become
effective upon receipt by the Trustee of the requisite number of written consents under Section
9.1 or 9.2 as applicable.




          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to give their consent or take any other action described above or
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be entitled to give such
consent or to revoke any consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall become valid or
effective more than 120 days after such record date.




          SECTION 9.5. Notation on or Exchange of Securities. If an amendment, supplement or
waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determine, the Company in exchange for the Security shall issue and the Trustee shall authenticate
a new Security that reflects the changed terms. Failure to make the appropriate notation or to
issue a new Security shall not affect the validity of such amendment.




          SECTION 9.6. Trustee to Sign Amendments. The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or
waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If
it does, the Trustee may but need not sign it. In signing such amendment, supplement or waiver the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and shall be provided
with, and (subject to Sections 7.1 and 7.2) shall be fully protected in relying
upon an Officers’ Certificate and an Opinion of Counsel stating that such amendment, supplement or
waiver is authorized or permitted by this Indenture and that such amendment, supplement or waiver
is the legal, valid and binding obligation of the Company and any Subsidiary Guarantors,
enforceable against them in accordance with its terms, subject to customary exceptions, and
complies with the provisions hereof (including Section 9.3).




ARTICLE X

NOTE GUARANTEES




          SECTION 10.1. Note Guarantees. Each Note Guarantor hereby fully, unconditionally and
irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with
each other Note Guarantor, to each Holder of the Securities and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of, premium, if any, and interest on the Securities and all other monetary obligations of
the Company under this Indenture (including interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Company or any Note Guarantor whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) (all the foregoing being hereinafter collectively called the
“Guarantor Obligations”). Each Note Guarantor further agrees (to the extent






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permitted by law) that the Guarantor Obligations may be extended or renewed, in whole or in
part, without notice or further assent from it, and that it will remain bound under this
Article X notwithstanding any extension or renewal of any Guarantor Obligation.




          Each Note Guarantor waives presentation to, demand of payment from and protest to the Company
of any of the Guarantor Obligations and also waives notice of protest for nonpayment. Each Note
Guarantor waives notice of any default under the Securities or the Guarantor Obligations.




          Each Note Guarantor further agrees that its Note Guarantee herein constitutes a Guarantee of
payment when due (and not a Guarantee of collection) and waives any right to require that any
resort be had by any Holder to any security held for payment of the Guarantor Obligations.




          Except as set forth under Section 10.2, the obligations of each Note Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Guarantor Obligations in full), including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantor Obligations or otherwise. Without limiting the generality of the
foregoing, the Guarantor Obligations of each Note Guarantor herein shall not be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under this Indenture, the
Securities, the other Securities Documents or any other agreement or otherwise; (b) any extension
or renewal of any thereof; (c) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Indenture, the Securities, the other Securities Documents or any other
agreement; (d) the release of any security held by any Holder or the Trustee for the Guarantor
Obligations or any of them; (e) the failure of any Holder to exercise any right or remedy against
any other Note Guarantor, or (f) any change in the ownership of the Company; (g) by any default,
failure or delay, willful or otherwise, in the performance of the Guarantor Obligations, or (h) by
any other act or thing or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of any Note Guarantor or would otherwise operate as a
discharge of such Note Guarantor as a matter of law or equity.




          Subject to the provisions of Section 3.13, each Note Guarantor agrees that its Note
Guarantee herein shall remain in full force and effect until payment in full of all the Guarantor
Obligations or such Note Guarantor is released from its Note Guarantee upon the merger or the sale
of all the Capital Stock or assets of the Note Guarantor in compliance with Section 10.2.
Each Note Guarantor further agrees that its Note Guarantee herein shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of,
premium, if any, or interest on any of the Guarantor Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or otherwise.




          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Note Guarantor by virtue hereof, upon the failure of the Company to
pay any of the Guarantor Obligations when and as the same shall become due,





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whether at maturity, by
acceleration, by redemption or otherwise, each Note Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause
to be paid, in cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such
Guarantor Obligations then due and owing and (ii) accrued and unpaid interest on such Guarantor
Obligations then due and owing (but only to the extent not prohibited by law) (including interest
accruing after the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Company or any Note Guarantor whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding).




          Each Note Guarantor further agrees that, as between such Note Guarantor, on the one hand, and
the Holders, on the other hand, (x) the maturity of the Guarantor Obligations guaranteed hereby may
be accelerated as provided in this Indenture for the purposes of its Note Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Guarantor Obligations guaranteed hereby and (y) in the event of any such declaration of
acceleration of such Guarantor Obligations, such Guarantor Obligations (whether or not due and
payable) shall forthwith become due and payable by the Note Guarantor for the purposes of this Note
Guarantee.




          Each Note Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by the Trustee or the Holders in enforcing any rights under
this Section.




          SECTION 10.2. Limitation on Liability; Termination, Release and Discharge.




          (a) Any term or provision of this Indenture to the contrary notwithstanding, the obligations
of each Note Guarantor hereunder will be limited to the maximum amount as will, after giving effect
to all other contingent and fixed liabilities of such Note Guarantor (including any guarantees of
Lenders Debt and after giving effect to any collections from or payments made by or on behalf of
any other Note Guarantor in respect of the obligations of such other Note Guarantor under its Note
Guarantee or pursuant to its contribution obligations under this Indenture, result in the
obligations of such Note Guarantor under its Note Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law and not otherwise being void or
voidable under any similar laws affecting the rights of creditors generally.




          (b) Upon the sale or disposition of a Note Guarantor (by merger, consolidation, the sale of
its Capital Stock or the sale of all or substantially all of its assets (other than by lease)), and
whether or not the Note Guarantor is the surviving corporation in such transaction, to a Person
which is not the Company or a Restricted Subsidiary of the Company (other than a Receivables
Entity), such Note Guarantor will be automatically released from all its obligations under this
Indenture and its Note Guarantee and the Registration Rights Agreement and such Note Guarantee will
terminate; provided, however, that (x) the sale or other disposition is in compliance with this
Indenture, including Sections 3.5, 3.9 and 4.1, and (y) all the obligations
of such Note Guarantor under all Credit Facilities and related documentation and any other
agreements relating to any other Indebtedness of the Company or its Restricted Subsidiaries
terminate upon consummation of such transaction.





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          (c) Each Note Guarantor shall be deemed released from all its obligations under this Indenture
and the Registration Rights Agreement and such Note Guarantee shall terminate (x) upon the legal defeasance of the Securities pursuant to the provisions of Article
VIII hereof or (y) in accordance with Section 3.13 of this Indenture.




          (d) Each Note Guarantor shall be released from its obligations under this Indenture, its Note
Guarantee and the Registration Rights Agreement if the Company designates such Note Guarantor as an
Unrestricted Subsidiary and such designation complies with the other applicable provisions of this
Indenture.




          (e) Each Note Guarantor shall be released from its obligations under this Indenture, its Note
Guarantee and the Registration Rights Agreement upon satisfaction and discharge of this Indenture
pursuant to Section 8.1(a).




          (f) The Trustee shall promptly execute and deliver an appropriate instrument prepared and
delivered to it at the expense of the Company evidencing any such release upon receipt of a request
by the Company accompanied by an Officers’ Certificate certifying as to the compliance with this
Section 11.2.




          SECTION 10.3. Right of Contribution. Each Note Guarantor hereby agrees that to the
extent that any Note Guarantor shall have paid more than its proportionate share of any payment
made on the obligations under the Note Guarantees, such Note Guarantor shall be entitled to seek
and receive contribution from and against the Company, or any other Note Guarantor who has not paid
its proportionate share of such payment. The provisions of this Section 11.3 shall in no
respect limit the obligations and liabilities of each Note Guarantor to the Trustee and the Holders
and each Note Guarantor shall remain liable to the Trustee and the Holders for the full amount
guaranteed by such Note Guarantor hereunder.




          SECTION 10.4. No Subrogation. Notwithstanding any payment or payments made by each
Note Guarantor hereunder, no Note Guarantor shall be entitled to be subrogated to any of the rights
of the Trustee or any Holder against the Company or any other Note Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for the payment of the
Guarantor Obligations, nor shall any Note Guarantor seek or be entitled to seek any contribution or
reimbursement from the Company or any other Note Guarantor in respect of payments made by such Note
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by the Company on
account of the Guarantor Obligations are paid in full. If any amount shall be paid to any Note
Guarantor on account of such subrogation rights at any time when all of the Guarantor Obligations
shall not have been paid in full, such amount shall be held by such Note Guarantor in trust for the
Trustee and the Holders, segregated from other funds of such Note Guarantor, and shall, forthwith
upon receipt by such Note Guarantor, be turned over to the Trustee in the exact form received by
such Note Guarantor (duly indorsed by such Note Guarantor to the Trustee, if required), to be
applied against the Guarantor Obligations.





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ARTICLE XI

COLLATERAL




          SECTION 11.1. Collateral and Collateral Documents. The Company hereby appoints The
Bank of New York Mellon Trust Company, N.A., to act as Collateral Agent, and
the Collateral Agent shall have the privileges, powers and immunities as set forth herein and
in the Collateral Documents.




          The due and punctual payment of the principal of and interest on the Securities when and as
the same shall be due and payable, whether on an Interest Payment Date, at maturity, by
acceleration, repurchase, redemption or otherwise, and interest on the overdue principal of and
interest on the Securities and performance of all other obligations of the Company, the Note
Guarantors, the Trustee or the Collateral Agent under this Indenture, the Securities, the
Intercreditor Agreement and the Collateral Documents, according to the terms hereunder or
thereunder, shall be secured as provided in the Collateral Documents, which define the terms of the
Liens that secure the obligations, subject to the terms of the Intercreditor Agreement. The
Trustee and the Company hereby acknowledge and agree that the Collateral Agent holds the Collateral
in trust for the benefit of the Noteholder Secured Parties, in each case pursuant to the terms of
the Collateral Documents and the Intercreditor Agreement. Each holder, by accepting a Note,
consents and agrees to the terms of the Collateral Documents (including the provisions providing
for the possession, use, release and foreclosure of Collateral) and the Intercreditor Agreement as
the same may be in effect or may be amended from time to time in accordance with their terms and
this Indenture and the Intercreditor Agreement, and authorizes and directs the Collateral Agent to
enter into the Collateral Documents and the Intercreditor Agreement and to perform its obligations
and exercise its rights thereunder in accordance therewith; provided, however, that if any of the
provisions of the Collateral Documents limit, qualify or conflict with the duties imposed by the
provisions of the TIA, the TIA shall control. The Company shall deliver to the Collateral Agent
copies of all documents pursuant to the Collateral Documents, and will do or cause to be done all
such acts and things as may be reasonably required by the next sentence of this Section
11.1, to assure and confirm to the Collateral Agent the security interest in the Collateral
contemplated hereby, by the Collateral Documents or any part thereof, as from time to time
constituted, so as to render the same available for the security and benefit of this Indenture and
of the Securities secured hereby, according to the intent and purposes herein expressed. The
Company shall, and shall cause the Subsidiaries of the Company to take any and all actions
reasonably required to cause the Collateral Documents to create and maintain, as security for the
obligations under the Securities, the Indenture and the Collateral Documents, a valid and
enforceable perfected Lien and security interest in and on all of the Collateral (subject to the
terms of the Intercreditor Agreement), in favor of the Collateral Agent for the benefit of the
Noteholder Secured Parties. The Company shall, and shall cause the Subsidiaries of the Company to,
and each Subsidiary shall, make all filings (including filings of continuation statements and
amendments to financing statements that may be necessary to continue the effectiveness of such
financing statements) and take all other actions as are necessary or required by the Collateral
Documents to maintain (at the sole cost and expense of the Company and its Subsidiaries) the
security interest created by the Collateral Documents in the Collateral (other than with respect to
any Collateral the security interest in which is not required to be perfected under the Collateral
Documents) as a





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perfected security interest with the priority set forth in the Intercreditor
Agreement and subject only to Permitted Liens.




          SECTION 11.2. Release of Collateral.




          (a) Subject to 11.3 hereof, Collateral may be released from the Lien and security
interest created by the Collateral Documents at any time or from time to time in accordance with
the provisions of the Collateral Documents, the Intercreditor Agreement or as provided hereby. The
Company and the Note Guarantors will be entitled to a release of property and other assets included
in the Collateral from the Liens securing the Securities and the Guarantees, and the Trustee
(subject to its receipt of an Officers’ Certificate and Opinion of Counsel as provided below) shall
release, or instruct the Collateral Agent to release, as applicable, the same from such Liens at
the Company’s sole cost and expense, under one or more of the following circumstances:





     (1) to enable the deposition of such property and assets to the extent not prohibited
under Section 3.5;




     (2) the release of Excess Proceeds that remain unexpended after the conclusion of an
Asset Disposition Offer conducted in accordance with the terms of this Indenture;




     (3) in the case of a Note Guarantor that is released from its Note Guarantee with
respect to the Securities, the release of the property and assets of such Note Guarantor;




     (4) pursuant to an amendment or waiver in accordance with Article IV of this
Indenture;




     (5) payment in full of the principal of, together with accrued and unpaid interest on,
the notes and all other Obligations under the Indenture, the Note Guarantees under the
Indenture and the Collateral Documents that are due and payable at or prior to the time such
principal, together with accrued and unpaid interest, are paid; or




     (6) if the Securities have been discharged or defeased pursuant to Article IV
or Article XIII.



          (b) Upon receipt of an Officers’ Certificate and an Opinion of Counsel certifying that all
conditions precedent under this Indenture and the Collateral Documents, if any, to such release
have been met and any necessary or proper instruments of termination, satisfaction or release
prepared by the Company, the Trustee shall, or shall cause the Collateral Agent to, execute,
deliver or acknowledge (at the Company’s expense) such instruments or releases to evidence the
release of any Collateral permitted to be released pursuant to this Indenture or the Collateral
Documents or the Intercreditor Agreement. Neither the Trustee nor the Collateral Agent shall be
liable for any such release undertaken in good faith in reliance upon any such Officers’
Certificate or Opinion of Counsel, and notwithstanding any term hereof or in any Collateral
Document to the contrary, the Trustee and Collateral Agent shall not be under any obligation to





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release any such Lien and security interest, or execute and deliver any such instrument of release,
satisfaction or termination, unless and until it receives such Officers’ Certificate and Opinion of
Counsel.




          (c) The second-priority Lien on the Credit Agreement Priority Collateral securing the
Securities will terminate and be released automatically if the first-priority Liens on the Credit
Agreement Priority Collateral are released by the collateral agent under the Senior Secured Credit
Agreement in connection with a sale, transfer or disposition of Credit Agreement Priority
Collateral that occurs after the occurrence of an event of default under the Senior Secured Credit
Agreement permitting the acceleration of the Lenders Debt or in connection with the foreclosure of,
or other exercise of remedies with respect to, such Credit Agreement Priority Collateral by the
collateral agent under the Senior Secured Credit Agreement (except with respect to any proceeds of
such sale, transfer or disposition that remain after the Discharge of Credit Agreement
Obligations).




          SECTION 11.3. Certificates of the Trustee. In the event that the Company wishes to
release Collateral in accordance with this Indenture, the Collateral Documents and the
Intercreditor Agreement at a time when the Trustee is not itself also the Collateral Agent and the
Company has delivered the certificates and documents required by the Collateral Documents and
Section 11.3 hereof, if TIA § 314(d) is applicable to such releases (the applicability of
which will be established to the reasonable satisfaction of the Trustee), the Trustee will
determine whether it has received all documentation required by TIA § 314(d) in connection with
such release (which determination may be based upon the Opinion of Counsel hereafter described)
and, based on an Opinion of Counsel pursuant to Sections 12.4 and 12.5, will
deliver a certificate to the Collateral Agent setting forth such determination. The Trustee,
however, shall have no duty to confirm the legality, genuineness, accuracy, contents or validity of
such documents (or any signature appearing therein), its sole duty being to certify its receipt of
such documents which, on their face (and assuming that they are what they purport to be), conform
to TIA § 314(d).




          SECTION 11.4. Suits to Protect the Collateral. Subject to the provisions of
Article VII hereof and the Intercreditor Agreement, the Trustee in its sole discretion and
without the consent of the holders, on behalf of the holders, may or may direct the Collateral
Agent to take all actions it deems necessary or appropriate in order to:





     (a) enforce any of the terms of the Collateral Documents; and




     (b) collect and receive any and all amounts payable in respect of the obligations
hereunder..



          Subject to the provisions of the Collateral Documents and the Intercreditor Agreement, the
Trustee shall have power to institute and to maintain such suits and proceedings as it may deem
expedient to prevent any impairment of the Collateral by any acts which may be unlawful or in
violation of any of the Collateral Documents or this Indenture, and such suits and proceedings as
the Trustee, in its sole discretion, may deem expedient to preserve or protect its interests and
the interests of the holders in the Collateral (including power to institute and maintain suits or
proceedings to restrain the enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid if the





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enforcement of,
or compliance with, such enactment, rule or order would impair the Lien on the Collateral or be
prejudicial to the interests of the holders or the Trustee). Nothing in this Section 11.5
shall be considered to impose any such duty or obligation to act on the part of the Trustee.




          The Trustee or the Collateral Agent shall not be responsible for the existence, genuineness or
value (or diminution of value) of any of the Collateral or for the validity, perfection, priority
or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by
reason of any action or omission to act on its part hereunder, except to the extent such action or
omission constitutes negligence, bad faith or willful misconduct on the part of the Trustee or the
Collateral Agent, for the validity or sufficiency of the Collateral or any agreement or assignment
contained therein, for the validity of the title of the Company to the Collateral, for insuring the
Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or
otherwise as to the maintenance of the Collateral. The Trustee or the Collateral Agent shall have
no responsibility for recording, filing, re-recording or refiling any financing statement,
continuation statement, document, instrument or other notice in any public office at any time or
times or to otherwise take any action to perfect or maintain the perfection of any security
interest granted to it under the Collateral Documents or otherwise.




          SECTION 11.5. Authorization of Receipt of Funds by the Trustee Under the Collateral
Documents. Subject to the provisions of the Intercreditor Agreement, the Trustee is authorized
to receive any funds for the benefit of the holders distributed under the Collateral Documents, and
to make further distributions of such funds to the holders according to the provisions of this
Indenture.




          SECTION 11.6. Purchase Protected. In no event shall any purchaser in good faith of
any property purported to be released hereunder be bound to ascertain the authority of the
Collateral Agent or the Trustee to execute the release or to inquire as to the satisfaction of any
conditions required by the provisions hereof for the exercise of such authority or to see to the
application of any consideration given by such purchaser or other transferee; nor shall any
purchaser or other transferee of any property or rights permitted by this Article XI to be
sold be under any obligation to ascertain or inquire into the authority of the Company or the
applicable Note Guarantor to make any such sale or other transfer.




          SECTION 11.7. Powers Exercisable by Receiver or Trustee. In case the Collateral shall
be in the possession of a receiver or trustee, lawfully appointed, the powers conferred in this
Article XI upon the Company or a Note Guarantor with respect to the release, sale or other
disposition of such property may be exercised by such receiver or trustee, and an instrument signed
by such receiver or trustee shall be deemed the equivalent of any similar instrument of the Company
or a Note Guarantor or of any officer or officers thereof required by the provisions of this
Article XI; and if the Trustee shall be in the possession of the Collateral under any
provision of this Indenture, then such powers may be exercised by the Trustee.




          SECTION 11.8. Release upon Termination of the Company’s Obligations. In the event
that the Company delivers to the Trustee, in form and substance reasonably acceptable to it, an
Officers’ Certificate certifying that (i) payment in full of the principal of, together with
accrued and unpaid interest (including additional interest, if any) on, the Securities and all
other






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obligations under this Indenture, the Note Guarantees and the Collateral Documents that are
due and payable at or prior to the time such principal, together with accrued and unpaid interest,
are paid or (ii) the Company shall have exercised its Legal Defeasance option or its Covenant
Defeasance option, in each case in compliance with the provisions of Article VIII, the
Trustee shall
deliver to the Company and the Collateral Agent a notice stating that the Trustee, on behalf
of the holders, disclaims and gives up any and all rights it has in or to the Collateral (other
than with respect to funds held by the Trustee pursuant to Article VIII), and any rights it
has under the Collateral Documents, and upon receipt by the Collateral Agent of such notice, the
Collateral Agent shall be deemed not to hold a Lien on the Collateral on behalf of the Trustee and
shall do or cause to be done all acts reasonably necessary to release such Lien as soon as is
reasonably practicable.




          SECTION 11.9. Collateral Agent.




          (a) The Trustee and each of the holders by acceptance of the Securities hereby designates and
appoints the Collateral Agent as its agent under this Indenture, the Collateral Documents and the
Intercreditor Agreement and the Trustee and each of the holders by acceptance of the Securities
hereby irrevocably authorizes the Collateral Agent to take such action on its behalf under the
provisions of this Indenture, the Collateral Documents and the Intercreditor Agreement and to
exercise such powers and perform such duties as are expressly delegated to the Collateral Agent by
the terms of this Indenture, the Collateral Documents and the Intercreditor Agreement, together
with such powers as are reasonably incidental thereto. The Collateral Agent agrees to act as such
on the express conditions contained in this Section 11.10. The provisions of this
Section 11.10 are solely for the benefit of the Collateral Agent and none of the Trustee,
any of the holders or the Company or any of the Note Guarantors shall have any rights as a third
party beneficiary of any of the provisions contained herein other than as expressly provided in
Section 11.3. Notwithstanding any provision to the contrary contained elsewhere in this Indenture,
the Collateral Documents and the Intercreditor Agreement, the Collateral Agent shall not have any
duties or responsibilities, except those expressly set forth herein, nor shall the Collateral Agent
have or be deemed to have any fiduciary relationship with the Trustee, any holder or the Company or
any Note Guarantor, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Indenture, the Collateral Documents and the Intercreditor
Agreement or otherwise exist against the Collateral Agent. Without limiting the generality of the
foregoing sentence, the use of the term “agent” in this Indenture with reference to the Collateral
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties. Except as expressly otherwise provided in this Indenture, the
Collateral Agent shall have and may use its sole discretion with respect to exercising or
refraining from exercising any discretionary rights or taking or refraining from taking any actions
which the Collateral Agent is expressly entitled to take or assert under this Indenture, the
Collateral Documents and the Intercreditor Agreement, including the exercise of remedies pursuant
to Article VI, and any action so taken or not taken shall be deemed consented to by the
Trustee and the holders.





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          (b) The Collateral Agent may execute any of its duties under this Indenture, the Collateral
Documents or the Intercreditor Agreement by or through agents, employees or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Collateral Agent shall not be responsible for the negligence or
misconduct of any agent, employee or attorney-in-fact that it selects as long as such selection was made without
negligence or willful misconduct.




          (c) None of the Collateral Agent or any of its agents or employees shall (i) be liable for any
action taken or omitted to be taken by any of them under or in connection with this Indenture or
the transactions contemplated hereby (except for its own gross negligence or willful misconduct) or
under or in connection with any Collateral Document or the Intercreditor Agreement or the
transactions contemplated thereby (except for its own negligence or willful misconduct), or (ii) be
responsible in any manner to the Trustee or any holder for any recital, statement, representation,
warranty, covenant or agreement made by the Company or any Note Guarantor, contained in this or any
Indenture, or in any certificate, report, statement or other document referred to or provided for
in, or received by the Collateral Agent under or in connection with, this or any other Indenture,
the Collateral Documents or the Intercreditor Agreement, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this or any other Indenture and the Collateral
Documents, the Collateral Documents or the Intercreditor Agreement, or for any failure of the
Company or any Note Guarantor or any other party to this Indenture, the Collateral Documents or the
Intercreditor Agreement to perform its obligations hereunder or thereunder. None of the Collateral
Agent or any of its agents or employees shall be under any obligation to the Trustee or any holder
to ascertain or to inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this or any other Indenture, the Collateral Documents or the Intercreditor
Agreement or to inspect the properties, books or records of the Company or any Note Guarantor.




          (d) The Collateral Agent shall be entitled to rely, and shall be fully protected in relying,
upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile,
telex or telephone message, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including, without limitation, counsel to the Company or
any Note Guarantor), independent accountants and other experts and advisors selected by the
Collateral Agent. The Collateral Agent shall be fully justified in failing or refusing to take any
action under this or any other Indenture, the Collateral Documents or the Intercreditor Agreement
unless it shall first receive such advice or concurrence of the Trustee as it deems appropriate
and, if it so requests, it shall first be indemnified to its satisfaction by the holders against
any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Collateral Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this or any other Indenture, the Collateral Documents or the
Intercreditor Agreement in accordance with a request or consent of the Trustee and such request and
any action taken or failure to act pursuant thereto shall be binding upon all of the holders.




          (e) The Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default, unless the Collateral Agent shall have






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received written notice
from the Trustee or the Company referring to this Indenture, describing such Default or Event of
Default and stating that such notice is a “notice of default.” The Collateral Agent shall take
such action with respect to such Default or Event of Default as may be requested by the Trustee in
accordance with Article VI (subject to Section 11.10); provided,
however, that unless and until the Collateral Agent has received any such request, the Collateral
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable.




          (f) The Bank of New York Mellon Trust Company, N.A. and its Affiliates (and any successor
Collateral Agent and its Affiliates) may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with the Company and the Note Guarantors
as though it was not the Collateral Agent hereunder and without notice to or consent of the
Trustee. The Trustee and the Holders acknowledge that, pursuant to such activities, The Bank of
New York Mellon Trust Company, N.A. or its Affiliates (and any successor Collateral Agent and its
Affiliates) may receive information regarding the Company and the Note Guarantors (including
information that may be subject to confidentiality obligations in favor of the Company and the
Guarantors) and acknowledge that the Collateral Agent shall not be under any obligation to provide
such information to the Trustee or the holders. Nothing herein shall impose or imply any
obligation on the part of The Bank of New York Mellon Trust Company, N.A. (or any successor
Collateral Agent) to advance funds.




          (g) The Collateral Agent may resign at any time upon thirty (30) days’ prior written notice to
the Trustee and the Company, such resignation to be effective upon the acceptance of a successor
agent to its appointment as Collateral Agent. If the Collateral Agent resigns under this
Indenture, the Trustee, subject to the consent of the Company (which shall not be unreasonably
withheld and which shall not be required during a continuing Event of Default), shall appoint a
successor Collateral Agent. If no successor notes collateral agent is appointed prior to the
intended effective date of the resignation of the Collateral Agent (as stated in the notice of
resignation), the Collateral Agent may appoint, after consulting with the Trustee, subject to the
consent of the Company (which shall not be unreasonably withheld and which shall not be required
during a continuing Event of Default), a successor notes collateral agent. If no successor notes
collateral agent is appointed and consented to by the Company pursuant to the preceding sentence
within thirty (30) days after the intended effective date of resignation (as stated in the notice
of resignation), the Collateral Agent shall be entitled to petition at the expense of the Company a
court of competent jurisdiction to appoint a successor. Upon the acceptance of its appointment as
successor notes collateral agent hereunder, such successor notes collateral agent shall succeed to
all the rights, powers and duties of the retiring Collateral Agent, and the term “Collateral Agent”
shall mean such successor notes collateral agent, and the retiring Collateral Agent’s appointment,
powers and duties as the Collateral Agent shall be terminated. After the retiring Collateral
Agent’s resignation hereunder, the provisions of this Section 11.10 (and Section
11.12) shall continue to inure to its benefit and the retiring Collateral Agent shall not by
reason of such resignation be deemed to be released from liability as to any actions taken or
omitted to be taken by it while it was the Collateral Agent under this Indenture.






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          (h) The Trustee shall initially act as Collateral Agent and shall be authorized to appoint
co-Collateral Agents as necessary in its sole discretion. Except as otherwise explicitly provided
herein or in the Collateral Documents or the Intercreditor Agreement, neither the Collateral Agent
nor any of its officers, directors, employees or agents shall be liable for failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any
other Person or to take any other action whatsoever with regard to the Collateral or any part
thereof. The Collateral Agent shall be accountable only for amounts that it actually receives as a
result of the exercise of such powers, and neither the Collateral Agent nor any of its officers,
directors, employees or agents shall be responsible for any act or failure to act hereunder, except
for its own willful misconduct, gross negligence or bad faith.




          (i) The Trustee, as such and as Collateral Agent, is authorized and directed to (i) enter into
the Collateral Documents, (ii) enter into the Intercreditor Agreement, (iii) bind the holders on
the terms as set forth in the Collateral Documents and the Intercreditor Agreement and (iv) perform
and observe its obligations under the Collateral Documents and the Intercreditor Agreement.
guarantee




          (j) The Trustee agrees that it shall not (and shall not be obliged to), and shall not instruct
the Collateral Agent to, unless specifically requested to do so by a majority of the holders, take
or cause to be taken any action to enforce its rights under this Indenture or against the Company
and the Note Guarantors, including the commencement of any legal or equitable proceedings, to
foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.




          If at any time or times the Trustee shall receive (i) by payment, foreclosure, set-off or
otherwise, any proceeds of Collateral or any payments with respect to the obligations arising
under, or relating to, this Indenture, except for any such proceeds or payments received by the
Trustee from the Collateral Agent pursuant to the terms of this Indenture, or (ii) payments from
the Collateral Agent in excess of the amount required to be paid to the Trustee pursuant to Article
Five, the Trustee shall promptly turn the same over to the Collateral Agent, in kind, and with such
endorsements as may be required to negotiate the same to the Collateral Agent.




          (k) The Collateral Agent shall have no obligation whatsoever to the Trustee or any of the
holders to assure that the Collateral exists or is owned by the Company and the Note Guarantors or
is cared for, protected or insured or has been encumbered, or that the Collateral Agent’s Liens
have been properly or sufficiently or lawfully created, perfected, protected, maintained or
enforced or are entitled to any particular priority, or to determine whether all of the Grantor’s
property constituting collateral intended to be subject to the Lien and security interest of the
Collateral Documents has been properly and completely listed or delivered, as the case may be, or
the genuineness, validity, marketability or sufficiency thereof or title thereto, or to exercise at
all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue
exercising, any of the rights, authorities and powers granted or available to the Collateral Agent
pursuant to this Indenture, any Collateral Document or the Intercreditor Agreement, it being
understood and agreed that in respect of the Collateral, or any act, omission or event related
thereto, the Collateral Agent may act in any manner it may deem appropriate, in its sole discretion
given




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the Collateral Agent’s own interest in the Collateral, and that the Collateral Agent shall
have no other duty or liability whatsoever to the Trustee or any holder as to any of the foregoing.




          (l) If the Company (i) incurs any obligations in respect of Lenders Debt at any time when no
intercreditor agreement is in effect or at any time when Indebtedness constituting Lenders Debt
entitled to the benefit of an existing Intercreditor Agreement is concurrently
retired, and (ii) delivers to the Collateral Agent an Officers’ Certificate so stating and
requesting the Collateral Agent to enter into an intercreditor agreement (on substantially the same
terms as the Intercreditor Agreement) in favor of a designated agent or representative for the
holders of the Lenders Debt so incurred, the Collateral Agent shall (and is hereby authorized and
directed to) enter into such intercreditor agreement (at the sole expense and cost of the Company,
including legal fees and expenses of the Collateral Agent), bind the holders on the terms set forth
therein and perform and observe its obligations thereunder.




          (m) No provision of this Indenture, the Intercreditor Agreement or any Collateral Document
shall require the Collateral Agent (or the Trustee) to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder or thereunder or to
take or omit to take any action hereunder or thereunder or take any action at the request or
direction of holders (or the Trustee in the case of the Collateral Agent) if it shall have
reasonable grounds for believing that repayment of such funds is not assured to it.




          (n) The Collateral Agent (i) shall not be liable for any action it takes or omits to take in
good faith which it reasonably believes to be authorized or within its rights or powers, or for any
error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Collateral Agent was grossly negligent in ascertaining the pertinent facts, (ii) shall not be
liable for interest on any money received by it except as the Collateral Agent may agree in writing
with the Company (and money held in trust by the Collateral Agent need not be segregated from other
funds except to the extent required by law), and (iii) may consult with counsel of its selection
and the advice or opinion of such counsel as to matters of law shall be full and complete
authorization and protection from liability in respect of any action taken, omitted or suffered by
it in good faith and in accordance with the advice or opinion of such counsel. The grant of
permissive rights or powers to the Collateral Agent shall not be construed to impose duties to act.




          SECTION 11.10. Designations. Except as provided in the next sentence, for purposes of the
provisions hereof and of the Intercreditor Agreement requiring the Company to designate
Indebtedness for the purposes of the terms “Lenders Debt” and “Pari Passu Secured Indebtedness” or
any other such designations hereunder or under the Intercreditor Agreement, any such designation
shall be sufficient if the relevant designation is set forth in writing, signed on behalf of the
Company by an Officer and delivered to the Trustee, the Collateral Agent and the collateral agent
under the Senior Secured Credit Agreement. For all purposes hereof and the of Intercreditor
Agreement, the Company hereby designates the Obligations pursuant to the Credit Agreement as
“Lenders Debt.”




          SECTION 11.11. Compensation and Indemnification. The Collateral Agent shall be entitled to
the compensation and indemnification set forth in Section 7.7 (with the references to the
Trustee therein being deemed to refer to the Collateral Agent).




          SECTION 11.12. Intercreditor Agreement and Collateral Documents. The Trustee and
Collateral Agent are each hereby directed and authorized to execute and deliver the Intercreditor
Agreement and any Collateral Documents in which it is named as a party. It is hereby expressly
acknowledged and agreed that, in doing so, the Trustee and the Collateral Agent are not responsible
for the terms or contents of such agreements, or for the validity or enforceability thereof, or the
sufficiency thereof for any purpose. Whether or not so expressly stated
therein,



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in entering into, or taking (or forbearing from) any action under or pursuant to, the
Intercreditor Agreement, or any other Collateral Documents, the Trustee and Collateral Agent each
shall have all of the rights, immunities, indemnities and other protections granted to it under
this Indenture (in addition to those that may be granted to it under the terms of such other
agreement or agreements).




          SECTION 11.13. Further Assurances.




          (a) The Company and each Guarantor shall execute any and all further documents, financing
statements, agreements and instruments, and take all further action that may be required under
applicable law, or that the Collateral Agent may reasonably request, in order to grant, preserve,
protect and perfect the validity and priority of the security interests and Liens created or
intended to be created by the Collateral Documents in the Collateral. In addition, from time to
time, the Company will promptly secure the obligations under this Indenture, the Collateral
Documents and the Intercreditor Agreement by pledging or creating, or causing to be pledged or
created, perfected security interests and Liens with respect to the Collateral. Such security
interests and Liens will be created under the Collateral Documents and other security agreements,
mortgages, deeds of trust and other instruments and documents in form and substance substantially
consistent with the Collateral Documents as in effect immediately after the Issue Date.




          (b) As necessary, or upon reasonable request of the Collateral Agent or the Trustee, the
Company and Guarantors shall, at their sole expense, execute, acknowledge and deliver such
documents and instruments and take such other actions as may be necessary or as the Collateral
Agent or the Trustee may reasonably request to create, protect, assure, perfect, transfer and
confirm the Liens, benefits, property and rights conveyed or intended to be conveyed by this
Indenture or the Collateral Documents for the benefit of the holders and the Trustee, including
with respect to after-acquired Collateral.




          (c) Within the time period set forth on Schedule VI, the Company and the Guarantors shall
deliver, furnish and/or cause to be delivered or furnished, all of the Mortgages and documents
related thereto as set forth on Schedule 11.13.




          SECTION 11.14. Impairment of Security Interest. Subject to the rights of the holders of
Permitted Liens, the Company will not, and will not permit any of its Restricted Subsidiaries to,
take or knowingly or negligently omit to take any action which action or omission would reasonably
be expected to have the result of materially impairing the security interest with respect to the
Collateral for the benefit of Noteholder Secured Parties, subject to limited exceptions. The
Company shall not amend, modify or supplement, or permit or consent to any amendment, modification
or supplement of, the Collateral Documents in any way that would be
adverse to the Holders of the
Securities in any material respect, except as permitted by Articles IX or XI, the
Collateral Documents or the Intercreditor Agreement.




          SECTION 11.15. Information Regarding Collateral.




          (a) The Company will furnish to the Collateral Agent, with respect to the Company or any
Guarantor, prompt written notice of any change in such Person’s (i) name, (ii)
jurisdiction of organization or formation, (iii) identity or corporate structure or (iv)
Organizational




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Identification Number. The Company and the Guarantors agree not to effect or permit
any change referred to in the preceding sentence unless all filings have been made under the
Uniform Commercial Code or otherwise that are required in order for the Collateral Agent to
continue at all times following such change to have a valid, legal and perfected security interest
in all the Collateral. The Company also agrees promptly to notify the Collateral Agent if any
material portion of the Collateral is damaged, destroyed or condemned.




          (b) Each year, at the time of delivery of the annual financial statements with respect to the
preceding fiscal year, the Company shall deliver to the Trustee a certificate of a financial
officer setting forth the information required pursuant to the schedules required by the Collateral
Documents or confirming that there has been no change in such information since the date of the
prior annual financial statements.




          SECTION 11.16. Maintenance of Properties and Insurance.




          (a) The Company shall cause all material properties owned by or leased (including, without
limitation, these properties subject to a Mortgage) by it or any Guarantor used or useful to the
conduct of its business or the business of any Guarantor, taken as a whole, to be maintained and
kept in normal condition, repair and working order (subject to ordinary wear and tear) and supplied
with all necessary equipment and shall cause to be made all repairs, renewals, replacements, and
betterments thereof, all as in its judgment may be reasonably necessary, so that the business
carried on in connection therewith may be operated in the ordinary course.




          (b) The Company shall maintain, and shall cause the Guarantors to maintain, insurance against
loss or damage of the kinds customarily insured against by corporations similarly situated and
owning like properties, with reputable insurers or with the government of the United States of
America, or an agency or instrumentality thereof, in such amounts, with such deductibles,
retentions, self-insured amounts and co-insurance provisions, and by such methods as shall be
customary for corporations similarly situated in the industry in which the Company or such Note
Guarantor, as the case may be, is then conducting business. Without limiting the foregoing, such
insurance coverages shall include without limitation (a) physical hazard on an “all risk” basis
coverage and explosion insurance in an amount equal to the full replacement cost of the fully
operational Mortgaged Property, (b) commercial general liability insurance against claims for
bodily injury, death or property damage occurring on, in or about the Mortgaged Property and the
Collateral located thereon or used in connection therewith, (c) workers’ compensation insurance as
required by applicable law, and (d) if the Mortgaged Property is located in an area identified by
the Federal Emergency Management Agency as an area having special flood hazards pursuant to the
National Flood Insurance Act of 1968 or the Flood Disaster Protection
Act of 1973, each as amended
or any successor laws, flood insurance in compliance with applicable laws.




ARTICLE XII

MISCELLANEOUS




          SECTION 12.1. Trust Indenture Act Controls. If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with another provision which is required
to be included in this Indenture by the TIA, the provision required by the TIA shall control.
Each Note




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Guarantor in addition to performing its obligations under its Note Guarantee shall
perform such other obligations as may be imposed upon it with respect to this Indenture under the
TIA.




          SECTION 12.2. Notices. Any notice or communication shall be in writing and delivered
in person, sent by facsimile, delivered by commercial courier service or mailed by first-class
mail, postage prepaid, addressed as follows:





if to the Parent, the Company or any Subsidiary Guarantor:




Libbey Glass Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Fax: (419) 325-2585

Attention: Susan Kovach, Esq.




with copies to:




Christopher Lueking, Esq.

Latham & Watkins LLP

233 South Wacker Drive, Suite 5800

Chicago, IL 60606




if to the Trustee:




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

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Attention: Global Corporate Trust




with copies to:




John B. Duer, Esq.

Bryan Cave LLP

1290 Avenue of the Americas

New York NY 10104



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




          Any notice or communication to the Company or the Note Guarantors shall be deemed to have been
given or made as of the date so delivered if personally delivered; when receipt is acknowledged, if
telecopied; and five calendar days after mailing if sent by registered or certified mail, postage
prepaid (except that a notice of change of address shall not be deemed to have been given until
actually received by the addressee).




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




          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.




          SECTION 12.3. Communication by Holders with other Holders. Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).




          SECTION 12.4. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:





     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and




     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with.



          SECTION 12.5. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
(other than pursuant to Section 3.18) shall include:





     (1) a statement that the individual 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;



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     (3) a statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to whether
or not such covenant or condition has been complied with; and




     (4) a statement as to whether or not, in the opinion of such individual, such covenant
or condition has been complied with.



          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.




          SECTION 12.6. When Securities Disregarded. In determining whether the Holders of the
required aggregate principal amount of Securities have concurred in any direction, waiver or
consent, Securities owned by the Company, any Note Guarantor or any Affiliate of them shall be
disregarded and deemed not to be outstanding, except that, for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities
which the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any such determination.




          SECTION 12.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or at meetings of, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.




          SECTION 12.8. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required to be closed in New
York, New York. If a payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a
regular record date is a Legal Holiday, the record date shall not be affected.




          SECTION 12.9. Governing Law. THIS INDENTURE, THE SECURITIES, THE COLLATERAL DOCUMENTS
AND THE INTERCREDITOR AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES SITTING IN THE BOROUGH OF MANHATTAN, THE
CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE
SECURITIES OR THE NOTE GUARANTEES. However, the mortgages will be governed by, and construed in
accordance with, the laws of the states in which the applicable premises are located.




          SECTION 12.10. No Recourse Against Others. No director, officer, employee,
incorporator or stockholder of the Parent, the Company or any of the Subsidiary Guarantors, as
such, shall have any liability for any obligations of the Company or such Note Guarantor under the
Securities, this Indenture, a Guarantee, the Collateral Documents or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of Securities by
accepting a Security waives and releases all such liability to the extent permitted by applicable
law. The waiver and release are part of the consideration for issuance of the Securities. Such




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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.




          SECTION 12.11. Successors. All agreements of the Company and each Note Guarantor in
this Indenture and the Securities shall bind their respective successors. All agreements of the
Trustee in this Indenture shall bind its successors.




          SECTION 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.




          SECTION 12.13. Qualification of Indenture. The Company shall qualify this Indenture
under the TIA in accordance with the terms and conditions of the Registration Rights Agreement.
The Trustee shall be entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.




          SECTION 12.14. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.




          SECTION 12.15. [Reserved].




          SECTION 12.16. 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 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.




          SECTION 12.17. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.




          SECTION 12.18. Severability. In case any one or more of the provisions in this
Indenture or in the Securities shall be held invalid, illegal or unenforceable, in any respect for
any reason, the validity, legality and enforceability of any such provision in every other respect
and of the remaining provisions shall not in any way be affected or impaired thereby, it being
intended that all of the provisions hereof shall be enforceable to the full extent permitted by
law.









-126-









 








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




	 	 	 	 	 
	 	LIBBEY GLASS INC.

 	 
	 	By:  	/s/ Susan A. Kovach
 	 
	 	 	Name:  	Susan A. Kovach 	 
	 	 	Title:  	Vice President, General Counsel &

Secretary 	 



Signature Page to Indenture



 









 







	 	 	 	 	 
	 	LIBBEY INC.

 	 
	 	By:  	/s/ Susan A. Kovach
 	 
	 	 	Name:  	Susan A. Kovach 	 
	 	 	Title:  	Vice President, General Counsel &

Secretary 	 



Signature Page to Indenture



 









 







	 	 	 	 	 
	 	SYRACUSE CHINA COMPANY

WORLD TABLEWARE INC.

LGA4 CORP.

LGA3 CORP.

THE DRUMMOND GLASS COMPANY

LGC CORP.

TRAEX COMPANY

LIBBEY.COM LLC

LGFS INC.

LGAC LLC

 	 
	 	By:  	/s/ Susan A. Kovach
 	 
	 	 	Name:  	Susan A. Kovach 	 
	 	 	Title:  	Vice President, General Counsel &

Secretary 	 



Signature Page to Indenture



 









 







	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Trustee

 	 
	 	By:  	/s/ Linda E. Garcia
 	 
	 	 	Name:  	Linda E. Garcia 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., as Collateral Agent

 	 
	 	By:  	/s/ Linda E. Garcia
 	 
	 	 	Name:  	Linda E. Garcia 	 
	 	 	Title:  	Vice President 	 
	 



Signature Page to Indenture



 











 





SCHEDULE 3.8




EXISTING AFFILIATE TRANSACTIONS




 









 





SCHEDULE 11.13




Post-Closing




1.   Within forty-five (45) days after the Issue Date, the Trustee and the Collateral Agent shall
have received each of the following documents, which shall be reasonably satisfactory in form and
substance to the Trustee, the Collateral Agent and each of their respective counsel, as applicable:




     (i) Insurance. Policies or certificates of insurance and endorsements thereto
(including evidence of flood insurance, if applicable) covering the property and assets of
the Company and the Note Guarantors, which policies or certificates and endorsements shall
reflect the Collateral Agent for its benefit and the benefit of the Trustee and the Holders,
as additional insured and loss payee and mortgagee and shall otherwise bear endorsements of
the character reasonably acceptable to the Trustee and the Collateral Agent.




     (ii) Mortgages. Fully executed counterparts of Mortgages which Mortgages shall cover
each Mortgaged Property (as defined in the Intercreditor), together with evidence that
counterparts of all the Mortgages have been delivered to the Title Company (as hereinafter
defined) for recording in all places to the extent necessary to effectively create a valid
and enforceable first priority mortgage lien on each Mortgaged Property in favor of the
Collateral Agent for its benefit and the benefit of the Trustee, Collateral Agent and the
Holders, securing the obligations of the applicable mortgagor under this Indenture, the
Notes, the Guarantees and the Collateral Documents, subject to the Permitted Encumbrances.




     (iii) Counsel Opinions. Opinions addressed to the Trustee and the Collateral Agent,
the holders of the Notes, and their respective successors and assigns, of local counsel in
each jurisdiction where Mortgaged Property is located and opinions of counsel for the
Company regarding enforceability of the Mortgages and such other customary real estate
opinions as the Collateral Agent reasonably requires.




     (iv) Title Insurance. With respect to each Mortgage encumbering any Mortgaged
Property, a policy of title insurance (or commitment to issue such a policy having the
effect of a policy of title insurance) insuring (or committing to insure) the lien of such
Mortgage as a valid and enforceable first priority mortgage or deed of trust lien on the
Mortgaged Property described therein, in an amount not less than 110% of the fair market
value of such Mortgaged Property as reasonably determined, in good faith, by the Company and
reasonably acceptable to the Initial Purchasers (such policies collectively, the “Mortgage
Policies”), issued by the Title Company, which reasonably assures the Collateral Agent that
the Mortgage on such Mortgaged Property is valid and enforceable first



 









 







priority mortgage lien on such respective Mortgaged Property, free and clear of all defects
and encumbrances except Permitted Encumbrances and such Mortgage Policies shall otherwise be
in form and substance reasonably satisfactory to the Trustee and the Collateral Agent and
shall have been supplemented by endorsements reasonably requested by the Trustee and the
Collateral Agent and available at commercially reasonable premium costs (including, without
limitation, to the extent applicable and available in the applicable jurisdiction where the
Mortgaged Property is located endorsements on matters relating to usury, first loss, last
dollar, non-imputation, public road access, doing business, variable rate, contiguity (where
appropriate), “tie-in” or “cluster,” environmental lien, address, subdivision, survey, any
special use of the Mortgaged Property or improvements or equipment related thereto, and
so-called comprehensive coverage over covenants and restrictions); the Company will obtain,
or cause to be obtained such coinsurance or direct access re-insurance as shall be
reasonably acceptable to the the Trustee and the Collateral Agent.




     (v) Survey. If required by the Title Company to issue the Mortgage Policies without
standard survey exceptions, with respect to each Mortgaged Property, an American Land Title
Association/American Congress on Surveying and Mapping form surveys, for which all necessary
fees (where applicable) have been paid, and dated no more than thirty (30) days before the
Closing Date, certified to the Collateral Agent and the Title Company in a manner reasonably
satisfactory to the Trustee and the Collateral Agent, by a land surveyor duly registered and
licensed in the state in which the Mortgaged Property described in such survey is located
and reasonably acceptable to the Trustee and Collateral Agent, and which surveys shall be
sufficient for the title company issuing the Mortgage Policy with respect to such Mortgaged
Property to remove all standard survey exceptions from such Mortgage Policy.




     (vi) Leases. With respect to each Mortgaged Property, copies of all material leases,
subleases, occupancy agreements (including all amendments, extensions, replacements,
renewals, modifications and/or guarantees thereof), whether or not of record and whether now
in existence or hereafter entered into, affecting the use or occupancy of all or any portion
of any Mortgaged Property, if any, and with respect to such leases, the Company or the
Guarantors, as applicable, shall use commercially reasonable efforts to obtain subordination
agreements from the relevant parties to ensure the priority of the Mortgages as required in
paragraph (ii) above.




     (vii) Fixture Filings. To the extent required by applicable law, proper fixture
filings under the Uniform Commercial Code on Form UCC-1 for filing in the appropriate
jurisdiction in which the Mortgaged Properties are located, desirable to perfect the
security interests in fixtures purported to be created by the Mortgages in favor of the
Collateral Agent for its benefit and the benefit of the Trustee and the Holders.




     (viii) Mortgaged Property Indemnification. With respect to each Mortgaged Property,
such affidavits, certificates, instruments of indemnification and other items (including a
so-called “gap” indemnification) as shall be reasonably required to induce the Title Company
to issue the Mortgage Policies and endorsements contemplated above.



 









 






     (ix) Collateral Fees and Expenses. Evidence reasonably acceptable to the Trustee and
the Collateral Agent of payment by the Company of all Mortgage Policy premiums, search and
examination charges, mortgage recording taxes, documentary, stamp, intangible and other
taxes, fees, charges, costs and expenses required for the recording of the Mortgages,
fixture filings and issuance of the Mortgage Policies referred to above.




     (x) Flood Insurance. A completed “Life-of-Loan” Federal Emergency Management Agency
Standard Flood Hazard Determination with respect to each Mortgaged Property located in the
United States, together with (a) a notice about special flood hazard area status and flood
disaster assistance duly executed by the Company and/or Guarantor, as applicable, and (b)
evidence of insurance with respect to those Mortgaged Properties containing buildings
determined to be in a special flood hazard area.




     (xi) Additional Information. Evidence that all other action that the Initial
Purchasers, the Trustee and the Collateral Agent may deem reasonably necessary or desirable
in order to create valid first priority and subsisting lien on each property described in
the Mortgages has been taken.



          The terms that follow, when used in this Schedule, shall have the meanings indicated.




          “Permitted Encumbrances” shall mean (i) survey exceptions, encumbrances, easements or
reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning or other similar restrictions
(including minor defects or irregularities in title and similar encumbrances) as to the use of real
properties or liens incidental to the conduct of the business of such person or to the ownership of
its properties which were not incurred in connection with debt and which do not individually or in
the aggregate materially adversely affect the value of the property affected thereby or materially
impair the use of such property in the operation of the business of such person, (ii) general real
estate taxes and assessments not yet delinquent or being contested in good faith for which adequate
reserves are maintained in accordance with GAAP; provided that the Company and Guarantors shall
bond over or take any other action necessary or required by the Title Company to delete any
exception to title relating to unpaid taxes and assessments, (iii) other liens (not securing
Indebtedness (as defined in the Pricing Disclosure Package and the Offering Memorandum)) incidental
to the conduct of the business of the Company or any of its subsidiaries, as the case may be, or
the ownership of their assets which do not individually or in the aggregate materially adversely
affect the value of the property affected thereby or materially impair the use of such property in
the operation of the business of the Company or its subsidiaries, (iv) any warehousemen’s,
materialmen’s, landlord’s or other similar liens arising by law for sums not then due and payable,
or which, if due and payable, are being contested in good faith and with respect to which adequate
reserves are being maintained, to the extent required by GAAP; provided that the Company and
Guarantors shall take any and all commercially reasonable actions necessary or required by the
Title Company to delete any exception to title relating thereto, (v) leases, subleases, licenses or
sublicenses granted to others in the ordinary course of business so long as such leases, subleases,
licenses or sublicenses are subordinate in all respects to the liens granted and evidenced by the
Collateral Documents to the extent required by the Initial Purchasers





 









 







and which do not materially interfere with the ordinary conduct of the business of the Company or any
subsidiaries and do not secure any Indebtedness and (vi) liens arising from UCC financing
statements regarding equipment financing and proceeds thereof so long as such liens do not extend
to an assets or property other than the assets or properties financed with such equipment
financings or the proceeds thereof and (vii) such other similar items as the Initial Purchasers may
consent to (such consent not to be unreasonably withheld).




          “Title Company” shall mean First American Title Insurance Company, or such other title insurer
as may be chosen from time to time by the Company in its reasonable judgment; provided that Chicago
Title Insurance or First American Title Insurance Company shall be acceptable to the Initial
Purchasers.



2. A Dutch law pledge of shares in the capital of Libbey International C.V. by February 18, 2010.



3. (a) Deliver tax and judgment lien searches, bankruptcy and pending lawsuit searches or
equivalent reports or searches, lien notices or comparable documents result for the Company in (x)
New York, New York and Perrysburg, Ohio..




     (b) with respect to any identified in the search pursuant to clause (a) above, the Company
shall promptly, and in any event by March 15, 2010, take all commercially reasonable efforts to
effect the release of any Liens that the Collateral Agent shall reasonably request



 









 





EXHIBIT A




[FORM OF FACE OF SERIES A NOTE]




[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

[OID Legend, if applicable]




	 	 	 
	No.                     

	 	Principal Amount $      , as
	 

	 	revised by the Schedule of Increases and
	 

	 	Decreases in Global Security attached hereto
	 

	 	CUSIP NO. [144A: 52989L AD1/REGS U52873 AB9]
	 

	 	ISIN: [144A: US52989LAD10/REGS
	 

	 	USU52873AB96]






LIBBEY GLASS INC.




10% Senior Secured Note, Series A due 2015



          Libbey Glass Inc., a Delaware corporation, promises to pay to Cede & Co., or its registered
assigns, the principal sum of [                                        ] DOLLARS, as revised by the Schedule of Increases
and Decreases in Global Security attached hereto, on February 15, 2015.




     Interest Payment Dates: February 15 and August 15, commencing on August 15, 2010



     Record Dates: February 1 and August 1



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







A-1









 








	 	 	 	 	 
	 	LIBBEY GLASS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 	 	 
	 	Date:  	 	 



A-2









 






	 	 	 	 	 



TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

as Trustee, certifies that this is one of the

Securities referred to in the within mentioned Indenture.




	 	 	 	 
	 	 
	By:  	 	 
	 	Authorized Signatory 	 
	 
	Date: 	 	 



A-3









 






	 	 	 	 	 



[FORM OF REVERSE SIDE OF SERIES A NOTE]




LIBBEY GLASS INC.



10% Senior Secured Note, Series A, due 2015


1. Interest




          Libbey Glass Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at a rate per annum equal to 10%,
commencing on August 15, 2010, until maturity and shall pay additional interest, if any, payable
pursuant to Section 2(d) of the Registration Rights Agreement referred to below. The Company shall
make each interest payment in cash semi-annually in arrears on February 15 and August 15 of each
year, commencing August 15, 2010, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”). Notwithstanding the foregoing, if any such
Interest Payment Date (other than an Interest Payment Date at maturity) would otherwise be a day
that is not a Business Day, then the interest payment will be postponed to the next succeeding
Business Day (except if that Business Day falls in the next succeeding calendar month, then
interest will be paid on the immediately preceding Business Day). If the maturity date of the
Securities is a day that is not a Business Day, all payments to be made on such day will be made on
the next succeeding Business Day, with the same force and effect as if made on the maturity date,
and no additional interest will be payable as a result of such delay in payment. Interest on this
Security will accrue from the most recent date to which interest has been paid or, if no interest
has been paid, from February 8, 2010; provided that the first Interest Payment Date shall be August
15, 2010. The Company shall pay interest on overdue principal, and on overdue premium, if any
(plus interest on such interest to the extent lawful), at the rate borne by the Securities to the
extent lawful.




          The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law.



2. Method of Payment




          By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest. The Company will pay interest (except Defaulted Interest) to the Persons who
are registered Holders of Securities at the close of business on the February 1 or August 1 next
preceding the interest payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of Securities represented by a Global Security
(including principal, premium, if any, and interest) will be made by the transfer of immediately
available funds to the accounts specified by The Depository






A-4









 







Trust Company or any successor depository. The Company will make all payments in respect of a
Definitive Security (including principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on the Securities may
also be made, in the case of a Holder of at least $1,000,000 aggregate principal amount of
Securities, by wire transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as the Trustee may
accept in its discretion).



3. Paying Agent and Registrar




          Initially, The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Any of the domestically organized
Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar.



4. Indenture




          The Company issued the Securities under an Indenture dated as of February 8, 2010 (as it may
be amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.




          The Securities are general senior secured obligations of the Company. The aggregate principal
amount of Securities that may be authenticated and delivered under the Indenture is unlimited.
This Security is one of the Senior Secured Notes, Series A, due 2015 referred to in the Indenture.
The Securities include (i) $400,000,000 aggregate principal amount of the Company’s Senior Secured
Notes, Series A, due 2015 issued under the Indenture on February 8, 2010 (herein called
“Initial Securities”), (ii) if and when issued, additional Senior Secured Notes, Series A,
due 2015 or Senior Secured Notes, Series B, due 2015 of the Company that may be issued from time to
time under the Indenture subsequent to February 8, 2010 (herein called “Additional
Securities”) and (iii) if and when issued, the Company’s Senior Secured Notes, Series B, due
2015 that may be issued from time to time under the Indenture in exchange for Initial Securities or
Additional Securities in an offer registered under the Securities Act as provided in the
Registration Rights Agreement (herein called “Exchange Securities”). The Securities and
Exchange Securities are treated as a single class of securities under the Indenture. The Indenture
imposes certain limitations on the incurrence of indebtedness, the making of restricted payments,
the sale of assets and subsidiary stock, the incurrence of certain liens, affiliate transactions,
the sale of capital stock of restricted subsidiaries, the entering into of agreements that restrict
distributions from restricted subsidiaries and the consummation of mergers and consolidations. The
Indenture also imposes requirements with respect to the provision of financial information and the
provision of guarantees of the Securities by certain subsidiaries.







A-5









 








          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Note Guarantors have fully, unconditionally and irrevocably
Guaranteed (and future guarantors, together with the Note Guarantors, will fully, unconditionally
and irrevocably Guarantee), jointly and severally, to each Holder of the Securities and the Trustee
the Guarantor Obligations pursuant to Article X of the Indenture on a senior basis.



5. Redemption




          Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to August 15, 2012. On and after such date, the Securities will be redeemable, at the
Company’s option, in whole or in part, at any time from time to time, upon not less than 30 nor
more than 60 days’ prior notice, at the following redemption prices (expressed in percentages of
principal amount), plus accrued and unpaid interest, if any, to the applicable redemption date
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date), if redeemed during the 12-month period commencing on August 15
of the years set forth below:




	 	 	 	 	 
	Period	 	Percentage	 
	2012
	 	 	105.000	%
	2013
	 	 	102.500	%
	2014 and thereafter
	 	 	100.000	%






          In addition, at any time and from time to time prior to August 15, 2012, the Company may
redeem in the aggregate up to 35% of the original principal amount of the Securities (after giving
effect to any future issuance of Additional Securities) with the Net Cash Proceeds of one or more
Equity Offerings at a redemption price (expressed as a percentage of principal amount) of 110% of
the principal amount thereof, plus any accrued and unpaid interest or additional interest to the
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date); provided, however, that at least 65% of the
original principal amount of the Securities (after giving effect to any future issuance of
Additional Securities) must remain outstanding after each such redemption; provided further, that
each such redemption occurs within 90 days of the date of closing of such Equity Offering.




          In addition, at any time and from time to time prior to August 15, 2012, but not more than
once in any twelve-month period, the Company may redeem in the aggregate, up to 10% of the original
aggregate principal amount of the notes at a redemption price (expressed as a percentage of
principal amount thereof) of 103%, plus any accrued and unpaid interest and additional interest to
the applicable redemption date (subject to the right of holders of record on the relevant record
date to receive interest due on the relevant interest payment date).




          If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the






A-6









 







Person in whose name the Security is registered at the close of business on such record date,
and no additional interest will be payable to Holders whose Securities will be subject to
redemption by the Company.




          In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Securities of $2,000 in original principal amount or less will be
redeemed in part. Any such notice to the Trustee may be cancelled at any time prior to notice of
such redemption being mailed to any Holder and shall thereby be void and of no effect. If any
Security is to be redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. On and after the redemption date, interest will cease
to accrue on Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable redemption price pursuant
to the Indenture.



6. Repurchase Provisions




          If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 4 of the Securities, then such Change of Control shall
constitute a triggering event which shall trigger the obligation of the Company to offer to
repurchase from each Holder all or any part (equal to $2,000 or an integral multiple of $1,000 in
excess thereof) of such Holder’s Securities at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date of repurchase
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date) as provided in, and subject to the terms of, the Indenture.



7. Denominations; Transfer; Exchange




          The Securities are in registered form without coupons in denominations of principal amount of
$2,000 and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay a sum sufficient to cover any transfer tax or other
governmental taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange of any Security for a period beginning 15 days before the
mailing of a notice of an offer to repurchase or redeem Securities and ending at the close of
business on the day of such mailing. The Registrar shall not be required to register the transfer
of or exchange of any Security selected for redemption.



8. Persons Deemed Owners




          The registered Holder of this Security may be treated as the owner of it for all purposes.







A-7









 







9. Unclaimed Money




          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Securities that remains unclaimed by the Holders thereof for two years,
and, thereafter, Holders entitled to the money must look to the Company for payment as unsecured
general creditors.



10. Defeasance




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



11. Amendment, Supplement, Waiver




          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Collateral Documents, the Intercreditor Agreement and any Note Guarantee may be amended or
supplemented by the Company, the Note Guarantors and the Trustee with the written consent of the
Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any
default (other than with respect to nonpayment (except in accordance with Section 6.4 of
the Indenture)) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities and except as
otherwise set forth in the Indenture, in each case other than in respect of a provision that cannot
be amended without the written consent of each Holder affected. Subject to certain exceptions set
forth in the Indenture, without the consent of any Holder, the Company, the Note Guarantors and the
Trustee may amend or supplement the Indenture or the Securities cure any ambiguity, omission,
defect or inconsistency; provide for the assumption by a successor corporation of the obligations
of the Company or any Note Guarantor under the Indenture; provide for uncertificated Securities in
addition to or in place of certificated Securities (provided that the uncertificated Securities are
issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the Code); add Guarantees with
respect to the Securities or release a Subsidiary Guarantor upon its designation as an Unrestricted
Subsidiary; provided, however, that the designation is in accordance with the applicable provisions
of the Indenture; secure the Securities with additional Collateral; add to the covenants of the
Company and the Restricted Subsidiaries for the benefit of the Holders or surrender any right or
power conferred upon the Company or any Restricted Subsidiary; make any change that does not
adversely affect the rights of any Holder; comply with any requirement of the SEC in connection
with the qualification of the Indenture under the TIA; release a Note Guarantor from its
obligations under its Note Guarantee or the Indenture in accordance with the applicable provisions
of the Indenture; provide for the appointment of a successor trustee, provided that the successor
trustee is otherwise qualified and eligible to act as such under the terms of the Indenture; make,
complete or confirm any Collateral permitted or required by the Collateral Documents or any release
of Liens in favor of the Collateral Agent on the Collateral, as provided under Section 11.3
or otherwise in accordance with this Indenture, the Collateral






A-8









 







Documents or the Intercreditor Agreement; provide for the issuance of Additional
Securities (and the grant of security for the benefit of the Additional Securities) in accordance
with the terms of this Indenture and provide for the issuance of Exchange Securities that shall
have terms substantially identical in all respects to the Securities (except that the transfer
restrictions contained in the Securities shall be modified or eliminated as appropriate) and that
shall be treated, together with any outstanding Securities, as a single class of securities;
conform the text of the Indenture, the Securities or the Guarantees to any provision of the
“Description of the Notes” section of the Offering Memorandum to the extent that such provision in
the “Description of the Notes” was intended to be a verbatim recitation of a provision of the
Indenture, the Securities or the Note Guarantees; add additional secured parties to the extent
Liens securing obligations held by such parties are permitted under this Indenture; provide for the
succession of any parties to the Collateral Documents (and other amendments that are administrative
or ministerial in nature) in connection with an amendment, renewal, extension, substitution,
refinancing, restructuring, replacement, supplementing or other modification from time to time of
any agreement in accordance with the terms of this Indenture and the relevant Collateral Document;
provide for a reduction in the minimum denominations of the Securities; or comply with the rules of
any applicable securities depositary.



12. Defaults and Remedies




          Under the Indenture, Events of Default include (each of which are more specifically described
in the Indenture) (i) default in any payment of interest or additional interest (as required by the
Registration Rights Agreement) on any Security when due, continued for 30 days; (ii) default in the
payment of principal of or premium, if any, on any Security when due at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company or any Note Guarantor to comply with its obligations under Section 4.1 of the
Indenture; (iv) failure by the Company or any Note Guarantor to comply for 45 days after notice
with any of its obligations under Article III of the Indenture (in each case, other than a
failure to purchase Securities, which will constitute an Event of Default under clause (ii), and a
failure to comply with Section 4.1 of the Indenture, which will constitute an Event of
Default under clause (iii)); (v) failure by the Company or any Note Guarantor to comply for 60 days
after notice as provided below with its other agreements contained in the Indenture; (vi) 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 its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default (1) is
caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior
to the expiration of the grace period provided in such Indebtedness or (2) results in the
acceleration of such Indebtedness prior to its maturity, and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates
$20.0 million or more; (vii) certain events set forth in Section 6.1(7) of the Indenture of
bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would
constitute






A-9









 







a Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law; (viii)
failure by the Company or any Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of $20.0 million (net of any amounts that a reputable and creditworthy
insurance company has acknowledged liability for in writing), which judgments are not paid,
discharged or stayed for a period of 60 days; (ix) any Subsidiary Guarantee, Collateral Document or
obligation under the Intercreditor Agreement of a Significant Subsidiary or group of Restricted
Subsidiaries that taken together as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be in
full force and effect (except as contemplated by the terms of the Indenture) or is declared null
and void in a judicial proceeding or any Subsidiary Guarantor that is a Significant Subsidiary or
group of Subsidiary Guarantors that taken together as of the latest audited consolidated financial
statements of the Company and its Restricted Subsidiaries would constitute a Significant Subsidiary
denies or disaffirms its obligations under the Indenture, or its Subsidiary Guarantee any
Collateral Document or the Intercreditor Agreement; or (x) with respect to any Collateral having a
fair market value in excess of $20.0 million, individually or in the aggregate, (A) the security
interest under the Collateral Documents, at any time, ceases to be in full force and effect for any
reason other than in accordance with their terms and the terms of this Indenture and other than the
satisfaction in full of all obligations under this Indenture and discharge of this Indenture, (B)
any security interest created thereunder or under this Indenture is declared invalid or
unenforceable or (C) the Company or any Note Guarantor asserts, in any pleading in any court of
competent jurisdiction, that any such security interest is invalid or unenforceable. However, a
default under clauses (iv) and (v) will not constitute an Event of Default until the Trustee or the
Holders of 25% in principal amount of the outstanding Securities notify the Company of the default
and the Company does not cure such default within the time specified in clauses (iv) and (v) hereof
after receipt of such notice.




          If an Event of Default (other than an Event of Default described in (vii) hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the outstanding Securities by notice to the Company and the Trustee, may, and the Trustee
at the request of such Holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest, if any, on all the Securities to be due and payable. If an Event of Default
described in (vii) hereof occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Securities will become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holders.




          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.







A-10









 







13. Trustee Dealings with the Company




          Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company, the Subsidiary Guarantors or
their Affiliates and may otherwise deal with the Company, the Subsidiary Guarantors or their
Affiliates with the same rights it would have if it were not Trustee.



14. No Recourse Against Others




          No director, officer, employee, incorporator or stockholder of the Parent, the Company or any
of the Subsidiary Guarantors, as such, shall have any liability for any obligations of the Company
under the Securities, the Indenture or any Guarantee or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each Holder of Securities by accepting a
Security waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities. 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.



15. Authentication




          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Security.



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 entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).



17. CUSIP, Common Code and ISIN Numbers




          The Company has caused CUSIP, Common Code or ISIN numbers, if applicable, to be printed on the
Securities and has directed the Trustee to use CUSIP, Common Code or ISIN numbers, if applicable,
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 Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.



18. Collateral




          These Securities are secured by a security interest pursuant to certain Security Documents.
Reference is made to the Indenture for events causing release of the security interest in the
Collateral.







A-11









 







19. Governing Law




          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York.




          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:




Libbey Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Attention: Treasurer





A-12












 





ASSIGNMENT FORM



To assign this Security, fill in the form below:



I or we assign and transfer this Security to:




 




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




 




(Insert assignee’s social security or tax I.D. No.)



and irrevocably appoint                                          agent to transfer this Security on the books of the Company.
The agent may substitute another to act for him.




	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	(Signature must be guaranteed)	 	 






 





Sign exactly as your name appears on the other side of this Security.



The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.



In connection with any transfer or exchange of any of the Securities evidenced by this certificate
occurring prior to the date that is one year after the later of the date of original issuance of
such Securities and the last date, if any, on which such Securities were owned by the Company, or
any Affiliate of the Company, the undersigned confirms that such Securities are being:



CHECK ONE BOX BELOW:





	 	1 o	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	2 o	 	transferred to the Company; or
	 
	 	3 o	 	transferred pursuant to and in compliance with Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”); or
	 
	 	4 o	 	transferred pursuant to an effective registration statement under the
Securities Act; or
	 
	 	5 o	 	transferred pursuant to and in compliance with Regulation S under the
Securities Act; or




A-13









 






	 	6 o	 	transferred to an institutional “accredited investor” (within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the
Trustee a signed letter containing certain representations and agreements (the form of
which letter appears as Section 2.7 of the Indenture); or
	 
	 	7 o	 	transferred pursuant to another available exemption from the registration
requirements of the Securities Act.




Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered Holder thereof;
provided, however, that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Securities, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act, such as the exemption provided by Rule 144 under such Act.




	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Signature 	 


Signature Guarantee:



	 	 	 	 	 
	 	  	
 	 
	(Signature must be guaranteed) 	 	Signature 	 





 




The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.



TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.



The undersigned represents and warrants that it is purchasing this Security for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.




	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Dated: 	 
	 	 	 	 



A-14









 






	 	 	 	 	 



[TO BE ATTACHED TO GLOBAL SECURITIES]




SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY



The following increases and decreases in this Global Security have been made:




	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of decrease	 	Amount of increase	 	Principal Amount of	 	Signature of	 	 
	 	 	in Principal Amount	 	in Principal Amount	 	this Global Security	 	authorized signatory	 	 
	Date of Decrease	 	of this Global	 	of this Global	 	following such	 	of Trustee or	 	 
	or Increase	 	Security	 	Security	 	decrease or increase	 	Securities Custodian	 	 
	 

	 	 	 	 	 	 	 	 	 	 





A-15









 






OPTION OF HOLDER TO ELECT PURCHASE




          If you elect to have this Security purchased by the Company pursuant to Section 3.5 or
3.11 of the Indenture, check either box:



	 	 	 
	o
	 	o
	3.5
	 	3.11






          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.5 or Section 3.11 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $                                                                        
        



	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	(Signature must be guaranteed)	 	 





The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.




A-16









 





EXHIBIT B




[FORM OF FACE OF SERIES B NOTE]




[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

[OID Legend, if applicable]




	 	 	 
	No. ___

	 	Principal Amount $        , as
	 

	 	revised by the Schedule of Increases and
	 

	 	Decreases in Global Security attached hereto
	 

	 	CUSIP NO. [144A: 52989L AD1/REGS U52873 AB9]
	 

	 	ISIN: [144A: US52989LAD10/REGS
	 

	 	USU52873AB96]






LIBBEY GLASS INC.




10% Senior Secured Note, Series B, due 2015



          Libbey Glass Inc., a Delaware corporation, promises to pay to Cede & Co., or its registered
assigns, the principal sum of [                                        ] DOLLARS, as revised by the Schedule of Increases
and Decreases in Global Security attached hereto, on February 15, 2015.




     Interest Payment Dates: February 15 and August 15, commencing on [          ]



     Record Dates: February 1 and August 1



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







B-1









 








	 	 	 	 	 
	 	LIBBEY GLASS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	Date:  	
 	 








B-2









 











TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

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

as Trustee, certifies that this is one of the

Securities referred to in the within mentioned Indenture.




	 	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	Authorized Signatory 	 


Date:





B-3









 








[FORM OF REVERSE SIDE OF SERIES B NOTE]




LIBBEY GLASS INC.



10% Senior Secured Note, Series B, due 2015


1. Interest




          Libbey Glass Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at a rate per annum equal to 10%,
commencing on [          ], until maturity and shall pay additional interest, if any, payable
pursuant to Section 2(d) of the Registration Rights Agreement referred to below. The Company shall
make each interest payment in cash semi-annually in arrears on February 15 and August 15 of each
year, commencing [          ] or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Notwithstanding the foregoing,
if any such Interest Payment Date (other than an Interest Payment Date at maturity) would otherwise
be a day that is not a Business Day, then the interest payment will be postponed to the next
succeeding Business Day (except if that Business Day falls in the next succeeding calendar month,
then interest will be paid on the immediately preceding Business Day). If the maturity date of the
Securities is a day that is not a Business Day, all payments to be made on such day will be made on
the next succeeding Business Day, with the same force and effect as if made on the maturity date,
and no additional interest will be payable as a result of such delay in payment. Interest on this
Security will accrue from the most recent date to which interest has been paid or, if no interest
has been paid, from [          ]; provided that the first Interest Payment Date shall be
 [          ]. The Company shall pay interest on overdue principal, and on overdue premium, if any
(plus interest on such interest to the extent lawful), at the rate borne by the Securities to the
extent lawful.




          The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law.



2. Method of Payment




          By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest. The Company will pay interest (except Defaulted Interest) to the Persons who
are registered Holders of Securities at the close of business on the February 1 or August 1 next
preceding the interest payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of Securities represented by a Global Security
(including principal, premium, if any, and interest) will be made by the transfer of immediately
available funds to the accounts specified by The Depository






B-4









 







Trust Company or any successor depository. The Company will make all payments in respect of a
Definitive Security (including principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on the Securities may
also be made, in the case of a Holder of at least $1,000,000 aggregate principal amount of
Securities, by wire transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written notice to the
Trustee or the Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as the Trustee may
accept in its discretion).



3. Paying Agent and Registrar




          Initially, The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Any of the domestically organized
Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar.



4. Indenture




          The Company issued the Securities under an Indenture dated as of February 8, 2010 (as it may
be amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.




          The Securities are general senior secured obligations of the Company. The aggregate principal
amount of Securities that may be authenticated and delivered under the Indenture is unlimited.
This Security is one of the Senior Secured Notes, Series B, due 2015 referred to in the Indenture.
The Securities include (i) $400,000,000 aggregate principal amount of the Company’s Senior Secured
Notes, Series A, due 2015 issued under the Indenture on February 8, 2010 (herein called
“Initial Securities”), (ii) if and when issued, additional Senior Secured Notes, Series A,
due 2015 or Senior Secured Notes, Series B, due 2015 of the Company that may be issued from time to
time under the Indenture subsequent to February 8, 2010 (herein called “Additional
Securities”) and (iii) if and when issued, the Company’s Senior Secured Notes, Series B, due
2015 that may be issued from time to time under the Indenture in exchange for Initial Securities or
Additional Securities in an offer registered under the Securities Act as provided in the
Registration Rights Agreement (herein called “Exchange Securities”). The Securities and
Exchange Securities are treated as a single class of securities under the Indenture. The Indenture
imposes certain limitations on the incurrence of indebtedness, the sale of assets and subsidiary
stock, the incurrence of certain liens, affiliate transactions, the sale of capital stock of
restricted subsidiaries, the making of payments for consents, the entering into of agreements that
restrict distributions from restricted subsidiaries and the consummation of mergers and
consolidations. The Indenture also imposes requirements with respect to the provision of financial
information and the provision of guarantees of the Securities by certain subsidiaries.







B-5









 








          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Note Guarantors have fully, unconditionally and irrevocably
Guaranteed (and future guarantors, together with the Note Guarantors, will fully, unconditionally
and irrevocably Guarantee), jointly and severally, to each Holder of the Securities and the Trustee
the Guarantor Obligations pursuant to Article X of the Indenture on a senior basis.



5. Redemption




          Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to August 15, 2012. On and after such date, the Securities will be redeemable, at the
Company’s option, in whole or in part, at any time from time to time, upon not less than 30 nor
more than 60 days’ prior notice, at the following redemption prices (expressed in percentages of
principal amount), plus accrued and unpaid interest, if any, to the applicable redemption date
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date), if redeemed during the 12-month period commencing on [          ] of the years set forth below:




	 	 	 	 	 
	Period	 	Percentage
	2012

	 	 	105.000	%
	2013

	 	 	102.500	%
	2014 and thereafter

	 	 	100.000	%






          In addition, at any time and from time to time prior to August 15, 2012, the Company may
redeem in the aggregate up to 35% of the original principal amount of the Securities (after giving
effect to any future issuance of Additional Securities) with the Net Cash Proceeds of one or more
Equity Offerings at a redemption price (expressed as a percentage of principal amount) of 110% of
the principal amount thereof, plus any accrued and unpaid interest or additional interest to the
redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date); provided, however, that at least 65% of the
original principal amount of the Securities (after giving effect to any future issuance of
Additional Securities) must remain outstanding after each such redemption; provided further, that
each such redemption occurs within 90 days of the date of closing of such Equity Offering.




          In addition, at any time and from time to time prior to August 15, 2012, but not more than
once in any twelve-month period, the Company may redeem in the aggregate, up to 10% of the original
aggregate principal amount of the notes at a redemption price (expressed as a percentage of
principal amount thereof) of 103%, plus any accrued and unpaid interest and additional interest to
the applicable redemption date (subject to the right of holders of record on the relevant record
date to receive interest due on the relevant interest payment date).




          If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the






B-6









 







Person in whose name the Security is registered at the close of business on such record date,
and no additional interest will be payable to Holders whose Securities will be subject to
redemption by the Company.




          In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Securities of $2,000 in original principal amount or less will be
redeemed in part. Any such notice to the Trustee may be cancelled at any time prior to notice of
such redemption being mailed to any Holder and shall thereby be void and of no effect. If any
Security is to be redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. On and after the redemption date, interest will cease
to accrue on Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable redemption price pursuant
to the Indenture.



6. Repurchase Provisions




          If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 4 of the Securities, then such Change of Control shall
constitute a triggering event which shall trigger the obligation of the Company to offer to
repurchase from each Holder all or any part (equal to $2,000 or an integral multiple of $1,000 in
excess thereof) of such Holder’s Securities at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date of repurchase
(subject to the right of Holders of record on the relevant record date to receive interest due on
the relevant interest payment date) as provided in, and subject to the terms of, the Indenture.



7. Denominations; Transfer; Exchange




          The Securities are in registered form without coupons in denominations of principal amount of
$2,000 and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay a sum sufficient to cover any transfer tax or other
governmental taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange of any Security for a period beginning 15 days before the
mailing of a notice of an offer to repurchase or redeem Securities and ending at the close of
business on the day of such mailing. The Registrar shall not be required to register the transfer
of or exchange of any Security selected for redemption.



8. Persons Deemed Owners




          The registered Holder of this Security may be treated as the owner of it for all purposes.







B-7









 







9. Unclaimed Money




          Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon request any money held by them for the payment of principal of or premium, if
any, or interest on the Securities that remains unclaimed by the Holders thereof for two years,
and, thereafter, Holders entitled to the money must look to the Company for payment as unsecured
general creditors.



10. Defeasance




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



11. Amendment, Supplement, Waiver




          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Collateral Documents, the Intercreditor Agreement and any Note Guarantee may be amended or
supplemented by the Company, the Note Guarantors and the Trustee with the written consent of the
Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any
default (other than with respect to nonpayment (except in accordance with Section 6.4 of
the Indenture)) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities and except as
otherwise set forth in the Indenture, in each case other than in respect of a provision that cannot
be amended without the written consent of each Holder affected. Subject to certain exceptions set
forth in the Indenture, without the consent of any Holder, the Company, the Note Guarantors and the
Trustee may amend or supplement the Indenture or the Securities cure any ambiguity, omission,
defect or inconsistency; provide for the assumption by a successor corporation of the obligations
of the Company or any Note Guarantor under the Indenture; provide for uncertificated Securities in
addition to or in place of certificated Securities (provided that the uncertificated Securities are
issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the Code); add Guarantees with
respect to the Securities or release a Subsidiary Guarantor upon its designation as an Unrestricted
Subsidiary; provided, however, that the designation is in accordance with the applicable provisions
of the Indenture; secure the Securities with additional Collateral; add to the covenants of the
Company and the Restricted Subsidiaries for the benefit of the Holders or surrender any right or
power conferred upon the Company or any Restricted Subsidiary; make any change that does not
adversely affect the rights of any Holder; comply with any requirement of the SEC in connection
with the qualification of the Indenture under the TIA; release a Note Guarantor from its
obligations under its Note Guarantee or the Indenture in accordance with the applicable provisions
of the Indenture; provide for the appointment of a successor trustee, provided that the successor
trustee is otherwise qualified and eligible to act as such under the terms of the Indenture; make,
complete or confirm any Collateral permitted or required by the Collateral Documents or any release
of Liens in favor of the Collateral Agent on the Collateral, as provided under Section 11.3
or otherwise in accordance with this Indenture, the






B-8









 







Collateral Documents or the Intercreditor Agreement; provide for the issuance of Additional
Securities (and the grant of Security for the benefit of the Additional Securities) in accordance
with the terms of this Indenture and provide for the issuance of Exchange Securities that shall
have terms substantially identical in all respects to the Securities (except that the transfer
restrictions contained in the Securities shall be modified or eliminated as appropriate) and that
shall be treated, together with any outstanding Securities, as a single class of securities;
conform the text of the Indenture, the Securities or the Guarantees to any provision of the
“Description of the Notes” section of the Offering Memorandum to the extent that such provision in
the “Description of the Notes” was intended to be a verbatim recitation of a provision of the
Indenture, the Securities or the Note Guarantees; add additional secured parties to the extent
Liens securing obligations held by such parties are permitted under this Indenture; provide for the
succession of any parties to the Collateral Documents (and other amendments that are administrative
or ministerial in nature) in connection with an amendment, renewal, extension, substitution,
refinancing, restructuring, replacement, supplementing or other modification from time to time of
any agreement in accordance with the terms of this Indenture and the relevant Collateral Document;
provide for a reduction in the minimum denominations of the Securities; or comply with the rules of
any applicable securities depositary.



12. Defaults and Remedies




          Under the Indenture, Events of Default include (each of which are more specifically described
in the Indenture) (i) default in any payment of interest or additional interest (as required by the
Registration Rights Agreement) on any Security when due, continued for 30 days; (ii) default in the
payment of principal of or premium, if any, on any Security when due at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company or any Note Guarantor to comply with its obligations under Section 4.1 of the
Indenture; (iv) failure by the Company or any Note Guarantor to comply for 45 days after notice
with any of its obligations under Article III of the Indenture (in each case, other than a
failure to purchase Securities, which will constitute an Event of Default under clause (ii), and a
failure to comply with Section 4.1 of the Indenture, which will constitute an Event of
Default under clause (iii)); (v) failure by the Company or any Note Guarantor to comply for 60 days
after notice as provided below with its other agreements contained in the Indenture; (vi) 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 its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default (1) is
caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior
to the expiration of the grace period provided in such Indebtedness or (2) results in the
acceleration of such Indebtedness prior to its maturity, and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates
$20.0 million or more; (vii) certain events set forth in Section 6.1(7) of the Indenture of
bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would
constitute






B-9









 







a Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law; (viii)
failure by the Company or any Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of $20.0 million (net of any amounts that a reputable and creditworthy
insurance company has acknowledged liability for in writing), which judgments are not paid,
discharged or stayed for a period of 60 days; (ix) any Subsidiary Guarantee, Collateral Document or
obligation under the Intercreditor Agreement of a Significant Subsidiary or group of Restricted
Subsidiaries that taken together as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries would constitute a Significant Subsidiary ceases to be in
full force and effect (except as contemplated by the terms of the Indenture) or is declared null
and void in a judicial proceeding or any Subsidiary Guarantor that is a Significant Subsidiary or
group of Subsidiary Guarantors that taken together as of the latest audited consolidated financial
statements of the Company and its Restricted Subsidiaries would constitute a Significant Subsidiary
denies or disaffirms its obligations under the Indenture, or its Subsidiary Guarantee any
Collateral Document or the Intercreditor Agreement; or (x) with respect to any Collateral having a
fair market value in excess of $20.0 million, individually or in the aggregate, (A) the security
interest under the Collateral Documents, at any time, ceases to be in full force and effect for any
reason other than in accordance with their terms and the terms of this Indenture and other than the
satisfaction in full of all obligations under this Indenture and discharge of this Indenture, (B)
any security interest created thereunder or under this Indenture is declared invalid or
unenforceable or (C) the Company or any Note Guarantor asserts, in any pleading in any court of
competent jurisdiction, that any such security interest is invalid or unenforceable. However, a
default under clauses (iv) and (v) will not constitute an Event of Default until the Trustee or the
Holders of 25% in principal amount of the outstanding Securities notify the Company of the default
and the Company does not cure such default within the time specified in clauses (iv) and (v) hereof
after receipt of such notice.




          If an Event of Default (other than an Event of Default described in (vii) hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the outstanding Securities by notice to the Company and the Trustee, may, and the Trustee
at the request of such Holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest, if any, on all the Securities to be due and payable. If an Event of Default
described in (vii) hereof occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Securities will become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holders.




          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.







B-10









 







13. Trustee Dealings with the Company




          Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company, the Subsidiary Guarantors or
their Affiliates and may otherwise deal with the Company, the Subsidiary Guarantors or their
Affiliates with the same rights it would have if it were not Trustee.



14. No Recourse Against Others




          No director, officer, employee, incorporator or stockholder of the Parent, the Company or any
of the Subsidiary Guarantors, as such, shall have any liability for any obligations of the Company
under the Securities, the Indenture or any Guarantee or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each Holder of Securities by accepting a
Security waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities. 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.



15. Authentication




          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Security.



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 entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).



17. CUSIP, Common Code and ISIN Numbers




          The Company has caused CUSIP, Common Code or ISIN numbers, if applicable, to be printed on the
Securities and has directed the Trustee to use CUSIP, Common Code or ISIN numbers, if applicable,
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 Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.



18. Collateral




          These Securities are secured by a security interest pursuant to certain Security Documents.
Reference is made to the Indenture for events causing release of the security interest in the
Collateral.





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19. Governing Law




          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York.



          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:



Libbey Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Attention: Treasurer







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ASSIGNMENT FORM



To assign this Security, fill in the form below:



I or we assign and transfer this Security to:



 





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




 





(Insert assignee’s social security or tax I.D. No.)


and irrevocably appoint                      agent to transfer this Security on the books of the Company.
The agent may substitute another to act for him.



 





	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 





	 	 	 
	Signature Guarantee:	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)






      



Sign exactly as your name appears on the other side of this Security.



The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.



In connection with any transfer or exchange of any of the Securities evidenced by this certificate
occurring prior to the date that is one year after the later of the date of original issuance of
such Securities and the last date, if any, on which such Securities were owned by the Company, or
any Affiliate of the Company, the undersigned confirms that such Securities are being:




CHECK ONE BOX BELOW:





	1 o	 	 acquired for the undersigned’s own account, without transfer; or
	 
	2 o	 	 transferred to the Company; or
	 
	3 o	 	 transferred pursuant to and in compliance with Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”); or
	 
	4 o	 	 transferred pursuant to an effective registration statement under the
Securities Act; or
	 
	5 o	 	 transferred pursuant to and in compliance with Regulation S under the
Securities Act; or




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	6 o	 	 transferred to an institutional “accredited investor” (within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the
Trustee a signed letter containing certain representations and agreements (the form of
which letter appears as Section 2.7 of the Indenture); or
	 
	7 o	 	 transferred pursuant to another available exemption from the registration
requirements of the Securities Act.




Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered Holder thereof;
provided, however, that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Securities, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act, such as the exemption provided by Rule 144 under such Act.




	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	(Signature must be guaranteed)

	 	 	 	Signature	 	 





 




The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.



TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.



The undersigned represents and warrants that it is purchasing this Security for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.




	 	 	 	 	 
	 	 	 
	 

	 	Dated:	 	 






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[TO BE ATTACHED TO GLOBAL SECURITIES]




SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY




The following increases and decreases in this Global Security have been made:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	Signature of
	 	 	 	 	Amount of decrease	 	Amount of increase	 	this Global	 	authorized
	 	 	 	 	in Principal Amount	 	in Principal Amount	 	Security following	 	signatory of
	Date of Decrease	 	of this Global	 	of this Global	 	such	 	Trustee or
	or Increase	 	Security	 	Security	 	decrease or increase	 	Securities Custodian





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OPTION OF HOLDER TO ELECT PURCHASE




          If you elect to have this Security purchased by the Company pursuant to Section 3.5 or
3.11 of the Indenture, check either box:



o                 o

3.5            3.11




          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.5 or Section 3.11 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $                                                            



	 	 	 	 	 	 	 
	Date:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 





	 	 	 
	Signature Guarantee:	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)






The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to SEC Rule 17Ad-15.



B-16









 






EXHIBIT C




FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS




          This Supplemental Indenture, dated as of                      ___, 20___(this “Supplemental
Indenture” or “Guarantee”), among [name of future Subsidiary Guarantor] (the
“Guarantor”), LIBBEY GLASS INC. (together with its successors and assigns, the
“Company”), each other then-existing Guarantors under the Indenture referred to below, and
The Bank of New York Mellon Trust Company, N.A., as Trustee under the Indenture referred to below.



W I T N E S S E T H:




          WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have heretofore executed and
delivered an Indenture, dated as of February 8, 2010 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the issuance of Senior Secured Notes due 2015 of
the Company (the “Securities”);



          WHEREAS, Section 3.13 of the Indenture provides that under certain circumstances the
Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the
Company or of any other Restricted Subsidiary to execute and deliver to the Trustee a supplemental
indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint
and several basis with the other Subsidiary Guarantors, the full and prompt payment of the
principal of, premium, if any, and interest on the Securities on a senior basis; and



          WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company and the
Subsidiary Guarantors are authorized to execute and deliver this Supplemental Indenture to amend or
supplement the Indenture, without the consent of any Holder;



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



ARTICLE I




Definitions



          SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in
the Indenture or in the preamble or recital hereto are used herein as therein defined, except that
the term “Holders” in this Guarantee shall refer to the term “Holders” as defined
in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words
“herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.



C-1









 





ARTICLE II




Agreement to be Bound; Guarantee



          SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all
of the obligations and agreements of a Note Guarantor under the Indenture. The Guarantor agrees to
be bound by all of the provisions of the Indenture applicable to a Note Guarantor and to perform
all of the obligations and agreements of a Note Guarantor under the Indenture.



          SECTION 2.2 Guarantee. The Guarantor agrees, on a joint and several basis with all
the existing Note Guarantors, to fully, unconditionally and irrevocably Guarantee to each Holder of
the Securities and the Trustee the Guarantor Obligations pursuant to Article X of the
Indenture on a senior basis.



ARTICLE III




Miscellaneous



          SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be
given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to
the Company as provided in the Indenture for notices to the Company.



          SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the
Indenture or any provision herein or therein contained.



          SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.



          SECTION 3.4 Ratification of Indenture; Supplemental Indenture Part of Indenture.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This
Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of
Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee
makes no representation or warranty as to the validity or sufficiency of this Supplemental
Indenture.



          SECTION 3.5 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.



          SECTION 3.6 Headings. The headings of the Articles and the Sections in this
Guarantee are for convenience of reference only and shall not be deemed to alter or affect the
meaning or interpretation of any provisions hereof.



C-2









 





          SECTION 3.7 Trustee. The Trustee makes no representation as to the validity or
sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be
those of the Guarantor and not of the Trustee.



C-3









 





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



	 	 	 	 	 
	 	[SECURITIES GUARANTOR],

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  
	 	 	     [Address] 	 
	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A.,

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LIBBEY GLASS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[EXISTING GUARANTORS]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 




C-4