Document:

exv4w4

 

EXHIBIT
4.4

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

          This REGISTRATION RIGHTS AGREEMENT dated June 16, 2006 (the “Agreement”) is entered into by
and among Libbey Glass Inc., a Delaware corporation (the “Company”), Libbey Inc., a Delaware
Corporation (the “Parent Guarantor”) the guarantors listed in Schedule 1 hereto (together with the
Parent Guarantor, the “Guarantors”), and J.P. Morgan Securities Inc. (“JPMorgan”), Bear, Stearns &
Co. Inc., and BNY Capital Markets, Inc. (collectively, the “Initial Purchasers”).

          The Company, the Guarantors and the Initial Purchasers are parties to the Purchase Agreement
dated June 9, 2006 (the “Purchase Agreement”), which provides for the sale by the Company to the
Initial Purchasers of $306,000,000 aggregate principal amount of the Company’s Floating Rate Senior
Secured Notes due 2011 (the “Securities”), which will be guaranteed on a senior secured basis by
each of the Guarantors. As an inducement to the Initial Purchasers to enter into the Purchase
Agreement, the Company and the Guarantors have agreed to provide to the Initial Purchasers and
their direct and indirect transferees the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the closing under the Purchase
Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

          “Additional Guarantor” shall mean any subsidiary of the Company that executes a Subsidiary
Guarantee under the Indenture after the date of this Agreement.

          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

          “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time
and the rules and regulations promulgated thereunder.

          “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

 

          “Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

          “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

          “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein or deemed a
part thereof, all exhibits thereto and any document incorporated by reference therein.

          “Exchange Securities” shall mean senior notes issued by the Company and guaranteed by the
Guarantors under the Indenture containing terms identical to the Securities (except that the
Exchange Securities will not be subject to restrictions on transfer or to any increase in annual
interest rate for failure to comply with this Agreement) and to be offered to Holders of Securities
in exchange for Securities pursuant to the Exchange Offer.

          “Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the
Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in
connection with the sale of the Securities.

          “Guarantees” shall mean the guarantees of the Securities and Exchange Securities by the
Guarantors under the Indenture.

          “Guarantors” shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors and any Additional Guarantors.

          “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of Sections 4 and
5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

          “Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

          “Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

          “Indenture” shall mean the Indenture relating to the Securities dated as of June 16, 2006
among the Company, the Guarantors and The Bank of New York

 

 

Trust Company, N.A., as trustee, and as the same may be amended from time to time in
accordance with the terms thereof.

          “Initial Purchasers” shall have the meaning set forth in the preamble.

          “Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof.

          “Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

          “JPMorgan” shall have the meaning set forth in the preamble.

          “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
the outstanding Registrable Securities; provided that whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder, any Registrable
Securities owned directly or indirectly by the Company or any of its affiliates shall not be
counted in determining whether such consent or approval was given by the Holders of such required
percentage or amount; and provided, further, that if the Company shall issue any additional
Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the
effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable
Securities to which this Agreement relates shall be treated together as one class for purposes of
determining whether the consent or approval of Holders of a specified percentage of Registrable
Securities has been obtained.

          “Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

          “Person” shall mean an individual, partnership, limited liability company, corporation, joint
venture, association, trust or unincorporated organization, or a government or agency or political
subdivision thereof.

          “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, and in each case including any document incorporated
by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble.

          “Registrable Securities” shall mean the Securities; provided that the Securities shall cease
to be Registrable Securities (i) when a Registration Statement with respect to such Securities has
become effective under the

 

 

Securities Act and such Securities have been exchanged or disposed of pursuant to such
Registration Statement, (ii) when such Securities are sold pursuant to Rule 144 under the
Securities Act under circumstances in which any legend borne by such Securities relating to
restrictions on transferability thereof is removed or such Securities are eligible to be sold
pursuant to Rule 144(k) (or any similar provision then in force, but not Rule 144A) under the
Securities Act or (iii) when such Securities cease to be outstanding.

          “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including without limitation: (i)
all SEC, stock exchange or National Association of Securities Dealers, Inc. registration and filing
fees, (ii) all fees and expenses incurred in connection with compliance with state securities or
blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters or
Holders in connection with blue sky qualification of any Exchange Securities or Registrable
Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any Prospectus and any amendments
or supplements thereto, any underwriting agreements, securities sales agreements or other similar
agreements, the certificates and any other documents relating to the performance of and compliance
with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the
qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of
the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and the
Guarantors and, in the case of a Shelf Registration Statement, the fees and disbursements of one
counsel for the Holders (which counsel shall be selected by the Majority Holders and which counsel
may also be counsel for the Initial Purchasers) and (viii) the fees and disbursements of the
independent public accountants of the Company and the Guarantors, including the expenses of any
special audits or “comfort” letters required by or incident to the performance of and compliance
with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than
fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and
commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition
of Registrable Securities by a Holder.

          “Registration Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the
provisions of this Agreement and all amendments and supplements to any such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein or
deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

          “SEC” shall mean the United States Securities and Exchange Commission.

 

 

          “Securities” shall have the meaning set forth in the preamble.

          “Securities Act” shall mean the Securities Act of 1933, as amended from time to time and the
rules and regulations promulgated thereunder.

          “Shelf Additional Interest Date” shall have the meaning set forth in Section 2(d) hereof.

          “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

          “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and
the Guarantors that covers all or a portion of the Registrable Securities (but no other securities
unless approved by a majority of the Holders whose Registrable Securities are to be covered by such
Shelf Registration Statement) on an appropriate form under Rule 415 under the Securities Act, or
any similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by
reference therein.

          “Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

          “Staff” shall mean the staff of the SEC.

          “Target Registration Date” shall have the meaning set forth in Section 2(d) hereof.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

          “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

          “Underwriter” shall have the meaning set forth in Section 3(e) hereof.

          “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

          2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the

 

 

Company and the Guarantors shall use their commercially reasonable efforts to (i) cause to be
filed an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the
Registrable Securities for Exchange Securities and (ii) have such Registration Statement remain
effective until 90 days after the last Exchange Date for use by one or more Participating
Broker-Dealers. The Company and the Guarantors shall commence the Exchange Offer promptly after
the Exchange Offer Registration Statement is declared effective by the SEC and use their reasonable
best efforts to complete the Exchange Offer not later than 60 days after such effective date.

          The Company and the Guarantors shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder
stating, in addition to such other disclosures as are required by applicable law, substantially the
following:

	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;
	 
	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date such notice is mailed) (the “Exchange Dates”);
	 
	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement, except as otherwise specified
herein;
	 
	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to (A) surrender such Registrable Security, together with the
appropriate letters of transmittal, to the institution and at the address (located in the
Borough of Manhattan, The City of New York) and in the manner specified in the notice, or (B)
effect such exchange otherwise in compliance with the applicable procedures of the depositary
for such Registrable Security, in each case prior to the close of business on the last
Exchange Date; and
	 
	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by (A) sending to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the notice, a
telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a statement that such
Holder is withdrawing its election to have such Securities exchanged or (B) effecting such
withdrawal in compliance with the applicable procedures of the depositary for the Registrable
Securities.

 

 

          As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be
acquired in the ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of
the provisions of the Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule
405 under the Securities Act) of the Company or any Guarantor and (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable
Securities that were acquired as a result of market-making or other trading activities, then such
Holder will comply with the prospectus delivery requirements of the Securities Act in connection
with any resale of such Exchange Securities.

          As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and
	 
	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities tendered by such Holder.

          The Company and the Guarantors shall use their respective commercially reasonable efforts to
complete the Exchange Offer as provided above and shall cause the Exchange Offer to comply with the
applicable requirements of the Securities Act, the Exchange Act and other applicable federal and
state securities laws and regulations in connection with the Exchange Offer. The Exchange Offer
shall not be subject to any conditions, other than that the Exchange Offer does not violate any
applicable law or applicable interpretations of the Staff.

          (b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be completed as soon as
practicable after the last Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by
March 13, 2007 or (iii) upon receipt of a written request (a “Shelf Request”) from any Initial
Purchaser prior to the 90th Business Day after the Exchange Offer Registration Statement
is declared effective representing that it holds Registrable Securities that are or were ineligible
to be exchanged in the Exchange Offer, the Company and the Guarantors shall use their respective
commercially reasonable

 

 

efforts to cause to be filed as soon as practicable after such determination, date or Shelf
Request, as the case may be, a Shelf Registration Statement providing for the sale of all the
Registrable Securities by the Holders thereof and to have such Shelf Registration Statement become
effective.

          In the event that the Company and the Guarantors are required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall
use their respective commercially reasonable efforts to file and have become effective both an
Exchange Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable
Securities and a Shelf Registration Statement (which may be a combined Registration Statement with
the Exchange Offer Registration Statement) with respect to offers and sales of Registrable
Securities held by the Initial Purchasers after completion of the Exchange Offer.

          The Company and the Guarantors agree to use their reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the period referred to in
Rule 144(k) (or any similar rule then in force, but not Rule 144A) under the Securities Act with
respect to the Registrable Securities or such shorter period that will terminate when all the
Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the
Shelf Registration Statement (the “Shelf Effectiveness Period”). The Company and the Guarantors
further agree to supplement or amend the Shelf Registration Statement and the related Prospectus if
required by the rules, regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the Securities Act or by any other rules and
regulations thereunder or if reasonably requested by a Holder of Registrable Securities with
respect to information relating to such Holder, and to use their respective commercially reasonable
efforts to cause any such amendment to become effective, if required, and such Shelf Registration
Statement and Prospectus to become usable as soon as thereafter practicable. The Company and the
Guarantors agree to furnish to the Holders of Registrable Securities copies of any such supplement
or amendment prior to or promptly after its being used or filed with the SEC.

          (c) The Company and the Guarantors shall pay all Registration Expenses in connection with any
registration pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all
underwriting discounts and commissions, brokerage commissions and transfer taxes, if any,
attributable to the sale or disposition of such Holder’s Registrable Securities pursuant to the
Shelf Registration Statement.

          (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be
deemed to have become effective unless it has been declared effective by the SEC. A Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared

 

 

effective by the SEC or is automatically effective upon filing with the SEC as provided by
Rule 462 under the Securities Act.

          In the event that either the Exchange Offer is not completed or the Shelf Registration
Statement, if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, has not become effective on
or prior to March 13, 2007 (the “Target Registration Date”), the interest rate on the Registrable
Securities will be increased by (i) 0.25% per annum for the first 90-day period immediately
following the Target Registration Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or the Shelf
Registration Statement, if required hereby, becomes effective or the Securities become freely
tradable under the Securities Act, up to a maximum increase of 1.00% per annum. In the event that
the Company receives a Shelf Request pursuant to Section 2(b)(iii), and the Shelf Registration
Statement required to be filed thereby has not become effective by the later of (x) February 11,
2007 or (y) 90 days after delivery of such Shelf Request (such later date, the “Shelf Additional
Interest Date”), then the interest rate on the Registrable Securities will be increased by (i)
0.25% per annum for the first 90-day period payable commencing from one day after the Shelf
Additional Interest Date and (ii) an additional 0.25% per annum with respect to each subsequent
90-day period, in each case until the Shelf Registration Statement becomes effective or the
Securities become freely tradable under the Securities Act, up to a maximum increase of 1.00% per
annum.

          If the Shelf Registration Statement, if required hereby, has become effective and thereafter
either ceases to be effective or the Prospectus contained therein ceases to be usable, in each case
whether or not permitted by this Agreement, at any time during the Shelf Effectiveness Period, and
such failure to remain effective or usable exists for more than 30 days (whether or not
consecutive) in any 12-month period, then the interest rate on the Registrable Securities will be
increased by (i) 0.25% per annum for the first 90-day period commencing on the 31st day
in such 12-month period and (ii) an additional 0.25% per annum with respect to each subsequent
90-day period and ending, in the case of clauses (i) and (ii), on such date that the Shelf
Registration Statement has again become effective or the Prospectus again becomes usable, up to a
maximum increase of 1.00% per annum.

          (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the Guarantors to comply
with their obligations under Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries precisely and that, in
the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may
be required to specifically enforce the Company’s and the Guarantors’ obligations under Section
2(a) and Section 2(b) hereof.

 

 

          (f) The Company represents, warrants and covenants that it (including its agents and
representatives) will not prepare, make, use, authorize, approve or refer to any “written
communication” (as defined in Rule 405 under the Securities Act), other than any communication
pursuant to Rule 134 under the Securities Act, any document constituting an offer to sell or
solicitation of an offer to buy the Securities or the Exchange Securities that falls within the
exception from the definition of prospectus in Section 2(a)(10)(a) of the Securities Act or a
prospectus satisfying the requirements of section 10(a) of the Securities Act or of Rule 430, Rule
430A, Rule 430B, Rule 430C or Rule 431 under the Securities Act.

          3. Registration Procedures. (a) In connection with their obligations pursuant to
Section 2(a) and Section 2(b) hereof, the Company and the Guarantors shall:

          (i) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (x) shall be selected by the Company and the Guarantors and (y) shall,
in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the
Holders thereof; and use their respective commercially reasonable efforts to cause such
Registration Statement to become effective and remain effective for the applicable period in
accordance with Section 2 hereof and to provide all financial statements required by the SEC to be
filed therewith;

          (ii) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective for the
applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented
by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the Securities Act; and keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or
dealers with respect to the Registrable Securities or Exchange Securities;

          (iii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
to counsel for the Initial Purchasers, to counsel for such Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such Holder,
counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition
of the Registrable Securities thereunder; and the Company and the Guarantors consent to the use of
such Prospectus, preliminary prospectus and any amendment or supplement thereto (in accordance with
applicable law) by each of the Holders of Registrable Securities and any such Underwriters in
connection with the offering and sale of the Registrable

 

 

Securities covered by and in the manner described in such Prospectus, preliminary prospectus
or any amendment or supplement thereto;

          (iv) use their respective commercially reasonable efforts to register or qualify the
Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions
as any Holder of Registrable Securities covered by a Registration Statement shall reasonably
request in writing by the time the applicable Registration Statement becomes effective; cooperate
with such Holders in connection with any filings required to be made with the National Association
of Securities Dealers, Inc.; and do any and all other acts and things that may be reasonably
necessary or advisable to enable each Holder to complete the disposition in each such jurisdiction
of the Registrable Securities owned by such Holder; provided that neither the Company nor
any Guarantor shall be required to (1) qualify as a foreign corporation or other entity or as a
dealer in securities in any such jurisdiction where it would not otherwise be required to so
qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject
itself to taxation in any such jurisdiction if it is not so subject;

          (v) notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify
each Holder of Registrable Securities and counsel for such Holders promptly and, if requested by
any such Holder or counsel, confirm such advice in writing (1) when a Registration Statement has
become effective, when any post-effective amendment thereto has been filed and becomes effective
and when any amendment or supplement to the Prospectus has been filed, (2) of any request by the
SEC or any state securities authority for amendments and supplements to a Registration Statement or
Prospectus or for additional information after the Registration Statement has become effective, (3)
of the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose,
including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf
Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the
Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and
the closing of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company or any Guarantor contained in any underwriting agreement, securities
sales agreement or other similar agreement, if any, relating to an offering of such Registrable
Securities cease to be true and correct in all material respects or if the Company or any Guarantor
receives any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5)
of the existence of any fact or the happening of any event during the period a Registration
Statement is effective that makes any statement of a material fact made in the Registration
Statement, the related Prospectus, any amendment or supplement thereto or any document incorporated
by reference therein untrue, or that requires the making of any

 

 

additions to or changes in the Registration Statement in order to make the statements therein
not misleading, or that requires the making of any additions to or changes in the Prospectus in
order to make the statements therein, in light of circumstances under which they were made, not
misleading and (6) of any determination by the Company or any Guarantor that a post-effective
amendment to a Registration Statement or any amendment or supplement to the Prospectus would be
appropriate;

          (vi) use their respective commercially reasonable efforts to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement or, in the case of a Shelf
Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2), including by
filing an amendment to such Shelf Registration Statement on the proper form, at the earliest
possible moment and provide immediate notice to each Holder of the withdrawal of any such order or
such resolution;

          (vii) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities,
upon their request and without charge, at least one conformed copy of each Registration Statement
and any post-effective amendment thereto (without any documents incorporated therein by reference
or exhibits thereto, unless requested);

          (viii) in the case of a Shelf Registration, cooperate with the Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be issued in such denominations and registered in such names (consistent
with the provisions of the Indenture) as such Holders may reasonably request at least two Business
Days prior to the closing of any sale of Registrable Securities;

          (ix) in conjunction with Section 3(a)(i), in the case of a Shelf Registration, upon the
occurrence of any event contemplated by Section 3(a)(v)(5) hereof, use their reasonable best
efforts to prepare and file with the SEC a supplement or post-effective amendment to such Shelf
Registration Statement or the related Prospectus or any document incorporated therein by reference
or file any other required document so that, as thereafter delivered (or, to the extent permitted
by law, made available) to purchasers of the Registrable Securities, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; and the Company and the Guarantors shall notify the Holders of Registrable Securities
to suspend use of the Prospectus as promptly as practicable after the occurrence of such an event,
and such Holders hereby agree to suspend use of the Prospectus until the Company and the Guarantors
have amended or supplemented the Prospectus to correct such misstatement or omission;

 

 

          (x) three Business Days prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a Registration Statement, provide copies of such document to the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable
Securities and their counsel) and make such of the representatives of the Company and the
Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and, in the
case of a Shelf Registration Statement, the Holders of Registrable Securities or their counsel)
available for discussion of such document; and the Company and the Guarantors shall not, at any
time after initial filing of a Registration Statement, use or file any Prospectus or any amendment
of or supplement to a Registration Statement or a Prospectus, of which the Initial Purchasers and
their counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable
Securities and their counsel) shall not have previously been advised and furnished a copy or to
which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement,
the Holders of Registrable Securities or their counsel) shall object;

          (xi) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the initial effective date of a Registration Statement;

          (xii) cause the Indenture to be qualified under the Trust Indenture Act in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate
with the Trustee and the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute,
and use their reasonable best efforts to cause the Trustee to execute, all documents as may be
required to effect such changes and all other forms and documents required to be filed with the SEC
to enable the Indenture to be so qualified in a timely manner;

          (xiii) in the case of a Shelf Registration, make available for inspection by a representative
of the Holders of the Registrable Securities (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated
by a majority of the Holders of Registrable Securities to be included in such Shelf Registration
and any attorneys and accountants designated by such Underwriter, at reasonable times and in a
reasonable manner, all pertinent financial and other records, documents and properties of the
Company and its subsidiaries, and cause the respective officers, directors and employees of the
Company and the Guarantors to supply all information reasonably requested by any such Inspector,
Underwriter, attorney or accountant in connection with a Shelf Registration Statement;
provided that if any such information is identified by the Company or

 

 

any Guarantor as being confidential or proprietary, each Person receiving such information
shall take such actions as are reasonably necessary to protect the confidentiality of such
information to the extent such action is otherwise not inconsistent with, an impairment of or in
derogation of the rights and interests of any Inspector, Holder or Underwriter);

          (xiv) in the case of a Shelf Registration, use their respective commercially reasonable
efforts to cause all Registrable Securities to be listed on any securities exchange or any
automated quotation system on which similar securities issued or guaranteed by the Company or any
Guarantor are then listed if requested by the Majority Holders, to the extent such Registrable
Securities satisfy applicable listing requirements;

          (xv) if reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or post-effective amendment
such information with respect to such Holder as such Holder reasonably requests to be included
therein and make all required filings of such Prospectus supplement or such post-effective
amendment as soon as practicable after the Company has received notification of the matters to be
so included in such filing;

          (xvi) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those requested by the Holders of a majority
in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in
order to expedite or facilitate the disposition of such Registrable Securities including, but not
limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of such Registrable Securities
with respect to the business of the Company and its subsidiaries and the Registration Statement,
Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in
each case, in form, substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel
to the Company and the Guarantors (which counsel and opinions, in form, scope and substance, shall
be reasonably satisfactory to the Holders and such Underwriters and their respective counsel)
addressed to each selling Holder and Underwriter of Registrable Securities, covering the matters
customarily covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters
from the independent certified public accountants of the Company and the Guarantors (and, if
necessary, any other certified public accountant of any subsidiary of the Company or any Guarantor,
or of any business acquired by the Company or any Guarantor for which financial statements and
financial data are or are required to be included in the Registration Statement) addressed to each
selling Holder (to the extent permitted by applicable professional standards) and Underwriter of
Registrable Securities, such letters to be in customary form and covering matters

 

 

of the type customarily covered in “comfort” letters in connection with underwritten
offerings, including but not limited to financial information contained in any preliminary
prospectus or Prospectus and (4) deliver such documents and certificates as may be reasonably
requested by the Holders of a majority in principal amount of the Registrable Securities being sold
or the Underwriters, and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Company and the Guarantors made
pursuant to clause (1) above and to evidence compliance with any customary conditions contained in
an underwriting agreement; and

          (xvii) so long as any Registrable Securities remain outstanding, cause each Additional
Guarantor upon the creation or acquisition by the Company of such Additional Guarantor, to execute
a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such
counterpart, together with an opinion of counsel as to the enforceability thereof against such
entity, to the Initial Purchasers no later than five Business Days following the execution thereof.

          (b) In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Company and the
Guarantors may from time to time reasonably request in writing.

          (c) In the case of a Shelf Registration Statement, each Holder of Registrable Securities
covered in such Shelf Registration Statement agrees that, upon receipt of any notice from the
Company and the Guarantors of the happening of any event of the kind described in Section
3(a)(v)(3) or 3(a)(v)(5) hereof, such Holder will forthwith discontinue disposition of Registrable
Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so
directed by the Company and the Guarantors, such Holder will deliver to the Company and the
Guarantors all copies in its possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Securities that is current at the time of
receipt of such notice.

          (d) If the Company and the Guarantors shall give any notice pursuant to Section 3(c) hereof to
suspend the disposition of Registrable Securities pursuant to a Shelf Registration Statement, the
Company and the Guarantors shall extend the period during which such Shelf Registration Statement
shall be maintained effective pursuant to this Agreement by the number of days during the period
from and including the date of the giving of such notice to and including the date when the Holders
of such Registrable Securities shall have received copies of the supplemented or amended Prospectus
necessary to resume such dispositions. The Company and the Guarantors may give any such

 

 

notice only twice during any 365-day period and any such suspensions shall not exceed 30 days
for each suspension and there shall not be more than two suspensions in effect during any 365-day
period, provided that this limitation shall not apply if two such suspensions during any 365-day
period have been effected due to events set forth in Section 3(a)(v)(3).

          (e) The Holders of Registrable Securities covered by a Shelf Registration Statement who desire
to do so may sell such Registrable Securities in an Underwritten Offering. In any such
Underwritten Offering, the investment bank or investment banks and manager or managers (each an
“Underwriter”) that will administer the offering will be selected by the Holders of a majority in
principal amount of the Registrable Securities included in such offering.

          4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an
“underwriter” within the meaning of the Securities Act and must deliver a prospectus
meeting the requirements of the Securities Act in connection with any resale of such Exchange
Securities.

          The Company and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating Broker-Dealers may
resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the
amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their
prospectus delivery obligation under the Securities Act in connection with resales of Exchange
Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of
the Securities Act.

          (b) In light of the above and notwithstanding the other provisions of this Agreement, to the
extent necessary to ensure that the Prospectus contained in the Exchange Offer Registration
Statement is available for sales of Exchange Securities by Participating Broker-Dealers, the
Company and the Guarantors agree to use all of their respective commercially reasonable efforts to
keep the Exchange Offer Registration Statement continuously effective, supplemented, amended and
current as required by and in conformity with the requirements of this Agreement, the Securities
Act and the policies, rules and regulations of the SEC as announced from time to time, for a period
of up to 180 days after the last Exchange Date. The Company and the Guarantors further agree that
Participating Broker-Dealers shall be authorized to deliver such Prospectus (or,

 

 

to the extent permitted by law, make available) during such period in connection with the
resales contemplated by this Section 4.

          5. Indemnification and Contribution. (a) The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their
respective affiliates, directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, legal fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the statements therein
not misleading or (2) any untrue statement or alleged untrue statement of a material fact contained
in any Prospectus, any Free Writing Prospectus used in violation of this Agreement or any “issuer
information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the
Securities Act, or any omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, in each case except insofar as such losses, claims, damages or liabilities arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information relating to any Initial Purchaser or
information relating to any Holder furnished to the Company in writing through JPMorgan or any
selling Holder, respectively expressly for use therein. In connection with any Underwritten
Offering permitted by Section 3, the Company and the Guarantors, jointly and severally, will also
indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in the distribution, their respective affiliates and each Person who
controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Holders, if requested in
connection with any Registration Statement, any Prospectus, any Free Writing Prospectus or any
Issuer Information.

          (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, the Initial Purchasers and the other selling Holders, the directors of the Company
and the Guarantors, each officer of the Company and the Guarantors who signed the Registration
Statement and each Person, if any, who controls the Company, the Guarantors, any Initial Purchaser
and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only
with respect to any losses, claims, damages or liabilities that arise out of, or are based upon,
any untrue

 

 

statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Holder furnished to the Company in writing by such
Holder expressly for use in any Registration Statement and any Prospectus.

          (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have to an Indemnified Person otherwise than
under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall
retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying
Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and
shall pay the fees and expenses of such counsel related to such proceeding, as incurred. In any
such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such fees and expenses shall be reimbursed as they are incurred. Any such
separate firm (x) for any Initial Purchaser, its affiliates, directors and officers and any control
Persons of such Initial Purchaser shall be designated in writing by JPMorgan, (y) for any Holder,
its directors and officers and any control Persons of such Holder shall be designated in writing by
the Majority Holders and (z) in all other cases shall be designated in writing by the Company. The
Indemnifying Person shall not be liable for any settlement of any proceeding effected without its
written

 

 

consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the
Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the
Indemnifying Person shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 30 days after receipt by the
Indemnifying Person of such request and (ii) the Indemnifying Person shall not have reimbursed the
Indemnified Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or
could have been a party and indemnification could have been sought hereunder by such Indemnified
Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in
form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims
that are the subject matter of such proceeding and (B) does not include any statement as to or any
admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

          (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company and the
Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under the Securities Act,
on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the
Holders on the other in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The
relative fault of the Company and the Guarantors on the one hand and the Holders on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company and the Guarantors or by the Holders and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.

 

 

          (e) The Company, the Guarantors and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 5 were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred to in paragraph (d)
above. The amount paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in
connection with any such action or claim. Notwithstanding the provisions of this Section 5, in no
event shall a Holder be required to contribute any amount in excess of the amount by which the
total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount
of any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’
obligations to contribute pursuant to this Section 5(d) and (e) are several and not joint.

          (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

          (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person
controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or the
Guarantors or the officers or directors of or any Person controlling the Company or the Guarantors,
(iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities
pursuant to a Shelf Registration Statement.

          6. General.

          (a) No Inconsistent Agreements. The Company and the Guarantors represent, warrant and agree
that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of any other outstanding securities issued or
guaranteed by the Company or any Guarantor under any other agreement, (ii) the Company and the
Guarantors will not, or on or after the date of this Agreement enter into, any agreement that is
inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof and (iii) neither the Company nor any Guarantor has
previously entered into any agreement granting any registration rights with respect to their

 

 

respective securities to any Person that would require such securities to be included in any
Registration Statement filed hereunder.

          (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company and the Guarantors have obtained the
written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or consent;
provided that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

          (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement; (ii) if to the Company and the Guarantors, initially at the Company’s
address set forth in the Purchase Agreement and thereafter at such other address, notice of which
is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at
their respective addresses as provided in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this Section 6(c). All such
notices and communications shall be deemed to have been duly given: at the time delivered by hand,
if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express assignment, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement,
and by taking and holding such

 

 

Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by
and to perform all of the terms and provisions of this Agreement and such Person shall be entitled
to receive the benefits hereof. The Initial Purchasers (in their capacity as Initial Purchasers)
shall have no liability or obligation to the Company or the Guarantors with respect to any failure
by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder
under this Agreement.

          (e) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

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

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

          (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

          (j) Entire Agreement; Severability. This Agreement contains the entire agreement between the
parties relating to the subject matter hereof and supersedes all oral statements and prior writings
with respect thereto. If any term, provision, covenant or restriction contained in this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public
policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated. The
Company, the Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to
replace the invalid, void or unenforceable provisions with valid provisions the economic effect of
which
comes as close as possible to that of the invalid, void or unenforceable provisions.

 

 

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

	 	 	 	 	 
	 	 	LIBBEY GLASS INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott Sellick
	 

	 	 	 	 
	 	 	Name: Scott Sellick
	 	 	Title:   Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	LIBBEY INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott Sellick
	 

	 	 	 	 
	 	 	Name: Scott Sellick
	 	 	Title:   Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	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
	 	 	CRISA INDUSTRIAL, L.L.C.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott Sellick
	 

	 	 	 	 
	 	 	Name: Scott Sellick
	 	 	Title:   Vice President and Chief Financial Officer

 

 

Confirmed and accepted as of the date first above written:

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the

  several Initial Purchasers

	 	 	 	 	 
	By

	 	/s/ Geoffrey Benson
	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

 

 

SCHEDULE 1—LIST OF GUARANTORS

Libbey Inc.

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

CRISA INDUSTRIAL, L.L.C.

 

 

Annex A

Counterpart to Registration Rights Agreement

     The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as
defined in the Registration Rights Agreement, dated as of June 16, 2006 by and among the Company, a
Delaware corporation, the guarantors party thereto and J.P. Morgan Securities Inc., on behalf of
itself and the other Initial Purchasers) to be bound by the terms and provisions of such
Registration Rights Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this counterpart as of                     .

	 	 	 	 	 
	 	 	[NAME]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	NAME:
	 

	 	 	 	TITLE:exv4w5

 

EXHIBIT
4.5

EXECUTION VERSION

 

LIBBEY GLASS INC.

AND

MERRILL LYNCH PCG, INC.

16% Senior Subordinated Pay-In-Kind Notes due 2011

 

INDENTURE

Dated as of June 16, 2006

 

 

 

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
	 	 	36	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	THE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1.

	 	Form, Dating and Terms
	 	 	37	 
	SECTION 2.2.

	 	Execution and Authentication
	 	 	40	 
	SECTION 2.3.

	 	Registrar and Paying Agent
	 	 	41	 
	SECTION 2.4.

	 	Paying Agent to Hold Money in Trust
	 	 	41	 
	SECTION 2.5.

	 	Holder Lists
	 	 	42	 
	SECTION 2.6.

	 	Transfer and Exchange
	 	 	42	 
	SECTION 2.7.

	 	Form of Certificate to be Delivered in Connection with Transfers
	 	 	44	 
	SECTION 2.8.

	 	Mutilated, Destroyed, Lost or Stolen Securities
	 	 	45	 
	SECTION 2.9.

	 	Outstanding Securities
	 	 	46	 
	SECTION 2.10.

	 	Temporary Securities
	 	 	47	 
	SECTION 2.11.

	 	Cancellation
	 	 	47	 
	SECTION 2.12.

	 	Payment of Interest; Defaulted Interest
	 	 	47	 
	SECTION 2.13.

	 	Computation of Interest
	 	 	48	 
	SECTION 2.14.

	 	CUSIP, Common Code and ISIN Numbers
	 	 	48	 
	SECTION 2.15.

	 	Original Issue Discount
	 	 	49	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1.

	 	Payment of Securities
	 	 	49	 
	SECTION 3.2.

	 	Limitation on Indebtedness
	 	 	49	 
	SECTION 3.3.

	 	Limitation on Restricted Payments
	 	 	55	 
	SECTION 3.4.

	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	61	 
	SECTION 3.5.

	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	64	 
	SECTION 3.6.

	 	Limitation on Liens
	 	 	67	 
	SECTION 3.7.

	 	Limitation on Affiliate Transactions
	 	 	67	 
	SECTION 3.8.

	 	Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	69	 
	SECTION 3.9.

	 	Limitation on Lines of Business
	 	 	69	 
	SECTION 3.10.

	 	Change of Control
	 	 	69	 
	SECTION 3.11.

	 	SEC Reports
	 	 	71	 
	SECTION 3.12.

	 	Future Subsidiary Guarantors
	 	 	72	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.13.

	 	Maintenance of Office or Agency
	 	 	72	 
	SECTION 3.14.

	 	Corporate Existence
	 	 	73	 
	SECTION 3.15.

	 	Payment of Taxes and Other Claims
	 	 	73	 
	SECTION 3.16.

	 	Payments for Consent
	 	 	73	 
	SECTION 3.17.

	 	Compliance Certificate
	 	 	74	 
	SECTION 3.18.

	 	Further Instruments and Acts
	 	 	74	 
	SECTION 3.19.

	 	Statement by Officers as to Default
	 	 	74	 
	SECTION 3.20.

	 	Limitation on Layering
	 	 	75	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV	 	 	 	 
	 

	 	SUCCESSOR COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.1.

	 	Merger and Consolidation
	 	 	74	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	REDEMPTION OF SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.1.

	 	Redemption
	 	 	78	 
	SECTION 5.2.

	 	Applicability of Article
	 	 	78	 
	SECTION 5.3.

	 	Election to Redeem; Notice to Trustee
	 	 	78	 
	SECTION 5.4.

	 	Selection by Trustee of Securities to Be Redeemed
	 	 	78	 
	SECTION 5.5.

	 	Notice of Redemption
	 	 	79	 
	SECTION 5.6.

	 	Deposit of Redemption Price
	 	 	80	 
	SECTION 5.7.

	 	Securities Payable on Redemption Date
	 	 	80	 
	SECTION 5.8.

	 	Securities Redeemed in Part
	 	 	80	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI	 	 	 	 
	 

	 	DEFAULTS AND REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.1.

	 	Events of Default
	 	 	80	 
	SECTION 6.2.

	 	Acceleration
	 	 	83	 
	SECTION 6.3.

	 	Other Remedies
	 	 	84	 
	SECTION 6.4.

	 	Waiver of Past Defaults
	 	 	84	 
	SECTION 6.5.

	 	Control by Majority
	 	 	85	 
	SECTION 6.6.

	 	Limitation on Suits
	 	 	85	 
	SECTION 6.7.

	 	Rights of Holders to Receive Payment
	 	 	85	 
	SECTION 6.8.

	 	Collection Suit by Trustee
	 	 	86	 
	SECTION 6.9.

	 	Trustee May File Proofs of Claim
	 	 	86	 
	SECTION 6.10.

	 	Priorities
	 	 	86	 
	SECTION 6.11.

	 	Undertaking for Costs
	 	 	86	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 

	 	TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.1.

	 	Duties of Trustee
	 	 	87	 
	SECTION 7.2.

	 	Rights of Trustee
	 	 	88	 
	SECTION 7.3.

	 	Individual Rights of Trustee
	 	 	89	 
	SECTION 7.4.

	 	Trustee’s Disclaimer
	 	 	89	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 7.5.

	 	Notice of Defaults
	 	 	89	 
	SECTION 7.6.

	 	Reports by Trustee to Holders
	 	 	90	 
	SECTION 7.7.

	 	Compensation and Indemnity
	 	 	90	 
	SECTION 7.8.

	 	Appointment and Replacement of Trustee
	 	 	91	 
	SECTION 7.9.

	 	Successor Trustee by Merger
	 	 	92	 
	SECTION 7.10.

	 	Eligibility; Disqualification
	 	 	92	 
	SECTION 7.11.

	 	Preferential Collection of Claims Against the Company
	 	 	92	 
	SECTION 7.12.

	 	Trustee’s Application for Instruction from the Company
	 	 	92	 
	SECTION 7.13.

	 	Paying Agents
	 	 	93	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII	 	 	 	 
	 

	 	DISCHARGE OF INDENTURE; DEFEASANCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.1.

	 	Discharge of Liability on Securities; Defeasance
	 	 	93	 
	SECTION 8.2.

	 	Conditions to Defeasance
	 	 	95	 
	SECTION 8.3.

	 	Application of Trust Money
	 	 	95	 
	SECTION 8.4.

	 	Repayment to the Company
	 	 	96	 
	SECTION 8.5.

	 	Indemnity for U.S. Government Obligations
	 	 	97	 
	SECTION 8.6.

	 	Reinstatement
	 	 	97	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX	 	 	 	 
	 

	 	AMENDMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.1.

	 	Without Consent of Holders
	 	 	97	 
	SECTION 9.2.

	 	With Consent of Holders
	 	 	98	 
	SECTION 9.3.

	 	Compliance with Trust Indenture Act
	 	 	100	 
	SECTION 9.4.

	 	Revocation and Effect of Consents and Waivers
	 	 	100	 
	SECTION 9.5.

	 	Notation on or Exchange of Securities
	 	 	101	 
	SECTION 9.6.

	 	Trustee To Sign Amendments
	 	 	101	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE X	 	 	 	 
	 

	 	Subordination	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.1.

	 	Agreement To Subordinate
	 	 	101	 
	SECTION 10.2.

	 	Liquidation, Dissolution, Bankruptcy
	 	 	101	 
	SECTION 10.3.

	 	Default on Senior Indebtedness
	 	 	102	 
	SECTION 10.4.

	 	Acceleration of Payment of Securities
	 	 	103	 
	SECTION 10.5.

	 	When Distribution Must Be Paid Over
	 	 	103	 
	SECTION 10.6.

	 	Subrogation
	 	 	103	 
	SECTION 10.7.

	 	Relative Rights
	 	 	103	 
	SECTION 10.8.

	 	Subordination May Not Be Impaired by Company
	 	 	103	 
	SECTION 10.9.

	 	Rights of Trustee and Paying Agent
	 	 	103	 
	SECTION 10.10.

	 	Distribution or Notice to Representative
	 	 	104	 
	SECTION 10.11.

	 	Article X Not To Prevent Events of Default or Limit Right To Accelerate
	 	 	104	 
	SECTION 10.12.

	 	Trust Moneys Not Subordinated
	 	 	104	 
	SECTION 10.13.

	 	Trustee Entitled To Rely
	 	 	104	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 10.14.

	 	Trustee To Effectuate Subordination
	 	 	105	 
	SECTION 10.15.

	 	Trustee Not Fiduciary for Holders of Senior Indebtedness
	 	 	105	 
	SECTION 10.16.

	 	Reliance by Holders of Senior Indebtedness on Subordination Provisions
	 	 	105	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XI	 	 	 	 
	 

	 	NOTE GUARANTEES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 11.1.

	 	Note Guarantees
	 	 	105	 
	SECTION 11.2.

	 	Limitation on Liability; Termination, Release and Discharge
	 	 	107	 
	SECTION 11.3.

	 	Right of Contribution
	 	 	108	 
	SECTION 11.4.

	 	No Subrogation
	 	 	108	 
	SECTION 11.5.

	 	Subordination of Note Guarantees
	 	 	110	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XII	 	 	 	 
	 

	 	COLLATERAL	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 12.1.

	 	The Collateral
	 	 	109	 
	SECTION 12.2.

	 	Maintenance of Collateral
	 	 	109	 
	SECTION 12.3.

	 	Further Assurances
	 	 	110	 
	SECTION 12.4.

	 	After Acquired Property
	 	 	110	 
	SECTION 12.5.

	 	Agreements Requiring Application of Proceeds of Collateral
	 	 	110	 
	SECTION 12.6.

	 	Real Estate Mortgages and Filings and Leasehold Interests
	 	 	111	 
	SECTION 12.7.

	 	Release of Liens on the Collateral
	 	 	112	 
	SECTION 12.8.

	 	Authorization of Actions to be Taken by the Trustee or the Collateral Agent
Under the Collateral Documents
	 	 	113	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XIII	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 13.1.

	 	Trust Indenture Act Controls
	 	 	114	 
	SECTION 13.2.

	 	Notices
	 	 	115	 
	SECTION 13.3.

	 	Communication by Holders with other Holders
	 	 	116	 
	SECTION 13.4.

	 	Certificate and Opinion as to Conditions Precedent
	 	 	116	 
	SECTION 13.5.

	 	Statements Required in Certificate or Opinion
	 	 	116	 
	SECTION 13.6.

	 	When Securities Disregarded
	 	 	117	 
	SECTION 13.7.

	 	Rules by Trustee, Paying Agent and Registrar
	 	 	117	 
	SECTION 13.8.

	 	Legal Holidays
	 	 	117	 
	SECTION 13.9.

	 	GOVERNING LAW
	 	 	117	 
	SECTION 13.10.

	 	No Recourse Against Others
	 	 	117	 
	SECTION 13.11.

	 	Successors
	 	 	117	 
	SECTION 13.12.

	 	Multiple Originals
	 	 	117	 
	SECTION 13.13.

	 	Table of Contents; Headings
	 	 	118	 
	SECTION 13.14.

	 	Force Majeure
	 	 	118	 
	SCHEDULE 3.8

	 	Existing Affiliate Transactions	 	 	 	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SCHEDULE 11.5

	 	Premises and Leased Premises	 	 	 	 
	 
	 	 	 	 	 	 
	EXHIBIT A

	 	Form of the Securities	 	 	 	 
	EXHIBIT B

	 	Form of Indenture Supplement to Add Subsidiary Guarantors	 	 	 	 

v

 

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 June 16, 2006, 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 MERRILL LYNCH PCG, INC., a
Delaware corporation (the “Initial Holder”).

          In this Indenture, the term “Trustee” and the provisions related to the Trustee shall
be inoperative until such time as the Initial Holder has appointed a Trustee pursuant to
Section 7.8 hereof . At such time as a Trustee is appointed, provisions relating to the
Initial Holder shall be inoperative.

          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) $102,000,000 aggregate principal amount of
16% Senior Subordinated Pay-In-Kind Notes due 2011 issued on the date hereof (the “Initial
Securities”) and (ii) if and when issued, an unlimited principal amount of additional Senior
Subordinated Pay-In-Kind Notes due 2011 in a non-registered offering that may be offered from time
to time or issued as payment of interest on the Securities, in each case, subsequent to the Issue
Date (the “Additional Securities” and together with the Initial 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.

     “Acquisition” means the acquisition by certain Subsidiaries of the Company of 51% of the
Capital Stock of Vitrocrisa Holding, S. de R.L. de C.V. and related companies.

     “Added Historical Amount” means the special charges in the amounts 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; provided that in the
case of a transfer of Collateral, the transferee shall cause such amendments,
supplements or other instruments to be executed, filed and recorded in such
jurisdictions as may be required by applicable law to preserve and protect the Lien on
the Collateral pledged by or transferred to the transferee, together with such
financing statements or comparable documents as may be required to perfect any security
interests in such Collateral which may be perfected by the filing of a

2

 

	 	 	 	financing statement or a similar document under the Uniform Commercial Code or other
similar statute or regulation of the relevant states or jurisdictions;
	 
	 	(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;
	 
	 	(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 to a
Receivables Entity;
	 
	 	(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 $2.0 million;
	 
	 	(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 or subleases of other property in the ordinary course
of business which do not materially interfere with the business of the Company and its
Restricted Subsidiaries;
	 
	 	(14)	 	any sale of Capital Stock, Indebtedness or other securities of, an Unrestricted
Subsidiary (with the exception of Investments in Unrestricted Subsidiaries

3

 

	 	 	 	acquired pursuant to clauses (11) or (16) 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; and
	 
	 	(16)	 	foreclosure on assets.

     “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.

     “Bank Indebtedness” means any and all amounts, whether outstanding on the Issue Date or
thereafter incurred, payable under or in respect of the Credit Facility and any related notes,
collateral documents, letters of credit and guarantees, including principal, premium (if any),
interest (including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company or any Restricted Subsidiary of the Company whether or not a
claim for post-filing interest is allowed in such proceedings), fees, charges, expenses,
indemnities, reimbursement obligations, guarantees and all other amounts payable thereunder or in
respect thereof.

     “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) up to 85% of the net book value of the Company’s and its Restricted
Subsidiaries’ accounts receivable at such date and (2) up to 65% of the net book value of the

4

 

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 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 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 million;

5

 

	 	(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.

     “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 35% 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 35% of the voting power of the Voting Stock of such parent
entity); or
	 
	 	(2)	 	the first day on which a majority of the members of the Board of Directors of
the Company or the Parent are not Continuing Directors; or
	 
	 	(3)	 	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); or
	 
	 	(4)	 	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.

6

 

     “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.

     “Collateral Agent” means, initially the Initial Holder and when Pari Passu Indebtedness is
incurred or a collateral agent is appointed, such Person acting in the capacity of collateral agent
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 (a) the
Initial Holder or (b) if a Trustee has been appointed or any Pari Passu Secured Indebtedness
exists, 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 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

7

 

	 	 	 	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;

	 	(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

8

 

	 	 	 	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 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 or asset write-offs recorded in connection with the
application of Financial Accounting Standard No. 142 “Goodwill and Other Intangibles”,

9

 

	 	 	 	Financial Accounting Standard No. 144 “Accounting for the Impairment or Disposal of
Long Lived Assets” and amortization of intangibles pursuant to Financial Accounting
Standard No. 141 “Business Combinations”; 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)	 	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
	 
	 	(7)	 	unrealized gains or losses relating to hedging transactions and mark-to-market
Indebtedness denominated in foreign currencies resulting from the application of
Financial Accounting Standard No. 52 “Foreign Currency Translation”; plus
	 
	 	(8)	 	non-cash compensation charges, including any such noncash charges arising from
stock options, restricted stock grants or other equity incentive programs; plus
	 
	 	(9)	 	the Added Historical Amount; plus
	 
	 	(10)	 	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
	 
	 	(11)	 	noncash 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

10

 

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.

     “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;
	 
	 	(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;
	 
	 	(9)	 	Receivables Fees; and

11

 

	 	(10)	 	the cash contributions to any employee stock ownership plan or similar trust to
the extent such contributions are used by such plan or trust to pay interest or fees to
any Person (other than the Company and its Restricted Subsidiaries) in connection with
Indebtedness Incurred by such plan or trust.

     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 (10) 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 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)	 	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

12

 

	 	 	 	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;

	 	(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 the Acquisition or any other consummated acquisition;
	 
	 	(5)	 	after-tax effect of nonrecurring restructuring, closure, plant consolidation or
similar charges relating to property, plant and equipment acquired in the Acquisition
or 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.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company or the Parent, as the case may be, who: (1) was a member of such Board of
Directors on the Issue Date; or (2) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were members of the
relevant Board at the time of such nomination or election.

     “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.

13

 

     “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.

     “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 Senior Indebtedness” means (i) Bank Indebtedness, (ii) the Floating Rate
Notes and the guarantees thereof, (iii) the Collateral Documents and (iv) any other Senior
Indebtedness which, at the date of determination, has an aggregate principal amount outstanding of,
or under which, at the date of determination, the holders thereof, are committed to lend up to, at
least $25,000,000 and is specifically designated by the Company in the instrument evidencing or
governing such Senior Indebtedness or another writing as “Designated Senior Indebtedness” for
purposes of this Indenture.

     “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

14

 

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 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.

     “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.

     “Floating Rate Notes” shall mean (i) the Company’s Floating Rate Senior Secured Notes due 2011
issued under an indenture (the “Floating Rate Notes Indenture”), dated the date hereof,
among the Company, the guarantors parties thereto and The Bank of New York, as trustee, (ii) if and
when issued, an unlimited principal amount of additional Floating Rate Senior Secured Notes, Series
A, due 2011 and (iii) if and when issued, the Company’s Floating Rate Senior Secured Notes, Series
B, due 2011, that may be issued from time to time in exchange for previously issued Floating Rate
Notes in an offer registered under the Securities Act or sold pursuant to a shelf registration
statement pursuant to the registration rights agreement, dated the date hereof, among the Company,
the Note Guarantors and the initial purchasers named therein.

     “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 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

15

 

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 Senior Indebtedness” means with respect to a Note Guarantor, the following
obligations, whether outstanding on the date of this Indenture or thereafter issued, without
duplication:

          (1) any Guarantee of the Bank Indebtedness by such Note Guarantor and all other Guarantees by
such Note Guarantor of Senior Indebtedness of the Company or Guarantor Senior Indebtedness of any
other Note Guarantor; and

          (2) all obligations consisting of principal of and premium, if any, accrued and unpaid
interest on, and fees and other amounts relating to, all other Indebtedness of the Note Guarantor.
Guarantor Senior Indebtedness includes interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Note Guarantor regardless of whether post-filing
interest is allowed in such proceeding.

     Notwithstanding anything to the contrary in the preceding paragraph, Guarantor Senior
Indebtedness will not include: (1) any obligation of the Note Guarantor to any Subsidiary of the
Company or the Company, (2) any liability for Federal, state, local or other taxes owed or owing by
such Note Guarantor, (3) any accounts payable or other liability to trade creditors arising in the
ordinary course of business (including guarantees thereof or instruments evidencing such
liabilities), (4) any Indebtedness, Guarantee or obligation of such Note Guarantor that is
expressly subordinate or junior in right of payment to any other Indebtedness, Guarantee or
obligation of such Note Guarantor, including any Guarantor Senior Subordinated Indebtedness and any
Guarantor Subordinated Obligations, (5) any obligations with respect to any Capital Stock or (6)
that portion of any Indebtedness incurred in violation of Section 3.2 (but, as to any such
obligation, no such violation shall be deemed to exist for purposes of this clause (6) if the
holders(s) of such obligation or their representative, the Initial Holder and the

16

 

Trustee shall have received an Officers’ Certificate of the Note Company to the effect that
the incurrence of such Indebtedness does not (or, in the case of revolving credit Indebtedness,
that the incurrence of the entire committed amount thereof at the date on which the initial
borrowing thereunder is made would not) violate such provisions of this Indenture).

     “Guarantor Senior Subordinated Indebtedness” means, with respect to a Note Guarantor, the
obligations of such Note Guarantor under the Note Guarantee and any other Indebtedness of such Note
Guarantor (whether outstanding on the Issue Date or thereafter Incurred) that specifically provides
that such Indebtedness is to rank equally in right of payment with the obligations of such Note
Guarantor under the Note Guarantee and is not expressly subordinated by its terms in right of
payment to any Indebtedness of such Note Guarantor which is not Guarantor Senior Indebtedness of
such Note Guarantor.

     “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, pursuant to a written agreement, without giving effect to
collateral arrangements.

     “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.

     “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);

17

 

	 	(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;
	 
	 	(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:

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	 	(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.

     “Independent Financial Advisor” means an accounting, appraisal or investment banking firm or
consultant to Persons engaged in a Permitted Business 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 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 Initial Holder, the Bank of New York Trust
Company, N.A. as the collateral agent for the Floating Rate Notes, and 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

19

 

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
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 re-designated 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 June 16, 2006.

     “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

20

 

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.

     “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.

     “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

21

 

Equity Offering by Parent shall not be deemed Net Cash Proceeds, except to the extent such
cash proceeds are contributed to the Company.

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

     “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 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.

     “Offering Memorandum” means the Offering Memorandum dated as of June 9, 2006 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.

22

 

     “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.

     “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 Initial Holder or 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 $20.0 million, such determination
shall be made in good faith by the Board of Directors of the Company and (y) greater than or equal
to $20.0 million, such determination shall be made by an Independent Financial Advisor). Neither
the Company nor any of its Restricted Subsidiaries may effect a Permitted Asset Swap during the PIK
Period.

     “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;

23

 

	 	(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, 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 $3.5 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;
	 
	 	(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)	 	following the expiration of the PIK Period, 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) $7.5 million or (b) 1% 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

24

 

	 	 	 	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 of a Restricted Subsidiary of the Company acquired after the Issue
Date or of an entity merged into or consolidated with the Company or a Restricted
Subsidiary of the Company in a transaction that is not prohibited by Section
4.1 after the Issue Date, to the extent that such Investments were not made in
contemplation of such acquisition, merger, or consolidation and were in existence on
the date of such acquisition, merger, or consolidation; and
	 
	 	(16)	 	following the expiration of the PIK Period, Investments in Joint Ventures of
the Company or any of its Restricted Subsidiaries not to exceed $15.0 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).

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

	 	(1)	 	Liens securing Indebtedness and other obligations under the Senior Secured
Credit Agreement and related Hedging Obligations and other Senior Indebtedness,
including, without limitation, the Floating Rate Notes, and related banking services or
cash management obligations 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 and other Guarantor Senior Indebtedness
permitted to be Incurred, including, without limitation, Guarantees of the Floating
Rate Notes, under this Indenture, provided that any such Liens of the Company or the
Note Guarantors secure the Securities and the Note Guarantees on at least a
third-priority basis;
	 
	 	(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

25

 

	 	 	 	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 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;

26

 

	 	(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
becomes a Restricted Subsidiary; provided, however, that such Liens are not created,
Incurred or assumed in connection with, or in contemplation of, such other Person
becoming a Restricted Subsidiary; provided further, however, that any such Lien may not
extend to any other property owned by the Company or any Restricted Subsidiary;
	 
	 	(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 are
not created, Incurred or assumed in connection with, or in contemplation of, such
acquisition; provided further, 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 pursuant to clauses (10), (13), (14), (15), (17) and (18), 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; provided further that Liens securing Refinancing
Indebtedness in respect of the Securities shall have the same priority and ranking in
relation to the Floating Rate Notes and the Guarantees of the Floating Rate Notes as
the Securities and the Note Guarantees;
	 
	 	(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)	 	following the expiration of the PIK Period, Liens securing Indebtedness (other
than Subordinated Obligations and Guarantor Subordinated Obligations) in an

27

 

	 	 	 	aggregate principal amount outstanding at any one time not to exceed $20.0 million;
and

	 	(22)	 	Liens securing Indebtedness and other obligations of Foreign Subsidiaries that
are Incurred in accordance with Section 3.2.

     “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.

     “PIK Period” means the period of time from the issuance of the Securities until the earlier of
(x) the date on which the Company shall pay interest on the Securities in cash and (y) the date on
which the Securities are redeemed.

     “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.

     “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 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);

28

 

	 	(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.

     “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

29

 

	 	 	 	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.

     “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.

     “Representative” means the indenture trustee or other trustee, agent or representative in
respect of any Senior Indebtedness; provided that if, and for so long as, any Senior Indebtedness
lacks such a representative, then the Representative for such Senior Indebtedness shall at all
times constitute the holders of a majority in outstanding principal amount of such Senior
Indebtedness in respect of any Senior Indebtedness and that when used in connection with (i) the
Senior Secured Credit Agreement, the term “Representative” shall refer to the administrative agent
under the Senior Secured Credit Agreement or (ii) the Floating Rate Notes, the term
“Representative” shall refer to the trustee under the Floating Rate Notes Indenture.

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

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

     “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.

30

 

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

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

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

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

     “Senior Indebtedness” means, whether outstanding on the Issue Date or thereafter issued,
created, Incurred or assumed, (i) Bank Indebtedness and all amounts payable by the Company under or
in respect of all other Indebtedness of the Company, including premiums and accrued and unpaid
interest (including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company at the rate specified in the documentation with respect
thereto whether or not a claim for post-filing interest is allowed in such proceeding) and fees
relating thereto and (ii) all Indebtedness of the Company including interest thereon (including
interest accruing on or after the filing of any petition in bankruptcy or for reorganization
relating to the Company or any Restricted Subsidiary of the Company whether or not a claim for
post-filing interest is allowed in such proceedings), whether outstanding on the Issue Date or
thereafter incurred, unless in the instrument creating or evidencing the same or pursuant to which
the same is outstanding it is expressly provided that such obligations are not superior in right of
payment to the Securities; provided, however, that Senior Indebtedness shall not include (1) any
obligation of the Company to any Subsidiary of the Company, (2) any liability for Federal, state,
local or other taxes owed or owing by the Company, (3) any accounts payable or other liability to
trade creditors arising in the ordinary course of business (including guarantees thereof or
instruments evidencing such liabilities), (4) any Indebtedness of the Company which is expressly
subordinate in right of payment to any other Indebtedness of the Company, including any Senior
Subordinated Indebtedness and any Subordinated Obligations, (5) any obligations with respect to any
Capital Stock or (6) that portion of any Indebtedness incurred in violation of Section 3.2 (but, as
to any such obligation, no such violation shall be deemed to exist for purposes of this clause (6)
if the holders(s) of such obligation or their representative, the Initial Holder and the Trustee
shall have received an Officers’ Certificate of the Company to the effect that the incurrence of
such Indebtedness does not (or, in the case of revolving credit Indebtedness, that the incurrence
of the entire committed amount thereof at the date on which the initial borrowing thereunder is
made would not) violate such provisions of this Indenture.

     “Senior Secured Credit Agreement” means the Credit Agreement to be entered into among the
Company, Libbey Europe B.V., a Netherlands corporation, 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

31

 

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 Senior Indebtedness or Guarantor Senior Indebtedness or Indebtedness of a Foreign
Subsidiary.

     “Senior Subordinated Indebtedness” means the Securities and any other Indebtedness of the
Company that specifically provides that it is Pari Passu Indebtedness and is not by its express
terms subordinate in right of payment to any Indebtedness of the Company which is not Senior
Indebtedness.

     “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 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 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 B), and, collectively, all

32

 

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.

     “Trust Officer” shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant treasurer, trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be such officers 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 pursuant to 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
	 
	 	(2)	 	any 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;

33

 

	 	(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 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

34

 

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
	“Blockage Notice”
	 	10.3
	“Calculation Agent”
	 	2.3
	“Certificated Note”
	 	2.1(b)
	“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
	“Event of Default”
	 	6.1
	“Excess Proceeds”
	 	3.5
	“Guarantor Obligations”
	 	10.1
	“legal defeasance option”
	 	8.1(b)
	“Pari Passu Notes”
	 	3.5
	“Payment Blockage Period”
	 	10.3
	“payment default”
	 	6.1(6)(a)
	“Paying Agent”
	 	2.3
	“Private Placement Legend”
	 	2.1(d)
	“protected purchaser”
	 	2.9

35

 

	 	 	 
	Term	 	Defined in Section
	“Registrar”
	 	2.3
	“Resale Restriction Termination Date”
	 	2.6(a)
	“Restricted Payment”
	 	3.3
	“Restricted Securities”
	 	2.1(a)
	“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
incorporates by reference certain provisions of the TIA which are in and are made a part of this
Indenture, whether or not the Indenture is subject to the TIA. 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.

          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;

36

 

          (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 $102,000,000. In
addition, the Company may issue, from time to time in accordance with these provisions of
Additional 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 “16% Senior Subordinated Pay-In-Kind
Notes due 2011” of the Company. Additional Securities shall be known and designated as “16% Senior
Subordinated Pay-In-Kind Note due 2011” 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; and

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

          The Initial Securities and the Additional Securities shall be considered collectively as a
single class for all purposes of this Indenture. Holders of the Initial Securities, and the
Additional 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 or the
Additional 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

37

 

Initial Holder or upon request by the Trustee, to 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 Units
Purchase Agreement, dated June 9, 2006, among the Company and the Initial Holder. The Initial
Securities and any Additional Securities will be resold initially only pursuant to an exemption
from the Securities Act. 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 Securities shall be issued in the form of a Definitive
Security, without interest coupons, substantially in the form of 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 “Certificated Note”), deposited with the Initial Holder,
duly executed by the Company and authenticated by the Trustee as hereinafter provided. The
Certificated Note may be represented by more than one certificate. The aggregate principal amount
of the Certificated Note may from time to time be increased or decreased by adjustments made on the
Certificated Note and on the records of the Trustee as hereinafter provided or by issuance of
Additional 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 cash 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. During the PIK
Period, interest shall be paid by issuing Additional Securities in principal amount equal to each
installment of interest which shall be delivered to the Initial Holder. 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, if such have been appointed,
or if not, to the Company 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 Company or 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 under Section
2.1(d). The Company and the Initial Holder or 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 execution by an Officer unless there is a Trustee in which case it shall be dated the
date of its authentication.. The terms of the Securities set forth in Exhibit A are
part of the terms of this Indenture and, to the extent applicable, the Company, the Initial Holder
and the Trustee by their execution and delivery of this Indenture, expressly agree to be bound by
such terms.

38

 

          (c) Denominations. The Securities shall be issuable only in fully registered form,
without interest coupons, and only in denominations of $1,000 and an integral multiple thereof or,
if issued in payment of interest on the Securities, in the amount of such interest.

          (d) Restrictive Legends. Unless and until Security is sold under an effective
registration statement,

          (A) the Certificated 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,
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, TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION
DATE”) THAT IS TWO YEARS 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, OR (C) 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 CLAUSE (C) TO REQUEST 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.

          (e) OID Legend. Each Certificated Note issued with “original issue discount” as
defined in Section 1273 of the Code, 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.

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     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, if applicable, the
Security shall be valid nevertheless.

     If a Trustee has been appointed, a Security shall not be valid until an authorized signatory
of the Trustee manually authenticates the Security, otherwise the signature of an Officer shall be
sufficient. 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 execution by an Officer unless there is a Trustee in which case it 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
Company shall make available for delivery and if applicable, the Trustee shall authenticate: (1)
Initial Securities for original issue on the Issue Date in an aggregate principal amount of
$102,000,000 and (2) subject to the terms of this Indenture, Additional Securities for original
issue in an unlimited principal amount, in each case if Trustee has been appointed upon a written
order of the Company signed by one Officer of the Company (the “Company Order”). Such
Company Order shall specify 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 or Additional 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 Initial Holder or 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

40

 

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. If a Trustee is appointed, 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”). In addition, the Company shall appoint and maintain at all
times a Calculation Agent (the “Calculation Agent”) for purposes of the calculating the
interest on the Securities, which shall initially be the Initial Holder. 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.

     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 will initial appoint 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, if a Trustee has been appointed, 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. If a Trustee has not been appointed such payment shall be made to the Initial
Holder. 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

41

 

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, Initial
Holder, or the Trustee if appointed, 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).

     SECTION 2.6. Transfer and Exchange. (a) Prior to the date which is two years 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”) a transfer of a Certificated Note shall be made upon receipt by
the Company, 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.

     After the Resale Restriction Termination Date, interests in a Certificated Note may be
transferred in accordance with applicable law without requiring the certifications set forth under
Section 2.7 or any additional certification.

     (b) 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) a Security is being transferred pursuant to an
effective registration statement or (ii) 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.

     (c) 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.

42

 

          (d) 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 at the Registrar’s request.

     (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.

          (e) No Obligation of the Trustee.

          (i) 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 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, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

43

 

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

[Date]

Company/Trustee

[address]

Attention: General Counsel/Corporate Trust Administration

	 	 	 	 	 
	 

	 	Re:
	 	Libbey Glass Inc.
	 

	 	 	 	16% Senior Subordinated Pay-In-Kind Notes due 2011

Ladies and Gentlemen:

          This
certificate is delivered to request a transfer of $___ principal amount of the
16% Senior Subordinated Pay-In-Kind Notes due 2011 (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 “accredited investor” (as defined in Rule 501(a) under the Securities Act of
1933, as amended (the “Securities Act”)), purchasing for our own account or for the account
of such another “accredited investor” 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 to
offer, sell or otherwise transfer such Securities prior to the date that is two years 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, or (c) 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 be at all
times

44

 

within our 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
(c) 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 if appointed, the
Trustee, as defined in the indenture governing the Securities (the “Trustee”), which shall
provide, among other things, that the transferee is an “accredited investor” (within the meaning of
Rule 501(a) 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 (e) 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.

          SECTION 2.8. 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, if appointed, 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.

45

 

          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.

          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 2.9. Outstanding Securities. Securities outstanding at any time are all
Securities executed by an Officer and authenticated by the Trustee, if appointed, 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 2.8 (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 2.8.

          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.

46

 

          SECTION 2.10. 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, if appointed, 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, if appointed, 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, if appointed, 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.

          SECTION 2.11. Cancellation. The Company at any time may cancel Securities or deliver
Securities to the Trustee, if appointed, 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, if appointed, 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
no Trustee is appointed, the Company shall cancel such Securities. 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 for cancellation pursuant to this Section 2.12. The Company may not
issue new Securities to replace Securities it has paid and cancelled or delivered to the Trustee
for cancellation for any reason other than in connection with a transfer or exchange.

          SECTION 2.12. 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 Initial
Holder by making such payment. If a Trustee has been appointed, 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

47

 

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 Initial Holder or 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 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 2.13. Computation of Interest. Interest on the Securities shall be computed on the basis of a 360-day year comprised of
twelve 30-day months.

          SECTION 2.14. 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

48

 

number. The Company shall promptly notify the
Trustee in writing of any change in any CUSIP, Common Code or ISIN number.

          SECTION 2.15. Original Issue Discount

          For U.S. federal income tax purposes, the Company shall use semi-annual “accrual periods” (as
described in Treasury Regulation § 1.1272-1(b)(1)(ii)) for purposes of computing its accrual of
original issue discount on the Securities, with the first accrual period ending on December 1,
2006, subsequent accrual periods ending on June 1 or December 1 as the case may be, and the final
accrual period ending on December 1, 2011.

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 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 Initial Holder has received payment or if 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

49

 

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; provided, further, that if the Company and the
Subsidiary Guarantors Incur Indebtedness during the PIK Period pursuant to this paragraph, such
Indebtedness is expressly subordinated in right of payment to the Senior Secured Notes during the
PIK Period and interest on such Indebtedness is payable solely by increasing the principal
amount of such Indebtedness during the PIK Period.

        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) $150.0 million,
less the aggregate principal amount of all principal repayments with the
proceeds from Asset Dispositions utilized in accordance with clause 3(a) of
Section 3.5 that permanently reduce the commitments thereunder, 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) Senior Subordinated Indebtedness
or Guarantor Senior Subordinated Indebtedness, then the related Guarantee shall
rank equally in right of payment to the Note Guarantees or (b) 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
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 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 

50

 

	 	 	 	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, (b) any Indebtedness (other than the
Indebtedness described in clauses (1), (2), (3), (6), (8), (9), (10) and (11))
outstanding on the Issue Date and (c) any Refinancing Indebtedness Incurred in
respect of any Indebtedness described in this clause (4) or clause (5) or
Incurred pursuant to the first paragraph of this Section 3.2;
	 
	 	(5)	 	following the expiration of the PIK Period, 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 (other than Indebtedness 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);
	 
	 	(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 during the PIK Period, $5.0 million and, thereafter, $15.0
million, in each case at any time outstanding;
	 
	 	(8)	 	Indebtedness Incurred in respect of workers’ compensation
claims, self-insurance obligations, performance, surety and similar bonds,
warranties, indemnities and completion guarantees provided by the Company or a
Restricted Subsidiary in the ordinary course of business;

51

 

	 	(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 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 in an aggregate principal amount, together with all other
Indebtedness (including Refinancing Indebtedness) Incurred pursuant to this
clause (12), not to exceed, during the PIK Period, $45.0 million and,
thereafter, the greater of (x) $25.0 million and (y) 6% of Foreign Assets, in
each case at any time outstanding; provided, however, that such Indebtedness
Incurred pursuant to this clause (12) during the PIK Period shall only consist
of (i) Incurrences to fund working capital related to the Company’s Foreign
Subsidiaries organized in Mexico in an aggregate
amount not to exceed $15.0 million, (ii) Incurrences to fund capital
expenditures related to the Company’s Foreign Subsidiaries organized in
Mexico in an aggregate amount not to exceed $15.0 million and (iii)
Incurrences to fund working capital and capital expenditures related to the
Company’s Foreign Subsidiaries organized in Portugal in an aggregate amount
not to exceed $15.0 million;
	 
	 	(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 (including
Refinancing Indebtedness) Incurred pursuant to this clause (13), not to exceed
$30.0 million at any time outstanding and any Guarantee of such Indebtedness
issued by the Company; and
	 
	 	(14)	 	following the expiration of the PIK Period, in addition to the
items referred to in clauses (1) through (13) above, Indebtedness of the

52

 

	 	 	 	Company and its Restricted Subsidiaries in an aggregate outstanding principal
amount which, when taken together with the principal amount of all other
Indebtedness (including (i) any outstanding Indebtedness in excess of the
greater of (x) $25.0 million and (y) 6% of Foreign Assets Incurred pursuant to
clause (12) above as determined on the date of the expiration of the PIK Period
and not classified by Libbey Glass in any other manner that complies with this
covenant, which excess not so otherwise classified shall be deemed classified
as Indebtedness Incurred under this clause (14) and (ii) Refinancing
Indebtedness) Incurred pursuant to this clause (14) and then outstanding, will
not exceed $20.0 million at any time outstanding.

          The Company will not Incur any Indebtedness under the preceding paragraph if the proceeds
thereof are used, directly or indirectly, to refinance any Subordinated Obligations of the Company
unless such Indebtedness will be subordinated to the Securities to at least the same extent as such
Subordinated Obligations. No Subsidiary Guarantor will Incur any Indebtedness if the proceeds
thereof are used, directly or indirectly, to refinance any Guarantor Subordinated Obligations of
such Subsidiary Guarantor unless such Indebtedness will be subordinated to the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee to at least the same extent as such Guarantor
Subordinated Obligations. No Restricted Subsidiary (other than a Subsidiary Guarantor) may Incur
any Indebtedness if the proceeds are used to refinance Indebtedness of the Company or a Subsidiary
Guarantor. No Subsidiary Guarantor will Incur any Indebtedness if the proceeds thereof are used,
directly or indirectly, to refinance any Guarantor Senior Subordinated Indebtedness unless such
refinancing Indebtedness is either Guarantor Senior Subordinated Indebtedness or Guarantor
Subordinated Obligations.

          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 and not the
first paragraph or clause (4) 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;

53

 

	 	(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;
	 
	 	(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

54

 

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.

          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 or another Restricted Subsidiary (and if such Restricted
Subsidiary is not a Wholly-Owned Subsidiary, to its other holders of
common Capital Stock 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 

55

 

	 	 	 	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
	 
	 	(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), (7), (8), (9), (11), (13) and (14) of the next
succeeding paragraph) would exceed the sum of:

	 	(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 

56

 

	 	 	 	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) excluding in any event Net Cash Proceeds
received by the Company from the issue and sale of its
Capital Stock or capital contributions to the extent applied
to redeem Securities in compliance with the provisions of
Article V as it relates to the second paragraph of
Section 5 of the Securities; plus

	 	(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 (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 Subsidiary, the fair market
value of the 

57

 

	 	 	 	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 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 purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Capital Stock, Disqualified Stock or 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, Capital Stock of the Company (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, is permitted to be Incurred pursuant to Section 3.2 and 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 

58

 

	 	 	 	30 days of Disqualified Stock of the Company 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;
	 
	 	(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)	 	following the expiration of the PIK Period, so long as no
Default or Event of Default has occurred and is continuing, 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

59

 

	 	 	 	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 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;
	 
	 	(c)	 	amounts to pay corporate overhead expenses of
the Parent Incurred in the ordinary course of business (including
financing transactions that benefit the Company and its Restricted
Subsidiaries), and to pay salaries, benefits or other compensation of
directors, officers, employees and consultants who perform services for
both the Parent and the Company;

	 	(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;

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	 	(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 the rights agreement relating to the Parent Common
Stock;
	 
	 	(12)	 	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 $0.10 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; provided that at the time of
declaration of such dividend permitted, (x) no Event of Default (and, following
the expiration of the PIK Period, no Default) has occurred and is continuing
and (y) to the extent such cash dividends or loans are made following the
expiration of the PIK Period, the Company is able to Incur at least an
additional $1.00 of Indebtedness pursuant to the first paragraph of Section
3.2; and
	 
	 	(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 other combination involving the Company
or any direct or indirect parent of the Company; and
	 
	 	(14)	 	following the expiration of the PIK Period, Restricted Payments
in an amount not to exceed $10.0 million.

          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, such determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market value is estimated in
good faith by the Board of Directors of the Company to exceed $20.0 million. 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, together with a copy of
any fairness opinion or appraisal required by this Indenture.

          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:

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	 	(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 Subsidiary Guarantees, the Collateral
Documents, the Intercreditor Agreement, the Floating Rate Notes (and related
documentation) 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,

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	 	 	 	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
clauses (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 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 in joint venture agreements relating
to joint ventures and other similar agreements entered into in the ordinary
course of business, provided that if such joint venture is a Restricted
Subsidiary, such provisions 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);
	 
	 	(viii)	 	net worth provisions in leases and other 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); and

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	 	(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) and (14) of the second paragraph
of Section 3.2, by Restricted Subsidiaries, 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).

          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; and
	 
	 	(3)	 	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 the Company or any Restricted Subsidiary, as the case may
be, elects (or is required by the terms of any Senior Indebtedness or
Guarantor Senior Indebtedness) to prepay, repay or purchase secured Senior
Indebtedness of the Company (other than any Disqualified Stock or
Subordinated Obligations) or secured Guarantor Senior Indebtedness or
secured Indebtedness of a Restricted Subsidiary that is not a Subsidiary
Guarantor other than any Disqualified Stock or Guarantor Subordinated
Obligations (in each case other than Indebtedness owed to the Company or an
Affiliate of the Company) within 365 days from the later of the date of such
Asset Disposition or the receipt of such Net Available Cash; provided,
however, that, in connection with any prepayment, repayment or purchase of
Indebtedness pursuant to this clause (a), the Company or such Restricted
Subsidiary will retire such Indebtedness and will cause the related
commitment (if any) to be permanently reduced in an amount equal to the
principal amount so prepaid, repaid or purchased; or
	 
	 	 	 	(b) 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;

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	 	 	 	provided, however, that with respect to Asset Dispositions of Collateral,
such Additional Assets are added to the 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 clause
(a) or clause (b) 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 Disposition of Collateral, any cash will be deposited
in accordance with the Intercreditor Agreement.

          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 $10.0 million on the 366th day after an
Asset Disposition, first, the Company will be required to make an offer to purchase the
Floating Rate Notes and other secured Indebtedness that is pari passu with the Floating Rate
Notes pursuant to Section 3.5 of the Floating Rate Notes Indenture. If Excess Proceeds remain, 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.
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

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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 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. 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. 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; and

66

 

	 	(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 90 days following the closing of
such Asset Disposition.

          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, which Lien is securing any
Indebtedness, unless contemporaneously with the Incurrence of such Liens
effective provision is made to secure the Indebtedness due under this
Indenture and the Securities or, in respect of Liens on any Restricted
Subsidiary’s property or assets, any Subsidiary Guarantee of such Restricted
Subsidiary, equally and ratably with (or senior in priority to in the case
of Liens with respect to Subordinated Obligations or Guarantor Subordinated
Obligations, as the case may be) the Indebtedness secured by such Lien for
so long as such Indebtedness is so secured. 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 Credit
Agreement Obligations or obligations in respect of the Floating Rate Notes,
the Company or such Subsidiary Guarantor, as the case may be, must
concurrently grant at least a third-priority Lien upon such property as
security for the Securities.

          SECTION 3.7. 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) 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;
	 
	 	(2)	 	in the event such Affiliate Transaction involves an aggregate
consideration in excess of $5.0 million, the terms of such transaction have
been approved by a majority of the members of the Board of Directors of the

67

 

	 	 	 	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 $10.0 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
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 $2.5 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, 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 

68

 

	 	 	 	renewal entered into after
the Issue Date will be permitted to the extent that its 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; and
	 
	 	(8)	 	any issuance or sale of Capital Stock (other than Disqualified
Stock) to Affiliates of the Company and the granting of registration and other
customary rights in connection therewith.

          SECTION 3.8. 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 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 3.9. 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 3.10. 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 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).

69

 

          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
properly tendered pursuant to the Change of Control Offer;
	 
	 	(2)	 	deposit with the Initial Holder or, if appointed, the Paying
Agent an amount equal to the Change of Control Payment in respect of all
Securities or portions of Securities so tendered; and
	 
	 	(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 Company shall deliver and the Trustee shall promptly
authenticate and the Company, or the Trustee if appointed, shall 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.

          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.

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          Prior to making a Change of Control payment, and as a condition to such payment, (i) all
Senior Indebtedness must be repaid in full, or the Company must offer to repay all Senior
Indebtedness and make payment to the holders that accept such offer and obtain waivers of any event
of default from the remaining holders of such Senior Indebtedness or (ii) the requisite holders of
each issue of Senior Indebtedness shall have consented to such Change of Control payment being
made. The Company covenants to effect such repayment or obtain such consent prior to the Change of
Control Payment Date, it being a default of this Section 3.11 if the Company fails to comply with
this provision.

          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 3.11. 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 Initial Holder, 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
	 
	 	(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 Initial Holder, 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
within 15 days of the time periods specified therein or in the relevant Forms.

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          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.

          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 3.12. 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 Initial Holder or the Trustee a
supplemental 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
subordinated 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 Initial Holder or Trustee, the
Collateral Agent and the holders of the Securities a perfected and at least third-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) Indebtedness under the Senior
Secured Credit Agreement and (2) all other Indebtedness of the Company and its Restricted
Subsidiaries, including a Guarantee under the indenture governing the Floating Rate 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 3.13. Maintenance of Office or Agency. If a Trustee is appointed, 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 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 and this address 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

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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 3.14. 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 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 3.15. 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 3.16. Payments for Consent. Neither the Company nor any of its Restricted
Subsidiaries will, directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fees or otherwise, to any Holder of any Securities for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or is paid to all Holders of the Securities that
consent, waive
or agree to amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or amendment.

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          SECTION 3.17. Compliance Certificate. The Company shall deliver to the Initial Holder
or 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) and until such time as a Trustee is appointed, shall
deliver all reports and required by TIA § 314(a)(4) to be delivered to the Trustee, to the Initial
Holder.

          SECTION 3.18. Further Instruments and Acts. Upon request of the Initial Holder or 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 3.19. Statement by Officers as to Default. The Company shall deliver to the
Initial Holder or 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.

          SECTION 3.20. Limitation on Layering. The Company will not Incur any Indebtedness if
such Indebtedness is contractually subordinate or junior in ranking in any respect to any Senior
Indebtedness unless such Indebtedness is Senior Subordinated Indebtedness or is contractually
subordinated in right of payment to Senior Subordinated Indebtedness. No Note Guarantor will Incur
any Indebtedness if such Indebtedness is contractually subordinate or junior in ranking in any
respect to any Guarantor Senior Indebtedness of such Note Guarantor unless such Indebtedness is
Guarantor Senior Subordinated Indebtedness of such Subsidiary Guarantor or is contractually
subordinated in right of payment to Guarantor Senior Subordinated Indebtedness of such Subsidiary
Guarantor.

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:

	 	(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
Initial Holder or the Trustee, in form satisfactory to such Person, all the

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	 	 	 	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 the Collateral Documents and the Intercreditor Agreement and the Successor
Company shall cause such amendments, supplements or other instruments to be
executed, filed, and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral pledged by or
transferred to such Person, together with such financing statements or
comparable documents as may be required to perfect any security interests in
such Collateral which may be perfected by the filing of a financing statement
or a similar document under the Uniform Commercial Code or other similar
statute or regulation of the relevant states or jurisdictions, in each case in
a form reasonably satisfactory to the Initial Holder or the Trustee;

	 	(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 shall have occurred and be
continuing;
	 
	 	(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 shall
have by written agreement confirmed that its obligations under the the
Collateral Documents and the Intercreditor Agreement shall continue to be in
effect and shall cause such amendments, supplements or other instruments to be
executed, filed, and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral pledged by
such Note Guarantor, together with such financing statements or comparable
documents as may be required to perfect any security interests in such
Collateral which may be perfected by the filing of a financing statement or a
similar document under the Uniform Commercial Code or other similar statute or
regulation of the relevant states or jurisdictions, in
each case in a form reasonably satisfactory to the Initial Holder or the
Trustee; and

	 	(5)	 	the Company shall have delivered to the Initial Holder or the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental indenture (if any)

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	 	 	 	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 clause (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)	 	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, the Successor Parent (if not the Parent) will expressly
assume, by supplemental indenture (and other applicable documents), executed
and delivered to the Initial Holder or the Trustee, in form satisfactory to
such Person, all the obligations of the Parent under its Note Guarantee, this
Indenture, the Collateral Documents, the Intercreditor Agreement and the
Successor Parent shall cause such amendments, supplements or other instruments
to be executed, filed, and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral pledged by or
transferred to such Person, together with such financing statements or
comparable documents as may be required to perfect any security interests in
such Collateral which may be perfected by the filing of a financing statement
or a similar document under the Uniform Commercial Code or other similar
statute or regulation of the relevant states or jurisdictions, in each case in
a form reasonably satisfactory to the Initial Holder or the Trustee;
	 
	 	(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 shall have occurred and be
continuing; and
	 
	 	(3)	 	the Company shall have delivered to the Initial Holder or 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

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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, 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)	 	(a) 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; (b) 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 shall have occurred
and be continuing; (c) 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 Initial Holder
or the Trustee under the Securities, this Indenture, the Collateral Documents,
the Intercreditor Agreement and shall cause such amendments, supplements or
other instruments to be executed, filed and recorded in such jurisdictions as
may be required by applicable law to preserve and protect the Lien on the
Collateral pledged by or transferred to the surviving entity, together with
such financing statements or comparable documents as may be required to perfect
any security interest in such Collateral which may be perfected by the filing
of a financing statement or a similar document under the Uniform Commercial
Code or other similar statute or regulation of the relevant states or
jurisdictions in each case in a form reasonably satisfactory to the Initial
Holder or the Trustee; and (d) the Company will
have delivered to the Initial Holder or 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; and

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	 	(2)	 	the transaction is made in compliance with Section 3.5
(it being understood that only such portion of the Net Available Cash as is
required to be applied on the date of such transaction in accordance with the
terms of this Indenture needs to be applied in accordance therewith at such
time), Section 3.9 and this Section 4.1.

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 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.

          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.

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          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 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 Initial Holder or, if one has been
appointed, 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 to the Company or 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 to the Company or at the office or agency of the Company if one is
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.

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 on any Security when due,
continued for 30 days, whether or not such payment is prohibited by the
provisions of Article X and Section 11.5;

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	 	(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, whether or not such payment
is prohibited by the provisions of Article X and Section 11.5;
	 
	 	(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 30
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
that will constitute an Event of Default under clause (2) above and other than
a failure to comply with Section 4.1, which will constitute an Event of
Default under clause 3 of this section) 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 $15.0 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 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;

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	 	(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
	 
	 	(iv)	 	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

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	 	 	 	consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of $15.0 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 $15.0 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 either (i) the Initial Holder, (ii) the Trustee or (iii) 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, either (i) the Initial
Holder by notice to the Company, (ii) the Trustee by notice to the Company, or (iii) the Holders of
at least 25% in principal amount of the outstanding Securities by notice to the Company and

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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
acceleration of the Securities shall be automatically annulled if 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 if (1) the annulment of the
acceleration of the Securities would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, except nonpayment of principal,
premium or interest on the Securities that became due solely because of the acceleration of the
Securities, have been cured or waived.

          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 Initial Holder, the Trustee or any Holders.

          SECTION 6.3. Other Remedies . If an Event of Default occurs and is continuing, the Initial Holder or 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 Initial Holder or 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 Initial Holder, if not Trustee has been
appointed, or 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.

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          SECTION 6.5. Control by Majority. If a Trustee has been appointed, 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.

          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 notice that an
Event of Default is continuing;
	 
	 	(2)	 	Holders of at least 25% in principal amount of the outstanding
Securities have requested 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.

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          SECTION 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses
(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
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 of the Floating Rate Notes for amounts due and unpaid on the Floating Rate
Notes for principal, premium, if any, and interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on the Floating Rate Notes for principal and
interest, respectively;

          THIRD: 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

     FOURTH: 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

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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.

          (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

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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.

          (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.

          (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

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office of the Trustee specified under Section 12.2, and such notice references the Securities and this
Indenture.

          (g) 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.

          (h) 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.

          (i) 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.

          (j) 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.

          (k) 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

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after it occurs. Except in the case of a Default in the payment of principal of, premium, if 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
June 1 following the date of this Indenture beginning June 1, 2006, and in any event prior to July
1 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 joint 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 joint 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). 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 of outside counsel to the Trustee,
there is no conflict of interest between the Company and the Trustee in

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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.

          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. Appointment and Replacement of Trustee. If at any time the Initial
Holder transfers the Securities to any Person that is not an Affiliate of the Initial Holder, the
Initial Holder shall appoint a Trustee that complies with Section 7.10. 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;
	 
	 	(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

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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.

          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

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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.

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 Initial Holder or 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 Initial Holder or 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 the with Initial Holder or 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 Initial Holder or 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

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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 Initial Holder or to the Trustee, if
appointed under this Indenture and the Securities; and (iv) the Company has delivered irrevocable
instructions to the Initial Holder or 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 Initial Holder or 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, 3.7, 3.8, 3.9,
3.10, 3.11, 3.12, 3.16, 3.20 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 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 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).

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

          (c) 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, 3.13, 3.14,
3.15, 3.17,

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3.18, 3.19, 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 Initial
Holder or 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 Initial Holder or the Trustee an
Officer’s 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 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 Initial Holder or 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 Initial Holder or the Trustee an
Opinion of Counsel to the effect that the trust resulting from the deposit does
not 

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	 	 	 	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 Initial Holder or 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 Initial Holder or 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 Initial Holder or 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 Initial Holder, the Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money, U.S. Government
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

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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 Initial Holder or 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 Initial Holder, 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 Initial Holder, 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 Initial Holder, the Trustee or Paying Agent.

          The Initial Holders and 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
Initial Holder or 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)	 	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;
	 
	 	(4)	 	expand the collateral securing the Securities;

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	 	(5)	 	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;
	 
	 	(6)	 	make any change that does not adversely affect the rights of
any Holder;
	 
	 	(7)	 	release a Note Guarantor from its obligations under its Note
Guarantee or this Indenture in accordance with the applicable provisions of
this Indenture;
	 
	 	(8)	 	release Liens in favor of the Collateral Agent in the
Collateral as provided under Section 11.7 or otherwise in accordance with the
terms of this Indenture, Collateral Documents or the Intercreditor Agreement;
	 
	 	(9)	 	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;
	 
	 	(10)	 	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 apply to the Securities
and be a verbatim recitation of a provision of this Indenture, the Securities
or the Note Guarantees; or
	 
	 	(11)	 	make any change to the subordination provisions of Article X or
Section 11.5 or any other subordination provisions of this Indenture that would
limit or terminate the benefits available to any holder of Senior
Indebtedness of the Company or a holder of Guarantor Senior Indebtedness (or
any Representative thereof) under such subordination provisions.

          However, no amendment may be made to the subordination provisions of Article X or Section 11.5
or any other subordination provisions of this Indenture that adversely affects the rights of any
holder of Senior Indebtedness or Guarantor Senior Indebtedness then outstanding unless the holders
of such Senior Indebtedness or Guarantor Senior Indebtedness (or any group or representative
thereof authorized to give a consent) consent to such change.

          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
Initial Holder or the Trustee may amend or supplement this Indenture, the Securities or any
Subsidiary Guarantee with the consent of the Initial Holder or, if a Trustee has

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been appointed,
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 past 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 Initial Holder or, if a Trustee has
been appointed, 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;

     (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;

     (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 Intercreditor Agreement other
than in accordance with this Indenture, the Collateral Documents or the Intercreditor
Agreement; or.

     (10) make any change to the subordination provisions of the Indenture that adversely affects
the rights of any Holder of Securities.

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          In addition, without the consent of the 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.

          However, no amendment may be made to the subordination provisions of Article X or Section 11.5
or any other subordination provisions of this Indenture that adversely affects the rights of any
holder of Senior Indebtedness or Guarantor Senior Indebtedness then outstanding unless the holders
of such Senior Indebtedness or Guarantor Senior Indebtedness (or any group or representative
thereof authorized to give a consent) consent to such change.

          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 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

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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, if appointed,
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, if appointed, 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

SUBORDINATION

          SECTION 10.1. Agreement To Subordinate. The Company agrees, and each Holder by
accepting a Security agrees, that the Indebtedness evidenced by, and all other obligations in
respect of, the Securities is subordinated in right of payment, to the extent and in the manner
provided in this Article X, to the prior payment of all Senior Indebtedness and that the
subordination is for the benefit of and enforceable by the holders of Senior Indebtedness. The
Securities shall in all respects rank pari passu with all other Senior Subordinated
Indebtedness of the Company and only Indebtedness of the Company that is Senior Indebtedness will
rank senior to the Securities in accordance with the provisions set forth herein. All provisions
of this Article X shall be subject to Section 10.12.

          SECTION 10.2. Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution
of the assets of the Company to creditors upon a total or partial liquidation or a total or partial
dissolution of the Company or in a reorganization, bankruptcy, insolvency, receivership or similar
proceeding relating to the Company or its properties or an assignment for the benefit of creditors
or marshalling of the Company’s assets and liabilities whether voluntary or involuntary:

          (1) holders of Senior Indebtedness shall be entitled to receive payment in full in cash or
Cash Equivalents of all Senior Indebtedness (including interest accruing after, or

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which would
accrue but for, the commencement of any proceeding at the rate specified in the applicable Senior
Indebtedness, whether or not a claim for such interest would be allowed) before Holders shall be
entitled to receive any payment or distribution, in the event of any payment or distribution of the
assets or securities of the Company; and

          (2) until the Senior Indebtedness is paid in full in cash or Cash Equivalents, any payment or
distribution to which Holders would be entitled but for this Article X shall be made to
holders of Senior Indebtedness, as their respective interests may appear.

          SECTION 10.3. Default on Senior Indebtedness. The Company shall not pay the principal
of, premium (if any) or interest on or other payment obligations in respect of the Securities or
make any deposit pursuant to Section 8.1 or Section 8.2 and may not otherwise
repurchase, redeem or otherwise retire any Securities (collectively, “pay the Securities”)
if (i) any Senior Indebtedness is not paid when due in cash or Cash Equivalents (taking into
account any applicable grace periods) or (ii) any other default on Senior Indebtedness occurs and
the maturity of such Senior Indebtedness is accelerated in accordance with its terms unless, in
either case, (x) the default has been cured or waived and any such acceleration has been rescinded
or (y) such Senior Indebtedness has been paid in full in
cash or Cash Equivalents; provided, however, that the Company may pay the Securities, without
regard to the foregoing, if the Company and the Initial Holder or the Trustee receive written
notice approving such payment from the Representative of the Senior Indebtedness with respect to
which either of the events set forth in clause (i) or (ii) of this sentence has occurred and is
continuing. During the continuance of any default (other than a default described in clause (i) or
(ii) of the preceding sentence) with respect to any Designated Senior Indebtedness pursuant to
which the maturity thereof may be accelerated immediately without further notice (except such
notice as may be required to effect such acceleration) or the expiration of any applicable grace
periods, the Company may not pay the Securities for a period (a “Payment Blockage Period”)
commencing upon the receipt by the Initial Holder or the Trustee (with a copy to the Company) of
written notice (a “Blockage Notice”) of such default from the Representative(s) of the
holders of such Designated Senior Indebtedness specifying an election to effect a Payment Blockage
Period and ending 179 days thereafter (or earlier if such Payment Blockage Period is terminated (i)
by written notice to the the Initial Holder or Trustee and the Company from the Person or Persons
who gave such Blockage Notice, (ii) because the default giving rise to such Blockage Notice is no
longer continuing or (iii) because such Designated Senior Indebtedness has been repaid in full).
Notwithstanding the provisions of the immediately preceding sentence, unless the holders of such
Designated Senior Indebtedness or the Representative(s) of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, the Company may resume payments on the Securities
after the end of such Payment Blockage Period (including any missed payments). Not more than one
Blockage Notice may be given in any consecutive 360-day period, irrespective of the number of
defaults with respect to Designated Senior Indebtedness during such period. However, if any
Blockage Notice within such 360-day period is given by or on behalf of any holders of Designated
Senior Indebtedness other than the Bank Indebtedness, the Representatives of the Bank Indebtedness
may give another Blockage Notice within such period. In no event, however, may the total number of
days during which any Payment Blockage Period or Periods is in effect exceed 179 days in the
aggregate during any 360 consecutive day period. For purposes of this Section 10.3, no
default or event of default that existed or was continuing on the date of the commencement of any
Payment Blockage Period with respect to

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the Designated Senior Indebtedness initiating such Payment
Blockage Period shall be, or be made, the basis of the commencement of a subsequent Payment
Blockage Period by the Representative of such Designated Senior Indebtedness, whether or not within
a period of 360 consecutive days, unless such default or event of default shall have been cured or
waived for a period of not less than 90 consecutive days.

          SECTION 10.4. Acceleration of Payment of Securities. If payment of the Securities is
accelerated because of an Event of Default, the Company or the Trustee shall promptly notify the
holders of the Designated Senior Indebtedness (or their Representatives) of the acceleration. If
any Designated Senior Indebtedness is outstanding, the Company shall not pay the Securities until
five Business Days after the holders or Representative(s) of such Designated Senior Indebtedness
receives notice of such acceleration and, thereafter, may pay the Securities only if this
Article X otherwise permits payments at that time.

          SECTION 10.5. When Distribution Must Be Paid Over. If a distribution is made to Holders that because of this Article X should not have
been made to them, the Holders who receive the distribution shall hold it in trust for holders of
Senior Indebtedness and promptly pay it over to them as their respective interests may appear.

          SECTION 10.6. Subrogation. After all Senior Indebtedness is paid in full and until
the Securities are paid in full, Holders shall be subrogated to the rights of holders of Senior
Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under
this Article X to holders of Senior Indebtedness which otherwise would have been made to
Holders is not, as between the Company and Holders, a payment by the Company on such Senior
Indebtedness.

          SECTION 10.7. Relative Rights. This Article X defines the relative rights of
Holders and holders of Senior Indebtedness. Nothing in this Indenture shall:

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

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

          SECTION 10.8. Subordination May Not Be Impaired by Company. No right of any holder of
Senior Indebtedness to enforce the subordination of the Indebtedness evidenced by the Securities
shall be impaired by any act or failure to act by the Company or by the failure of any of them to
comply with this Indenture.

          SECTION 10.9. Rights of Trustee and Paying Agent. Notwithstanding Section
10.3, the Trustee or Paying Agent may continue to make payments on the Securities and shall not
be charged with knowledge of the existence of facts that would prohibit the making of any such
payments unless, not less than two Business Days prior to the date of such payment, a Trust Officer
of the Trustee receives notice in writing satisfactory to it that payments may not be made under
this Article X. The Company, the Registrar, the Paying Agent, a Representative or a

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

          The Trustee in its individual or any other capacity may hold Senior Indebtedness with the same
rights it would have if it were not Trustee. The Registrar and the Paying Agent may do the same
with like rights. The Trustee shall be entitled to all the rights set forth in this Article
X with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness; and nothing in Article VII shall deprive
the Trustee of any of its rights as such holder. Nothing in this Article X shall
apply to claims of, or payments to, the Trustee under or pursuant to Section 7.7.

          SECTION 10.10. Distribution or Notice to Representative. Whenever a distribution is
to be made or a notice given to holders of Senior Indebtedness, the distribution may be made and
the notice given to their Representative (if any).

          SECTION 10.11. Article X Not To Prevent Events of Default or Limit Right To
Accelerate. The failure to make a payment in respect of the Securities, by reason of any
provision in this Article X, shall not be construed as preventing the occurrence of a
Default or Event of Default. Nothing in this Article X shall have any effect on the right
of the Initial Holder, the Holders or the Trustee to accelerate the maturity of the Securities.

          SECTION 10.12. Trust Moneys Not Subordinated. Notwithstanding anything contained
herein to the contrary, payments from money or the proceeds of U.S. Government Obligations held in
trust under Article VIII by the Trustee for the payment of principal of premium, if any,
and interest on the Securities shall not be subordinated to the prior payment of any Senior
Indebtedness or subject to the restrictions set forth in this Article X, and none of the
Holders shall be obligated to pay over any such amount to the Company, any holder of Senior
Indebtedness, or any other creditor of the Company.

          SECTION 10.13. Trustee Entitled To Rely. Upon any payment or distribution pursuant to
this Article X, the Trustee and the Holders shall be entitled to rely (i) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the nature referred to
under Section 10.2 are pending, (ii) upon a certificate of the liquidating trustee or agent
or other Person making such payment or distribution to the Trustee or to the Holders or (iii) upon
the Representatives for the holders of Senior Indebtedness for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of Senior Indebtedness
and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article X. In
the event that the Trustee determines, in good faith, that evidence is required with respect to the
right of any Person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article X, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in such payment or
distribution and other facts pertinent to the rights of such Person under this Article X,
and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment. The provisions of
Sections 7.1 and 7.2 shall be applicable to all actions or omissions of actions by the
Trustee pursuant to this Article X.

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          SECTION 10.14. Trustee To Effectuate Subordination. Each Holder by accepting a Security authorizes and directs the Trustee on its behalf to
take such action as may be necessary or appropriate to acknowledge or effectuate the subordination
between the Holders and the holders of Senior Indebtedness as provided in this Article X
and appoints the Trustee as attorney-in-fact for any and all such purposes.

          SECTION 10.15. Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and shall not
be liable to any such holders if it shall mistakenly pay over or distribute to Holders or the
Company or any other Person, money or assets to which any holders of Senior Indebtedness shall be
entitled by virtue of this Article X or otherwise.

          SECTION 10.16. Reliance by Holders of Senior Indebtedness on Subordination Provisions.
Each Holder by accepting a Security acknowledges and agrees that the foregoing subordination
provisions are, and are intended to be, an inducement and a consideration to each holder of any
Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the
issuance of the Securities, to acquire, or to continue to hold, such Senior Indebtedness, and such
holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness.

ARTICLE XI

NOTE GUARANTEES

          SECTION 11.1. 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 the Initial Holder, 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 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 XI 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

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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, whether at maturity, by
acceleration, by redemption or otherwise, each Note Guarantor hereby promises to and will, upon
receipt of written demand by the Initial Holder or 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).

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          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 Initial Holder, the Trustee or the Holders in
enforcing any rights under this Section.

          SECTION 11.2. 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 under the Senior
Secured Credit Agreement) 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 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.

          (c) Each Note Guarantor shall be deemed released from all its obligations under this Indenture
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 and its
Note Guarantee if the Company designates such Note Guarantor as an Unrestricted Subsidiary and such
designation complies with the other applicable provisions of this Indenture.

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          (e) Each Note Guarantor shall be released from its obligations under this Indenture and its
Note Guarantee upon satisfaction and discharge of this Indenture pursuant to Section
8.1(a).

          (f) The Initial Holder or 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 11.3. 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 11.4. 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 Initial Holder, 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 Initial Holder, 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 Initial
Holder, 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 Initial Holder or 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 Initial Holder or 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.

          SECTION 11.5. Subordination of Note Guarantees.

          The obligations of each Note Guarantor under its Note Guarantee pursuant to this Article XI
shall be junior and subordinated to the prior payment in full in cash or Cash Equivalents of
Guarantor Senior Indebtedness on the same basis as the Securities are junior and subordinated to
Senior Indebtedness of the Company. For the purposes of the foregoing sentence, the Trustee and
the Holders shall have the right to receive and/or retain payments by any of the Note Guarantors
only at such times as they may receive and/or retain payments in respect of the Securities pursuant
to this Indenture, including Article X hereof.

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ARTICLE XII

COLLATERAL

          SECTION 12.1. The Collateral. (a) The due and punctual payment of the principal of,
premium, if any, and interest on the Securities and the Note Guarantees when and as the same shall
be due and payable, whether on an interest payment date, at maturity, by acceleration, repurchase,
redemption or otherwise, interest on the overdue principal of and interest (to the extent permitted
by law), if any, on the Securities and the Note Guarantees and performance of all other obligations
under this Indenture, including, without limitation, the obligations of the Company set forth in
Section 7.7, and the Securities and the Note Guarantees and the Collateral Documents, shall be
secured by at least third-priority Liens and security interests in the Collateral, in each case
subject to Permitted Liens, as provided in the Collateral Documents to which the Company and the
Note Guarantors, as the case may be, have entered into simultaneously with the execution of this
Indenture and will be secured by all of the Collateral pledged pursuant to the Collateral Documents
hereafter delivered as required or permitted by this Indenture, the Collateral Documents and the
Intercreditor Agreement. The Company and the Note Guarantors hereby agree that the Collateral
Agent shall hold the Collateral in trust for the benefit of the Initial Holder or all of the
Holders and the Trustee, in each case pursuant to the terms of the Collateral Documents and the
Intercreditor Agreement and the Collateral Agent is hereby authorized to execute and deliver the
Collateral Documents and the Intercreditor Agreement.

          (b) The Initial Holder and each Holder, by its acceptance of any Securities and the Note
Guarantees, consents and agrees to the terms of the Collateral Documents and the Intercreditor
Agreement (including, without limitation, the provisions providing for foreclosure) as the same may
be in effect or may be amended from time to time in accordance with their terms and authorizes and
directs the Collateral Agent to perform its obligations and exercise its rights under the
Collateral Documents in accordance therewith.

          (c) The Initial Holder, the Trustee and each Holder, by accepting the Securities and the Note
Guarantees, acknowledges that, as more fully set forth in the Collateral Documents and the
Intercreditor Agreement, the Collateral as now or hereafter constituted shall be held for the
benefit of the Initial Holder, all the Holders and the Trustee, and that the Lien of this Indenture
and the Collateral Documents in respect of the Initial Holder or the Trustee and the Holders is
subject to and qualified and limited in all respects by the Collateral Documents and the
Intercreditor Agreement and actions that may be taken thereunder.

          SECTION 12.2. Maintenance of Collateral. The Company and the Note Guarantors shall
maintain the Collateral in good, safe and insurable operating order, condition and repair (ordinary
wear and tear excepted) and do all other acts as may be reasonably necessary or appropriate to
maintain and preserve the value of the Collateral, except where the failure to maintain such value
would not have a material
adverse effect on the Collateral. The Company and the Note Guarantors shall pay all real
estate and other taxes (except for those being contested in good faith and for which adequate
reserves have been made), and maintain in full force and effect in all material permits and certain
insurance coverages, except to the extent that the failure to maintain such permits and coverages
follows the sale, in accordance with this

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Indenture, of the assets to which such permits or
coverages relate or where such failure would not have a material adverse effect on the Collateral.

          SECTION 12.3. Further Assurances. (a) The Company and the Note Guarantors shall, at
their sole expense, do all acts reasonably requested by the Collateral Agent which may be
reasonably necessary to confirm that the Collateral Agent holds, for the benefit of the Initial
Holder or the Holders and the Trustee and the holders of any Pari Passu Secured Indebtedness, duly
created, enforceable and perfected and at least third-priority Liens and security interests in the
Collateral (subject to Permitted Liens) as contemplated by this Indenture, the Collateral Documents
and the Intercreditor Agreement.

          (b) As necessary, or upon reasonable request of the Collateral Agent, the Initial Holder or
Trustee, the Company and the Note Guarantors shall, at their sole expense, execute, acknowledge and
deliver such documents and instruments and take such other actions, which may be necessary or which
the Collateral Agent, the Initial Holder 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 Initial Holder
or the Holders and the Trustee, including with respect to after-acquired Collateral. If the
Company or such Note Guarantor fails to do so, the Initial Holder or the Trustee is hereby
irrevocably authorized and empowered, with full power of substitution, to execute, acknowledge and
deliver such Collateral Documents, the Intercreditor Agreement, instruments, certificates, notices
and other documents and, subject to the provisions of the Collateral Documents and the
Intercreditor Agreement, take such other actions in the name, place and stead of the Company or
such Note Guarantor, but the Trustee will have no obligation to do so and no liability for any
action taken or omitted by it in good faith in connection therewith.

          SECTION 12.4. After Acquired Property. Upon the acquisition by the Company or any
Note Guarantor after the Closing Date of any assets located in the United States, including, but
not limited to, any after-acquired fee interest in real property or any equipment or fixtures which
constitute accretions, additions or technological upgrades to the equipment or fixtures that form
part of the Collateral (in each case, with a value in excess of $1,000,000), to the extent any such
assets secure Credit Agreement Obligations, Senior Indebtedness or any Pari Passu Secured
Indebtedness, the Company or such Note Guarantor, as the case may be, shall execute and deliver
such Mortgages, security instruments and financing statements, together with reasonably required
certificates and opinions of counsel, as may be necessary to vest in the Collateral Agent a
perfected security interest, subject only to Permitted Liens, in such after-acquired property and
to have such after-acquired property added to the Collateral, and thereupon all provisions of this
Indenture and the other Securities Documents relating to the Collateral shall be deemed to relate
to such after-acquired
property to the same extent and with the same force and effect. In addition, the Company or
any Note Guarantor shall comply with the second sentence of Section 3.6.

          SECTION 12.5. Agreements Requiring Application of Proceeds of Collateral. The Company
shall, and shall cause each Note Guarantor to, at its sole cost and expense, execute and deliver
all such agreements and instruments as necessary or as the Collateral Agent, the Initial Holder or
Trustee shall reasonably request to more fully or accurately describe the assets

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and property
intended to be Collateral or the obligations intended to be secured by the Collateral Documents.

          SECTION 12.6. Real Estate Mortgages and Filings and Leasehold Interests. (a) With respect to any fee interest in certain real property interests identified in Schedule
11.5 to this Indenture (individually and collectively, the “Premises”) owned by the Company
or a Note Guarantor on the Issue Date or acquired by the Company or a Note Guarantor after the
Issue Date which has a value in excess of $1,000,000 that secures Credit Agreement Obligations:

	 	(1)	 	the Company shall deliver to the Collateral Agent, as mortgagee
or beneficiary, as applicable, fully executed counterparts of Mortgages, each
dated as of the Issue Date or, if later, the date such property is pledged to
secure the Credit Agreement Obligations, in accordance with the requirements of
this Indenture and/or the Collateral Documents, duly executed by the Company or
the applicable Note Guarantor, together with evidence of the completion (or
satisfactory arrangements for the completion) of all recordings and filings of
such Mortgage (and payment of any taxes or fees in connection therewith) as may
be necessary to create a valid, perfected at least third-priority Lien (subject
to Permitted Liens) against the properties purported to be covered thereby;
	 
	 	(2)	 	the Collateral Agent shall have received mortgagee’s title
insurance policies in favor of the Collateral Agent, as mortgagee for the
ratable benefit of itself, the Initial Holder, the Trustee, Holders and holders
of any Pari Passu Secured Indebtedness, in the form necessary, with respect to
the property purported to be covered by such Mortgage, to insure that the
interests created by the Mortgage constitute valid and at least third-priority
Liens on such property free and clear of all Liens, defects and encumbrances,
(other than Permitted Liens), each such title insurance policy to be in an
amount reasonably satisfactory to the Collateral Agent and such policies shall
also include, to the extent available at a commercially reasonable premium, the
endorsements equivalent to those delivered in connection with the Senior
Secured Credit Agreement and shall be accompanied by evidence of the payment in
full of all premiums thereon; and
	 
	 	(3)	 	the Company shall, or shall cause each Note Guarantor to,
deliver to the Collateral Agent, with respect to each of the covered Premises,
such filings, surveys (or any updates or affidavits that the title company may
reasonably require as necessary to issue the title insurance policies), local
counsel opinions, landlord agreements and fixture filings, along with such
other documents, instruments, certificates and agreements, as the Collateral
Agent and its counsel shall reasonably require to create, evidence or perfect a
valid and at least third-priority Lien on the property subject to each such
Mortgage (subject to Permitted Liens).

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          (b) With respect to any leasehold interest in certain real property identified in Schedule
11.5 to this Indenture (individually and collectively, the ‘‘Leased Premises’’) leased by
the Company or a Note Guarantor on the Issue Date or leased by the Company or a Note Guarantor
after the Issue Date, the Company shall, or shall cause each Note Guarantor to, deliver to the
Collateral Agent, with respect to each of the covered Leased Premises, any landlord waiver,
collateral access agreement or other agreement, in form and substance satisfactory to the
administrative agent under the Senior Secured Credit Agreement, between such administrative agent
and (i) any other person in possession of any Collateral and (ii) any landlord of the Company of
any Note Guarantor where any Collateral is located.

          SECTION 12.7. Release of Liens on the Collateral. (a) The Liens on the Collateral
will be released with respect to the Securities and the Note Guarantees, as applicable:

	 	(1)	 	in whole, upon payment in full of the principal of, accrued and
unpaid interest, including additional interest, and premium, if any, on the
Securities;
	 
	 	(2)	 	in whole, upon satisfaction and discharge of this Indenture in
accordance with Section 8.1(a);
	 
	 	(3)	 	in whole, upon a legal defeasance as set forth under Article
VIII;
	 
	 	(4)	 	in part, as to any asset constituting Collateral (A) that is
cash withdrawn from deposit accounts for any purpose permitted by this
Indenture, the Collateral Documents or the Intercreditor Agreement, (B) if all
other Liens on that asset securing the Credit Agreement Obligations, Senior
Indebtedness and any Pari Passu Secured Indebtedness then secured by that asset
(including all commitments thereunder) are released or (C) otherwise in
accordance with, and as expressly provided for under, this Indenture;
	 
	 	(5)	 	with the consent of the Initial Holder or holders of sixty-six
and two-thirds percent (66 2/3%) in aggregate principal amount of the
Securities (or, in the case of a release of all or substantially all
Collateral, each holder of the Securities affected thereby), including, without
limitation, consents
obtained in connection with a tender offer or exchange offer for, or
purchase of, Securities; and
	 
	 	(6)	 	with respect to assets of a Note Guarantor upon release of such
Note Guarantor from its Note Guarantee as set forth under Article XI above.

          (b) The Company and each Note Guarantor will furnish to the Initial Holder or the Trustee and
the Collateral Agent, prior to each proposed release of Collateral pursuant to Section 11.06(a)(1)
through (6) or pursuant to the Collateral Documents:

     (1) an Officers’ Certificate and an Opinion of Counsel to the effect that all
conditions precedent provided for in this Indenture and the Collateral Documents to such
release have been complied with;

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     (2) a form of such release (which release shall be in form reasonably satisfactory to
the Initial Holder or the Trustee and shall provide that the requested release is without
recourse or warranty to the Trustee);

     (3) all documents required by this Indenture, the Collateral Documents and the
Intercreditor Agreement; and

     (4) an Opinion of Counsel to the effect that such release and other accompanying
documents constitute all documents required by the Collateral Documents, the Intercreditor
Agreement and this Indenture.

Upon compliance by the Company or the Note Guarantors, as the case may be, with the conditions
precedent set forth above, and if required by this Indenture upon delivery by the Company or such
Note Guarantor to the Initial Holder or the Trustee an Opinion of Counsel to the effect that such
conditions have been complied with, the Initial Holder, the Trustee or the Collateral Agent shall
promptly cause to be released and reconveyed to the Company, or the relevant Note Guarantor, as the
case may be, the released Collateral, and the Trustee and Collateral Agent shall promptly execute
and deliver to the Company or the relevant Guarantor, as the case may be, such instruments of
release or reconveyance and other documents as the Company or such Guarantor may request.

          SECTION 12.8. Authorization of Actions to be Taken by the Trustee or the Collateral Agent
Under the Collateral Documents (a) Subject to the provisions of the Collateral Documents and
the Intercreditor Agreement, each of the Trustee or the Collateral Agent may, in its sole
discretion and without the consent of the Holders, on behalf of the Holders, and the Initial Holder
on its own behalf may, take all actions it deems necessary or appropriate in order to (i) enforce
any of its rights or any of the rights of the Initial Holder or the Holders under the Collateral
Documents and the Intercreditor Agreement and (ii) collect and receive any and all amounts payable
in respect of the Collateral in respect of the obligations of the Company and the Note Guarantors
hereunder and thereunder. Subject to the provisions of the Collateral Documents and the
Intercreditor Agreement, the Trustee or the Collateral Agent shall have the 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 that may be unlawful or in violation of the Collateral Documents, the
Intercreditor Agreement or this Indenture, and such suits and proceedings as the Initial Holder,
the Trustee or the Collateral Agent may deem expedient to preserve or protect its interest and the
interests of the Holders in the Collateral (including the 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 enforcement of,
or compliance with, such enactment, rule or order would impair the security interest hereunder or
be prejudicial to the interests of the Initial Holder, the Holders or the Trustee).

          (b) The Trustee or the Collateral Agent shall not be responsible for the existence,
genuineness or 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

113

 

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.

          (c) Where any provision of this Indenture requires that additional property or assets be added
to the Collateral, the Company and each Note Guarantor shall deliver to the Initial Holder, the
Trustee or the Collateral Agent the following:

     (i) a request from the Company that such Collateral be added;

     (ii) the form of instrument adding such Collateral, which, based on the type
and location of the property subject thereto, shall be in substantially the form of
the applicable Collateral Documents entered into on the date of this Indenture, with
such changes thereto as the Company shall consider appropriate, or in such other
form as the Company shall deem proper, provided that any such changes or such form
are administratively satisfactory to the Trustee or the Collateral Agent;

     (iii) an Officers’ Certificate to the effect that the Collateral being added is
in the form and consists of the assets required by this Indenture;

     (iv) an Officers’ Certificate and Opinion of Counsel to the effect that all
conditions precedent provided for in this Indenture to the addition of such
Collateral have been complied with, which Opinion of Counsel shall also opine as to
the creation and perfection of the Collateral Agent’s Lien on such Collateral and as
to the due authorization, execution, delivery, validity and enforceability of the
Collateral Document being entered into (in each case subject to customary
exceptions); and

     (v) such financing statements, if any, as the Company shall deem necessary to
perfect the Collateral Agent’s security interest in such Collateral.

ARTICLE XIII

MISCELLANEOUS

          SECTION 13.1. 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, and a Trustee has been appointed, the provision required by
the TIA shall control. Each Note 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.

114

 

          SECTION 13.2. 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

Sears Tower

233 South Wacker Drive

Chicago, IL 60606

if to the Initial Holder:

Merrill Lynch PCG, Inc.

4 World Financial Center

18th Floor

New York, NY 10080

Attn: Lawrence First

Facsimile No.: 212-449-4296

with copies to:

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036-6522

Attention: Robert Copen, Esq.

Facsimile No.: (212) 735-2000

          The Company, the Initial Holder 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).

115

 

          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 13.3. 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 13.4. 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 13.5. 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;

     (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.

116

 

          SECTION 13.6. 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 13.7. 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 13.8. 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 13.9. 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 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 13.10. 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
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 13.11. 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 13.12. 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.

117

 

          SECTION 13.13. 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 13.14. Force Majeure. In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including 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.

118

 

          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/ Scott Sellick
 	 
	 	 	Name:  	Scott Sellick 	 
	 	 	Title:  	Vice President and 

         Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LIBBEY INC.

 	 
	 	By:  	  /s/ Scott Sellick
 	 
	 	 	Name:  	Scott Sellick 	 
	 	 	Title:  	Vice President and 

         Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	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/ Scott Sellick
 	 
	 	 	Name:  	Scott Sellick 	 
	 	 	Title:  	Vice President and 

         Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CRISA INDUSTRIAL, L.L.C.

 	 
	 	By  	  /s/ Susan A. Kovach
 	 
	 	 	Name:  	Susan A. Kovach 	 
	 	 	Title:  	Vice President and General Counsel 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MERRILL LYNCH PCG, INC., 

 	 
	 	By  	  /s/ Neven Viducis
 	 
	 	 	Name:  	Neven Viducis 	 
	 	 	  Authorized Signatory 	 

 

 

	 	 	 	 	 

SCHEDULE 3.8

EXISTING AFFILIATE TRANSACTIONS

 

 

SCHEDULE 11.5

PREMISES AND LEASED PREMISES

 

 

EXHIBIT A

[FORM OF FACE OF CERTIFICATED NOTE]

[Applicable Restricted Securities Legend]

	 	 	 
	No.                    

	 	Principal Amount $

LIBBEY GLASS INC.

16% Senior Subordinated Pay-In-Kind Note due 2011

          Libbey Glass Inc., a Delaware corporation, promises to pay to MERRILL LYNCH PCG, INC., or its
registered assigns, the principal sum of
           DOLLARS, on December 1, 2011.

     Interest Payment Dates: June 1 and December 1 commencing on December 1, 2006

     Record Dates: May 15 and November 15

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

A-1

 

	 	 	 	 	 	 	 	 	 
	 	 	LIBBEY GLASS INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Scott Sellick	 	 
	 

	 	 	 	Title:
	 	Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 

A-2

 

[TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

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

as Trustee, certifies

that this is one of

the Securities referred

to in this Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Authorized Signatory	 	 

Date:]*

 

* if applicable

A-3

 

[FORM OF REVERSE SIDE OF CERTIFICATED NOTE]

LIBBEY GLASS INC.

16% Senior Subordinated Pay-In-Kind Note due 2011

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 of 16%, commencing
June 16, 2006 until maturity. The Company shall make each interest payment in semi-annually in
arrears on June 1 and December 1 of each year commencing December 1, 2006, 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). Beginning on the date hereof and through June 1, 2009, on each Interest Payment Date the
Company shall pay interest by issuing Additional Securities substantially in the form of this note
in a principal amount equal to the interest owning on such date. Thereafter, the Company shall
pay interest in cash. 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. 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. Interest will be computed on the basis of a 360 day year of
twelve 30-day months.

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, if payable through issuance of
Additional Securities, such Additional Securities in principal amount equal to the interest owning
on such Interest Payment Date shall be delivered to the Initial Holder or, if appointed, the
Trustee or the Paying Agent, and if payable in cash, the Company shall irrevocably deposit with the
Initial Holder or, if appointed, 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
May 15 or November 15 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 the Company or, if appointed, a Paying Agent to collect principal
payments. The Company will pay principal, premium, if any, and cash interest in money of the
United States that at the time of payment is legal tender for payment of public and private debts.
The Company will make all payments in respect of a

A-4

 

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 written notice to the Trustee or
the Paying Agent, if such have been appointed, or if not, to the Company 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 Company or the Trustee may accept in its discretion).

3.    Paying Agent and Registrar

          The Initial Holder or 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 June 16, 2006 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company, the Note Guarantors and the Merrill Lynch PCG, Inc. (the
“Initial Holder”) 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”), whether or not
subject to 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 subordinated secured obligations of the Company. The
aggregate principal amount of securities that may be executed, authenticated, if applicable, and
delivered under the Indenture is unlimited. This Security is one of the 16% Senior Subordinated
Notes due 2011 referred to in the Indenture. The Securities include (i) $102,000,000 aggregate
principal amount of 16% Senior Subordinated Pay-In-Kind Notes due 2011 issued on the date hereof
(the “Initial Securities”) and (ii) if and when issued, an unlimited principal amount of additional
Senior Subordinated Pay-In-Kind Notes due 2011 in a non-registered offering that may be offered
from time to time or issued as payment of interest on the Securities, in each case, subsequent to
the Issue Date (the “Additional Securities” and together with the Initial Securities, the
“Securities”). The Initial Securities and Additional 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 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.

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 XI of the Indenture on a senior subordinated
basis.

5.    Redemption

          Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to June 1, 2008. 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 June 1 of the years
set forth below:

	 	 	 	 	 
	Period	 	Percentage
	2008
	 	 	112.000	%
	2009
	 	 	108.000	%
	2010
	 	 	104.000	%
	2011 and thereafter
	 	 	100.000	%

          In addition, at any time and from time to time prior to June 1, 2008, 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 116% of the
principal amount thereof plus a premium equal to the interest rate per annum on the Securities
applicable on the date on which notice of redemption is given, plus accrued and unpaid interest, if
any, 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.

          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 Person
in whose name the Security is registered at the close of business on such record date,

A-6

 

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. 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 Initial Holder or the Paying Agent, if appointed, 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 5 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 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. Subordination

          The Securities are subordinated to Senior Indebtedness, as defined in the Indenture. To the
extent provided in the Indenture, Senior Indebtedness must be paid before the Securities may be
paid. The Company agrees, and each Holder by accepting a Security agrees, to the subordination
provisions contained in the Indenture and, if a Trustee has been appointed, authorizes the Trustee
to give them effect and appoints the Trustee as attorney-in-fact for such purpose.

8. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000 or, if issued in payment of interest on the Securities, in the
amount of such interest. 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

A-7

 

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.

9. Persons Deemed Owners

          The registered Holder of this Security may be treated as the owner of it for all purposes.

10. 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.

11. 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.

12. 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 Initial Holder or, if a Trustee has been
appointed, 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 Initial Holder or, if a Trustee has been appointed, 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
Initial Holder or 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; 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; release a Note Guarantor from its obligations under its
Note Guarantee or the Indenture in accordance with the applicable provisions of the Indenture;
release Liens in favor of the

A-8

 

Collateral Agent in the Collateral, as provided under Section 11.7 or otherwise in accordance
with this Indenture, the Collateral Documents or the Intercreditor Agreement; 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; or conform the text of the 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 apply to the Securities and was intended to be a verbatim recitation
of a provision of the Indenture, the Securities or the Note Guarantees; or make any change to the
subordination provisions of Article X or Section 11.5 of the Indenture or any other subordination
provisions of the Indenture that would limit or terminate the benefits available to any holder of
Senior Indebtedness of the Company or a holder of Guarantor Senior Indebtedness (or any
Representative thereof) under such subordination provisions.

13. 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 on any Security when due, continued for 30
days, whether or not such payment is prohibited by the provisions of Article X or Section 11.5 of
the Indenture; (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, whether or not such payment is prohibited by the provisions of Article X or Section 11.5
of the Indenture; (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 30 days after notice with (a) 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) or (b) any of its agreements contained
in the Collateral Documents or Intercreditor Agreement; (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 $15.0 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 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

A-9

 

Subsidiaries) would constitute a Significant Subsidiary to pay final judgments aggregating in
excess of $15.0 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 $15.0 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 either (i) the
Initial Holder or (ii) 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, either (i) the Initial Holder by notice to the Company, (ii) the Trustee by notice
to the Company, or (iii) 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.

14. Trustee Dealings with the Company

          Subject to certain limitations set forth in the Indenture, the Trustee, if appointed under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of

A-10

 

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.

15. 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.

16. Authentication

          If a Trustee has been appointed, a Security shall not be valid until an authorized signatory
of the Trustee manually authenticates the Security, otherwise the signature of an Officer shall be
sufficient.

17. 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).

18. 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.

19. Governing Law

          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York.

A-11

 

          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 two years 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 ̈

	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	 
	2 ̈

	 	transferred to the Company; or
	 
	 	 
	3 ̈

	 	transferred pursuant to an effective registration statement under the Securities
Act; or
	 
	 	 
	4 ̈

	 	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 4 is checked, the Trustee or the Company may request, prior to

A-13

 

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.

	 	 	 
	 

	 	 
	 

	 	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.

A-14

 

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:

	 	 	 	 	 	 	 
	 
	 	 ̈
	 	 ̈
	 	 
	 
	 	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:
$                                                            

			
	 	 	 
	Date:                                        
	 	Your Signature:                                                                           
                          

(Sign exactly as your name appears on the other side of the Security)

	 	 	 
	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-15

 

EXHIBIT B

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
Merill Lynch PCG, Inc. (the “Initial Holder”) under the Indenture referred to below.

W I T N E S S E T H:

          WHEREAS, the Company, the Subsidiary Guarantors and the Initial Holder have heretofore executed
and delivered an Indenture, dated as of June 16, 2006 (as amended, supplemented, waived or
otherwise modified, the “Indenture”), providing for the issuance of 16% Senior Subordinate
Pay-In-Kind Notes due 2011 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 Initial Holder or 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
subordinated basis; and

          WHEREAS, pursuant to Section 10.1 of the Indenture, the Initial Holder or 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 Initial Holder or 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 Initial Holder and 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

B-1

 

this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any
particular section hereof.

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 XI of the
Indenture on a senior subordinated 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.

C-2

 

          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.

          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]
	 
	 	 	 	 
	 	 	MERRILL LYNCH PCG, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Authorized Signatory
	 
	 	 	 	 
	 	 	LIBBEY GLASS INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[EXISTING GUARANTORS]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

C-4

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