Document:

Exhibit 4.1

RIVERWOOD HOLDING, INC.

and

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCATION

 

 

RIGHTS AGREEMENT

 

Dated as of August 7, 2003

 

 

TABLE OF CONTENTS 

	
   

  	
   

  	
  Page

  
	
  Section 1.

  	
  Certain Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
   Section 2.

  	
  Appointment
  of Rights Agent

  	
  6

  
	
   

  	
   

  	
   

  
	
   Section 3.

  	
  Issuance
  of Right Certificates

  	
  6

  
	
   

  	
   

  	
   

  
	
   Section 4.

  	
  Form of
  Right Certificates

  	
  7

  
	
   

  	
   

  	
   

  
	
   Section 5.

  	
  Countersignature
  and Registration

  	
  7

  
	
   

  	
   

  	
   

  
	
   Section 6.

  	
  Transfer, Split Up,
  Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or
  Stolen Right Certificates

  	
  8

  
	
   

  	
   

  	
   

  
	
   Section 7.

  	
  Exercise
  of Rights; Purchase Price; Expiration Date of Rights

  	
  9

  
	
   

  	
   

  	
   

  
	
   Section 8.

  	
  Cancellation
  of Right Certificates

  	
  10

  
	
   

  	
   

  	
   

  
	
   Section 9.

  	
  Reservation
  and Availability of Capital Stock

  	
  10

  
	
   

  	
   

  	
   

  
	
   Section 10.

  	
  Preferred
  Stock Record Date

  	
  11

  
	
   

  	
   

  	
   

  
	
   Section 11.

  	
  Adjustment
  of Purchase Price, Number and Kind of Shares or Number of Rights

  	
  12

  
	
   

  	
   

  	
   

  
	
   Section 12.

  	
  Certificate
  of Adjusted Purchase Price or Number of Shares

  	
  18

  
	
   

  	
   

  	
   

  
	
   Section 13.

  	
  Consolidation,
  Merger or Sale or Transfer of Assets, Cash Flow or Earning Power

  	
  18

  
	
   

  	
   

  	
   

  
	
   Section 14.

  	
  Fractional
  Rights and Fractional Shares

  	
  20

  
	
   

  	
   

  	
   

  
	
   Section 15.

  	
  Rights of Action

  	
  21

  
	
   

  	
   

  	
   

  
	
   Section 16.

  	
  Agreement
  of Right Holders

  	
  21

  
	
   

  	
   

  	
   

  
	
   Section 17.

  	
  Right
  Certificate Holder Not Deemed a Stockholder

  	
  22

  
	
   

  	
   

  	
   

  
	
   Section 18.

  	
  Concerning
  the Rights Agent

  	
  22

  
	
   

  	
   

  	
   

  
	
   Section 19.

  	
  Merger
  or Consolidation or Change of Name of Rights Agent

  	
  22

  
	
   

  	
   

  	
   

  
	
   Section 20.

  	
  Duties of
  Rights Agent

  	
  23

  
	
   

  	
   

  	
   

  
	
   Section 21.

  	
  Change of
  Rights Agent

  	
  24

  
	
   

  	
   

  	
   

  
	
   Section 22.

  	
  Issuance
  of New Right Certificates

  	
  25

  
	
   

  	
   

  	
   

  

 

 

	
   Section 23.

  	
  Redemption

  	
  25

  
	
   

  	
   

  	
   

  
	
   Section 24.

  	
  Exchange

  	
  26

  
	
   

  	
   

  	
   

  
	
   Section 25.

  	
  Notice of
  Certain Events

  	
  27

  
	
   

  	
   

  	
   

  
	
   Section 26.

  	
  Notices

  	
  28

  
	
   

  	
   

  	
   

  
	
   Section 27.

  	
  Supplements and Amendments

  	
  28

  
	
   

  	
   

  	
   

  
	
   Section 28.

  	
  Successors

  	
  29

  
	
   

  	
   

  	
   

  
	
   Section 29.

  	
  Determinations
  and Actions by the Board of Directors, etc.

  	
  29

  
	
   

  	
   

  	
   

  
	
   Section 30.

  	
  Benefits
  of this Agreement

  	
  29

  
	
   

  	
   

  	
   

  
	
   Section 31.

  	
  Severability

  	
  29

  
	
   

  	
   

  	
   

  
	
   Section 32.

  	
  Governing Law

  	
  30

  
	
   

  	
   

  	
   

  
	
   Section 33.

  	
  Counterparts

  	
  30

  
	
   

  	
   

  	
   

  
	
   Section 34.

  	
  Descriptive
  Headings

  	
  30

  
	
   

  	
   

  	
   

  
	
   Exhibit A — Form of Certificate of
  Designation

  	
  31

  
	
   

  	
   

  
	
   Exhibit B — Form of Right Certificate

  	
  36

  
	
   

  	
   

  
	
   Exhibit C — Summary of Rights to
  Purchase Preferred Stock

  	
  43

  
	
   

  	
   

  

 

RIGHTS
AGREEMENT

This Rights Agreement, dated as of August 7, 2003 (the
“Agreement”), between Riverwood
Holding, Inc., to be renamed Graphic Packaging Corporation, a Delaware
corporation (the “Corporation”),
and Wells Fargo Bank Minnesota, National Association, a national banking
association (the “Rights Agent”),

W I T N E S S E T H:

WHEREAS, the Board of Directors of the Corporation has
authorized the issuance of one Right (each, a “Right”)
with respect to each share of Common Stock (as hereinafter defined) of the
Corporation issued and outstanding as of the Close of Business (as hereinafter
defined) on August 8, 2003 (the “Record
Date”), each Right initially representing the right to purchase one
one-thousandth of a share of Series A Junior Participating Preferred
Stock, par value $0.01 per share (as such number may be adjusted pursuant to
the provisions of this Agreement) of the Corporation having the rights and
preferences set forth in the Certificate of Designation attached hereto as Exhibit A, upon the terms and subject
to the conditions hereinafter set forth, and has further authorized and
directed the issuance of one Right (as such number may be adjusted pursuant to
the provisions of this Agreement) with respect to each share of Common Stock
that shall become outstanding (whether originally issued or delivered from the
Corporation’s treasury) between the Record Date and the earlier of the
Distribution Date and the Expiration Date (as such terms are hereinafter
defined), and in certain circumstances after the Distribution Date;

NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows:

Section 1. Certain
Definitions. For purposes of this Agreement, the
following terms have the meanings indicated:

(a)       “Acquiring Person” shall mean any Person
who or which, together with all Affiliates and Associates of such Person, shall
be the Beneficial Owner of 15% or more of the shares of Common Stock of the
Corporation then outstanding, but shall not include any Exempt Person; provided, however, an “Acquiring Person”
shall also not include any Grandfathered Person, unless such Grandfathered
Person shall become, at any time after the Grandfathered Time, the Beneficial
Owner of more than the Grandfathered Percentage of the shares of Common Stock
of the Corporation applicable to such Grandfathered Person. Notwithstanding the
foregoing:

(i)    no
Person shall become an “Acquiring Person” as the result of an acquisition of
shares of Common Stock by the Corporation which, by reducing the number of
shares of Common Stock outstanding, increases the proportionate number of
shares Beneficially Owned by such Person to 15% or more of the shares of Common
Stock of the Corporation then outstanding (or, in the case of a Grandfathered
Person, a percentage of the shares of the Common Stock of the Corporation
greater than the Grandfathered Percentage applicable to such Grandfathered
Person), provided, however, that if a Person shall become the
Beneficial Owner of 15% or more of the shares of Common Stock of the
Corporation (or, in the case of a Grandfathered Person, of a percentage of the
shares of the Common Stock of the Corporation greater than the Grandfathered
Percentage applicable to such Grandfathered Person) by reason of share purchases
by the Corporation and shall, after such share purchases by the Corporation,
become the Beneficial Owner of any additional shares of Common Stock of the
Corporation (other than from the Corporation pursuant to a stock dividend,
reclassification or stock split), then such Person shall be deemed to be an
“Acquiring Person” unless, upon becoming the Beneficial Owner of such
additional shares of Common Stock of the Corporation, such Person is not then
the Beneficial Owner of 15% or more of the shares of Common Stock of the
Corporation then outstanding (or, in the case of a Grandfathered Person, of a
percentage of the shares of the Common Stock of the Corporation greater than
the Grandfathered Percentage applicable to such Grandfathered Person);

 

1

 

(ii)   if
the Board of Directors of the Corporation determines in good faith that a
Person who would otherwise be an “Acquiring Person” has become such
inadvertently (including, without limitation, because (A) such Person was unaware that he or it
Beneficially Owned a percentage of Common Stock that would otherwise cause such
Person to be an “Acquiring Person” or (B)
such Person was aware of the extent of his or its Beneficial Ownership but had
no actual knowledge of the consequences of such Beneficial Ownership under this
Agreement) and without any intention of changing or influencing control of the
Corporation, and if such Person as promptly as practicable has divested or
divests himself or itself of Beneficial Ownership of a sufficient number of
shares of Common Stock so that such Person would no longer be an “Acquiring
Person,” then such Person shall not be deemed to be or to have become an
“Acquiring Person” for any purposes of this Agreement;

(iii)  no
Person shall become an “Acquiring Person” by virtue of beneficial ownership of
Common Stock of the Corporation by any Affiliate and/or Associate of such
Person, which Affiliate and/or Associate is deemed to be an Affiliate and/or
Associate of such Person solely by reason of such Affiliate and/or Associate
being a director or officer of the Corporation;

(iv)  no
Person shall become an “Acquiring Person” by virtue of beneficial ownership of
Common Stock of the Corporation by any Affiliate and/or Associate of such
Person, which Affiliate and/or Associate is a Grandfathered Person or other
party to the Stockholders Agreement and such Grandfathered Person or other
party to the Stockholders Agreement has not become an Acquiring Person; and

(v)   to
the extent that any Grandfathered Persons, former Grandfathered Persons or
Permitted Transferees are subject to the Stockholders Agreement and to the
extent that such Persons as parties to the Stockholders Agreement could be
deemed a “group” (as such term is used in Rule 13d-5 of the General Rules
and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date
of this Agreement), (x) no Grandfathered Person shall become an “Acquiring
Person” unless and until such Grandfathered Person becomes the Beneficial Owner
of more than the Grandfathered Percentage of the shares of Common Stock of the
Corporation applicable to such Grandfathered Person without including the
number of shares Beneficially Owned by the other parties to the Stockholders Agreement
attributable to such Grandfathered Person by virtue of the Stockholders
Agreement and (y) no former Grandfathered Person or Permitted Transferee party
to the Stockholders Agreement shall become an “Acquiring Person” unless and
until such Person would be an Acquiring Person without taking into account the
number of shares Beneficially Owned by the other parties to the Stockholders
Agreement attributable to such Person by virtue of the Stockholders Agreement.

(b)      “Act” shall have the meaning set forth in Section 9(c)
hereof.

(c)       “Adjustment Shares” shall have the meaning
set forth in Section 11(a)(ii) hereof.

(d)      “Affiliate” and “Associate,” when used with reference to any Person, shall
have the respective meanings ascribed to such terms in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act, as in effect on the date
of this Agreement.

(e)       “Agreement” shall have the meaning set
forth in the first paragraph hereof.

(f)       A Person
shall be deemed the “Beneficial Owner”
of and shall be deemed to “beneficially own” any securities:

(i)       which
such Person or any of such Person’s Affiliates or Associates beneficially owns,
directly or indirectly, for purposes of Section 13(d) of the Exchange Act
and Rule 13d-3 thereunder (or any successor law or regulation) (without
taking account the number of shares Beneficially Owned by the other parties to
the Stockholders Agreement that may be attributable to such Person by virtue of
the Stockholders Agreement);

(ii)      which
such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing), or upon the exercise
of conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however, that a Person shall not be deemed
the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant to a
tender or exchange offer made by or on behalf of such Person or any of such
Person’s Affiliates or Associates until such tendered securities are accepted
for payment or exchange, or (B)
securities issuable upon exercise of Rights at any time prior to the occurrence
of a Section 11(a)(ii) Event or a Section 13 Event, or (C) securities issuable upon exercise of
Rights from and after the occurrence of a Section 11(a)(ii) Event or
a Section 13 Event, which Rights were acquired by such Person or any of
such Person’s Affiliates or Associates

 

2

 

prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 hereof (“Original
Rights”) or pursuant to Section 11(i) hereof in connection
with an adjustment made with respect to any Original Rights;

(iii)     which
such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has or shares the right to vote or dispose of, including pursuant
to any agreement, arrangement or understanding (whether or not in writing); provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to
“beneficially own,” any security if the agreement, arrangement or understanding
to vote such security (A) arises
solely from a revocable proxy or consent given in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the Exchange Act
and the applicable rules and regulations thereunder and (B) is not also then reportable by such
Person on Schedule 13D under the Exchange Act (or any comparable or
successor report); or

(iv)     which
are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) and with respect to which such Person or any of
such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (whether or not in writing) for the purpose of acquiring,
holding, voting (except pursuant to a revocable proxy or consent as described
in the proviso to subparagraph (iii) of this paragraph (f)) or
disposing of such securities of the Corporation; provided, however,
that nothing in this paragraph (f) shall cause a person engaged in
business as an underwriter of securities to be the “Beneficial Owner” of, or to
“beneficially own,” any securities acquired through such person’s participation
in good faith in a firm commitment underwriting until the expiration of forty
days after the date of such acquisition.

(g)      “Book-Entry” shall mean an uncertificated
book entry for the Corporation’s Common Stock.

(h)      “Business Day” shall mean any day other
than a Saturday, Sunday or day on which the Rights Agent is authorized or
obligated by law or executive order to close.

(i)        “CDR Fund” shall mean Clayton,
Dubilier & Rice Fund V Limited Partnership, an exempted limited
partnership organized under the laws of the Cayman Islands.

(j)        “Certificate of Designation” shall mean the
Certificate of Designation of Series A Junior Participating Preferred
Stock setting forth the powers, preferences, rights, qualifications,
limitations and restrictions of such series of preferred stock of the
Corporation, a copy of which is attached hereto as Exhibit A.

(k)       “Close of Business” on any given date shall
mean 5:00 P.M., Eastern time, on such date; provided, however,
that if such date is not a Business Day, it shall mean 5:00 P.M., Eastern
time, on the next succeeding Business Day.

(l)        “Common Stock” when used with reference to
the Corporation shall mean the Common Stock, par value $0.01 per share, of the
Corporation. “Common Stock” when used with reference to any Person other than
the Corporation which is organized in corporate form shall mean the capital
stock with the greatest voting power, or the equity securities or other equity
interest having power to control or direct the management, of such Person or,
if such Person is a Subsidiary of another Person, the Person which ultimately
controls such first-mentioned Person and which has issued any such outstanding
capital stock, equity securities or equity interests. “Common Stock” when used
with reference to any Person that is not organized in corporate form shall mean
units of beneficial interest that shall (i)
represent the right to participate generally in the profits and losses of such
Person (including, without limitation, any flow-through tax benefits resulting
from an ownership interest in such Person) and (ii) be entitled to exercise the greatest voting power of
such Person or, in the case of a limited partnership, shall have the power to
remove the general partner or partners.

(m)      “Common Stock Equivalents” shall have the
meaning set forth in Section 11(a)(iii) hereof.

 

3

 

(n)      “Corporation” shall have the meaning set
forth in the first paragraph of this Agreement.

(o)      “Current Market Price” shall have the meaning
set forth in Section 11(d) hereof.

(p)      “Current Value” shall have the meaning set
forth in Section 11(a)(iii) hereof.

(q)      “Distribution Date” shall have the meaning
set forth in Section 3(a) hereof.

(r)       “Equivalent Preference Stock” shall have
the meaning set forth in Section 11(b) hereof.

(s)       “Exchange Act” shall have the meaning set
forth in Section 1(d) hereof.

(t)       “Exempt Person” means the Corporation, any
Subsidiary of the Corporation, any employee benefit plan of the Corporation or
any Subsidiary of the Corporation, or any Person organized, appointed or
established by the Corporation or such Subsidiary as a fiduciary for or
pursuant to the terms of any such employee benefit plan or for the purpose of
funding any such plan or funding other employee benefits for employees of the
Corporation or of any Subsidiary of the Corporation.

(u)      “EXOR” shall mean EXOR Group S.A., an
investment holding company organized under the laws of Luxembourg.

(v)      “Expiration Date” shall have the meaning
set forth in Section 7(a) hereof.

(w)      “Family
Stockholders” shall have the meaning given to such term in the Stockholders
Agreement.

(x)       “Family Stockholder Group” shall mean
collectively any and all of the following Persons, or any of the immediate
transferees of Common Stock of any of the following Persons: the Family
Stockholders, any trust the primary beneficiaries of which are descendants of
Adolph Coors, Sr. or spouses of such descendants, any individual who or entity
which has been, is or in the future becomes a trustee of any such trusts and/or
any Person to whom a Family Stockholder shall transfer Common Stock pursuant to
Section 3.2 of the Stockholders Agreement.

(y)      “Final Expiration Date” shall have the
meaning set forth in Section 7(a) hereof.

(z)       “Grandfathered Percentage” shall mean the
following percentages of the outstanding shares of Common Stock of the
Corporation that each such Grandfathered Person, together with all respective
Affiliates and Associates of such Grandfathered Person, Beneficially Owns as of
the Grandfathered Time, plus an additional 2.0%: in the case of (i) the CDR Fund, 18%; (ii) EXOR, 18%; and (iii) the Family Stockholder Group, 33%.
Notwithstanding the foregoing, in the event any Grandfathered Person shall
sell, transfer, or otherwise dispose of any outstanding shares of Common Stock
of the Corporation after the Grandfathered Time, the Grandfathered Percentage
shall, subsequent to such sale, transfer or disposition, mean, with respect to
such Grandfathered Person, the lesser of (i) the Grandfathered Percentage
as in effect immediately prior to such sale, transfer or disposition or
(ii) the percentage of outstanding shares of Common Stock of the
Corporation that such Grandfathered Person, together with all Affiliates and
Associates of such Grandfathered Person Beneficially Owns immediately following
such sale, transfer or disposition plus an additional 2.0%.

(aa)     “Grandfathered Person” shall mean any one
or more of the following Persons: the CDR Fund, EXOR and the Family Stockholder
Group for so long as each such Person, together with its respective Affiliates
and Associates, shall be the Beneficial Owner of greater than 15% of the shares
of Common Stock of the Corporation then outstanding (without including the
number of shares Beneficially Owned by the other parties to the Stockholders
Agreement attributable to such Grandfathered Person by virtue of the
Stockholders Agreement), provided
that such Person shall cease to be a Grandfathered Person at such time when
such Person, together with its respective Affiliates and Associates, shall
become the Beneficial Owners of less than 15% of the shares of Common Stock of
the Corporation then outstanding (without including the number of shares
Beneficially Owned by the other parties to the Stockholders Agreement
attributable to such Grandfathered Person by virtue of the Stockholders
Agreement).

(bb)    “Grandfathered Time” shall mean the
Effective Time (as such term is defined in the Agreement and Plan of Merger,
among the Corporation, Riverwood Acquisition Sub LLC and Graphic Packaging
International Corporation, dated as of March 25, 2003, as amended).

(cc)     “NASDAQ” shall have the meaning set forth
in Section 11(d)(i) hereof.

(dd)    “Original Rights” shall have the meaning
set forth in Section 1(f)(i) hereof.

 

4

 

(ee)     “Ownership Statements” shall have the
meaning set forth in Section 3(a) hereof.

(ff)      “Permitted Transferee” shall have the
meaning given to such term in the Stockholders Agreement.

(gg)    “Person” shall mean any individual, firm,
corporation, partnership, trust or other entity and shall include any successor
(by merger or otherwise) of such entity. For the purposes of this Agreement,
the Family Stockholder Group shall be deemed to be a single Person.

(hh)    “Post-Event Transferee” shall have the
meaning set forth in Section 7(e) hereof.

(ii)       “Pre-Event Transferee” shall have the
meaning set forth in Section 7(e) hereof.

(jj)       “Preferred Stock” shall mean shares of
Series A Junior Participating Preferred Stock, par value $0.01 per share,
of the Corporation, having the rights, powers and preferences, and the
qualifications, limitations and restrictions set forth in the Certificate of
Designation, and, to the extent there are not a sufficient number of shares of
Series A Junior Participating Preferred Stock authorized to permit the
full exercise of the then outstanding Rights, shares of Equivalent Preference
Stock or any other series of preferred stock of the Corporation designated for
such purpose by the Board of Directors of the Corporation containing terms
substantially similar to the terms of the Series A Junior Participating
Preferred Stock.

(kk)     “Principal Party” shall have the meaning
set forth in Section 13(b) hereof.

(ll)       “Purchase Price” shall have the meaning set
forth in Section 4 hereof.

(mm)   “Record Date” shall have the meaning set
forth in the WHEREAS clause at the beginning of this Agreement.

(nn)    “Redemption Price” shall have the meaning
set forth in Section 23(a) hereof.

(oo)    “Right Certificate” shall have the meaning
set forth in Section 3(a) hereof.

(pp)    “Rights” shall have the meaning set forth
in the WHEREAS clause at the beginning of this Agreement.

(qq)    “Rights Agent” shall have the meaning set
forth in the first paragraph of this Agreement.

(rr)      “Section 11(a)(ii) Event” shall
have the meaning set forth in Section 11(a)(ii) hereof.

(ss)     “Section 13 Event” shall have the
meaning set forth in Section 13(a) hereof.

(tt)      “Spread” shall have the meaning set forth
in Section 11(a)(iii) hereof.

(uu)    “Stock Acquisition Time” shall mean the
time of occurrence of whichever of the following first occurs: (i) the first public announcement (which,
for purposes of this definition, shall include, without limitation, a report
filed pursuant to Section 13(d) of the Exchange Act) by the Corporation or
an Acquiring Person that an Acquiring Person has become such or (ii) the communication to the Corporation
(including, without limitation, to the directors of the Corporation) of any
notice (including, without limitation, any written consent or notice related
thereto) from the Acquiring Person indicating or reflecting that the Acquiring
Person has become such.

(vv)    “Stockholders Agreement” shall mean the
Stockholders Agreement, dated as of March 25, 2003, as amended, by and
among the Corporation, the Persons listed on Schedule I thereto, the CDR
Fund, and EXOR.

(ww)   “Subsidiary” shall mean, with respect to
any Person, any corporation or other entity of which securities or other
ownership interests having ordinary voting power sufficient, in the absence of
contingencies, to elect a majority of the board of directors or other persons
performing similar functions are at the time beneficially owned, directly or
indirectly, by such Person, or otherwise controlled by such Person.

(xx)     “Substitution Period” shall have the
meaning set forth in Section 11(a)(iii) hereof.

 

5

 

(yy)    “Trading Day” shall have the meaning set
forth in Section 11(d)(i) hereof.

(zz)     “Voting Stock” shall mean (i) the shares of Common Stock of the
Corporation and (ii) any other
shares of capital stock of the Corporation entitled to vote generally in the
election of directors or entitled to vote together with the shares of Common
Stock in respect of any merger, consolidation, sale of all or substantially all
of the Corporation’s assets, liquidation, dissolution or winding up.

Section 2. Appointment
of Rights Agent. The Corporation hereby appoints the Rights Agent to act as
agent for the Corporation and the holders of the Rights (who, in accordance
with Section 3 hereof, shall prior to the Distribution Date also be the
holders of the Common Stock of the Corporation) in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment.
The Corporation may from time to time act as co-Rights Agent or appoint such
co-Rights Agents as it may deem necessary or desirable, upon 10 days’
prior written notice to the Rights Agent. The Rights Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or omissions of any
such co-Rights Agent. Any actions which may be taken by the Rights Agent
pursuant to the terms of this Agreement may be taken by any such Co-Rights
Agent.

Section 3. Issuance
of Right Certificates.

(a)       Until the
earlier of the Close of Business on (i)
the tenth day after the date on which the Stock Acquisition Time occurs, or (ii) the tenth Business Day (or such
specified or unspecified later date on or after the Record Date as may be
determined by action of the Board of Directors of the Corporation prior to such
time as any Person becomes an Acquiring Person) after the commencement by any
Person (other than an Exempt Person) of, or the first public announcement of
the intention of any Person (other than an Exempt Person) to commence, a tender
or exchange offer for an amount of Common Stock of the Corporation which,
together with the shares of such stock already owned by such Person, would
result in such Person becoming an Acquiring Person (including any such date
that is after the date of this Agreement and prior to the issuance of the
Rights) (the earlier of (i) and (ii) being herein referred to as the
“Distribution Date”), (x) the Rights will be evidenced by a
current ownership statement issued with respect to uncertificated shares of
Common Stock in lieu of a stock certificate (an “Ownership Statement”), or by the certificates for shares of
Common Stock of the Corporation registered in the names of the holders thereof,
and not by separate Book-Entries and Ownership Statements or by separate Rights
Certificates, and (y) the Rights
will be transferable only in connection with the transfer of the underlying
Common Stock. As soon as practicable after the Distribution Date, the Rights
Agent will send, by first-class, insured, postage-prepaid mail, to each record
holder of Common Stock of the Corporation as of the Close of Business on the
Distribution Date, at the address of such holder shown on the records of the
Corporation, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right
for each share of Common Stock of the Corporation so held, subject to
adjustment and to the provisions of Section 14(a) hereof. As of the Close
of Business on the Distribution Date, the Rights will be evidenced solely by
such Right Certificates.

(b)      On the Record
Date or as soon as practicable thereafter, the Corporation will send a copy of
a Summary of Rights to Purchase Preferred Stock, in substantially the form
attached hereto as Exhibit C,
by first-class, postage-prepaid mail, to each record holder of its Common Stock
as of the Close of Business on the Record Date, at the address of such holder
shown on the records of the Corporation. With respect to Book-Entries and Ownership
Statements or certificates for Common Stock of the Corporation outstanding as
of the Record Date, until the earlier of the Distribution Date or the
Expiration Date, the Rights will be evidenced by such Book-Entries and
Ownership Statements or certificates for Common Stock together with the Summary
of Rights. Until the earlier of the Distribution Date or the Expiration Date,
the transfer of any Common Stock represented by a Book-Entry and Ownership
Statement or the surrender for transfer of any certificate for Common Stock of
the Corporation outstanding on the Record Date, with or without a copy of the
Summary of

 

6

 

Rights, shall also constitute the transfer of the Rights
associated with the Common Stock represented by such Book-Entry and Ownership
Statement or certificate.

(c)    Certificates
(or Ownership Statements) issued by the Corporation for Common Stock (whether
upon transfer or exchange of outstanding Common Stock, original issuance or
disposition from the Corporation’s treasury) after the Record Date but prior to
the earlier of the Distribution Date or the Expiration Date shall also be
deemed to be certificates for the Rights and shall have impressed on, printed
on, written on or otherwise affixed to them the following legend:

This [certificate][statement] also
evidences and entitles the holder hereof to certain Rights as set forth in a
Rights Agreement between the Corporation and Wells Fargo Bank Minnesota,
National Association, as it may be amended from time to time (the “Rights Agreement”), the terms of which are
hereby incorporated herein by reference and a copy of which is on file at the
principal executive offices of the Corporation. Under certain circumstances, as
set forth in the Rights Agreement, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this [certificate][statement].
The Corporation will mail to the holder of this [certificate][statement] a copy
of the Rights Agreement (as in effect on the date of mailing) without charge
promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights
Agreement, Rights beneficially owned by an Acquiring Person, or any Associate
or Affiliate thereof (as such terms are defined in the Rights Agreement),
whether currently held by or on behalf of such Person or by any subsequent
holder, may become null and void.

With respect to such certificates (or Ownership Statements)
containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights
associated with the Common Stock of the Corporation represented by such
certificates or evidenced by such Ownership Statements shall be evidenced by
such certificates or Ownership Statements alone and registered holders of
Common Stock of the Corporation shall also be the registered holders of the
associated Rights, and the surrender for transfer of any of such certificates
shall also constitute the transfer of the Rights associated with the Common
Stock of the Corporation represented by such certificates or Ownership
Statements.

Notwithstanding this paragraph (c), the omission of a
legend shall not affect the enforceability of any part of this Agreement or the
rights of any holder of the Rights.

Section 4. Form of
Right Certificates.

The Right Certificates (and the forms of election to
purchase, certification and assignment to be printed on the reverse thereof)
shall each be substantially in the form set forth in Exhibit B hereto and may have such marks of
identification or designation and such legends, summaries or endorsements
printed thereon as the Corporation may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or national market
system on which the Rights may from time to time be listed, or to conform to
usage. Subject to the provisions of Sections 11 and 22 hereof, the Right
Certificates, whenever distributed, on their face shall entitle the holders
thereof to purchase such number of one one-thousandths of a share of Preferred
Stock as shall be set forth therein at the price per one one-thousandths of a
share of Preferred Stock set forth therein (the “Purchase Price”), but the amount and type of securities
purchasable upon the exercise of each Right and the Purchase Price thereof
shall be subject to adjustment as provided in this Agreement.

Section 5. Countersignature
and Registration.

(a)       The Right
Certificates shall be executed on behalf of the Corporation manually or by
facsimile by the Chairman of the Board, the President and Chief Executive
Officer, the Chief Financial Officer, the Treasurer, the General Counsel and
also by any Secretary or any Assistant Secretary, either

 

7

 

manually
or by facsimile. The Right Certificates shall be countersigned by the Rights
Agent manually and shall not be valid for any purpose unless so countersigned.
In case any officer of the Corporation who shall have signed any of the Right
Certificates shall cease to be such officer of the Corporation before
countersignature by the Rights Agent and issuance and delivery by the
Corporation, such Right Certificates, nevertheless, may be countersigned by the
Rights Agent, and issued and delivered by the Corporation with the same force
and effect as though the person who signed such Right Certificates had not
ceased to be such officer of the Corporation; and any Right Certificate may be
signed on behalf of the Corporation by any person who, at the actual date of
the execution of such Right Certificate, shall be a proper officer of the
Corporation to sign such Right Certificate, although at the date of the
execution of this Rights Agreement any such person was not such an officer.

(b)      Following the
Distribution Date, the Rights Agent will keep or cause to be kept, at its
office designated for such purposes, books in any form or medium (including
electronic media) for registration and transfer of the Right Certificates
issued hereunder. Such books shall show the names and addresses of the
respective holders of the Right Certificates, the number of Rights evidenced by
each of the Right Certificates on its face and the date and certificate number
of each of the Right Certificates.

Section 6. Transfer, Split Up, Combination and
Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates.

(a)      Subject
to the provisions of Sections 7(e) and 14 hereof, at any time after the Close
of Business on the Distribution Date, and at or prior to the Close of Business
on the Expiration Date, any Right Certificate or Right Certificates may be
transferred, split up, combined or exchanged for another Right Certificate or
Right Certificates, entitling the registered holder to purchase a like number
of shares of Preferred Stock (or other securities, cash or assets, as the case
may be) as the Right Certificate or Right Certificates surrendered then
entitled such holder (or former holder in the case of a transfer) to purchase.
Any registered holder desiring to transfer, split up, combine or exchange any
Right Certificate or Right Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Right Certificate or
Right Certificates to be transferred, split up, combined or exchanged at the
office of the Rights Agent designated for such purpose. Neither the Rights
Agent nor the Corporation shall be obligated to take any action whatsoever with
respect to the transfer of any such surrendered Right Certificate or Right
Certificates until the registered holder shall have completed and signed the
certificate contained in the form of assignment on the reverse side of such
Right Certificate or Right Certificates and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Corporation shall reasonably
request. Thereupon the Rights Agent shall, subject to Sections 7(e) and 14
hereof, countersign and deliver to the Person entitled thereto a Right
Certificate or Right Certificates, as the case may be, as so requested. The
Corporation may require payment from the holders of Right Certificates of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of such Right
Certificates.

(b)      Upon
receipt by the Corporation and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a valid
Right Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them, and reimbursement to the Corporation
and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Right Certificate if
mutilated, the Corporation will execute and deliver a new Right Certificate of
like tenor to the Rights Agent for countersignature and delivery to the
registered owner in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

 

8

 

Section 7. Exercise
of Rights; Purchase Price; Expiration Date of Rights.

(a)       Subject to
Section 7(e) hereof, the registered holder of any Right Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein
including, without limitation, the restrictions on exercisability set forth in Sections
9(c), 11(a)(iii) and 23(a) hereof) in whole or in part at any time after
the Distribution Date upon surrender of the Right Certificate, with the form of
election to purchase and certificate on the reverse side thereof duly executed,
to the Rights Agent at the office of the Rights Agent designated for such
purpose, together with payment of the Purchase Price for each one
one-thousandth of a share of Preferred Stock as to which the Rights are
exercised, at or prior to the earliest of (i)
the Close of Business on August 8, 2013 [10 years after Record Date]
(the “Final Expiration Date”), (ii) the time at which the Rights are
redeemed as provided in Section 23 or (iii)
the time at which the Rights are exchanged as provided in Section 24 (the
earliest of (i), (ii) and (iii) being herein referred to as the “Expiration Date”).

(b)      The Purchase
Price for each one one-thousandth of a share of Preferred Stock issued pursuant
to the exercise of a Right shall initially be $35.00, shall be subject to
adjustment from time to time as provided in Sections 11 and 13 hereof and shall
be payable in lawful money of the United States of America in accordance with
paragraph (c) below.

(c)       Except as
otherwise provided herein, upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase and certificate duly executed,
accompanied by payment (in cash, or by certified bank check or money order
payable to the order of the Corporation) of the Purchase Price for the
Preferred Stock to be purchased and an amount equal to any applicable transfer
tax required to be paid by the holder of the Rights pursuant hereto in cash, or
by certified bank check or money order payable to the order of the Corporation,
the Rights Agent shall, subject to Section 20(k) hereof, (i) (A)
promptly requisition from any transfer agent of the Preferred Stock (or make
available, if the Rights Agent is the transfer agent for such shares)
certificates for the number of shares of Preferred Stock to be purchased and
the Corporation hereby irrevocably authorizes its transfer agent to comply with
all such requests, or (B) if the
Corporation shall have elected to deposit the total number of shares of
Preferred Stock issuable upon exercise of the Rights hereunder with a depositary
agent, requisition from the depositary agent depositary receipts representing
interests in such number of one one-thousandths of a share of Preferred Stock
as are to be purchased (in which case certificates for the shares of Preferred
Stock represented by such receipts shall be deposited by the transfer agent
with the depositary agent) and the Corporation hereby directs the depositary
agent to comply with such request, (ii)
when appropriate, requisition from the Corporation the amount of cash to be paid
in lieu of issuance of fractional shares in accordance with Section 14
hereof, (iii) promptly
requisition from the Corporation (A)
certificates for the number of shares of other securities or (B) the
amount of cash or other assets, as the case may be, in each case to be
purchased in lieu of shares of Preferred Stock, (iv) promptly after receipt of such certificates or
depositary receipts, cause the same to be delivered to or upon the order of the
registered holder of such Right Certificate, registered in such name or names
as may be designated by such holder, and (v)
when appropriate, after receipt, promptly deliver such cash or other assets to
or upon the order of the registered holder of such Right Certificate.

(d)      In case the
registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent
to the Rights remaining unexercised shall be issued by the Rights Agent and
delivered to, or upon the order of, the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder, subject to the provisions of Section 14 hereof.

(e)       Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence
of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an Acquiring Person or any Affiliate or
Associate of an Acquiring Person, (ii)
a transferee of any such Acquiring Person (or of

 

9

 

any such Affiliate or Associate) who becomes a transferee
after such Acquiring Person becomes such (a “Post-Event
Transferee”), (iii) a
transferee of any such Acquiring Person (or of any such Affiliate or Associate)
who becomes a transferee prior to or concurrently with such Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from such Acquiring Person to holders of equity interests in
such Acquiring Person or to any Person with whom such Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred
Rights or (B) a transfer which
the Board of Directors of the Corporation has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect the
avoidance of this Section 7(e) (a “Pre-Event
Transferee”) or (iv)
any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more
immediate transferees, shall be null and void without any further action, and
no holder of such Rights shall have any rights whatsoever with respect to such
Rights, whether under any provision of this Agreement or otherwise. The
Corporation shall use all reasonable efforts to ensure that the provisions of
this Section 7(e) are complied with, but shall have no liability to any
holder of Right Certificates or other Person as a result of its failure to make
any determinations with respect to an Acquiring Person or any of its Affiliates,
Associates or transferees hereunder.

(f)       Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the
Corporation shall be obligated to undertake any action with respect to a
registered holder of any Right Certificate upon the occurrence of any purported
transfer or exercise as set forth in this Section 7 unless such registered
holder shall, in addition to having complied with the requirements of
Section 7(a), have (i)
completed and signed the certificate following the form of assignment or
election to purchase set forth on the reverse side of the Right Certificate
surrendered for such assignment or exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Corporation shall reasonably request.

Section 8. Cancellation
of Right Certificates. All Right Certificates surrendered for the
purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Corporation or to any of its agents, be delivered to the
Rights Agent for cancellation or in canceled form, or, if surrendered to the
Rights Agent, shall be canceled by it, and no Right Certificates shall be
issued in lieu thereof except as expressly permitted by any of the provisions
of this Agreement. The Corporation shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other Right Certificate purchased or acquired by the Corporation otherwise
than upon the exercise thereof. The Rights Agent shall deliver all canceled
Right Certificates to the Corporation.

Section 9. Reservation
and Availability of Capital Stock.

(a)       The
Corporation covenants and agrees that it will cause to be reserved and kept
available out of its authorized and unissued shares of Preferred Stock (and,
following the occurrence of a Section 11(a)(ii) Event or a
Section 13 Event, out of its authorized and unissued shares of Common
Stock or other securities or out of its authorized and issued shares held in
its treasury), the number of shares of Preferred Stock (and, following the
occurrence of a Section 11(a)(ii) Event or a Section 13 Event,
Common Stock of the Corporation or other securities) that, as provided in this Agreement,
will be sufficient to permit the exercise in full of all outstanding Rights.

(b)      So long as
the Preferred Stock (and, following the occurrence of a
Section 11(a)(ii) Event or a Section 13 Event, Common Stock of
the Corporation or other securities) issuable upon the exercise of Rights may
be listed on any national securities exchange, the Corporation shall use its
best efforts to cause, from and after such time as the Rights become
exercisable, all shares reserved for such issuance to be listed on such
exchange upon official notice of issuance upon such exercise.

(c)       The
Corporation shall use its best efforts to (i)
file, as soon as practicable following the earliest date after the first
occurrence of a Section 11(a)(ii) Event or a Section 13 Event in
which the consideration to be delivered by the Corporation upon exercise of the
Rights has been determined in

 

10

 

accordance with this Agreement, or as soon as is required
by law following the Distribution Date, as the case may be, a registration
statement under the Securities Act of 1933, as amended (the “Act”), with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to
become effective as soon as practicable after such filing and (iii) cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of
the Act) until the earlier of (A)
the date as of which the Rights are no longer exercisable for such securities
and (B) the Expiration Date. The
Corporation will also take such action as may be appropriate under, or to
ensure compliance with, the securities or “blue sky” laws of the various states
in connection with the exercisability of the Rights. The Corporation may,
acting by resolution of its Board of Directors, temporarily suspend, for a
period of time not to exceed 90 days after the date set forth in
clause (i) of the first sentence of this Section 9(c), the exercisability
of the Rights in order to prepare and file such registration statement and
permit it to become effective. Upon any such suspension, the Corporation shall
issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction if the requisite qualifications in such jurisdiction shall not
have been obtained or an exemption therefrom shall not be available.

(d)      The
Corporation covenants and agrees that it will take all such action as may be
necessary to ensure that all one one-thousandths of a share of Preferred Stock
(and, following the occurrence of a Section 11(a)(ii) Event or a
Section 13 Event, Common Stock of the Corporation or other securities)
delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such shares (subject to payment of the Purchase Price), be
duly and validly authorized and issued and fully paid and nonassessable.

(e)       The
Corporation further covenants and agrees that it will pay when due and payable
any and all federal and state transfer taxes and charges which may be payable
in respect of the issuance or delivery of the Right Certificates or of any
shares of Preferred Stock (or shares of Common Stock of the Corporation or
other securities, as the case may be) upon the exercise of Rights. The
Corporation shall not, however, be required to pay any transfer tax which may
be payable in respect of any transfer or delivery of Right Certificates to a
Person other than, or the issuance or delivery of certificates or depositary
receipts for shares of Preferred Stock (or shares of Common Stock of the
Corporation or other securities, as the case may be) in a name other than that
of, the registered holder of the Right Certificate evidencing Rights
surrendered for exercise or to issue or deliver any certificates for shares of
Preferred Stock (or Common Stock of the Corporation or other securities, as the
case may be) or depositary receipts for Preferred Stock upon the exercise of
any Rights until any such tax shall have been paid (any such tax being payable
by the holder of such Right Certificate at the time of surrender) or until it
has been established to the Corporation’s satisfaction that no such tax is due.

Section 10. Preferred
Stock Record Date. Each Person in whose name any
certificate for a number of one one-thousandths of a share of Preferred Stock
(or shares of Common Stock of the Corporation or other securities, as the case
may be) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of shares of Preferred Stock (or shares of
Common Stock of the Corporation or other securities, as the case may be)
represented thereby on, and such certificate shall be dated, the date upon
which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the
Corporation’s transfer books for the Preferred Stock (or Common Stock or other
securities, as the case may be) are closed, such Person shall be deemed to have
become the record holder of such shares (fractional and otherwise) on, and such
certificate shall be dated, the next succeeding Business Day on which the
Corporation’s transfer books for the Preferred Stock (or Common Stock or other
securities, as the case may be) are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not

 

11

 

be entitled to any rights of a stockholder of the
Corporation with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled
to receive any notice of any proceedings of the Corporation, except as provided
herein.

Section 11. Adjustment
of Purchase Price, Number and Kind of
Shares or Number of Rights. The Purchase Price, the number and kind of shares, or
fractions thereof, covered by each Right and the number of Rights outstanding
are subject to adjustment from time to time as provided in this
Section 11.

(a)       (i) In
the event the Corporation shall at any time after the date of this Agreement (A) declare or pay a dividend on the
Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred
Stock into a greater number of shares, (C)
combine or consolidate the outstanding Preferred Stock into a smaller number of
shares or (D) issue any shares of
its capital stock in a reclassification of the Preferred Stock (including any
such reclassification in connection with a consolidation or merger in which the
Corporation is the continuing or surviving corporation), then, in each such
event, except as otherwise provided in Section 7(e) and this
Section 11(a), the Purchase Price in effect at the time of the record date
for such dividend or of the effective date of such subdivision, combination or
reclassification, and the number and kind of shares of Preferred Stock or capital
stock, as the case may be, issuable on such date, shall be proportionately
adjusted so that the holder of any Right exercised after such time shall be
entitled to receive, upon payment of the Purchase Price then in effect, the
aggregate number and kind of shares of Preferred Stock or capital stock, as the
case may be, which, if such Right had been exercised immediately prior to such
date and at a time when the Preferred Stock or capital stock, as the case may
be, transfer books of the Corporation were open, he would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification. If an event occurs which would require an
adjustment under both Section 11(a)(i) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to
Section 11(a)(ii) hereof.

(ii)  In the event (a “Section 11(a)(ii) Event”) that
any Person, alone or together with its Affiliates and Associates, shall become
an Acquiring Person, then each holder of a Right, except as provided below and
in Section 7(e) hereof, shall thereafter have the right to receive for
each Right, upon exercise thereof at the then current Purchase Price in
accordance with the terms of this Agreement, in lieu of a number of one
one-thousandths of a share of Preferred Stock, such number of shares of Common
Stock of the Corporation as shall equal the result obtained by (x) multiplying the then current Purchase
Price by the number of one one-thousandths of a share of Preferred Stock for
which a Right was exercisable immediately prior to the first occurrence of such
Section 11(a)(ii) Event, whether or not such Right was then
exercisable, and (y) dividing
that product (which, following such first occurrence, shall thereafter be
adjusted as appropriate in accordance with Section 11(f) hereof and, as so
adjusted, shall be referred to as the “Purchase Price” for each Right and for
all purposes of this Agreement) by 50% of the Current Market Price per share of
the Common Stock of the Corporation on the date of such first occurrence (such
number of shares being hereinafter referred to as the “Adjustment Shares”).

(iii)  In lieu of issuing
shares of Common Stock of the Corporation in accordance with
Section 11(a)(ii) hereof, the Corporation, acting by resolution of
its Board of Directors, may, and, in the event that the number of shares of
Common Stock which are authorized by the Corporation’s Certificate of
Incorporation but not outstanding or reserved for issuance for purposes other
than upon exercise of the Rights are not sufficient to permit exercise in full
of the Rights in accordance with Section 11(a)(ii) hereof, the
Corporation, acting by resolution of its Board of Directors, shall (A) determine the excess of (1) the value of the Adjustment Shares
issuable upon the exercise of a Right (the “Current
Value”), over (2) the
Purchase Price

 

12

 

attributable to each Right (such excess, the “Spread”) and (B) with respect to each Right (subject to Section 7(e)
hereof), make adequate provision to substitute for all or any part of the
Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2)
a reduction in the Purchase Price, (3)
Preferred Stock or other equity securities of the Corporation (including,
without limitation, shares, or units of shares, of preferred stock which the
Board of Directors of the Corporation has deemed to have the same value as shares
of Common Stock of the Corporation (such Preferred Stock or shares or units of
preferred stock hereinafter called “Common
Stock Equivalents”)), (4)
debt securities of the Corporation, (5)
other assets or (6) any
combination of the foregoing, which, when combined with the Adjustment Shares
(if any) to be issued, has an aggregate value equal to the Current Value, where
such aggregate value has been determined by action of the Board of Directors of
the Corporation based upon the advice of a nationally recognized investment
banking firm selected by the Board of Directors of the Corporation; provided, however,
if the Corporation shall not have made adequate provision to deliver value
pursuant to clause (B) above within 30 days following the first
occurrence of a Section 11(a)(ii) Event, then the Corporation shall
be obligated to deliver, upon the surrender for exercise of a Right and without
requiring payment of the Purchase Price, shares of Common Stock of the
Corporation (to the extent available) and then, if necessary, cash, which
shares or cash have an aggregate value equal to the Spread. If, after the
occurrence of a Section 11(a)(ii) Event, the number of shares of
Common Stock that are authorized by the Corporation’s certificate of
incorporation but not outstanding or reserved for issuance for purposes other
than upon exercise of the Rights are not sufficient to permit exercise in full
of the Rights in accordance with Section 11(a)(ii) hereof and the
Corporation, acting by resolution of its Board of Directors, shall determine in
good faith that it is likely that sufficient additional shares of its Common
Stock could be authorized for issuance upon exercise in full of the Rights, the
30 day period set forth above may be extended to the extent necessary, but
not more than 90 days after the occurrence of such
Section 11(a)(ii) Event, in order that the Corporation may seek
stockholder approval for the authorization of such additional shares (such
period as it may be extended, the “Substitution
Period”). To the extent that the Corporation determines that some
action is to be taken pursuant to the terms of this Section 11(a)(iii),
the Corporation (x) shall
provide, subject to Section 7(e) hereof, that such action shall apply
uniformly to all outstanding Rights and (y)
may suspend the exercisability of the Rights until the expiration of the
Substitution Period in order to seek such stockholder approval for the
authorization of additional shares or to decide the appropriate form of
distribution to be made pursuant to the first sentence of this
Section 11(a)(iii) and to determine the value thereof. In the event
of any such suspension, the Corporation shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of the Common
Stock of the Corporation shall be the Current Market Price per share of the
Common Stock of the Corporation on the date of the first occurrence of the
Section 11(a)(ii) Event, and the per share or per unit value of any
Common Stock Equivalents shall be deemed to equal the Current Market Price per
share of the Common Stock of the Corporation on such date.

(b)      In the event
that the Corporation shall fix a record date for the issuance of rights,
options or warrants to all holders of shares of Preferred Stock entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Stock (or shares having the same rights,
privileges and preferences as the shares of Preferred Stock (“Equivalent Preference Stock”)) or
securities convertible into shares of Preferred Stock or Equivalent Preference
Stock at a price per share of Preferred Stock or Equivalent Preference Stock
(or having a conversion price per share, if a security convertible into shares
of Preferred Stock or Equivalent Preference Stock) less than the Current Market
Price per share of the Preferred Stock (as defined in Section 11(d)) on
such record date, then, in each such case, the Purchase Price to be in effect
after such record date shall be

 

13

 

determined
by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of
Preferred Stock outstanding on such record date plus the number of additional
shares of Preferred Stock and/or Equivalent Preference Stock which the
aggregate offering price of the total number of shares so to be offered (and/or
the aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such Current Market Price, and the denominator of
which shall be the number of shares of Preferred Stock outstanding on such
record date plus the number of additional shares of Preferred Stock or
Equivalent Preference Stock to be offered for subscription or purchase (or into
which the convertible securities so to be offered are initially convertible); provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of
the Corporation issuable upon the exercise of one Right. In case such
subscription price may be paid in a consideration part or all of which shall be
in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors of the Corporation, whose
determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of the Rights. Such
adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to be the Purchase Price which would then be
in effect if such record date had not been fixed.

(c)       In case the
Corporation shall fix a record date for the making of a distribution to all
holders of Preferred Stock (including any such distribution made in connection
with a consolidation or merger in which the Corporation is the continuing or
surviving corporation) of evidences of indebtedness or assets (other than a
regular periodic cash dividend or a dividend payable in Preferred Stock, but
including any dividend payable in stock other than Preferred Stock) or
subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), then, in each such case, the Purchase Price to be
in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the Current Market Price per share of Preferred
Stock on such record date, less the fair market value (as determined in good
faith by the Board of Directors of the Corporation, whose determination shall
be described in a statement filed with the Rights Agent) of the portion of the
assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to one share of Preferred Stock, and
the denominator of which shall be such Current Market Price per share of
Preferred Stock; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Corporation issuable
upon the exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution
is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price which would then be in effect if such record date had not been fixed.

(d)      (i) For
the purpose of any computation hereunder, the “Current
Market Price” per share of Common Stock of the Corporation on any
date shall be deemed to be the average of the daily closing prices per share of
such Common Stock of the Corporation for the 30 consecutive Trading Days
immediately prior to such date; provided,
however, that in the event that
the Current Market Price per share of Common Stock of the Corporation is
determined during a period following the announcement by the issuer of such
Common Stock of (A) a dividend or
distribution on such Common Stock payable in shares of such Common Stock or
securities convertible into such Common Stock (other than the Rights) or (B) any subdivision, combination or
reclassification of such Common Stock, and prior to the expiration of the 30
Trading Days after the ex-dividend date for such dividend or distribution, or
the record date for such subdivision, combination or reclassification, as the
case may be, then, and in each such case, the Current Market Price shall be
appropriately adjusted to take into account the ex-dividend trading. The
closing price for each day shall be the last sale price, regular way, or, in
case no such sale takes place on such day, the average of the closing bid and
asked prices, regular way, in

 

14

 

either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if the shares of Common Stock of the
Corporation are not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities
exchange on which the shares of Common Stock of the Corporation are listed or
admitted to trading or, if the shares of Common Stock of the Corporation are
not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the National Association
of Securities Dealers Automated Quotation System (“NASDAQ”) or such other system then in use, or, if on any
such date the shares of Common Stock of the Corporation are not quoted by any
such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in shares of Common Stock of the
Corporation selected by the Corporation, acting by resolution of the Board of
Directors of the Corporation, or, if on any such date no market maker is making
a market in shares of Common Stock of the Corporation, the fair value of such
shares on such date as determined in good faith by the Corporation, acting by
resolution of the Board of Directors of the Corporation (which determination
shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes). The term “Trading
Day” shall mean a day on which the principal national securities
exchange on which the shares of Common Stock of the Corporation are listed or
admitted to trading is open for the transaction of business or, if the shares
of Common Stock of the Corporation are not listed or admitted to trading on any
national securities exchange, a Business Day.

(ii)  For the purpose of any
computation hereunder, the “Current Market
Price” per share of Preferred Stock shall be determined in the same
manner as set forth for the Common Stock of the Corporation in
Section 11(d)(i) hereof (other than the last clause of the second
sentence thereof). If the Current Market Price per share of Preferred Stock
cannot be determined in the manner provided above or if the Preferred Stock is
not publicly held or listed or traded in a manner described in
Section 11(d)(i) hereof, the Current Market Price per share of
Preferred Stock shall be conclusively deemed to be an amount equal to 1000 (as
such number may be appropriately adjusted for such events as stock splits,
stock dividends and recapitalizations with respect to the Common Stock of the
Corporation occurring after the date of this Agreement) multiplied by the
Current Market Price per share of the Common Stock of the Corporation. If
neither the Common Stock of the Corporation nor the Preferred Stock is publicly
held or so listed or traded, the Current Market Price per share of Preferred
Stock shall mean the fair value per share as determined in good faith by the
Corporation, acting by resolution of its Board of Directors, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes. For all purposes of this Agreement, the
Current Market Price of one one-thousandth of a share of Preferred Stock shall
be equal to the Current Market Price of one share of Preferred Stock divided by
1000.

(e)       Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease
of at least 1% in such price; provided,
however, that any adjustments
which by reason of this Section 11(e) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 shall be made to the nearest cent or to
the nearest ten-thousandth of a share of Common Stock or other share or the
nearest one-millionth of a share of Preferred Stock, as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the
transaction which mandates such adjustment or (ii)
the Expiration Date.

(f)       If as a
result of an adjustment made pursuant to Section 11(a) or
Section 13(a) hereof, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of

 

15

 

the Corporation other than Preferred Stock, thereafter the
Purchase Price and the number of such other shares so receivable upon exercise
of any Right shall be subject to adjustment from time to time in a manner and
on terms as nearly equivalent as practicable to the provisions with respect to
the Preferred Stock contained in Sections 11(a), (b), (c), (e), (g), (h), (i),
(j), (k) and (m) inclusive, and the provisions of Sections 7, 9, 10,
13 and 14 with respect to the Preferred Stock shall apply on like terms to any
such other shares; provided, however, that the Corporation shall not be
liable for its inability to reserve and keep available for issuance upon
exercise of the Rights pursuant to Section 11(a)(ii) a number of
shares of its Common Stock greater than the number then authorized by the
Certificate of Incorporation of the Corporation but not outstanding or reserved
for any other purpose.

(g)      All Rights
originally issued by the Corporation subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-thousandths of a share of Preferred Stock
purchasable from time to time hereunder upon exercise of the Rights, all
subject to further adjustment as provided herein.

(h)      Unless the
Corporation shall have exercised its election as provided in
Section 11(i), upon each adjustment of the Purchase Price as a result of
the calculations made in Section 11(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence
the right to purchase, at the adjusted Purchase Price, that number of one
one-thousandths of a share of Preferred Stock (calculated to the nearest
one-millionth of a share of Preferred Stock) obtained by (i) multiplying (A) the number of one one-thousandths of a share covered by a
Right immediately prior to such adjustment of the Purchase Price by (B) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by
the Purchase Price in effect immediately after such adjustment of the Purchase
Price.

(i)        The
Corporation may elect on or after the date of any adjustment of the Purchase
Price to adjust the number of Rights, in substitution for any adjustment in the
number of one one-thousandths of a share of Preferred Stock purchasable upon
the exercise of a Right. Each of the Rights outstanding after such adjustment
of the number of Rights shall be exercisable for the number of one
one-thousandths of a share of Preferred Stock for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one-hundred-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Corporation shall make a public announcement of its election to
adjust the number of Rights, indicating the record date for the adjustment,
and, if known at the time, the amount of the adjustment to be made. This record
date may be the date on which the Purchase Price is adjusted or any day
thereafter, but, if the Right Certificates have been issued, shall be at least
10 days later than the date of the public announcement. If Right
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Corporation shall, as promptly as
practicable, cause to be distributed to holders of record of Right Certificates
on such record date Right Certificates evidencing, subject to Section 14
hereof, the additional Rights to which such holders shall be entitled as a
result of such adjustment, or, at the option of the Corporation, shall cause to
be distributed to such holders of record in substitution and replacement for
the Right Certificates held by such holders prior to the date of adjustment,
and upon surrender thereof, if required by the Corporation, new Right
Certificates evidencing all the Rights to which such holders shall be entitled
after such adjustment. Right Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein (and may bear, at
the option of the Corporation, the adjusted Purchase Price) and shall be
registered in the names of the holders of record of Right Certificates on the
record date specified in the public announcement.

(j)        Irrespective
of any adjustment or change in the Purchase Price or the number of shares of
Preferred Stock, or fraction thereof, issuable upon the exercise of the Rights,
the Right Certificates theretofore and thereafter issued may continue to
express the Purchase Price per one one-thousandth

 

16

 

of a share and the number of shares which were expressed in
the initial Right Certificates issued hereunder.

(k)       Before
taking any action that would cause an adjustment reducing the Purchase Price
below the then par value, if any, of the one one-thousandth of a share of
Preferred Stock issuable upon exercise of the Rights, the Corporation shall
take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Corporation may validly and legally issue fully
paid and nonassessable shares of Preferred Stock at such adjusted Purchase
Price.

(l)        In any case
in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the
Corporation may elect to defer until the occurrence of such event the issuing
to the holder of any Right exercised after such record date the Preferred
Stock, or a fraction thereof, and other capital stock or securities of the
Corporation, if any, issuable upon such exercise over and above the Preferred
Stock and other capital stock or securities of the Corporation, if any,
issuable upon such exercise on the basis of the Purchase Price in effect prior
to such adjustment; provided, however, that the Corporation shall
deliver to such holder a due bill or other appropriate instrument evidencing
such holder’s right to receive such additional shares (fractional or otherwise)
or securities upon the occurrence of the event requiring such adjustment.

(m)      Anything in
this Section 11 to the contrary notwithstanding, the Corporation, acting
by resolution of its Board of Directors shall be entitled to make such reductions
in the Purchase Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any consolidation or subdivision of the
Preferred Stock, issuance wholly for cash of any Preferred Stock at less than
the Current Market Price, issuance wholly for cash of Preferred Stock or
securities which by their terms are convertible into or exchangeable for
Preferred Stock, stock dividends or issuance of rights, options or warrants
referred to hereinabove in this Section 11, hereafter made by the
Corporation to holders of its Preferred Stock shall not be taxable to such
stockholders.

(n)      The
Corporation covenants and agrees that it shall not, at any time after the
Distribution Date, (i)
consolidate with any other Person, (ii)
merge with or into any other Person or (iii)
sell or transfer (or permit any Subsidiary to sell or transfer), in one
transaction or a series of related transactions, assets, cash flow or earning
power aggregating more than 50% of the assets, cash flow or earning power of
the Corporation and its Subsidiaries (taken as a whole) to any other Person or
Persons if (x) at the time of or
immediately after such consolidation, merger or sale there are any rights,
warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended
to be afforded by the Rights or (y)
prior to, simultaneously with or immediately after such consolidation, merger
or sale, the stockholders of the Person who constitutes, or would constitute,
the “Principal Party” for
purposes of Section 13(a) hereof shall have received a distribution of
Rights previously owned by such Person or any of its Affiliates and Associates.

(o)      The
Corporation covenants and agrees that, after the Distribution Date, it will
not, except as permitted by Section 23, Section 24 or Section 27
hereof, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action will diminish
substantially or eliminate the benefits intended to be afforded by the Rights.

(p)      Anything in
this Agreement to the contrary notwithstanding, in the event the Corporation
shall at any time after the date of this Agreement and prior to the
Distribution Date (i) declare or
pay any dividend on its Common Stock payable in Common Stock of the
Corporation, (ii) subdivide its
outstanding Common Stock into a greater number of shares (by reclassification
or otherwise than by payment of dividends in Common Stock) or (iii) combine or consolidate its
outstanding Common Stock into a smaller number of shares, then, in any such
case, (x) the number of one
one-thousandths of a share of Preferred Stock purchasable after such event upon
proper exercise of each Right shall be

 

17

 

determined by multiplying the number of one one-thousandths
of a share of Preferred Stock so purchasable immediately prior to such event by
a fraction, the numerator of which is the number of shares of Common Stock of
the Corporation outstanding immediately before such event and the denominator
of which is the number of shares of such Common Stock outstanding immediately
after such event and (y) action
shall be taken such that each share of Common Stock of the Corporation
outstanding immediately after such event shall have issued with respect to it
that number of Rights which each share of Common Stock of the Corporation
outstanding immediately prior to such event had issued with respect to it. The
adjustments provided for in this Section 11(p) shall be made successively
whenever such a dividend is declared or paid or such a subdivision, combination
or consolidation is effected. If an event occurs which would require an
adjustment under Section 11(a)(ii) and this Section 11(p), the
adjustments provided for in this Section 11(p) shall be in addition and
prior to any adjustment required pursuant to Section 11(a)(ii).

Section 12. Certificate
of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as
provided in Sections 11 and 13, the Corporation shall (a) promptly prepare a certificate setting
forth such adjustment and a brief statement of the facts accounting for such
adjustment, (b) promptly file
with the Rights Agent and with each transfer agent for its Common Stock and
Preferred Stock a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right
Certificate (or if prior to the Distribution Date, to each holder of a
certificate representing shares of its Common Stock) in accordance with
Section 26 of this Agreement. Notwithstanding the foregoing sentence, the
failure of the Corporation to make such certificates or give such notice shall
not affect the validity or the force or effect of the requirement for such
adjustment. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained. Any adjustment to be made
pursuant to Sections 11 and 13 shall be effective as of the date of the event
giving rise to such adjustment.

Section 13.
Consolidation, Merger or Sale or Transfer of
Assets, Cash Flow or Earning Power.

(a)       In the event
(a “Section 13 Event”) that,
following the first occurrence of a Section 11(a)(ii) Event, directly
or indirectly, (x) the
Corporation shall consolidate or otherwise combine with or merge with or into,
any other Person and the Corporation shall not be the surviving or continuing
corporation of such consolidation, combination or merger, (y) any Person shall consolidate or
otherwise combine with or merge with or into the Corporation and the
Corporation shall be the surviving or continuing corporation of such
consolidation, combination or merger and, in connection therewith, all or part
of the Common Stock of the Corporation shall be changed into or exchanged for
stock or other securities of the Corporation or any other Person or cash or any
other property or (z) the
Corporation shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions,
assets, cash flow or earning power aggregating more than 50% of the assets,
cash flow or earning power of the Corporation and its Subsidiaries (taken as a
whole and calculated on the basis of the Corporation’s most recent regularly
prepared financial statement) to any other Person or Persons, then, and in each
such case (except as provided in Section 13(d) hereof), proper provision
shall be made so that (i) each
holder of a Right (except as provided in Section 7(e) hereof) shall
thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, such
number of validly authorized and issued, fully paid, nonassessable and freely
tradable shares of Common Stock of the Principal Party (as hereinafter
defined), not subject to any liens, encumbrances, rights of call, rights of
first refusal or other adverse claims, as shall be equal to the result obtained
by dividing the then current Purchase Price by 50% of the Current Market Price
per share of Common Stock of such Principal Party on the date of consummation
of such merger, consolidation, sale or transfer (provided that the Purchase Price and the number of shares of
Common Stock of such Principal Party so receivable upon exercise of a Right
shall, from and after such Section 13 Event, be subject to further
adjustment in accordance with Section 11(f) hereof to reflect any events
occurring in respect of the Common Stock of such Principal Party after the
occurrence of such Section 13 Event); (ii)
such

 

18

 

Principal Party shall thereafter be liable for, and shall
assume, by virtue of such Section 13 Event, all the obligations and duties
of the Corporation pursuant to this Agreement; (iii) the term “Corporation”
shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof shall apply
only to such Principal Party following the first occurrence of a
Section 13 Event; (iv) such
Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of shares of its Common Stock in accordance
with Section 9 hereof) in connection with such consummation as may be
necessary to assure that the provisions hereof shall thereafter be applicable,
as nearly as reasonably may be possible, in relation to its shares of Common
Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of
Section 11(a)(ii) hereof shall be of no effect following the first
occurrence of any Section 13 Event.

(b)      “Principal Party” shall mean:

(i)  in the case of any
transaction described in clause (x) or (y) of the first sentence of
Section 13(a) hereof: (A)
the Person that is the issuer of any securities into which shares of Common
Stock of the Corporation are converted in such merger or consolidation, or (B) if no securities are so issued, (x) the Person that is the other party to
such merger, if such Person survives such merger, or (y) if the Person that is the other party
to the merger does not survive the merger, the Person that does survive the
merger (including the Corporation if it survives) or (z) the Person resulting from the
consolidation; and

(ii)  in the case of any
transaction described in clause (z) of the first sentence of
Section 13(a) hereof, the Person that is the party receiving the greatest
portion of the assets, cash flow or earning power transferred pursuant to such
transaction or transactions;

provided, however,
that in any such case, (1) if the
Common Stock of such Person is not at such time and has not been continuously
over the preceding 12 month period registered under Section 12 of the
Exchange Act, and such Person is a direct or indirect Subsidiary of another
Person the Common Stock of which is and has been so registered, “Principal
Party” shall refer to such other Person; (2)
in case such Person is a Subsidiary, directly or indirectly, of more than one
Person, the Common Stocks of two or more of which are and have been so
registered, “Principal Party” shall refer to whichever of such Persons is the
issuer of the Common Stock having the greatest aggregate market value; or (3) if such Person is owned, directly or
indirectly, by a joint venture formed by two or more Persons that are not
owned, directly or indirectly, by the same Person, the rules set forth in
clauses (1) and (2) above shall apply to each of the owners having an
interest in the venture as if the Person owned by the joint venture was a
Subsidiary of both or all of such joint venturers, and the Principal Party in
each such case shall bear the obligations set forth in this Section 13 in
the same ratio as its interest in such Person bears to the total of such
interests.

(c)       The
Corporation shall not consummate any Section 13 Event unless the Principal
Party shall have a sufficient number of authorized shares of its Common Stock
which have not been issued or reserved for issuance to permit the exercise in
full of the Rights in accordance with this Section 13 and unless prior
thereto the Corporation and such issuer shall have executed and delivered to
the Rights Agent a supplemental agreement containing the provisions set forth
in paragraphs (a) and (b) of this Section 13 and further
providing that, as soon as practicable after the date of any such
Section 13 Event, the Principal Party will:

(i)  prepare and file a
registration statement under the Act with respect to the Rights and the
securities purchasable upon exercise of the Rights on an appropriate form and
will use its best efforts to cause such registration statement to (A) become effective as soon as practicable
after such filing and (B) remain
effective (with a prospectus at all times meeting the requirements of the Act)
until the Expiration Date, and similarly comply with applicable state
securities laws; and

(ii)  use its best efforts
to (A) list (or continue the
listing of) the Rights and the securities purchasable upon exercise of the
Rights on a national securities exchange or (B)
meet the

 

19

 

eligibility requirements for quotation
on NASDAQ and list (or continue the listing of) the Rights and the securities
purchasable upon exercise of the Rights on NASDAQ; and

(iii)  deliver to holders of
the Rights historical financial statements for the Principal Party and each of
its Affiliates which comply in all respects with the requirements for
registration on Form 10 under the Exchange Act.

The provisions of this Section 13 shall similarly
apply to successive mergers or consolidations or sales or other transfers. In
the event that a Section 13 Event shall occur at any time after the
occurrence of a Section 11(a)(ii) Event, the Rights which have not
theretofore been exercised shall thereafter, subject to Section 7(e)
hereof, become exercisable in the manner described in Section 13(a)
hereof.

(d)      The
Corporation covenants and agrees that it will not, after the occurrence of a Section 11(a)(ii) Event,
engage in any Section 13 Event if at the time of or after such event there
are any charter or by-law provisions or any rights, warrants or other
instruments outstanding or any other action taken which would diminish or
otherwise eliminate the benefits intended to be afforded by the Rights.

Section 14. Fractional
Rights and Fractional Shares.

(a)       The
Corporation shall not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights. In lieu of such fractional
Rights, there shall be paid to the registered holders of the Right Certificates
with regard to which such fractions of Rights would otherwise be issuable an
amount in cash equal to the same fraction of the current market value of a
whole Right. For the purposes of this Section 14(a), the current market
value of a whole Right shall be the closing price of the Rights for the Trading
Day immediately prior to the date on which such fractional Rights would have
been otherwise issuable. The closing price of the Rights for any day shall be
the last sale price, regular way, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, in either
case as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Rights are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Rights are listed or admitted to trading or,
if the Rights are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by NASDAQ
or such other system then in use, or, if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the
Rights (selected by the Corporation, acting by resolution of its Board of
Directors). If on any such date no such market maker is making a market in the
Rights, the fair value of the Rights on such date as determined in good faith
by the Corporation, acting by resolution of its Board of Directors shall be
used.

(b)      The
Corporation shall not be required to issue fractions of shares of Preferred
Stock (other than fractions which are integral multiples of one one-thousandth
of a share of Preferred Stock) upon exercise of the Rights or to distribute
certificates which evidence fractional shares (other than fractions which are
integral multiples of one one-thousandth of a share of Preferred Stock).
Interests in fractions of Preferred Stock in integral multiples of one
one-thousandth of a share of Preferred Stock may, at the election of the
Corporation, be evidenced by depositary receipts, pursuant to an appropriate
agreement between the Corporation and a depositary selected by it, provided
that such agreement shall provide that the holders of depositary receipts shall
have all the rights, privileges and preferences to which they are entitled as
beneficial owners of the Preferred Stock. In lieu of fractional shares that are
not integral multiples of one one-thousandth of a share of Preferred Stock, the
Corporation shall pay to the registered holders of Right Certificates at the
time such Right Certificates are exercised as herein provided an amount in cash
equal to the same fraction of the current market value of one share

 

20

 

of Preferred Stock. For purposes of this
Section 14(b), the current market value of a share of Preferred Stock
shall be the closing price of a share of Preferred Stock (as determined
pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately
prior to the date of such exercise.

(c)       Following
the occurrence of a Section 11(a)(ii) Event or a Section 13
Event, the Corporation shall not be required to issue fractions of shares of
its Common Stock upon exercise of the Rights or to distribute certificates or
Ownership Statements which evidence fractional shares of its Common Stock. In
lieu of fractional shares of its Common Stock, the Corporation may pay to the
registered holders of Right Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current
market value of one share of its Common Stock. For purposes of this
Section 14(c), the current market value of one share of Common Stock of
the Corporation shall be the closing price of one share of Common Stock of the
Corporation (as determined pursuant to Section 11(d)(i) hereof) for
the Trading Day immediately prior to the date of such exercise.

(d)      The holder of
a Right by the acceptance of the Right expressly waives his right to receive
any fractional Rights or any fractional shares upon exercise of a Right except
as otherwise permitted by this Section 14.

Section 15. Rights
of Action. All rights of action in respect of this Agreement, except
the rights of action vested in the Rights Agent pursuant to Section 18
hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of
Common Stock of the Corporation); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of Common Stock of the
Corporation), without the consent of the Rights Agent or of any holder of any
other Right Certificate (or, prior to the Distribution Date, of Common Stock of
the Corporation) may, in his own behalf and for his own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the
Corporation to enforce, or otherwise act in respect of, his right to exercise
the Rights evidenced by such Right Certificate in the manner provided in such
Right Certificate and in this Agreement. Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement and will be entitled to specific performance of the obligations
hereunder and injunctive relief against actual or threatened violations of the
obligations of any Person subject to this Agreement.

Section 16. Agreement
of Right Holders. Every holder of a Right by accepting
such Right consents and agrees with the Corporation and the Rights Agent and
with every other holder of a Right that:

(a)       prior to the
Close of Business on the earlier of the Distribution Date or the Expiration
Date, the Rights shall be evidenced by the Book-Entries and Ownership
Statements or certificates for shares of Common Stock of the Corporation
registered in the name of the holders of such shares (which Book-Entries and
Ownership Statements or certificates for shares of Common Stock of the
Corporation shall also constitute certificates for Rights) and each Right will
be transferable only in connection with the transfer of Common Stock of the
Corporation;

(b)      after the
Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office of the Rights Agent
designated for such purpose, duly endorsed or accompanied by a proper
instrument of transfer;

(c)       the
Corporation and the Rights Agent may deem and treat the Person in whose name
the Right Certificate (or, prior to the Distribution Date, the associated
Common Stock Book-Entry and Ownership Statement or certificate) is registered
as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificate
or the associated Common Stock certificate made by anyone other than the
Corporation or the Rights Agent) for all purposes whatsoever, and neither the
Corporation nor the Rights Agent shall be affected by any notice to the
contrary; and

 

21

 

(d)      notwithstanding
anything in this Agreement to the contrary, neither the Corporation nor the
Rights Agent shall have any liability to any holder of a Right or other Person
as a result of its inability to perform any of its obligations under this
Agreement by reason of any preliminary or permanent injunction or other order,
decree or ruling issued by a court of competent jurisdiction or by a
governmental, regulatory or administrative agency or commission, or any
statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of
such obligation; provided, however, the Corporation must use its best
efforts to have any such order, decree or ruling lifted or otherwise overturned
as soon as possible.

Section 17. Right
Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right or
Right Certificate shall be entitled to vote, receive dividends or be deemed for
any purpose the holder of the number of one one-thousandths of a share of
Preferred Stock or any other securities of the Corporation which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall
anything contained herein or in any Right Certificate be construed to confer
upon the holder of any Right or Right Certificate, as such, any of the rights
of a stockholder of the Corporation or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting stockholders (except as provided in
Section 25), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by such Right Certificate shall have been
exercised in accordance with the provisions hereof.

Section 18. Concerning
the Rights Agent.

(a)       The
Corporation agrees to pay to the Rights Agent compensation as agreed to by the
parties for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses and counsel fees and other
disbursements incurred in the administration and execution of this Agreement
and the exercise and performance of its duties hereunder. The Corporation also
agrees to indemnify the Rights Agent for, and to hold it harmless against, any
loss, liability or expense, incurred without gross negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or
omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending
against any claim of liability in the premises. In no event will the Rights
Agent be liable for special, indirect, incidental or consequential loss or
damage of any kind whatsoever, even if the Rights Agent has been advised of the
possibility of such loss or damage.

(b)      The Rights
Agent shall be protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration
of this Agreement in reliance upon any Right Certificate or certificate for
Preferred Stock or Common Stock of the Corporation or for other securities of
the Corporation, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate,
statement or other paper or document believed by it to be genuine and to be
signed, executed and, where necessary, verified or acknowledged by the proper Person
or Persons.

Section 19. Merger
or Consolidation or Change of Name of Rights Agent.

(a)       Any
corporation into which the Rights Agent or any successor Rights Agent may be
merged or with which it may be consolidated, or any corporation resulting from
any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any corporation succeeding to the corporate trust or
stock transfer business of the Rights Agent or any successor Rights Agent,
shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the
parties hereto; provided, however, that such corporation would be
eligible for appointment as a successor Rights Agent under the provisions of
Section 21 hereof. The purchase of all or substantially all of the Rights
Agent’s assets employed in the performance of transfer agent activities shall
be deemed a merger or consolidation for purposes of this

 

22

 

Section 19. In case at the time such successor Rights
Agent shall succeed to the agency created by this Agreement, any of the Right
Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and in case at that
time any of the Right Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

(b)      In case at
any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver
Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may
countersign such Right Certificates either in its prior name or in its changed
name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

Section 20. Duties
of Rights Agent. The Rights Agent undertakes the duties and obligations
imposed by this Agreement upon the following terms and conditions, by all of
which the Corporation and the holders of Right Certificates, by their
acceptance thereof, shall be bound:

(a)       The Rights
Agent may consult with legal counsel selected by it (which may be legal counsel
for the Corporation), and the opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion.

(b)      Whenever in
the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including, without
limitation, the identity of an Acquiring Person and the determination of the
Current Market Price per share of Preferred Stock and Common Stock) be proved
or established by the Corporation prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the Chief
Executive Officer, the President (if any) or the Senior Vice President and
General Counsel and by the Treasurer or the Secretary of the Corporation and
delivered to the Rights Agent; and such certificate shall be full authorization
to the Rights Agent for any action taken or suffered in good faith by it under
the provisions of this Agreement in reliance upon such certificate.

(c)       The Rights
Agent shall be liable hereunder only for its own gross negligence, bad faith or
willful misconduct; provided, however, that in no event will the Rights
Agent be liable for special, indirect, incidental or consequential loss or
damage of any kind whatsoever.

(d)      The Rights
Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except its
countersignature thereof) or be required to verify the same, but all such
statements and recitals are and shall be deemed to have been made by the
Corporation only.

(e)       The Rights
Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution hereof
by the Rights Agent) or in respect of the validity or execution of any Right
Certificate (except its countersignature thereof); nor shall it be responsible
for any breach by the Corporation of any covenant or condition contained in
this Agreement or in any Right Certificate; nor shall it be responsible for any
adjustment required under the provisions of Section 11 or Section 13
or responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment
(except with respect to the exercise of Rights evidenced by Right Certificates
after actual notice of any such adjustment); nor shall it be responsible for
any determination by the Board of

 

23

 

Directors of the Corporation of the Current Market Price of
the Preferred Stock or Common Stock of the Corporation; nor shall it by any act
hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock of the Corporation
or Preferred Stock or other securities to be issued pursuant to this Agreement
or any Right Certificate or as to whether any shares of Preferred Stock or
Common Stock of the Corporation or other securities will, when issued, be
validly authorized and issued, fully paid and nonassessable.

(f)       The
Corporation agrees that it will perform, execute, acknowledge and deliver or
cause to be performed, executed, acknowledged and delivered all such further
and other acts, instruments and assurances as may reasonably be required by the
Rights Agent for the carrying out or performing by the Rights Agent of the
provisions of this Agreement.

(g)      The Rights
Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from the Chairman of the Board, the
Chief Executive Officer, the President (if any), the Senior Vice President and
General Counsel, the Secretary or the Treasurer of the Corporation, and to
apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or suffered to be taken
by it in good faith in accordance with instructions of any such officer.

(h)      The Rights
Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the
Corporation or become pecuniarily interested in any transaction in which the
Corporation may be interested, or contract with or lend money to the
Corporation or otherwise act as fully and freely as though it were not Rights
Agent under this Agreement. Nothing herein shall preclude the Rights Agent from
acting in any other capacity for the Corporation or for any other legal entity.

(i)        The Rights
Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys or
agents, and the Rights Agent shall not be answerable or accountable for any
act, omission, default, neglect or misconduct of any such attorneys or agents
or for any loss to the Corporation or to holders of the Rights resulting from
any such act, omission, default, neglect or misconduct, provided reasonable
care was exercised in the selection and continued employment thereof.

(j)        No
provision of this Agreement shall require the Rights Agent to expend or risk its
own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder or in the exercise of its rights if there shall be
reasonable grounds for believing that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured for
it.

(k)       If, with
respect to any Right Certificate surrendered to the Rights Agent for exercise
or transfer, the certificate attached to the form of assignment or form of
election to purchase, as the case may be, has either not been completed or
indicates an affirmative response to clause 1 and/or 2 thereof, the Rights
Agent shall not take any further action with respect to such requested exercise
or transfer without first consulting with the Corporation.

Section 21. Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon 30 days’
notice in writing mailed to the Corporation and to each transfer agent of the
Common Stock of the Corporation and Preferred Stock by registered or certified
mail, and to the holders of the Right Certificates by first-class mail. The
Corporation may remove the Rights Agent or any successor Rights Agent upon
30 days’ notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Common Stock of
the Corporation and Preferred Stock by registered or certified mail, and to the
holders of the Right Certificates by first-class mail. If the Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the
Corporation shall appoint a successor to the Rights Agent. If the Corporation
shall fail to make such appointment within a period of 30 days after
giving notice of such removal or after it has been notified in writing of such
resignation or

 

24

 

incapacity by the resigning or incapacitated Rights Agent
or by the holder of a Right Certificate (who shall, with such notice, submit
his Right Certificate for inspection by the Corporation), then the registered
holder of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Corporation or by such a court, shall be a
corporation organized and doing business under the laws of the United States or
any state of the United States, in good standing, which is authorized under
such laws to exercise corporate trust or stockholder services powers and is
subject to supervision or examination by federal or state authority and which
has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $100 million. After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Corporation shall file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent of its Common Stock and Preferred Stock, and mail a notice thereof in
writing to the registered holders of the Right Certificates. Failure to give
any notice provided for in this Section 21, however, or any defect
therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

Section 22. Issuance
of New Right Certificates. Notwithstanding any of the provisions
of this Agreement or of the Rights to the contrary, the Corporation may, at its
option, issue new Right Certificates evidencing Rights in such form as may be
approved by resolution of its Board of Directors, to reflect any adjustment or
change in the Purchase Price and the number or kind or class of shares of stock
or other securities or property purchasable under the Right Certificates made
in accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of shares of its Common Stock following the
Distribution Date (other than upon exercise of a Right) and prior to the
Expiration Date, the Corporation (a)
shall, with respect to shares of Common Stock so issued or sold pursuant to the
exercise of stock options or under any employee plan or arrangement, or upon
the exercise, conversion or exchange of securities, notes or debentures issued
by the Corporation prior to the Distribution Date, and (b) may, in any other case, if deemed
necessary or appropriate by the Board of Directors of the Corporation, issue
Right Certificates representing the appropriate number of Rights in connection
with such issuance or sale; provided,
however, that (i) no such Right Certificate shall be
issued if and to the extent that the Corporation shall be advised by counsel
that such issuance would create a significant risk of material adverse tax
consequences to the Corporation or the Person to whom such Right Certificate
would be issued and (ii) no such
Right Certificate shall be issued if and to the extent that appropriate
adjustment shall otherwise have been made in lieu of the issuance thereof.

Section 23. Redemption.

(a)       The
Corporation may, by resolution of its Board of Directors, at its option, at any
time prior to the Close of Business on the earlier of (x) the Stock Acquisition Time or (y) the Close of Business on the Final
Expiration Date, redeem all but not less than all of the then outstanding
Rights at a redemption price of $0.001 per Right (payable in cash, shares of
Common Stock (based on the Current Market Price of the Common Stock at the time
of redemption) or any other form of consideration deemed appropriate by the
Board of Directors of the Corporation), appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof (such redemption price being hereinafter referred to as the “Redemption Price”). Such redemption of the
Rights by the Corporation may be made effective at such time, on such bases and
with such conditions as the Board of Directors may in its sole discretion
establish.

(b)      Immediately
upon the action of the Board of Directors of the Corporation ordering the
redemption of the Rights (or at such time subsequent to such action as the
Board of Directors may

 

25

 

determine), and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price.
The Corporation shall promptly give public notice of any such redemption; provided, however,
that the failure to give, or any defect in, any such notice shall not affect
the validity of any such redemption. Within 10 days after the action of
the Board of Directors ordering the redemption of the Rights, the Corporation
shall give notice of such redemption to the holders of the then outstanding
Rights by mailing such notice to all such holders at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Stock of the Corporation. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of redemption will state the method by which the payment of
the Redemption Price will be made.

Section 24. Exchange.

(a)       The Board of
Directors of the Corporation may, at its option, at any time after any Person
becomes an Acquiring Person, exchange all or part of the then outstanding and
exercisable Rights (which shall not include Rights that have become void
pursuant to the provisions of Section 7(e) hereof) for shares of Common
Stock at an exchange ratio of one share of Common Stock per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the “Exchange
Ratio”). Notwithstanding the foregoing, the Board of Directors shall
not be empowered to effect such exchange at any time after an Acquiring Person,
together with all Affiliates and Associates of such Acquiring Person, becomes
the Beneficial Owner of 50% or more of the shares of Common Stock then outstanding.

(b)      Immediately
upon the action of the Board of Directors of the Corporation ordering the
exchange of any Rights pursuant to paragraph (a) of this Section 24
and without any further action and without any notice, the right to exercise
such Rights shall terminate and the only right thereafter of a holder of such
Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The
Corporation shall promptly give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Corporation promptly shall mail a notice of any
such exchange to all of the holders of such Rights at their last addresses as
they appear upon the registry books of the Rights Agent. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of exchange will state the method
by which the exchange of the shares of Common Stock for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights
which have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights.

(c)       In any
exchange pursuant to this Section 24, the Corporation, at its option, may
substitute shares of Preferred Stock (or any other series of preferred stock of
the Corporation containing terms substantially similar to the terms of the
Preferred Stock) for some or all of the shares of Common Stock exchangeable for
Rights, at the initial rate of one one-thousandth of a share of Preferred Stock
(or of such other series of preferred stock of the Corporation) for each share
of Common Stock, as appropriately adjusted to reflect adjustments in the voting
rights of the Preferred Stock pursuant to the terms thereof, so that the
fraction of a share of Preferred Stock (or of such other series of preferred
stock of the Corporation) delivered in lieu of each share of Common Stock shall
have the same voting rights as one share of Common Stock.

 

26

 

(d)      In the event
that there shall not be sufficient shares of Common Stock or Preferred Stock
(or any other series of preferred stock of the Corporation containing terms
substantially similar to the terms of the Preferred Stock) issued but not
outstanding or authorized but unissued to permit any exchange of Rights as
contemplated in accordance with this Section 24, the Corporation may take
all such action as may be necessary to authorize additional shares of Common
Stock or Preferred Stock (or such other series of preferred stock of the
Corporation) for issuance upon exchange of the Rights.

(e)       The
Corporation shall not be required to issue fractions of shares of Common Stock
or to distribute Book-Entries and Ownership Statements or certificates which
evidence fractional shares of Common Stock. In lieu of such fractional shares,
the Corporation shall pay to the registered holders of the Right Certificates
with regard to which such fractional shares would otherwise be issuable an
amount in cash equal to the same fraction of the current market value of a
whole share of Common Stock. For the purposes of this paragraph (d), the
current market value of a whole share of Common Stock shall be the closing
price of a share of Common Stock (as determined pursuant to the second sentence
of Section 11(d) hereof) for the Trading Day immediately prior to the date
of exchange pursuant to this Section 24.

Section 25. Notice
of Certain Events.

(a)       In case the
Corporation shall at any time after the earlier of the Distribution Date or the
Stock Acquisition Time propose (i)
to pay any dividend payable in stock of any class to the holders of its
Preferred Stock or to make any other distribution to the holders of its
Preferred Stock (other than a regular periodic dividend out of earnings or
retained earnings of the Corporation), or (ii)
to offer to the holders of Preferred Stock options, rights or warrants to
subscribe for or to purchase any additional Preferred Stock or shares of stock
of any class or any other securities, rights or options, or (iii) to effect any reclassification of the
Preferred Stock (other than a reclassification involving only the subdivision
of outstanding shares of Preferred Stock), or (iv)
to effect any merger, consolidation or other combination into or with, or to
effect any sale or other transfer (or to permit one or more of its Subsidiaries
to effect any sale or other transfer), in one or more transactions, of more
than 50% of the assets, cash flow or earning power of the Corporation and its
Subsidiaries (taken as a whole) to, any other Person, or (v) to effect the liquidation, dissolution
or winding up of the Corporation, then, in each such case, the Corporation
shall give to each holder of a Right, in accordance with Section 26
hereof, a notice of such proposed action, which shall specify the record date
for the purposes of such stock dividend or distribution of rights or warrants,
or the date on which such reclassification, merger, consolidation, combination,
sale, transfer, liquidation, dissolution or winding up is to take place and the
date of participation therein by the holders of Common Stock of the Corporation
or Preferred Stock, if any such date is to be fixed, and such notice shall be
so given in the case of any action covered by clause (i) or (ii) above
at least twenty days prior to the record date for determining holders of
Preferred Stock for purposes of such action, and in the case of any such other
action, at least twenty days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of Common Stock of
the Corporation or Preferred Stock, whichever shall be the earlier. The failure
to give notice required by this Section 25 or any defect therein shall not
affect the legality or validity of the action taken by the Corporation or the
vote upon any such action.

(b)      In case any
of the events set forth in Section 11(a)(ii) or Section 13(a) of
this Agreement shall occur, then, in any such case, (i) the Corporation shall as soon as practicable thereafter give
to each holder of a Right, to the extent feasible and in accordance with
Section 26, a notice of the occurrence of such event, which shall specify
the event and the consequences of the event to holders of Rights under
Section 11(a)(ii) or Section 13(a) hereof, and (ii) all references in Section 25(a)
hereof to Preferred Stock shall be deemed thereafter to refer also to Common
Stock or other securities issuable in respect of the Rights.

 

27

 

Section 26. Notices.
Notices
or demands authorized by this Agreement to be given or made by the Rights Agent
or by the holder of any Right Certificate to or on the Corporation shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Rights Agent) as
follows:

Riverwood Holding, Inc.

814 Livingston Court

Marietta, Georgia 30067

Attention: Corporate Secretary

Subject to the provisions of Section 21, any notice or
demand authorized by this Agreement to be given or made by the Corporation or
by the holder of any Right Certificate to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Corporation) as
follows:

Wells Fargo Bank Minnesota, National Association

161 North Concord Exchange

South St. Paul, Minnesota 55075

Attention: Stock Transfer Administration

Notices or demands authorized by this Agreement to be given
or made by the Corporation or the Rights Agent to the holder of any Right
Certificate (or if prior to the Distribution Date to each holder of a
certificate representing shares of Common Stock of the Corporation) shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed to such Right holder (or if prior to the Distribution Date to such
holder of Common Stock of the Corporation) at the address of such holder as
shown on the registry books of the Corporation.

Section 27.
Supplements and Amendments. Prior to the Stock Acquisition Time
and subject to the penultimate sentence of this Section 27, the
Corporation may, by resolution of its Board of Directors, and the Rights Agent
shall, if the Corporation so directs, supplement or amend any provision of this
Agreement in any respect whatsoever (including, without limitation, any
extension of the period in which the Rights may be redeemed) without the
approval of any holders of certificates representing shares of Common Stock of
the Corporation. From and after the Stock Acquisition Time and subject to the
penultimate sentence of this Section 27, without the approval of any
holders of certificates representing shares of Common Stock of the Corporation
or of Right Certificates, the Corporation may, by resolution of its Board of
Directors, and the Rights Agent shall, if the Corporation so directs,
supplement or amend this Agreement in order (i)
to cure any ambiguity, (ii) to
correct or supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, (iii) to shorten or lengthen any time period hereunder or (iv) to change or supplement or amend any
other provisions in any manner which the Corporation may deem necessary or
desirable, which shall not adversely affect the interests of, or diminish
substantially or eliminate the benefits intended to be afforded by the Rights
to, the holders of Right Certificates (other than an Acquiring Person or an
Affiliate or Associate of any such Person); provided,
however, that this Agreement may
not be supplemented or amended (A)
to lengthen, pursuant to clause (iii) of this sentence, a time period
relating to when the Rights may be redeemed or to modify the ability (or
inability) of the Board of Directors of the Corporation to redeem the Rights,
in either case at such time as the Rights are not then redeemable, or to
lengthen any other time period unless such lengthening is for the purpose of
protecting, enhancing or clarifying the rights of or the benefits to the
holders of Rights (other than an Acquiring Person or an Affiliate or Associate
of any such Person) or (B) to
alter, amend, supplement or delete this second sentence of Section 27.
Upon the delivery of a certificate from an appropriate officer of the
Corporation which states that the proposed supplement or amendment is in
compliance with the terms of this Section 27 (together with a copy of such
proposed supplement or amendment), the Rights Agent shall execute such
supplement or amendment. Notwithstanding the foregoing, any

 

28

 

supplement or amendment that does not amend this Agreement
in a manner adverse to the Rights Agent, and is otherwise in compliance in all
respects with this Section 27, shall become effective immediately upon
execution by the Company, whether or not also executed by the Rights Agent. In
the case of any such supplement or amendment, the Corporation shall deliver to
the Rights Agent a certificate from an appropriate officer of the Corporation
which states that such supplement or amendment was in compliance with the terms
of this Section 27 (together with a copy of such supplement or amendment).
Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made which changes the Redemption Price. Prior
to the Distribution Date, the interests of the holders of Rights shall be
deemed coincident with the interests of the holders of Common Stock.

Section 28. Successors. All the covenants and provisions of
this Agreement by or for the benefit of the Corporation or the Rights Agent
shall bind and inure to the benefit of their respective successors and assigns
hereunder.

Section 29. Determinations
and Actions by the Board of Directors, etc.

(a)       For all
purposes of this Agreement, any calculation of the number of shares of Common
Stock outstanding at any particular time, including for purposes of determining
the particular percentage of such outstanding shares of Common Stock of which
any Person is the Beneficial Owner, shall be made in accordance with the last
sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations
under the Exchange Act. The Board of Directors of the Corporation shall have
the exclusive power and authority to administer this Agreement and to exercise
all rights and powers specifically granted to such Board of Directors, or as
may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to (i) interpret the provisions of this Agreement
and (ii) make all determinations
deemed necessary or advisable for the administration of this Agreement
(including, without limitation, a determination to redeem or not redeem the
Rights or to amend the Agreement). All such actions, calculations, interpretations
and determinations which are done or made by the Board of Directors of the
Corporation or the Corporation in good faith, shall be final, conclusive and
binding on the Corporation, the Rights Agent, the holders of the Right
Certificates and all other parties.

(b)      Nothing
contained in this Agreement shall be deemed to be in derogation of the
obligation of the Board of Directors of the Corporation to exercise its
fiduciary duty. Without limiting the foregoing, nothing contained in this
Agreement shall be construed to suggest or imply that the Board of Directors of
the Corporation shall not be entitled to reject any tender offer, or to take
any other action (including, without limitation, the commencement, prosecution,
defense or settlement of any litigation and the submission of additional or
alternative offers or other proposals) with respect to any tender offer that
the Board of Directors believes is necessary or appropriate in the exercise of
such fiduciary duty.

Section 30. Benefits
of this Agreement. Nothing in this Agreement shall be
construed to give to any Person other than the Corporation, the Rights Agent
and the registered holders of the Right Certificates (and, prior to the
Distribution Date, registered holders of the Common Stock of the Corporation)
any legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Corporation, the
Rights Agent and the registered holders of the Right Certificates (and, prior
to the Distribution Date, registered holders of the Common Stock of the
Corporation).

Section 31. Severability.
If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

 

29

 

Section 32. Governing
Law. This Agreement and each Right Certificate issued hereunder
shall be deemed to be a contract made under the laws of the State of Delaware
and for all purposes shall be governed by and construed in accordance with the
laws of such State applicable to contracts to be made and performed entirely
within such State. The parties agree that all actions and proceedings arising
out of this Agreement or any of the transactions contemplated hereby in
connection with the rights and obligations of the Rights Agent shall be brought
in the courts of State of Delaware or the United States District Court for the
District of Delaware (each, a “Delaware
Court”) and that, in connection with any such action or proceeding
relating to the rights and obligations of the Rights Agent, the parties submit
to the jurisdiction of, and venue in, such Delaware Court. Each of the parties
hereto irrevocably waives any right to a trial by jury in any action,
proceeding or counterclaim arising out of this Agreement or the transactions
contemplated hereby.

Section 33. Counterparts.
This
Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

Section 34. Descriptive
Headings. Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect the
meaning or construction of any of the provisions hereof.

SIGNATURE

IN WITNESS WHEREOF, the parties have caused this Agreement
to be duly executed and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written. 

 

	
  Attest:

  	
   

  	
  RIVERWOOD HOLDING, INC.

  
	
  By

  	
  /s/ Edward W. Stroetz, Jr.

  	
  By

  	
  /s/ Stephen M. Humphrey

  
	
   

  	
  Name: Edward W. Stroetz, Jr.

  	
   

  	
  Name: Stephen M. Humphrey

  
	
   

  	
  Title: Secretary

  	
   

  	
  Title: President and Chief Executive Officer

  

 

	
  Attest:

  	
   

  	
  WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as
  Rights Agent

  
	
  By

  	
  /s/ Susan J. Roeder

  	
  By

  	
  /s/ Barbara M. Novak

  
	
   

  	
  Name: Susan J. Roeder

  	
   

  	
  Name:
  Barbara M. Novak

  
	
   

  	
  Title: Assistant Secretary

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  	
   

  

 

30

 

Exhibit A to the

Rights Agreement

GRAPHIC
PACKAGING CORPORATION

Certificate of Designation,

Preferences and Rights

Pursuant to Section 151

of the General Corporation Law

of the State of Delaware

Certificate of Designation,

Preferences and Rights

of

Series A Junior Participating Preferred Stock

I, Edward W. Stroetz, Jr., being the Secretary of Graphic
Packaging Corporation, formerly known as Riverwood Holding, Inc., a
Delaware corporation (the “Corporation”),
do hereby certify that, pursuant to authority expressly vested in the Board of
Directors of the Corporation by the provisions of the Restated Certificate of
Incorporation of the Corporation (the “Restated
Certificate of Incorporation”), the Board of Directors duly adopted
the following resolution:

RESOLVED, that, pursuant to the authority vested in the
Board in accordance with the provisions of the Restated Certificate of
Incorporation, a Series A Junior Participating Preferred Stock, par value
$0.01 per share, of the Corporation (the “Series A
Preferred Stock”) be, and it hereby is, created, and that the number
of shares thereof, and the designation and the voting powers, preferences and
relative participating, optional and other special rights of the shares of such
series, and the qualifications, limitations or restrictions thereof are as
follows:

Section 1. Designation
and Number of Shares. 500,000 shares of the Preferred Stock of the
Corporation shall constitute a series of Preferred Stock designated as
Series A Junior Participating Preferred Stock (hereinafter referred to as
the “Series A Preferred Stock”).
Such number of shares may be increased or decreased by resolution of the Board
of Directors; provided, that no
decrease shall reduce the number of shares of Series A Preferred Stock to
a number less than (a) the number
of shares then outstanding plus (b)
the number of shares reserved for issuance upon the exercise of outstanding
options, rights or warrants or upon the conversion of any outstanding
securities issued by the Corporation convertible into or exchangeable for
Series A Preferred Stock.

Section 2. Dividends
and Distributions.

(a)       Subject to
the rights of the holders of any shares of any series of Preferred Stock (or
any similar stock) ranking prior and superior to the Series A Preferred
Stock with respect to dividends, the holders of shares of Series A
Preferred Stock, in preference to the holders of Common Stock, par value $0.01
of the Corporation (the “Common Stock”)
and of any other class or series of junior stock that may be outstanding, shall
be entitled to receive, when, as and if declared by the Board of Directors out
of funds legally available for the purpose, annual dividends payable in cash on
the fifteenth day of December in each year (each such date being referred to
herein as a “Dividend Payment Date”),
commencing on the first Dividend Payment Date after the first issuance of a
share or fraction of a share of Series A Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (i) $10.00 per share, or (ii) subject to the provision for
adjustment hereinafter set forth, 1000 times the aggregate per share amount of
all cash dividends, and 1000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions, other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock
since the immediately

 

31

 

preceding Dividend Payment Date, or, with respect to the
first Dividend Payment Date, since the first issuance of any share or fraction
of a share of Series A Preferred Stock. In the event the Corporation shall
at any time after August 8, 2003 declare or pay any dividend on Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise) into a greater or lesser number of shares of Common Stock, then in
each such case the amount to which holders of shares of Series A Preferred
Stock were entitled immediately prior to such event under clause (ii) of
the preceding sentence shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

(b)      The
Corporation shall declare a dividend or distribution on the Series A
Preferred Stock as provided in paragraph (a) of this Section 2
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or
distribution shall have been declared on the Common Stock during the period
between any Dividend Payment Date and the next subsequent Dividend Payment
Date, a dividend of $10.00 per share on the Series A Preferred Stock shall
nevertheless be payable on such subsequent Dividend Payment Date.

(c)       Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Dividend Payment Date next preceding the date of issue
of such shares of Series A Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Dividend Payment Date, in
which case dividends on such shares shall begin to accrue from the date of
issue of such shares, or unless the date of issue is a Dividend Payment Date or
is a date after the record date for the determination of holders of shares of
Series A Preferred Stock entitled to receive a quarterly dividend and
before such Dividend Payment Date, in either of which events such dividends
shall begin to accrue and be cumulative from such Dividend Payment Date. Accrued
but unpaid dividends shall accumulate but shall not bear interest. Dividends
paid on the shares of Series A Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares
shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board
of Directors may fix a record date for the determination of holders of shares
of Series A Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be not more than
60 days prior to the date fixed for the payment thereof.

Section 3. Voting
Rights. The holders of shares of Series A Preferred Stock shall
have the following voting rights:

(a)       Subject to
the provisions for adjustment as hereinafter set forth, each share of
Series A Preferred Stock shall entitle the holder thereof to 1000 votes
(and each one one-thousandth of a share of Series A Preferred Stock shall
entitle the holder thereof to one vote) on all matters submitted to a vote of
the stockholders of the Corporation. In the event the Corporation shall at any
time after August 8, 2003 declare or pay any dividend on Common Stock payable
in shares of Common Stock or effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise) into a greater or lesser number of shares of
Common Stock, then in each such case the number of votes per share to which
holders of shares of Series A Preferred Stock were entitled immediately
prior to such event shall be adjusted by multiplying such number by a fraction,
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

(b)      Except as
otherwise provided herein, in the Certificate of Incorporation, in any other
certificate of designation creating a series of preferred stock or any similar
stock, or by law, the holders

 

32

 

of shares of Series A Preferred Stock and the holders
of shares of Common Stock and any other capital stock of the Corporation having
general voting rights shall vote together as one class on all matters submitted
to a vote of stockholders of the Corporation.

(c)       Except as
provided herein, in Section 10 or by applicable law, holders of Series A
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for authorizing or taking any corporate
action.

Section 4. Certain
Restrictions.

(a)       Whenever
quarterly dividends or other dividends or distributions payable on the
Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series A Preferred Stock outstanding
shall have been paid in full, the Corporation shall not:

(i)  declare or pay
dividends on, make any other distributions on any shares or stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding-up)
to the Series A Preferred Stock;

(ii)  declare or pay
dividends, or make any other distributions, on any shares of stock ranking on a
parity (either as to dividends or upon liquidation, dissolution or winding up)
with the Series A Preferred Stock except dividends paid ratably on the
Series A Preferred Stock, and all such parity stock on which dividends are
payable or in arrears in proportion to the total amounts to which the holders
of all such shares are then entitled;

(iii)  redeem or purchase or
otherwise acquire for consideration shares of any stock ranking junior (either
as to dividends or upon liquidation, dissolution or winding-up) to the
Series A Preferred Stock, provided
that the Corporation may at any time redeem, purchase or otherwise acquire
shares of any such junior stock in exchange for shares of any stock of the
Corporation ranking junior (either as to dividends or upon dissolution,
liquidation or winding up) to the Series A Preferred Stock; or

(iv)  purchase or otherwise
acquire for consideration any shares of Series A Preferred Stock, or any
shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding-up) with the Series A Preferred Stock,
except in accordance with a purchase offer made in writing or by publication
(as determined by the Board of Directors) to all holders of such shares upon
such terms as the Board of Directors, after consideration of the respective
annual dividend rates and other relative rights and preferences of the
respective series and classes, shall determine in good faith will result in
fair and equitable treatment among the respective series or classes.

(b)      The
Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation
unless the Corporation could, under paragraph (a) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

Section 5. Reacquired
Shares. Any shares of Series A Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever, shall be
retired and canceled promptly after the acquisition thereof. All such shares
shall upon their cancellation become authorized but unissued shares of
preferred stock, without designation as to series, and may be reissued as part
of a new series of preferred stock to be created by resolution or resolutions
of the Board of Directors, subject to the conditions and restrictions on
issuance set forth herein, in the Certificate of Incorporation, in any other
certificate of designation creating a series of preferred stock or any similar
stock or as otherwise required by law.

 

33

 

Section 6. Liquidation,
Dissolution or Winding-Up. Upon any voluntary or involuntary
liquidation, dissolution or winding-up of the Corporation, no distribution
shall be made (a) to the holders
of shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding-up) to the Series A Preferred Stock unless prior
thereto, the holders of shares of Series A Preferred Stock shall have
received the higher of (i) $1000
per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment, or
(ii) an aggregate amount per
share, subject to the provision for adjustment hereinafter set forth, equal to
1000 times the aggregate amount to be distributed per share to holders of
Common Stock; nor shall any distribution be made (b) to the holders of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding-up) with the
Series A Preferred Stock, except distributions made ratably on the
Series A Preferred Stock and all other such parity stock in proportion to
the total amounts to which the holders of all such shares are entitled upon
such liquidation, dissolution or winding-up. In the event the Corporation shall
at any time after August 8, 2003 declare or pay any dividend on Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise) into a greater or lesser number of shares of Common Stock, then in
each such case the aggregate amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under the
provision in clause (a) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

Section 7. Consolidation,
Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of
Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, or otherwise changed, then in any such case each
share of Series A Preferred Stock shall at the same time be similarly
exchanged or changed into an amount per share (subject to the provision for
adjustment hereinafter set forth) equal to 1000 times the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the
case may be, into which or for which each share of Common Stock is changed or
exchanged. In the event the Corporation shall at any time after August 8, 2003
declare or pay any dividend on Common Stock payable in shares of Common Stock,
or effect a subdivision or combination or consolidation of the outstanding
shares of Common Stock (by reclassification or otherwise) into a greater or
lesser number of shares of Common Stock, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of
shares of Series A Preferred Stock shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

Section 8. No
Redemption. The shares of Series A Preferred Stock shall not be
redeemable.

Section 9. Rank.
Unless otherwise provided in the Certificate of Incorporation or a certificate
of designation relating to a subsequent series of preferred stock of the
Corporation, the Series A Preferred Stock shall rank junior to all other
series of the Corporation’s preferred stock as to the payment of dividends and
the distribution of assets on liquidation, dissolution or winding-up, and
senior to the Common Stock.

Section 10. Amendment.
The Certificate of Incorporation shall not be amended in any manner which would
materially alter or change the powers, preferences or special rights of the
Series A Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of at least two-thirds of the outstanding
shares of Series A Preferred Stock, voting together as a single series.

 

34

 

Section 11. Fractional
Shares. Series A Preferred Stock may be issued in fractions of
a share (in one one-thousandths of a share and integral multiples thereof)
which shall entitle the holder, in proportion to such holder’s fractional
shares, to exercise voting rights, receive dividends, participate in
distributions and to have the benefit of all other rights of holders of
Series A Preferred Stock.

IN WITNESS WHEREOF, this Certificate of Designation is
executed on behalf of the Corporation by Edward W. Stroetz, Jr., its Secretary,
and attested this    th day
of     , 2003. 

	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
  Name: 

  	
  Name: Edward W.
  Stroetz, Jr.

  
	
  Title:

  	
  Title:   Secretary

  

 

35

 

Exhibit B to the

Rights Agreement

[Form of Right Certificate] 

	
  Certificate No. R—

  	
   

  	
   

  	
   

  	
  Rights

  

NOT EXERCISABLE AFTER    , 2013 OR
EARLIER IF THE BOARD OF DIRECTORS ORDERS THE REDEMPTION OR EXCHANGE OF THE RIGHTS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER
OF SUCH RIGHTS MAY BECOME NULL AND VOID. THE RIGHTS SHALL NOT BE EXERCISABLE,
AND SHALL BE VOID SO LONG AS HELD, BY A HOLDER IN ANY JURISDICTION WHERE THE
REQUISITE QUALIFICATION TO THE ISSUANCE TO SUCH HOLDER, OR THE EXERCISE BY SUCH
HOLDER, OF THE RIGHTS IN SUCH JURISDICTION SHALL NOT HAVE BEEN OBTAINED OR BE
OBTAINABLE.

Rights Certificate

GRAPHIC
PACKAGING CORPORATION

This certifies that                       ,
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of August 7,
2003, as the same may be amended from time to time (the “Rights Agreement”), between Riverwood
Holding, Inc., now known as Graphic Packaging Corporation, a Delaware
corporation (the “Corporation”),
and Wells Fargo Bank Minnesota, National Association, a national banking
association (the “Rights Agent”),
to purchase from the Corporation at any time after the Distribution Date (as
such term is defined in the Rights Agreement) and prior to 5:00 P.M.
(Eastern time) on August 8, 2013, at the office of the Rights Agent
designated for such purpose, or its successors as Rights Agent, one
one-thousandth of a fully paid nonassessable share of Series A Junior
Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Corporation, at
a purchase price of $35.00 per one one-thousandth of a share of Preferred Stock
(the “Purchase Price”), upon
presentation and surrender of this Right Certificate with the Form of Election
to Purchase and the Certificate contained therein duly executed. The number of
Rights evidenced by this Right Certificate (and the number of one one-thousands
of a share of Preferred Stock which may be purchased upon exercise thereof) set
forth above, and the Purchase Price per one one-thousandth of a share of
Preferred Stock set forth above, are the number and Purchase Price as of August
8, 2003, based on the shares of Preferred Stock as constituted at such date.

From and after the first occurrence of a
Section 11(a)(ii) Event (as defined in the Rights Agreement), if the
Rights evidenced by this Right Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or
Associate thereof (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring
Person (or of any Associate or Affiliate thereof) who becomes a transferee
after such Acquiring Person (or any Associate or Affiliate thereof) becomes
such (a “Post-Event Transferee”),
(iii) under certain circumstances
specified in the Rights Agreement, a transferee of such Acquiring Person (or of
any Associate or Affiliate thereof) who becomes a transferee prior to or
concurrently with such Acquiring Person becoming such (a “Pre-Event Transferee”) or (iv) any subsequent transferee receiving
transferred Rights from a Post-Event Transferee or a Pre-Event Transferee,
either directly or through one or more immediate transferees, such Rights shall
become null and void and no holder hereof shall have any right with respect to
such Rights from and after the occurrence of such
Section 11(a)(ii) Event.

 

36

 

The Rights evidenced by this Right Certificate shall not be
exercisable, and shall be void so long as held, by a holder in any jurisdiction
where the requisite qualification to the issuance to such holder, or the
exercise by such holder, of the Rights in such jurisdiction shall not have been
obtained or be obtainable.

As provided in the Rights Agreement, the Purchase Price and
the number of one one-thousandths of a share of Preferred Stock or the number
and kind of other securities which may be purchased upon the exercise of the
Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events, including
Section 11(a)(ii) Events and Section 13 Events (as defined in
the Rights Agreement).

This Right Certificate is subject to all of the terms,
provisions and conditions of the Rights Agreement, as it may be amended from
time to time, which terms, provisions and conditions are hereby incorporated
herein by reference and made a part hereof and to which Rights Agreement
reference is hereby made for a full description of the rights, limitations of
rights, obligations, duties and immunities hereunder of the Rights Agent, the
Corporation and the holders of the Right Certificates, which limitations of
rights include the temporary suspension of the exercisability of such Rights
under the specific circumstances set forth in the Rights Agreement. Copies of
the Rights Agreement are on file at the principal executive offices of the
Corporation and the above-mentioned office of the Rights Agent and are also
available upon written request to the Rights Agent.

This Right Certificate, with or without other Right
Certificates, upon surrender at the principal office of the Rights Agent, may
be exchanged for another Right Certificate or Right Certificates of like tenor
and date evidencing Rights entitling the holder to purchase a like aggregate
number of one one-thousandths of a share of Preferred Stock as the Rights
evidenced by the Right Certificate or Right Certificates surrendered shall have
entitled such holder to purchase. If this Right Certificate shall be exercised
in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not
exercised.

Subject to the provisions of the Rights Agreement, the
Rights evidenced by this Right Certificate may be redeemed by the Corporation
at a redemption price of $0.001 per Right at any time prior to the Close of
Business on the earlier of (i)
the Stock Acquisition Time (as defined in the Rights Agreement) and (ii) the close of business on the
Expiration Date (as defined in the Rights Agreement). Subject to the provisions
of the Rights Agreement, the rights evidenced by this Right Certificate may be
exchanged in whole or part for shares of Common Stock or fractional shares of
Preferred Stock (or any other substantially similar series of preferred stock
of the Corporation).

No fractional shares of Preferred Stock will be issued upon
the exercise of any Right or Rights evidenced hereby (other than fractions
which are integral multiples of one one-thousandth of a share of Preferred
Stock, which may, at the election of the Corporation, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

Other than those provisions relating to the redemption
price of the Rights, any of the provisions of the Rights Agreement may be
amended by the Board of Directors of the Corporation in any respect whatsoever
up until the Stock Acquisition Time and thereafter in certain respects which do
not adversely affect the interests of holders of Right Certificates (other than
an Acquiring Person or the Affiliates or Associates thereof).

No holder of this Right Certificate shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of shares of
Preferred Stock or of any other securities of the Corporation which may at any
time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Corporation or any right to
vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to give or withhold consent to any corporate

 

37

 

action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by this Right Certificate shall have been exercised as
provided in the Rights Agreement.

This Right Certificate shall not be valid or obligatory for
any purpose until it shall have been countersigned by the Rights Agent.

WITNESS the facsimile signature of the proper officers of
the Corporation and its corporate seal. Dated as of             ,
            .

	
  ATTEST:

  	
   

  	
  GRAPHIC PACKAGING
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Secretary

  	
   

  	
   

  	
  Name: 

  
	
  Countersigned: 

  	
   

  	
   

  	
  Title:

  
	
  WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
   

  	
   

  
					

 

38

 

[Form of Reverse Side of Right
Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered
holder if such

holder desires to transfer the Right
Certificate.)

FOR VALUE RECEIVED             hereby
sells, assigns and transfers unto

(Please print name and address of transferee)

this Right Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint                     Attorney, to transfer the within Right
Certificate on the books of the within named Corporation, with full power of
substitution. 

	
  Dated:

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

Signatures Guaranteed:

The undersigned hereby certifies that (1) the Rights
evidenced by this Right Certificate are not beneficially owned by an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement); and (2) after due inquiry and to the best knowledge of the
undersigned, it [    ] did [    ] did
not acquire the Rights evidenced by this Right Certificate from any Person who
is, was or subsequently became an Acquiring Person or an Affiliate or Associate
thereof. 

	
   

   

  	
   

  
	
   

  	
  Signature

  

 

39

 

NOTICE

The signature to the foregoing Assignment must correspond
to the name as written upon the face of this Right Certificate in every
particular, without alteration or enlargement or any change whatsoever.

 

40

 

FORM OF ELECTION TO PURCHASE

(To
be executed if holder desires to

exercise the Right Certificate.)

To Graphic Packaging Corporation:

The undersigned hereby irrevocably elects to exercise             
Rights represented by this Right Certificate to purchase the shares of
Preferred Stock issuable upon the exercise of such Rights (or such other
securities of the Corporation or of any other Person which may be issuable upon
the exercise of the Rights) and requests that certificates for such shares be
issued in the name of:

Please insert social security

or other identifying number

(Please print name and address)

If such number of Rights shall not be all the Rights
evidenced by this Right Certificate, a new Right Certificate for the balance
remaining of such Rights shall be registered in the name of and delivered to:

Please insert social security

or other identifying number

(Please print name and address)

Dated:         ,

 

41

 

 

[Form of Election to
Purchase—continued] 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
  (Signature must conform in all respects to name of
  holder as specified on the face of this Right Certificate.)

  

Signature Guaranteed:

(To be completed if applicable)

The undersigned hereby certifies that (1) the Rights
evidenced by this Right Certificate are not beneficially owned by an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement); and (2) after due inquiry and to the best knowledge of the
undersigned, it [    ] did [    ] did
not acquire the Rights evidenced by this Right Certificate from any Person who
is, was or subsequently became an Acquiring Person of an Affiliate or Associate
thereof. 

	
   

  	
   

  
	
   

  	
  Signature

  

NOTICE

In the event the certification set forth above in the Forms
of Assignment and Election is not completed, the Corporation will deem the
beneficial owner of the Rights evidenced by this Right Certificate to be an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement) and, in the case of an Assignment, will affix a legend to that
effect on any Right Certificates issued in exchange for this Rights
Certificate.

 

42

 

Exhibit C to the

Rights Agreement

UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY
AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE
DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY
BECOME NULL AND VOID.

RIVERWOOD HOLDING, INC.

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED STOCK

The Board of Directors of Riverwood Holding, Inc., to
be renamed Graphic Packaging Corporation (the “Corporation”),
has authorized the issuance of one Preferred Share Purchase Right (a “Right”) for each outstanding share of
Common Stock, par value $0.01 per share, of the Corporation (the “Common Stock”). The following is a summary
of the terms of the Rights.

Each Right entitles the registered holder to purchase from
the Corporation one one-thousandth of a share of Series A Junior
Participating Preferred Stock, par value $0.01 per share, of the Corporation
(the “Preferred Stock”) at a
price of $35.00 per one one-thousandth of a share of Preferred Stock, subject
to adjustment (the “Purchase Price”).
The description and terms of the Rights are set forth in a Rights Agreement,
dated as of August 7, 2003 (the Rights Agreement, as it may be amended
from time to time, is hereinafter referred to as the “Rights Agreement”) between the Corporation
and Wells Fargo Bank Minnesota, National Association, as Rights Agent (the “Rights Agent”).

Initially, the Rights will be attached to all Common Stock
book-entries or certificates representing shares then outstanding, and no
separate book-entries or certificates representing the Rights (“Right Certificates”) will be distributed.
The Rights will separate from the Common Stock and a “Distribution Date” will occur upon the
earlier to occur of (i) ten days
following the time (the “Stock Acquisition
Time”) of a public announcement or notice to the Corporation that a
person or group of affiliated or associated persons (an “Acquiring Person”), not including certain
exempt persons, acquired, or obtained the right to acquire, beneficial
ownership of 15% or more of the outstanding Common Stock of the Corporation,
and (ii) ten business days (or,
if determined by the Board of Directors, a specified or unspecified later date)
following the commencement or announcement of an intention to make a tender
offer or exchange offer which, if successful, would cause the bidder to own 15%
or more than of the outstanding Common Stock. In the case of any stockholder of
the Corporation who, together with its respective affiliates and associates,
beneficially owned greater than 15% of the outstanding shares of the Common
Stock of the Corporation as of the Effective Time (as such term is defined in
the Agreement and Plan of Merger, among the Corporation, Riverwood Acquisition
Sub LLC and Graphic Packaging International Corporation, dated as of March 25,
2003, as amended), without including the number of shares beneficially owned by
the other parties to the Stockholders Agreement (the "Stockholders Agreement"), dated as of March 25,
2003, as amended, by and among the Corporation and the parties thereto,
attributable to such stockholder by virtue of the Stockholders Agreement (such
stockholders are being referred to in the Rights Agreement as “grandfathered
persons”), the Rights generally will be distributed only if any such
stockholder acquires or proposes to acquire more than an additional 2% of the
outstanding shares of the Common Stock of the Corporation.  A stockholder shall cease to be a
grandfathered person at such time when such stockholder, together with its
respective affiliates and associates, beneficially owns less than 15% of the
outstanding shares of the Common Stock of the Corporation (without including
the number of shares beneficially owned by the other parties to the
Stockholders Agreement attributable to such grandfathered person by virtue of
the Stockholders Agreement).

The Rights Agreement provides that, until the Distribution
Date, (i) the Rights will be
transferred with and only with the Common Stock, (ii) new Common Stock certificates issued after August
8, 2003, upon transfer, new issuance or reissuance of the Common Stock, will
contain a notation incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any of
the Common Stock book-entries and current ownership statements issued with
respect to uncertificated shares of Common Stock in lieu of a stock certificate
(an “Ownership Statement”) or
certificates

 

43

 

outstanding will also constitute the transfer of the Rights
associated with the shares of Common Stock represented by such certificate or
book-entry and Ownership Statement. As soon as practicable following the
Distribution Date, separate Right Certificates will be mailed to holders of
record of the Common Stock as of the close of business on the Distribution Date
and such separate Right Certificates alone will evidence the Rights. Except in
connection with issuance of Common Stock pursuant to employee stock plans,
options and certain convertible securities, and except as otherwise determined
by the Board of Directors, only shares of Common Stock issued prior to the
Distribution Date will be issued with Rights.

The Rights are not exercisable until the Distribution Date.
The Rights will expire on August 8, 2013, unless earlier redeemed or
exchanged by the Corporation as described below.

In the event that, after the time any person becomes an
Acquiring Person, the Corporation is acquired in a merger or other business
combination transaction or 50% or more of its assets, cash flow or earning
power is sold, proper provision shall be made so that each holder of a Right
shall thereafter have the right to receive, upon the exercise thereof at the
then current exercise price of the Right, that number of shares of common stock
of the acquiring corporation which at the time of such transaction would have a
market value (as defined in the Rights Agreement) of two times the Purchase
Price of the Right. In the event that, after the time any person becomes an
Acquiring Person, the Corporation were the surviving corporation of a merger
and its Common Stock were changed or exchanged, proper provision shall be made
so that each holder of a Right will thereafter have the right to receive upon
exercise that number of shares of common stock of the Corporation (or its
acquiror) having a market value of two times the exercise price of the Right.

In the event that a person or group becomes an Acquiring
Person, each holder of a Right (other than the Acquiring Person) will
thereafter have the right to receive upon exercise that number of shares of
Common Stock (or, in certain circumstances, cash, a reduction in the Purchase
Price, Preferred Stock, other equity securities of the Corporation, debt
securities of the Corporation, other property or a combination thereof) having
a market value (as defined in the Rights Agreement) of two times the Purchase
Price of the Right. Notwithstanding any of the foregoing, following the
occurrence of any of the events set forth in this paragraph, all Rights that
are, or (under certain circumstances specified in the Rights Agreement) were,
beneficially owned by any Acquiring Person (or an affiliate, associate or
transferee thereof) will be null and void. A person will not be an Acquiring
Person if the Board of Directors of the Corporation determines that such person
or group became an Acquiring Person inadvertently and such person or group
promptly divests itself of a sufficient number of shares of Common Stock so
that such person or group is no longer an Acquiring Person.

The Purchase Price payable, and the number of shares of
Preferred Stock or other securities or property issuable, upon exercise of the
Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or
a subdivision, combination or reclassification of, the Preferred Stock, (ii) upon the grant to holders of Preferred
Stock of certain rights or warrants to subscribe for Preferred Stock or
convertible securities at less than the current market price of Preferred Stock
or (iii) upon the distribution to
holders of Preferred Stock of evidences of indebtedness or assets (excluding
regular periodic cash dividends or dividends payable in Preferred Stock) or of
subscription rights or warrants (other than those referred to above). The
number of Rights and number of shares of Preferred Stock issuable upon the
exercise of each Right are also subject to adjustment in the event of a stock
split, combination or stock dividend on the Common Stock.

With certain exceptions, no adjustment in the Purchase
Price will be required until cumulative adjustments require an adjustment of at
least 1% in such Purchase Price. No fractional shares of Preferred Stock will
be issued (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock which may, upon the election of
the Corporation, be evidenced by

 

44

 

depositary receipts) and, in lieu thereof, an adjustment in
cash will be made based on the market price of the Preferred Stock on the last
trading date prior to the date of exercise.

At any time prior to the earlier of the Stock Acquisition
Time and the Expiration Date (as defined in the Rights Agreement), the Board of
Directors may redeem the Rights in whole, but not in part, at a price of $0.001
per Right (the “Redemption Price”).
Immediately upon the action of the Board of Directors ordering redemption of
the Rights, the Rights will terminate and the only right of the holders of
Rights will be to receive the Redemption Price.

At any time after a person becomes an Acquiring Person and
prior to the acquisition by such Person of 50% or more of the outstanding
shares of Common Stock, the Board of Directors of the Corporation may exchange
the Rights (other than Rights beneficially owned by such Person which have
become void), in whole or part, at an exchange ratio of one share of Common
Stock per Right (subject to adjustment). The Corporation, at its option, may
substitute one-thousandth (subject to adjustment) of a share of Preferred Stock
(or other series of substantially similar preferred stock of the Corporation)
for each share of Common Stock to be exchanged.

Each share of Preferred Stock purchasable upon exercise of
the Rights will have a minimum preferential dividend of $10 per year, but will
be entitled to receive, in the aggregate, a dividend of 1000 times the dividend
declared on the shares of Common Stock. In the event of liquidation, the
holders of the shares of Preferred Stock will be entitled to receive a minimum
liquidation payment of $1000 per share, but will be entitled to receive an
aggregate liquidation payment equal to 1000 times the payment made per share of
Common Stock. Each share of Preferred Stock will have one thousand votes,
voting together with the shares of Common Stock. In the event of any merger,
consolidation or other transaction in which shares of Common Stock are
exchanged, each share of Preferred Stock will be entitled to receive 1000 times
the amount and type of consideration received per share of Common Stock. The
rights of the shares of Preferred Stock as to dividends and liquidation, and in
the event of mergers and consolidations, are protected by anti-dilution
provisions.

Until a Right is exercised, the holder thereof, as such,
will have no rights as a stockholder of the Corporation, other than rights
resulting from such holder’s ownership of shares of Common Stock, including,
without limitation, the right to vote or to receive dividends. While the
distribution of the Rights will not be taxable to stockholders or to the
Corporation, stockholders may, depending upon the circumstances, recognize
taxable income in the event that the Rights become exercisable for Common Stock
(or other consideration) of the Corporation or for common stock of the
acquiring corporation as set forth above.

Other than those provisions relating to the Redemption
Price, any of the provisions of the Rights Agreement may be amended by the
Board of Directors prior to the Stock Acquisition Time. After such time, the
provisions of the Rights Agreement may be amended by the Board of Directors in
order to cure any ambiguity, to correct or supplement defective or inconsistent
provisions, to shorten or lengthen any time period under the Rights Agreement,
to make changes which do not adversely affect the interests of the holders of
Rights (excluding the interests of any Acquiring Person) or to shorten or
lengthen any time period under the Rights Agreement; provided, however,
that no amendment to adjust the time period governing redemption shall be made
at such time as the Rights are not redeemable.

The term “Voting Stock”
means (i) the shares of Common
Stock of the Corporation and (ii)
any other shares of capital stock of the Corporation entitled to vote generally
in the election of directors or entitled to vote together with the shares of
Common Stock in respect of any merger, consolidation, sale of all or
substantially all of the Corporation’s assets, liquidation, dissolution or
winding up.

A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an exhibit to the Corporation’s amended Registration
Statement on Form 8-A dated August    , 2003. Copies of the
Rights Agreement are available free of charge from the Corporation. This
summary

 

45

 

description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement, as it
may be amended from time to time, which is hereby incorporated herein by
reference.

 

46Exhibit
4.2

 

Execution Copy

 

 

 

$1,600,000,000

 

CREDIT AGREEMENT

 

among

 

GRAPHIC PACKAGING
INTERNATIONAL, INC.

 

THE SEVERAL
LENDERS

FROM TIME TO TIME PARTIES HERETO

 

JPMORGAN CHASE
BANK

as administrative agent

 

DEUTSCHE BANK
SECURITIES INC.

as syndication agent

 

and

 

GOLDMAN SACHS
CREDIT PARTNERS L.P.

and

MORGAN STANLEY SENIOR FUNDING, INC.

as documentation agents

 

Dated as of
August 8, 2003

 

 

 

 

J.P. MORGAN
SECURITIES INC.

and

DEUTSCHE BANK SECURITIES INC.

as joint lead arrangers and joint bookrunners

 

 

Table
of Contents

 

	
  SECTION 1. DEFINITIONS

  
	
   

  	
  1.1.

  	
  Defined Terms

  
	
   

  	
  1.2.

  	
  Other Definitional
  Provisions

  
	
   

  	
   

  	
   

  
	
  SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

  
	
   

  	
  2.1.

  	
  Revolving Credit
  Commitments

  
	
   

  	
  2.2.

  	
  Procedure for
  Revolving Credit Borrowing

  
	
   

  	
  2.3.

  	
  Termination
  or Reduction of Revolving Credit Commitments

  
	
   

  	
  2.4.

  	
  Swing
  Line Commitments

  
	
   

  	
  2.5.

  	
  Term Loans

  
	
   

  	
  2.6.

  	
  Tranche
  A Term Notes

  
	
   

  	
  2.7.

  	
  Tranche
  B Term Notes

  
	
   

  	
  2.8.

  	
  Procedure for Term
  Loan Borrowing

  
	
   

  	
  2.9.

  	
  Repayment
  of Loans

  
	
   

  	
   

  	
   

  
	
  SECTION 3. LETTERS OF CREDIT

  
	
   

  	
  3.1.

  	
  L/C Commitment

  
	
   

  	
  3.2.

  	
  Procedure
  for Issuance of Letters of Credit

  
	
   

  	
  3.3.

  	
  Fees, Commissions
  and Other Charges

  
	
   

  	
  3.4.

  	
  L/C
  Participations

  
	
   

  	
  3.5.

  	
  Reimbursement
  Obligation of the Borrower

  
	
   

  	
  3.6.

  	
  Obligations
  Absolute

  
	
   

  	
  3.7.

  	
  Letter of Credit Payments

  
	
   

  	
  3.8.

  	
  Application

  
	
   

  	
   

  	
   

  
	
  SECTION 4. GENERAL PROVISIONS APPLICABLE TO
  LOANS AND LETTERS OF CREDIT

  
	
   

  	
  4.1.

  	
  Interest Rates and
  Payment Dates

  
	
   

  	
  4.2.

  	
  Conversion and
  Continuation Options

  
	
   

  	
  4.3.

  	
  Minimum
  Amounts of Sets

  
	
   

  	
  4.4.

  	
  Optional and
  Mandatory Prepayments

  
	
   

  	
  4.5.

  	
  Commitment
  Fees; Administrative Agent’s Fee; Other Fees

  
	
   

  	
  4.6.

  	
  Computation of
  Interest and Fees

  
	
   

  	
  4.7.

  	
  Inability to
  Determine Interest Rate

  
	
   

  	
  4.8.

  	
  Pro Rata Treatment and
  Payments

  
	
   

  	
  4.9.

  	
  Illegality

  
	
   

  	
  4.10.

  	
  Requirements
  of Law

  
	
   

  	
  4.11.

  	
  Taxes

  
	
   

  	
  4.12.

  	
  Indemnity

  
	
   

  	
  4.13.

  	
  Certain
  Rules Relating to the Payment of Additional Amounts

  
	
   

  	
   

  	
   

  
	
  SECTION 5. REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  5.1.

  	
  Financial
  Condition

  

 

i

 

	
   

  	
  5.2.

  	
  No Change;
  Solvent

  
	
   

  	
  5.3.

  	
  Corporate
  Existence; Compliance with Law

  
	
   

  	
  5.4.

  	
  Corporate
  Power; Authorization; Enforceable Obligations

  
	
   

  	
  5.5.

  	
  No Legal Bar

  
	
   

  	
  5.6.

  	
  No
  Material Litigation

  
	
   

  	
  5.7.

  	
  No Default

  
	
   

  	
  5.8.

  	
  Ownership of Property;
  Liens

  
	
   

  	
  5.9.

  	
  Intellectual
  Property

  
	
   

  	
  5.10.

  	
  No Burdensome Restrictions

  
	
   

  	
  5.11.

  	
  Taxes

  
	
   

  	
  5.12.

  	
  Federal
  Regulations

  
	
   

  	
  5.13.

  	
  ERISA

  
	
   

  	
  5.14.

  	
  Collateral

  
	
   

  	
  5.15.

  	
  Investment
  Company Act; Other Regulations

  
	
   

  	
  5.16.

  	
  Subsidiaries

  
	
   

  	
  5.17.

  	
  Purpose of
  Loans

  
	
   

  	
  5.18.

  	
  Environmental
  Matters

  
	
   

  	
  5.19.

  	
  No Material Misstatements

  
	
   

  	
  5.20.

  	
  Delivery of the Merger
  Agreement

  
	
   

  	
  5.21.

  	
  Representations
  and Warranties Contained in the Transaction Documents

  
	
   

  	
  5.22.

  	
  Senior
  Indebtedness

  
	
   

  	
  5.23.

  	
  Labor Matters

  
	
   

  	
   

  	
   

  
	
  SECTION 6. CONDITIONS PRECEDENT

  
	
   

  	
  6.1.

  	
  Conditions to
  Initial Extension of Credit

  
	
   

  	
  6.2.

  	
  Conditions
  to Each Other Extension of Credit

  
	
   

  	
   

  	
   

  
	
  SECTION 7. AFFIRMATIVE COVENANTS

  
	
   

  	
  7.1.

  	
  Financial
  Statements

  
	
   

  	
  7.2.

  	
  Certificates; Other
  Information

  
	
   

  	
  7.3.

  	
  Payment
  of Obligations

  
	
   

  	
  7.4.

  	
  Conduct
  of Business and Maintenance of Existence

  
	
   

  	
  7.5.

  	
  Maintenance of
  Property; Insurance

  
	
   

  	
  7.6.

  	
  Inspection
  of Property; Books and Records; Discussions

  
	
   

  	
  7.7.

  	
  Notices

  
	
   

  	
  7.8.

  	
  Environmental
  Laws

  
	
   

  	
  7.9.

  	
  After-Acquired
  Real Property and Fixtures

  
	
   

  	
  7.10.

  	
  Interest Rate Protection

  
	
   

  	
  7.11.

  	
  Surveys

  
	
   

  	
   

  	
   

  
	
  SECTION 8. NEGATIVE COVENANTS

  
	
   

  	
  8.1.

  	
  Financial Condition
  Covenants

  
	
   

  	
  8.2.

  	
  Limitation on Indebtedness

  
	
   

  	
  8.3.

  	
  Limitation
  on Liens

  
	
   

  	
  8.4.

  	
  Limitation on
  Guarantee Obligations

  
	
   

  	
  8.5.

  	
  Limitation on
  Fundamental Changes

  
	
   

  	
  8.6.

  	
  Limitation on Sale of
  Assets

  

 

ii

 

	
   

  	
  8.7.

  	
  Limitation
  on Dividends

  
	
   

  	
  8.8.

  	
  Limitation on
  Capital Expenditures

  
	
   

  	
  8.9.

  	
  Limitation
  on Investments, Loans and Advances

  
	
   

  	
  8.10.

  	
  Limitations on
  Certain Acquisitions

  
	
   

  	
  8.11.

  	
  Limitation
  on Transactions with Affiliates

  
	
   

  	
  8.12.

  	
  Limitation
  on Sale and Leaseback Transactions

  
	
   

  	
  8.13.

  	
  Limitations
  on Dispositions of Collateral

  
	
   

  	
  8.14.

  	
  Limitation
  on Optional Payments and Modifications of Debt Instruments and Other
  Documents

  
	
   

  	
  8.15.

  	
  Limitation on
  Changes in Fiscal Year

  
	
   

  	
  8.16.

  	
  Limitation on
  Negative Pledge Clauses

  
	
   

  	
  8.17.

  	
  Limitation on Lines of
  Business

  
	
   

  	
  8.18.

  	
  Establishment
  and Maintenance of Lockbox Accounts

  
	
   

  	
  8.19.

  	
  Limitations
  on Currency and Commodity Hedging Transactions

  
	
   

  	
   

  	
   

  
	
  SECTION 9. EVENTS OF DEFAULT

  
	
   

  	
   

  	
   

  
	
  SECTION 10. THE ADMINISTRATIVE AGENT AND THE
  OTHER REPRESENTATIVES

  
	
   

  	
  10.1.

  	
  Appointment

  
	
   

  	
  10.2.

  	
  Delegation
  of Duties

  
	
   

  	
  10.3.

  	
  Exculpatory
  Provisions

  
	
   

  	
  10.4.

  	
  Reliance by
  Administrative Agent

  
	
   

  	
  10.5.

  	
  Notice of
  Default

  
	
   

  	
  10.6.

  	
  Acknowledgements
  and Representations by Lenders

  
	
   

  	
  10.7.

  	
  Indemnification

  
	
   

  	
  10.8.

  	
  Administrative
  Agent and Other Representatives in Their Individual Capacity

  
	
   

  	
  10.9.

  	
  Successor Administrative
  Agent

  
	
   

  	
  10.10.

  	
  Syndication
  Agent

  
	
   

  	
  10.11.

  	
  Swing Line
  Lender

  
	
   

  	
   

  	
   

  
	
  SECTION 11. MISCELLANEOUS

  
	
   

  	
  11.1.

  	
  Amendments
  and Waivers

  
	
   

  	
  11.2.

  	
  Notices

  
	
   

  	
  11.3.

  	
  No Waiver; Cumulative
  Remedies

  
	
   

  	
  11.4.

  	
  Survival of
  Representations and Warranties

  
	
   

  	
  11.5.

  	
  Payment of Expenses and
  Taxes

  
	
   

  	
  11.6.

  	
  Successors
  and Assigns; Participations and Assignments

  
	
   

  	
  11.7.

  	
  Adjustments;
  Set-off

  
	
   

  	
  11.8.

  	
  Judgment

  
	
   

  	
  11.9.

  	
  Counterparts

  
	
   

  	
  11.10.

  	
  Severability

  
	
   

  	
  11.11.

  	
  Integration

  
	
   

  	
  11.12.

  	
  GOVERNING LAW

  
	
   

  	
  11.13.

  	
  Submission To
  Jurisdiction; Waivers

  
	
   

  	
  11.14.

  	
  Acknowledgements

  

 

iii

 

	
   

  	
  11.15.

  	
  WAIVER
  OF JURY TRIAL

  
	
   

  	
  11.16.

  	
  Confidentiality

  

 

iv

 

	
  SCHEDULES

  
	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  Commitments and
  Addresses

  
	
   

  	
  B

  	
  Permitted Holders

  
	
   

  	
  C

  	
  Indicative Terms of
  Permitted Receivables Transactions

  
	
   

  	
  D

  	
  Lockbox Banks and
  Lockbox Accounts

  
	
   

  	
  E

  	
  Existing Letters of
  Credit

  
	
   

  	
  5.2

  	
  Material Adverse Effect
  Disclosure

  
	
   

  	
  5.4

  	
  Consents Required

  
	
   

  	
  5.6

  	
  Litigation

  
	
   

  	
  5.8

  	
  Real Property

  
	
   

  	
  5.9

  	
  Intellectual Property
  Claims

  
	
   

  	
  5.16

  	
  Subsidiaries

  
	
   

  	
  6.1(k)

  	
  Lien Searches

  
	
   

  	
  6.1(l)

  	
  Local and Foreign
  Counsel

  
	
   

  	
  6.1(n)

  	
  Filing Jurisdictions

  
	
   

  	
  6.1(p)

  	
  Title Insurance
  Policies

  
	
   

  	
  7.9(e)

  	
  Leased U.S. Inventory
  Locations

  
	
   

  	
  8.2(i)

  	
  Permitted Indebtedness

  
	
   

  	
  8.3(j)

  	
  Permitted Liens

  
	
   

  	
  8.4(a)

  	
  Permitted Guarantee
  Obligations

  
	
   

  	
  8.6(i)

  	
  Permitted Asset Sales

  
	
   

  	
  8.9(c)

  	
  Permitted Investments

  
	
   

  	
  8.11(iv)

  	
  Permitted Transactions
  with Affiliates

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
   

  	
  A-1

  	
  Form of Revolving
  Credit Note

  
	
   

  	
  A-2

  	
  Form of Tranche A Term
  Note

  
	
   

  	
  A-3

  	
  Form of Tranche B Term
  Note

  
	
   

  	
  A-4

  	
  Form of Swing Line Note

  
	
   

  	
  B

  	
  Form of Guarantee and
  Collateral Agreement

  
	
   

  	
  C

  	
  Form of Mortgage

  
	
   

  	
  D-1

  	
  Form of Opinion of
  Debevoise & Plimpton, Special Counsel to the Loan Parties

  
	
   

  	
  D-2

  	
  Form of Opinion of
  Edward W. Stroetz, Jr., Counsel to Certain of the Loan Parties

  
	
   

  	
  D-3

  	
  Form of Opinion of
  Holme Roberts & Owen LLP, Counsel to Certain of the Loan Parties

  
	
   

  	
  D-4

  	
  Form of Opinion of
  Richards, Layton & Finger, Special Delaware Counsel to the Loan Parties

  
	
   

  	
  E

  	
  Form of U.S. Tax
  Compliance Certificate

  
	
   

  	
  F

  	
  Form of Assignment and
  Acceptance

  
	
   

  	
  G

  	
  Form of Swing Line Loan
  Participation Certificate

  
	
   

  	
  H

  	
  Form of Borrowing
  Certificate

  
	
   

  	
  I

  	
  Form of Landlord Waiver

  
	
   

  	
  J

  	
  Form of Closing
  Certificate

  
	
   

  	
  K

  	
  Form of Prepayment
  Option Notice

  

 

v

 

	
   

  	
  L

  	
  Form of Lockbox Agreement

  

 

vi

 

CREDIT AGREEMENT, dated
as of August 8, 2003, among GRAPHIC PACKAGING INTERNATIONAL, INC., a
Delaware corporation (the “Borrower”), the several banks and other
financial institutions from time to time parties to this Agreement (the “Lenders”),
JPMORGAN CHASE BANK (“JPMCB”), as administrative agent for the Lenders
hereunder (in such capacity, the “Administrative Agent”), DEUTSCHE BANK
SECURITIES INC., as syndication agent (in such capacity, the “Syndication
Agent”), and GOLDMAN SACHS CREDIT PARTNERS L.P. and MORGAN STANLEY SENIOR
FUNDING, INC., as documentation agents (collectively, in such capacity, the “Documentation
Agents”).

 

The parties hereto hereby
agree as follows:

 

WHEREAS, Riverwood International
Corporation, a Delaware corporation (“Riverwood”), is a wholly-owned
subsidiary of RIC Holding, Inc., a Delaware corporation (“RIC Holding”),
which is in turn a wholly-owned subsidiary of Riverwood Holding, Inc., a
Delaware corporation (“Holding”);

 

WHEREAS, Graphic
Packaging International, Inc., a Delaware corporation formerly known as Graphic
Packaging Corporation (“Graphic Packaging”), is a wholly-owned
subsidiary of Graphic Packaging Holdings, Inc., a Colorado corporation (“Graphic
Packaging Midco”), which is in turn a wholly-owned subsidiary of Graphic
Packaging International Corporation, a Colorado corporation (“Graphic
Packaging Holding”);

 

WHEREAS, Holding, Graphic
Packaging Holding and Riverwood Acquisition Sub LLC, a Delaware limited liability
company and a wholly-owned subsidiary of Holding (“Merger Sub”), have
entered into an agreement and plan of merger, dated as of March 25, 2003
(the “Merger Agreement”), which sets forth, among other things, the
terms and conditions for the merger of Graphic Packaging Holding and Merger Sub
(the “Graphic Packaging Holding/Newco Merger”), with Merger Sub being
the surviving company of the Graphic Packaging Holding/Newco Merger and the
parent company of RIC Holding and Graphic Packaging Midco;

 

WHEREAS, Graphic
Packaging Midco and RIC Holding will merge (the “Midco Merger”), with
Graphic Packaging Midco being the surviving corporation of the Midco Merger and
being renamed GPI Holding, Inc. (“GPI Holding”);

 

WHEREAS, Riverwood and
Graphic Packaging will merge (the “Opco Merger” and, together with the
Graphic Packaging Holding/Newco Merger and the Midco Merger, the “Mergers”),
with Riverwood being the surviving corporation of the Opco Merger and being
renamed Graphic Packaging International, Inc.;

 

WHEREAS, Holding will
change its name to Graphic Packaging Corporation;

 

WHEREAS, the outstanding
senior secured credit facilities of Riverwood and Graphic Packaging will be
repaid, redeemed or repurchased in full, and certain other indebtedness of
Riverwood and Graphic Packaging will be repaid, redeemed, repurchased or
otherwise satisfied and discharged (the “Refinancing” and, together with
the Mergers, the “Transactions”);

 

 

WHEREAS, in order to (a)
finance the Transactions, (b) pay certain fees and expenses related to the
Transactions and (c) finance the working capital and other business
requirements of the Borrower and its subsidiaries following the consummation of
the Transactions, (i) the Borrower intends to issue approximately $850,000,000
in combined aggregate principal amount of its senior unsecured notes and senior
subordinated unsecured notes (of which at least $425,000,000 in aggregate
principal amount of such securities shall be senior subordinated unsecured
notes), each such issuance to occur in a Rule 144A private placement or a
registered public offering and (ii) the Borrower has requested that the Lenders
make the Loans and issue and participate in the Letters of Credit (as such
terms are hereinafter defined) provided for herein; and

 

WHEREAS, all the
obligations of the Borrower hereunder will be secured by among other things,
(a) a perfected lien on and security interest in certain collateral described
in the Security Documents, including without limitation, a pledge of all the
issued and outstanding Capital Stock of the Borrower, Merger Sub, GPI Holding
and each of the Borrower’s direct and indirect Domestic Subsidiaries and 65% of
the issued and outstanding Capital Stock of each of the direct Foreign
Subsidiaries of Holding and its Domestic Subsidiaries and (b) unconditional
guarantees by each of the Guarantors (as such terms are hereinafter defined);

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements contained herein, the
parties hereto agree as follows:

 

SECTION 1.  DEFINITIONS

 

1.1.                              Defined Terms. 
As used in this Agreement, the following terms shall have the following
meanings:

 

“ABR”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the Base CD Rate in effect on such day
plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1%.  For purposes hereof:  “Prime Rate” shall mean the rate of
interest per annum publicly announced from time to time by JPMCB as its prime
rate in effect at its principal office in New York City (the Prime Rate not
being intended to be the lowest rate of interest charged by JPMCB in connection
with extensions of credit to debtors); “Base CD Rate” shall mean the sum
of (a) the product of (i) the Three-Month Secondary CD Rate and (ii) a
fraction, the numerator of which is one and the denominator of which is one
minus the C/D Reserve Percentage and (b) the C/D Assessment Rate; “Three-Month
Secondary CD Rate” shall mean, for any day, the secondary market rate for
three-month certificates of deposit reported as being in effect on such day
(or, if such day shall not be a Business Day, the next preceding Business Day)
by the Board of Governors of the Federal Reserve System (the “Board”)
through the public information telephone line of the Federal Reserve Bank of
New York (which rate will, under the current practices of the Board, be
published in Federal Reserve Statistical Release H.15(519) during the week
following such day), or, if such rate shall not be so reported on such day or
such next preceding Business Day, the average of the secondary market
quotations for three-month certificates of deposit of major money center banks
in New York City received at approximately 10:00 A.M., New York City time, on
such day (or, if such day shall not be a Business Day, on the next preceding
Business Day) by the Administrative Agent from three New York City

 

2

 

negotiable certificate of deposit dealers of recognized standing
selected by it; and “Federal Funds Effective Rate” shall mean, for any
day, the weighted average of the rates on overnight federal funds transactions
with members of the Federal Reserve System arranged by federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a Business
Day, the average of the quotations for the day of such transactions received by
the Administrative Agent from three federal funds brokers of recognized
standing selected by it.  Any change in
the ABR due to a change in the Prime Rate, the Three-Month Secondary CD Rate or
the Federal Funds Effective Rate shall be effective as of the opening of
business on the effective day of such change in the Prime Rate, the Three-Month
Secondary CD Rate or the Federal Funds Effective Rate, respectively.

 

“ABR Loans”:  Loans the rate of interest applicable to
which is based upon the ABR.

 

“Acceleration”:  as defined in subsection 9(e).

 

“Accounts”:  as defined in the Uniform Commercial Code as
in effect in the State of New York from time to time; and, with respect to the
Borrower and its Domestic Subsidiaries, all such Accounts of such Persons,
whether now existing or existing in the future, including, without limitation,
(a) all accounts receivable of such Person (whether or not specifically listed
on schedules furnished to the Administrative Agent), including, without
limitation, all accounts created by or arising from all of such Person’s sales
of goods or rendition of services made under any of its trade names, or through
any of its divisions, (b) all unpaid rights of such Person (including
rescission, replevin, reclamation and stopping in transit) relating to the
foregoing or arising therefrom, (c) all rights to any goods represented by any
of the foregoing, including, without limitation, returned or repossessed goods,
(d) all reserves and credit balances held by such Person with respect to any
such accounts receivable of any Obligors, (e) all letters of credit, guarantees
or collateral for any of the foregoing and (f) all insurance policies or rights
relating to any of the foregoing.

 

“ACX
Liquidation Transaction”:  the
liquidation and dissolution of each of ACX (UK) Limited, a company organized
under the laws of England, ACX Group Limited, a company organized under the
laws of Wales and a direct subsidiary of ACX (UK) Limited, and NMC Group
Limited, a company organized under the laws of England and a direct subsidiary
of ACX Group Limited, and transactions reasonably related to such liquidation
and dissolution.

 

“Adjustment
Date”:  each date on or after
December 31, 2003 that is the second Business Day following receipt by the
Lenders of both (a) the financial statements required to be delivered pursuant
to subsection 7.1(a) or 7.1(b), as applicable, for the most recently
completed fiscal period and (b) the related compliance certificate required to
be delivered pursuant to subsection 7.2(b) with respect to such fiscal
period.

 

“Administrative
Agent”:  as defined in the Preamble
hereto.

 

“Affiliate”:  as to any Person, any other Person (other
than a Subsidiary) which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person.  For purposes of this definition, “control”
of a Person means the power, directly or indirectly,

 

3

 

either to (a) vote 20% or more of the securities having ordinary voting
power for the election of directors of such Person or (b) direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.

 

“Agents”:  the collective reference to the
Administrative Agent, the Syndication Agent and the Documentation Agents.

 

“Aggregate
Outstanding Revolving Credit”:  as
to any Revolving Credit Lender at any time, an amount equal to the sum of (a)
the aggregate principal amount of all Revolving Credit Loans made by such
Revolving Credit Lender then outstanding, (b) such Revolving Credit Lender’s
Revolving Credit Commitment Percentage of the L/C Obligations then outstanding
and (c) such Revolving Credit Lender’s Revolving Credit Commitment Percentage
of the Swing Line Loans then outstanding.

 

“Agreement”:  this Credit Agreement, as amended,
supplemented, waived or otherwise modified from time to time.

 

“Applicable
Margin”:  (a) as applied to any
given type of Tranche B Term Loans, the rate per annum set forth under the
relevant column heading below:

 

	
  ABR Loans

  	
   

  	
  Eurodollar
  Loans

  	
   

  
	
  1.75%

  	
   

  	
  2.75

  	
  %

  

 

and (b) as applied to any
given type of Revolving Credit Loans or Tranche A Term Loans, the rate per
annum is determined as follows:  during
the period from the Closing Date until the first Adjustment Date, the Applicable
Margin in respect of (i) Revolving Credit Loans shall equal (A) with respect to
ABR Loans, 2.00% per annum and (B) with respect to Eurodollar Loans, 3.00% per
annum, and (ii) Tranche A Term Loans shall equal (A) with respect to ABR Loans,
1.75% per annum and (B) with respect to Eurodollar Loans, 2.75% per annum.  The Applicable Margins in respect of
Revolving Credit Loans and Tranche A Term Loans will be adjusted on each
subsequent Adjustment Date to the applicable rate per annum set forth under the
heading “Applicable Margin for ABR Loans” or “Applicable Margin for Eurodollar
Loans” on the applicable Pricing Grid which corresponds to the Consolidated
Leverage Ratio determined from the financial statements and compliance
certificate relating to the end of the fiscal quarter immediately preceding
such Adjustment Date; provided that in the event that the financial
statements required to be delivered pursuant to subsection 7.1(a) or
7.1(b), as applicable, and the related compliance certificate required to be
delivered pursuant to subsection 7.2(b), are not delivered when due, then

 

(1)                                  if
such financial statements and certificate are delivered after the date such
financial statements and certificate were required to be delivered (without
giving effect to any applicable cure period) and the Applicable Margin
increases from that previously in effect as a result of the delivery of such
financial statements, then the Applicable Margin in respect of Revolving Credit
Loans and Tranche A Term Loans during the period from the date upon which such
financial statements were required to be delivered (without giving effect to
any applicable cure period) until the date upon which they actually are

 

4

 

delivered shall, except
as otherwise provided in clause (3) below, be the Applicable Margin as so
increased;

 

(2)                                  if
such financial statements and certificate are delivered after the date such
financial statements and certificate were required to be delivered and the
Applicable Margin decreases from that previously in effect as a result of the
delivery of such financial statements, then such decrease in the Applicable
Margin shall not become applicable until the date upon which the financial
statements and certificate actually are delivered; and

 

(3)                                  if
such financial statements and certificate are not delivered prior to the
expiration of the applicable cure period, then, effective upon such expiration,
for the period from the date upon which such financial statements and
certificate were required to be delivered (after the expiration of the
applicable cure period) until two Business Days following the date upon which
they actually are delivered, (x) the Applicable Margin in respect of Revolving
Credit Loans shall be 2.00% per annum, in the case of ABR Loans, and 3.00% per
annum, in the case of Eurodollar Loans, and (y) the Applicable Margin in
respect of Tranche A Term Loans shall be 1.75% per annum, in the case of ABR
Loans, and 2.75% per annum, in the case of Eurodollar Loans (it being understood
that the foregoing shall not limit the rights of the Administrative Agent and
the Lenders set forth in Section 9).

 

In addition, at all times
while an Event of Default shall have occurred and be continuing, the Applicable
Margin shall not decrease from that previously in effect as a result of the
delivery of such financial statements and certificate.

 

“Application”:  an application, in such form as the Issuing
Lender may specify from time to time, requesting the Issuing Lender to open a
Letter of Credit.

 

“Approved Fund”:  as defined in subsection 11.6(b).

 

“Asset Sale”:  any sale, issuance, conveyance, transfer,
lease or other disposition (including, without limitation, through a Sale and
Leaseback Transaction) (a “Disposition”) by the Borrower or any of its
Subsidiaries, in one or a series of related transactions, of any real or
personal, tangible or intangible, property (including, without limitation,
Capital Stock) of the Borrower or such Subsidiary to any Person (other than to
the Borrower or any of its Wholly Owned Subsidiaries).

 

“Assignee”:  as defined in subsection 11.6(b).

 

“Assignment and
Acceptance”:  an Assignment and
Acceptance, substantially in the form of Exhibit F.

 

“Available
Revolving Commitment”:  on any date,
a percentage equal to the Available Revolving Credit Commitments on such date divided
by the Revolving Credit Commitments in effect on such date.

 

5

 

“Available
Revolving Credit Commitment”:  as to
any Revolving Credit Lender at any time, an amount equal to the excess, if any,
of (a) the amount of such Revolving Credit Lender’s Revolving Credit Commitment
at such time over (b) the sum of (i) the aggregate unpaid principal
amount at such time of all Revolving Credit Loans made by such Revolving Credit
Lender, (ii) an amount equal to such Revolving Credit Lender’s Revolving Credit
Commitment Percentage of the aggregate unpaid principal amount at such time of
all Swing Line Loans, provided that for purposes of calculating
Available Revolving Credit Commitments pursuant to subsection 4.5(a) such
amount shall be zero, and (iii) an amount equal to such Revolving Credit
Lender’s Revolving Credit Commitment Percentage of the outstanding L/C
Obligations at such time; collectively, as to all the Lenders, the “Available
Revolving Credit Commitments”.

 

“Available
Tranche A Term Loan Commitment”:  as
to any Tranche A Term Loan Lender at any time, an amount equal to the excess,
if any, of (a) the amount of such Lender’s Tranche A Term Loan Commitment at
such time over (b) the aggregate unpaid principal amount at such time of
all Tranche A Term Loans made by such Lender; collectively, as to all Tranche A
Term Loan Lenders, the “Available Tranche A Term Loan Commitments”.

 

“Available
Tranche B Term Loan Commitment”:  as
to any Tranche B Term Loan Lender at any time, an amount equal to the excess,
if any, of (a) the amount of such Lender’s Tranche B Term Loan Commitment at
such time over (b) the aggregate unpaid principal amount at such time of
all Tranche B Term Loans made by such Lender; collectively, as to all Tranche B
Term Loan Lenders, the “Available Tranche B Term Loan Commitments”.

 

“Average Life”:  at the date of determination thereof, with
respect to any Indebtedness, the quotient obtained by dividing (a) the sum of
the products of the number of years from such date of determination to the
dates of each successive scheduled principal payment of such Indebtedness
multiplied by the amount of such principal payment by (b) the sum of all such
principal payments.

 

“Base CD Rate”:  as defined in the definition of the term
“ABR” in this subsection 1.1.

 

“Board”:  as defined in the definition of the term
“ABR” in this subsection 1.1.

 

“Borrower”:  as defined in the Preamble hereto.

 

“Borrowing Date”:  any Business Day specified in a notice
pursuant to subsection 2.2, 2.4, 2.8 or 3.2 as a date on which the
Borrower requests the Lenders to make Loans hereunder or the Issuing Lender to
issue Letters of Credit hereunder.

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York, New York are authorized or required
by law to close, except that, when used in connection with a Eurodollar Loan,
“Business Day” shall mean, in the case of any Eurodollar Loan in Dollars, any
Business Day on which dealings in Dollars between banks may be carried on in
London, England and New York, New York.

 

“Capital
Expenditures”:  with respect to any
Person for any period, the sum of the aggregate of all expenditures by such
Person and its consolidated Subsidiaries during such period (exclusive of
expenditures made for Investments permitted by subsection 8.9 and for
acquisitions

 

6

 

permitted by subsection 8.10) which, in accordance with GAAP, are
or should be included in “capital expenditures.”

 

“Capital Stock”:  any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation) and any and all warrants or options to purchase any of the
foregoing.

 

“Cash
Equivalents”:  (a) securities issued
or fully guaranteed or insured by the United States Government or any agency or
instrumentality thereof, (b) time deposits, certificates of deposit or bankers’
acceptances of (i) any Lender or (ii) any commercial bank having capital and
surplus in excess of $500,000,000 and the commercial paper of the holding
company of which is rated at least A-2 or the equivalent thereof by Standard
& Poor’s Ratings Group (a division of The McGraw Hill Companies Inc.) or
any successor rating agency (“S&P”) or at least P-2 or the
equivalent thereof by Moody’s Investors Service, Inc. or any successor rating
agency (“Moody’s”) (or if at such time neither is issuing ratings, then
a comparable rating of such other nationally recognized rating agency as shall
be approved by the Administrative Agent in its reasonable judgment), (c)
commercial paper rated at least A-2 or the equivalent thereof by S&P or at
least P-2 or the equivalent thereof by Moody’s (or if at such time neither is
issuing ratings, then a comparable rating of such other nationally recognized
rating agency as shall be approved by the Administrative Agent in its
reasonable judgment), (d) investments in money market funds complying with the
risk limiting conditions of Rule 2a-7 or any successor rule of the Securities
and Exchange Commission under the Investment Company Act, and (e) investments
similar to any of the foregoing denominated in foreign currencies approved by
the board of directors of the Borrower, in each case provided in clauses (a),
(b), (c) and (e) above only, maturing within twelve months after the date of
acquisition.

 

“CD&R”:  Clayton, Dubilier & Rice, Inc., a Delaware
corporation, and its successors and assigns.

 

“C/D Assessment
Rate”:  for any day as applied to
any ABR Loan, the annual assessment rate in effect on such day which is payable
by a member of the Bank Insurance Fund maintained by the Federal Deposit Insurance
Corporation (the “FDIC”) classified as well-capitalized and within
supervisory subgroup “B” (or a comparable successor assessment risk
classification) within the meaning of 12 C.F.R. § 327.4 (or any successor
provision) to the FDIC (or any successor) for such Corporation’s (or such
successor’s) insuring time deposits at offices of such institution in the
United States.

 

“C/D Reserve
Percentage”:  for any day as applied
to any ABR Loan, that percentage (expressed as a decimal) which is in effect on
such day, as prescribed by the Board, for determining the maximum reserve
requirement for a Depositary Institution (as defined in Regulation D of the
Board) in respect of new non-personal time deposits in Dollars of $100,000 or
more having a maturity of 30 days or more.

 

“Change in
Consolidated Working Capital”:  for
any period, a positive or negative number equal to the amount of Consolidated
Working Capital at the beginning of such period minus the amount of
Consolidated Working Capital at the end of such period.

 

7

 

“Change of
Control”:  the occurrence of any of
the following events:  (a) (i) the
Permitted Holders shall in the aggregate be the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act) of shares of Voting Stock
having less than 35% of the total voting power of all outstanding shares of
Holding and (ii) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders,
shall be the “beneficial owner” of shares of Voting Stock having more than 35%
of the total voting power of all outstanding shares of Holding; (b) Holding
shall cease to own, directly or indirectly, 100% of the Capital Stock of the
Borrower (or any successor to the Borrower permitted pursuant to
subsection 8.5); (c) the board of directors of Holding shall cease to
consist of a majority of the Continuing Directors; or (d) a “Change of Control”
as defined in either of the 2003 Senior Note Indenture or the 2003 Senior
Subordinated Note Indenture under which any 2003 Senior Notes or 2003 Senior
Subordinated Notes are then outstanding; as used in this paragraph “Voting
Stock” shall mean shares of Capital Stock entitled to vote generally in the
election of directors.

 

“Closing Date”:  the date on which all the conditions
precedent set forth in subsection 6.1 shall be satisfied or waived, which
date is August 8, 2003.

 

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

 

“Collateral”:  all assets of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by any
Security Document.

 

“Commercial
Letter of Credit”:  as defined in
subsection 3.1(a).

 

“Commitment”:  as to any Lender, the sum of the Tranche A
Term Loan Commitment, the Tranche B Term Loan Commitment and the Revolving
Credit Commitment of such Lender.

 

“Commitment Fee
Rate”:  0.75% per annum during the
period from the Closing Date until the first Adjustment Date.  The Commitment Fee Rate in respect of
Available Revolving Credit Commitments will be adjusted on each subsequent
Adjustment Date to 0.50% per annum if the Consolidated Leverage Ratio
determined from the financial statements and compliance certificate relating to
the end of the fiscal quarter immediately preceding such Adjustment Date is
less than 3.5 to 1.0, provided that in the event that the financial
statements required to be delivered pursuant to subsection 7.1(a) or
7.1(b), as applicable, and the related compliance certificate required to be
delivered pursuant to subsection 7.2(b), are not delivered when due, then

 

(a)                                  if
such financial statements and certificate are delivered after the date such
financial statements and certificate were required to be delivered (without giving
effect to any applicable cure period) and the Commitment Fee Rate increases
from that previously in effect as a result of the delivery of such financial
statements, then the Commitment Fee Rate during the period from the date upon
which such financial statements were required to be delivered (without giving
effect to any applicable cure period) until the date upon which they actually
are delivered shall be the Commitment Fee Rate as so increased;

 

(b)                                 if
such financial statements and certificate are delivered after the date such
financial statements and certificate were required to be delivered and the
Commitment

 

8

 

Fee Rate decreases from
that previously in effect as a result of the delivery of such financial
statements, then such decrease in the Commitment Fee Rate shall not become
applicable until the date upon which the financial statements and certificate
actually are delivered; and

 

(c)                                  if
such financial statements and certificate are not delivered prior to the
expiration of the applicable cure period, then, effective upon such expiration,
for the period from the date upon which such financial statements and
certificate were required to be delivered (after the expiration of the
applicable cure period) until two Business Days following the date upon which
they actually are delivered, the Commitment Fee Rate shall be 0.75% per annum
(it being understood that the foregoing shall not limit the rights of the
Administrative Agent and the Lenders set forth in Section 9).

 

In addition,
notwithstanding any change in the Consolidated Leverage Ratio, on any date
after the first Adjustment Date that the Available Revolving Commitment is less
than 50%, the Commitment Fee Rate in respect of Available Revolving Credit
Commitments shall be 0.50% per annum. 
Notwithstanding the foregoing, at all times while an Event of Default
shall have occurred and be continuing, the Commitment Fee Rate shall not
decrease from that previously in effect as a result of the delivery of such
financial statements and certificate.

 

“Commonly
Controlled Entity”:  an entity,
whether or not incorporated, which is under common control with the Borrower
within the meaning of Section 4001 of ERISA or is part of a group which
includes the Borrower and which is treated as a single employer under
Section 414(b) or (c) of the Code or, solely for purposes of
Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Sections 414(m) and (o) of the Code.

 

“Conduit Lender”:  any special purpose corporation organized
and administered by any Lender for the purpose of making Loans otherwise
required to be made by such Lender and designated by such Lender in a written
instrument delivered to the Administrative Agent (a copy of which shall be
provided by the Administrative Agent to the Borrower on request); provided
that the designation by any Lender of a Conduit Lender shall not relieve the
designating Lender of any of its obligations under this Agreement, including,
without limitation, its obligation to fund a Loan if, for any reason, its
Conduit Lender fails to fund any such Loan, and the designating Lender (and not
the Conduit Lender) shall have the sole right and responsibility to deliver all
consents and waivers required or requested under this Agreement with respect to
its Conduit Lender, and provided, further, that no Conduit Lender
shall (a) be entitled to receive any greater amount pursuant to any provision
of this Agreement, including without limitation subsection 4.10, 4.11,
4.12 or 11.5, than the designating Lender would have been entitled to receive
in respect of the extensions of credit made by such Conduit Lender if such
designating Lender had not designated such Conduit Lender hereunder, (b) be
deemed to have any Tranche A Term Loan Commitment, Tranche B Term Loan
Commitment or Revolving Credit Commitment or (c) be designated if such
designation would otherwise increase the costs of any Facility to the Borrower.

 

“Confidential
Information Memorandum”:  that
certain Confidential Information Memorandum dated June 2003 and furnished
to the Lenders.

 

9

 

“Consolidated
Current Portion Of Long Term Debt”: 
at the date of determination thereof, the current portion of
Consolidated Long Term Debt that is included in Consolidated Short Term Debt.

 

“Consolidated
Funded Indebtedness”:  at the date
of determination thereof, the sum of (a) Consolidated Long Term Debt plus
(b) Consolidated Current Portion Of Long Term Debt.

 

“Consolidated Indebtedness/Securitization”:  at the date of determination thereof, the
sum (without duplication) of (a) Consolidated Long Term Debt, plus (b)
Consolidated Short Term Debt, plus (c) an amount equal to the aggregate
cash proceeds received by Holding or any of its Subsidiaries from an unrelated
third party (net of amounts repaid) from the financing of Accounts pursuant to
any Permitted Receivables Transaction. 
In determining under clauses (a) and (b) of this definition the
Indebtedness of Holding and its consolidated Subsidiaries under or in respect
of any Permitted Receivables Transaction or under clause (c) of this definition
the amount equal to the aggregate cash proceeds received by Holding or any such
Subsidiary from the financing of any Receivable or other asset, as the case may
be, pursuant to any Permitted Receivables Transaction, such Indebtedness or
amount shall be reduced by any escrowed or pledged cash proceeds which
effectively secure such Indebtedness or the obligations of Holding or any such Subsidiary
under such Permitted Receivables Transaction.

 

“Consolidated
Interest Expense”:  for any period,
an amount equal to (a) interest expense (accrued and paid or payable in cash
for such period, and in any event excluding any amortization or write off of
financing costs) on Indebtedness of Holding and its consolidated Subsidiaries
for such period minus (b) interest income (accrued and received or
receivable in cash for such period) of Holding and its consolidated
Subsidiaries for such period, in each case determined on a consolidated basis
in accordance with GAAP; provided that in the event of the consummation
of any Permitted Receivables Transaction, “Consolidated Interest Expense” shall
be adjusted to include (without duplication) an amount equal to the interest
(or other fees in the nature of interest or discount accrued and paid or
payable in cash for such period) on such Permitted Receivables Transaction; provided
that for purposes of calculating the Consolidated Interest Expense Ratio for
any period of four fiscal quarters ending prior to the end of the fourth full
fiscal quarter ended after the Closing Date, Consolidated Interest Expense for
such period of four fiscal quarters shall be deemed to be (i) in the case of
the period ended at the end of the fiscal quarter ended December 31, 2003,
Consolidated Interest Expense for such fiscal quarter multiplied by 4, (ii) in
the case of the period ended at the end of the fiscal quarter ended
March 31, 2004, Consolidated Interest Expense for the period of two fiscal
quarters ended at the end of such fiscal quarter multiplied by 2 and (iii) in
the case of the period ended at the end of the fiscal quarter ended
June 30, 2004, Consolidated Interest Expense for the period of three
fiscal quarters ended at the end of such fiscal quarter multiplied by 4/3.

 

“Consolidated
Interest Expense Ratio”:  for any
period, the ratio of (a) EBITDA for such period to (b) Consolidated Interest
Expense for such period.

 

“Consolidated
Leverage Ratio”:  as of the last day
of any period, the ratio of (a) Consolidated Indebtedness/Securitization on
such day to (b) EBITDA for the period of four full fiscal quarters ending on
such date.

 

10

 

“Consolidated
Long Term Debt”:  at the date of determination
thereof, all long term debt of Holding and its consolidated Subsidiaries as
determined on a consolidated basis in accordance with GAAP and as disclosed on
Holding’s consolidated balance sheet.

 

“Consolidated
Net Income”:  for any period, net income
of Holding and its consolidated Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated
Short Term Debt”:  at the date of
determination thereof, all short term debt of Holding and its consolidated Subsidiaries
as determined on a consolidated basis in accordance with GAAP and as disclosed
on Holding’s consolidated balance sheet.

 

“Consolidated
Working Capital”:  at the date of
determination thereof, the aggregate amount of all current assets (excluding cash,
Cash Equivalents and deferred taxes recorded as assets) minus the
aggregate amount of all current liabilities (excluding the Revolving Credit
Loans, Consolidated Current Portion of Long Term Debt, working capital debt of
Foreign Subsidiaries and deferred taxes recorded as liabilities), in each case
determined on a consolidated basis for Holding and its consolidated
Subsidiaries.

 

“Continuing
Directors”:  the directors of
Holding on the Closing Date, after giving effect to the Transactions and the
other transactions contemplated thereby, and each other director if, in each
case, such other director’s nomination for election to the board of directors
of Holding is recommended by at least a majority of the then Continuing
Directors or such other director receives the affirmative vote of one or more
Permitted Holders in his or her election by the shareholders of Holding.

 

“Contractual
Obligation”:  as to any Person, any
provision of any material security issued by such Person or of any material
agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

 

“Default”:  any of the events specified in
Section 9, whether or not any requirement for the giving of notice (other
than, in the case of subsection 9(e), a Default Notice), the lapse of
time, or both, or any other condition specified in Section 9, has been
satisfied.

 

“Default Notice”:  as defined in subsection 9(e).

 

“Disposition”:  as defined in the definition of the term
“Asset Sale” in this subsection 1.1.

 

“Documentation
Agents”:  as defined in the Preamble
hereto.

 

“Dollars”
and “$”:  dollars in lawful
currency of the United States of America.

 

“Domestic
Subsidiary”:  any Subsidiary of the
Borrower which is not a Foreign Subsidiary.

 

“EBITDA”:  for any period, Consolidated Net Income for
such period adjusted to exclude the following items (without duplication) of
income or expense to the extent that such items are included in the calculation
of Consolidated Net Income: (a) Consolidated Interest Expense, (b) any non-cash
expenses and charges, (c) total income tax expense, (d) depreciation

 

11

 

expense, (e) the expense associated with amortization of intangible and
other assets (including amortization or other expense recognition of any costs
associated with asset write-ups in accordance with APB Nos. 16 and 17), (f)
non-cash provisions for reserves for discontinued operations, (g) any
extraordinary, unusual or non-recurring gains or losses or charges or credits,
including but not limited to any expenses relating to the Transactions and any
non-recurring or extraordinary items paid or accrued during such period
relating to deferred compensation owed to any Management Investor that was
cancelled, waived or exchanged in connection with the grant to such Management
Investor of the right to receive or acquire shares of common stock of Holding,
(h) any gain or loss associated with the sale or write-down of assets not in
the ordinary course of business, and (i) any income or loss accounted for by
the equity method of accounting (except in the case of income to the extent of
the amount of cash dividends or cash distributions paid to Holding or any of
its Subsidiaries by the entity accounted for by the equity method of
accounting).  For the purposes of
calculating EBITDA for any period of four consecutive fiscal quarters (each, a
“Reference Period”) pursuant to any determination of the Consolidated
Leverage Ratio, (i) if at any time during such Reference Period the Borrower or
any of its Subsidiaries shall have made any Material Disposition, the EBITDA
for such Reference Period shall be reduced by an amount equal to the EBITDA (if
positive) attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the EBITDA (if
negative) attributable thereto for such Reference Period and (ii) if during
such Reference Period the Borrower or any of its Subsidiaries shall have made a
Material Acquisition, EBITDA for such Reference Period shall be calculated
after giving pro  forma effect thereto in accordance with
Regulation S-X as if such Material Acquisition occurred on the first day of
such Reference Period.  As used in this
definition, “Material Acquisition” means any acquisition of property or
series of related acquisitions of property that (x) constitutes assets
comprising all or substantially all of an operating unit of a business or
constitutes all or substantially all of the common stock of a Person and (y)
involves the payment of consideration by the Borrower and its Subsidiaries in
excess of $10,000,000; and “Material Disposition” means any Disposition
of property or series of related Dispositions of property that (x) constitutes
assets comprising all or substantially all of an operating unit of a business
or constitutes all or substantially all of the common stock of a Person and (y)
yields gross proceeds to the Borrower or any of its Subsidiaries in excess of
$10,000,000.   For purposes of calculating
the Consolidated Leverage Ratio and the Consolidated Interest Expense Ratio,
EBITDA for the fiscal quarters ended March 31, 2003 and June 30, 2003
shall be deemed to be $89,400,000 and $98,800,000, respectively.

 

“ECF Percentage”:  50%, provided that with respect to
any fiscal year of Holding ending on or after December 31, 2004, the ECF
Percentage shall be reduced to (a) 25% if the Consolidated Leverage Ratio as of
the last day of such fiscal year is less than 4.0 to 1.0 but greater than or
equal to 3.5 to 1.0 and (b) 0% if the Consolidated Leverage Ratio as of the
last day of such fiscal year is less than 3.5 to 1.0.

 

“Environmental
Costs”:  any and all costs or
expenses (including, without limitation, attorney’s and consultant’s fees,
investigation and laboratory fees, response costs, court costs and litigation
expenses, fines, penalties, damages, settlement payments, judgments and
awards), of whatever kind or nature, known or unknown, contingent or otherwise,
arising out of, or in any way relating to, any violation of, noncompliance with
or liability under any Environmental Laws or any orders, requirements, demands,
or investigations of any person related to any

 

12

 

Environmental Laws.  Environmental
Costs include any and all of the foregoing, without regard to whether they
arise out of or are related to any past, pending or threatened proceeding of
any kind.

 

“Environmental
Laws”:  any and all foreign,
Federal, state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, and such requirements of any Governmental Authority
properly promulgated and having the force and effect of law or other
Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the
environment, as have been, or now or at any relevant time hereafter are, in
effect.

 

“Environmental
Permits”: any and all permits, licenses, registrations, notifications, exemptions
and any other authorization required under any Environmental Law.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“Eurodollar
Base Rate”:  with respect to each
day during each Interest Period pertaining to a Eurodollar Loan, the rate per
annum determined by the Administrative Agent to be the arithmetic mean (rounded
to the nearest 1/100th of 1%) of the offered rates for Dollar deposits with a
term comparable to the applicable Interest Period that appears on the Telerate
British Bankers Assoc. Interest Settlement Rates Page (as defined below) at
approximately 11:00 A.M., London time, on the second full Business Day
preceding the first day of such Interest Period; provided, however,
that if there shall at any time no longer exist a Telerate British Bankers
Assoc. Interest Settlement Rates Page, “Eurodollar Base Rate” shall mean, with
respect to each day during each Interest Period pertaining to a Eurodollar
Loan, the rate per annum equal to the rate at which JPMCB is offered Dollar
deposits at or about 10:00 A.M., New York City time, two Business Days prior to
the beginning of such Interest Period in the interbank eurodollar market where
the eurodollar and foreign currency and exchange operations in respect of its
Eurodollar Loans are then being conducted for delivery on the first day of such
Interest Period for the number of days comprised therein and in an amount
comparable to the amount of its Eurodollar Loan to be outstanding during such
Interest Period.  “Telerate British
Bankers Assoc. Interest Settlement Rates Page” shall mean the display
designated as Page 3750 on the Telerate System (or such other page as may
replace such page on such service for the purpose of displaying the rates at
which Dollar deposits are offered by leading banks in the London interbank
deposit market).

 

“Eurodollar
Loans”:  Loans the rate of interest
applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar
Rate”:  with respect to each day
during each Interest Period pertaining to a Eurodollar Loan, a rate per annum
determined for such day in accordance with the following formula (rounded
upward to the nearest 1/100th of 1%):

 

	
  Eurodollar Base
  Rate

  
	
  100 - Eurodollar
  Reserve Requirements

  

 

13

 

“Eurodollar
Reserve Requirements”:  for any day
as applied to a Eurodollar Loan, the aggregate (without duplication) of
the rates (expressed as a decimal fraction) of reserve requirements in effect
on such day (including, without limitation, basic, supplemental, marginal and
emergency reserves under any regulations of the Board or other Governmental
Authority having jurisdiction with respect thereto) dealing with reserve
requirements prescribed for eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member
bank of the Federal Reserve System.

 

“Event of
Default”:  any of the events
specified in Section 9, provided that any requirement for the
giving of notice, the lapse of time, or both, or any other condition, has been
satisfied.

 

“Excess Cash
Flow”:  for any period, EBITDA minus
(a) any Capital Expenditures made in cash during such period (excluding the
principal amount of Indebtedness incurred in connection with such expenditures
and any such expenditures financed with the proceeds of any Reinvested Amount),
minus (b) any principal payments (other than principal payments during
such period pursuant to subsection 4.4(b), (c) or (e) unless and to the
extent that the event giving rise to such mandatory prepayment causes an
increase in EBITDA) of the Term Loans made during such period, minus (c)
any principal payments resulting in a permanent reduction of any other
Indebtedness of the Borrower or any of its consolidated Subsidiaries made
during such period, minus (d) Consolidated Interest Expense for such
period, minus (e) any taxes paid or payable in cash during such period, minus
(f) the Net Cash Proceeds from any Asset Sale to the extent that such Net Cash
Proceeds (i) (without duplication of clause (a) or (g) of this definition)
consist of any Reinvested Amount or are otherwise applied in accordance with
subsection 4.4(b) and (ii) are included in the calculation of EBITDA, minus
(g) (without duplication of clause (a) of this definition) any Investment made
in accordance with subsection 8.9(e), (g), (k) or (l), minus (h)
(without duplication of clause (b) or (c) of this definition) the proceeds of
any Sale and Leaseback Transactions entered into by the Borrower or any of its
Subsidiaries in accordance with subsection 8.12 during such period in the
ordinary course of its business to the extent included in EBITDA, minus
(i) any earnings included in EBITDA for such period (except to the extent that
any such earnings are used for any purposes described in clauses (a) through
(h) above) of a Receivables Subsidiary to the extent the terms of any Permitted
Receivables Transaction prohibit the distribution thereof to the Borrower or
any of its other Subsidiaries, minus (j) to the extent not otherwise
subtracted from EBITDA in this definition of “Excess Cash Flow”, any cash
dividends, and other loans and advances, made during such period by the
Borrower or any of its Subsidiaries to Holding or GPI Holding, so long as such
dividends, loans and advances are expressly permitted by subsection 8.7, minus
(k) to the extent not included in EBITDA, the amount of any cash contributions
required by law to be made by the Borrower or any of its Subsidiaries to any
Plan, plus (l) the Change in Consolidated Working Capital for such
period.

 

“Exchange Act”:  the Securities Exchange Act of 1934, as
amended from time to time.

 

“Excluded
Properties”:  the collective
reference to the fee or leasehold interest in real properties owned by the
Borrower or any of its Subsidiaries described in Part III of Schedule 5.8.

 

14

 

“Existing
Credit Agreements”:  the collective
reference to (a) the Credit Agreement, dated as of February 28, 2002, as
amended, among Graphic Packaging, Graphic Packaging Holding, the lenders party
thereto, Morgan Stanley Senior Funding, Inc., as administrative agent, and
others and (b) the Amended and Restated Credit Agreement, dated as of
August 10, 2001, as amended, among Riverwood, the lenders party thereto,
JPMCB, as administrative agent, and others.

 

“Existing
Letters of Credit”:  on any date,
the letters of credit listed or described on Schedule E that are outstanding on
such date.

 

“Existing Note
Documents”:  the collective
reference to the Existing Notes and the Existing Note Indentures.

 

“Existing Note
Indentures”:  the collective
reference to the following:  (a) the
2002 Senior Subordinated Note Indenture, (b) the 2003 Senior Note Indenture and
(c) the 2003 Senior Subordinated Note Indenture.

 

“Existing Notes”:  the collective reference to the
following:  (a) the 2002 Senior
Subordinated Notes, (b) the 2003 Senior Notes and (c) 2003 Senior Subordinated
Notes.

 

“Existing RIC
Holding Indebtedness”:  Indebtedness
of GPI Holding (as successor to RIC Holding) under the 6.75% Convertible Notes
due 2003.

 

“Extension of
Credit”:  as to any Lender, the
making of, or, in the case of subsection 2.4(d)(ii), participation in, a
Loan by such Lender or the issuance of, or participation in, a Letter of Credit
by such Lender.

 

“Facility”:  each of (a) the Tranche A Term Loan
Commitments and the Tranche A Term Loans made thereunder, (b) the Tranche B
Term Loan Commitments and the Tranche B Term Loans made thereunder and (c) the
Revolving Credit Commitments and the extensions of credit made thereunder.

 

“Federal Funds
Effective Rate”:  as defined in the
definition of the term “ABR” in this subsection 1.1.

 

“Final Maturity
Date”:  August 8, 2010.

 

“Financing
Lease”:  any lease of property, real
or personal, the obligations of the lessee in respect of which are required in
accordance with GAAP to be capitalized on a balance sheet of the lessee.

 

“FIRREA”:  the Financial Institutions Reform, Recovery
and Enforcement Act of 1989, as amended from time to time.

 

“Foreign
Backstop Letters of Credit”:  any
Standby Letter of Credit issued to any Person for the account of the Borrower
to provide credit support for Indebtedness of any Foreign Subsidiary to such
Person which is permitted under subsection 8.2.

 

15

 

“Foreign
Subsidiary”:  any Subsidiary of the
Borrower which is organized and existing under the laws of any jurisdiction
outside of the United States of America or that is a Foreign Subsidiary Holdco.

 

“Foreign Subsidiary
Holdco”: Graphic Packaging International Holding Company, a Delaware
corporation, Riverwood International Enterprises, Inc., a Delaware corporation,
and any other Subsidiary of the Borrower that has no material assets other than
securities of one or more Foreign Subsidiaries, and other assets relating to an
ownership interest in any such securities or Subsidiaries.

 

“GAAP”:  with respect to the covenants contained in
subsections 8.1, 8.2 and 8.8 and all defined terms relating thereto, generally
accepted accounting principles in the United States of America in effect on the
Closing Date, and, for all other purposes under this Agreement, generally
accepted accounting principles in the United States of America in effect from
time to time.

 

“Golden Equities”:  Golden Equities, Inc., a Colorado
corporation and a Wholly Owned Subsidiary of the Borrower.

 

“Golden
Properties”:  Golden Properties,
Ltd., a Colorado limited partnership, the general partner of which is Golden
Equities.

 

“Governmental
Authority”:  any nation or
government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including, without limitation, the
European Union.

 

“GPI Holding”:  as defined in the Recitals hereto.

 

“Graphic
Packaging”:  as defined in the
Recitals hereto.

 

“Graphic
Packaging Holding”:  as defined in
the Recitals hereto.

 

“Graphic
Packaging Holding/Newco Merger”:  as
defined in the Recitals hereto.

 

“Graphic
Packaging Midco”:  as defined in the
Recitals hereto.

 

“Guarantee and
Collateral Agreement”:  the
Guarantee and Collateral Agreement delivered to the Administrative Agent as of
the date hereof, substantially in the form of Exhibit B, as the same may be
amended, supplemented, waived or otherwise modified from time to time.

 

“Guarantee
Obligation”:  as to any Person (the
“guaranteeing person”), any obligation of (a) the guaranteeing person or
(b) another Person (including, without limitation, any bank under any letter of
credit) to induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or
other obligations (the “primary obligations”) of any other third Person
(the “primary obligor”) in any manner, whether directly or indirectly,
including, without limitation, any such obligation of the guaranteeing person,
whether or not

 

16

 

contingent, (i) to purchase any such primary obligation or any property
constituting direct or indirect security therefor, (ii) to advance or supply
funds (A) for the purchase or payment of any such primary obligation or (B) to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount
of any Guarantee Obligation of any guaranteeing person shall be deemed to be
the lower of (a) an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Guarantee Obligation is made and
(b) the maximum amount for which such guaranteeing person may be liable
pursuant to the terms of the instrument embodying such Guarantee Obligation, unless
such primary obligation and the maximum amount for which such guaranteeing
person may be liable are not stated or determinable, in which case the amount
of such Guarantee Obligation shall be such guaranteeing person’s maximum
reasonably anticipated liability in respect thereof as determined by the
Borrower in good faith.

 

“Guarantors”:  the collective reference to Holding, Merger
Sub, GPI Holding and each  Subsidiary of
the Borrower (other than any Foreign Subsidiary, any Subsidiary of a Foreign
Subsidiary, and any Receivables Subsidiary), which is from time to time party
to the Guarantee and Collateral Agreement; individually, a “Guarantor”.

 

“Holding”:  as defined in the Recitals hereto.

 

“Indebtedness”:  of any Person at any date, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services  (other
than trade liabilities incurred in the ordinary course of business and payable
in accordance with customary practices), (b) any other indebtedness of such
Person which is evidenced by a note, bond, debenture or similar instrument, (c)
all obligations of such Person under Financing Leases, (d) all obligations of
such Person in respect of acceptances issued or created for the account of such
Person, (e) for purposes of subsection 8.2 and subsection 9(e) only,
all obligations of such Person in respect of interest rate protection
agreements, interest rate futures, interest rate options, interest rate caps
and any other interest rate hedge arrangements, and (f) all indebtedness or
obligations of the types referred to in the preceding clauses (a) through (e)
to the extent secured by any Lien on any property owned by such Person even
though such Person has not assumed or otherwise become liable for the payment
thereof.

 

“Insolvency”:  with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of Section 4245
of ERISA.

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Insured Fee
Properties”:  the collective
reference to the real properties owned in fee by the Loan Parties described on
Part I(a) of Schedule 5.8, including without limitation, all buildings,
improvements, structures and fixtures now or subsequently located thereon and
owned by any such Loan Party.

 

17

 

“Intellectual
Property”:  as defined in
subsection 5.9.

 

“Interest
Payment Date”:  (a) as to any ABR
Loan, the last day of each March, June, September and December to
occur while such Loan is outstanding and, if such ABR Loan is a Term Loan, the
date of each payment of principal thereof, (b) as to any Eurodollar Loan having
an Interest Period of three months or less, the last day of such Interest
Period, and (c) as to any Eurodollar Loan having an Interest Period longer than
three months, (i) each day which is three months, or a whole multiple thereof,
after the first day of such Interest Period and (ii) the last day of such
Interest Period.

 

“Interest
Period”:  with respect to any
Eurodollar Loan:

 

(a)                                  initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and

 

(b)                                 thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not less than three Business Days prior to the last day of
the then current Interest Period with respect thereto;

 

provided
that all of the foregoing provisions relating to Interest Periods are subject to
the following:

 

(i)                                     if
any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)                                  (A)
in the case of the Tranche A Term Loans and the Revolving Credit Loans, any
Interest Period that would otherwise extend beyond the Termination Date shall
(for all purposes other than subsection 4.12) end on the Termination Date
and (B) in the case of in the case of the Tranche B Term Loans, any Interest
Period that would otherwise extend beyond the Final Maturity Date shall (for all
purposes other than subsection 4.12) end on the Final Maturity Date;

 

(iii)                               any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of a
calendar month; and

 

(iv)                              the
Borrower shall select Interest Periods so as not to require a scheduled payment
of any Eurodollar Loan during an Interest Period for such Loan.

 

“Interest Rate
Protection Agreement”:  any interest
rate protection agreement, interest rate future, interest rate option, interest
rate cap or collar or other interest rate hedge arrangement

 

18

 

in form and substance, and for a term, reasonably satisfactory to the
Administrative Agent and with (a) any Lender or (b) any financial institution
reasonably acceptable to the Administrative Agent, to or under which the
Borrower or any of its Subsidiaries is or becomes a party or a beneficiary.

 

“Inventory”:  as defined in the Uniform Commercial Code as
in effect in the State of New York from time to time; and, with respect to the
Borrower and its Domestic Subsidiaries, all such Inventory of the Borrower and
such Domestic Subsidiaries (other than any Receivables Subsidiary), including,
without limitation:  (a) all goods,
wares and merchandise held for sale or lease (including, without limitation,
all paper and paperboard products); and (b) all goods returned or repossessed
by the Borrower or such Domestic Subsidiaries.

 

“Investment
Company Act”:  the Investment
Company Act of 1940, as amended from time to time.

 

“Investments”:  as defined in subsection 8.9.

 

“Issuing Lender”:  the Administrative Agent or any affiliate
thereof, in its capacity as issuer of any Letter of Credit and, with respect to
any Existing Letter of Credit, the issuer thereof named on Schedule E.

 

“JPMCB”:  JPMorgan Chase Bank.

 

“L/C Fee
Payment Date”:  with respect to any
Letter of Credit, the last day of each March, June, September and
December to occur after the date of issuance thereof to and including the
first such day to occur on or after the date of expiry thereof.

 

“L/C
Obligations”:  at any time, an
amount equal to the sum of (a) the aggregate then undrawn and unexpired amount
of the then outstanding Letters of Credit and (b) the aggregate amount of
drawings under Letters of Credit which have not then been reimbursed pursuant
to subsection 3.5(a).

 

“L/C
Participants”:  the collective
reference to all the Revolving Credit Lenders other than the Issuing Lender.

 

“Lenders”:  as defined in the Preamble hereto.

 

“Letters of
Credit”:  as defined in
subsection 3.1(a).

 

“Lien”:  any mortgage, pledge, hypothecation,
assignment, security deposit arrangement, encumbrance, lien (statutory or
other), charge or other security interest or any preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement and any Financing Lease having substantially the same economic effect
as any of the foregoing).

 

“Loan”:  a Revolving Credit Loan, a Tranche A Term
Loan, a Tranche B Term Loan or a Swing Line Loan, as the context shall require;
collectively, the “Loans”.

 

19

 

“Loan Documents”:  this Agreement, any Notes, the Applications,
the Guarantee and Collateral Agreement, any other Security Documents and any
Lockbox Agreements, each as amended, supplemented, waived or otherwise modified
from time to time.

 

“Loan Parties”:  Holding, Merger Sub, GPI Holding, the
Borrower and each Subsidiary of the Borrower that is a party to a Loan
Document; individually, a “Loan Party”.

 

“Lockbox
Agreement”:  each Lockbox Agreement,
substantially in the form of Exhibit L, 
with such changes or additions to such form or in such other form as
shall be approved by the Administrative Agent (which approval shall not be
unreasonably withheld), among the Borrower or any of its Subsidiaries, a
Lockbox Bank and the Administrative Agent as the same may be amended,
supplemented, waived or otherwise modified from time to time.

 

“Lockbox Bank”:  each bank party to a Lockbox Agreement as
the “Lockbox Bank” thereunder and as defined therein, which shall be (a) Mellon
Financial Services Corporation or an Affiliate thereof, (b) a Lender which is a
bank or (c) a bank approved by the Administrative Agent (which approval will
not be unreasonably withheld).  Each Lockbox
Bank as of the Closing Date is listed on Schedule D and has been approved by
the Administrative Agent.

 

“Machinery
Financing Indebtedness”: 
Indebtedness of the Borrower or any Subsidiary thereof incurred to
finance or refinance packaging machinery, in an aggregate amount not to exceed
the then aggregate book value of the packaging machinery that is thereby
financed or refinanced (or, if greater, to the extent that any such machinery
shall be appraised by an independent appraiser, the appraised value of such
machinery).

 

“Management
Investors”:  the collective
reference to the officers, directors, employees and other members of the
management of Holding, GPI Holding, the Borrower or any of their Subsidiaries,
or family members or relatives thereof or trusts for the benefit of any of the
foregoing, who at any particular date shall beneficially own or have the right
to acquire, directly or indirectly, common stock of Holding.

 

“Management
Subscription Agreements”:  one or
more stock subscription, stock option, grant or other agreements which have
been or may be entered into between Holding and one or more Management
Investors (or any of their heirs, successors, assigns, legal representatives or
estates), with respect to the issuance to and/or acquisition, ownership and/or
disposition by any of such parties of common stock of Holding or options,
warrants, units or other rights in respect of common stock of Holding, any
agreements entered into from time to time by transferees of any such stock,
options, warrants or other rights in connection with the sale, transfer or
reissuance thereof, and any assumptions of any of the foregoing by third
parties, as amended, supplemented, waived or otherwise modified from time to
time.

 

“Manville”:  Johns Manville Corporation, a Delaware
corporation.

 

“Material Adverse
Effect”:  a material adverse effect
on (a) the business, operations, property, condition (financial or otherwise)
or prospects of Holding and its Subsidiaries, taken as a whole, or (b) the
validity or enforceability as to any Loan Party thereto of this Agreement or
any of the other Loan Documents or the rights or remedies of the Administrative
Agent and the Lenders under the Loan Documents taken as a whole.

 

20

 

“Materials of
Environmental Concern”:  any
gasoline or petroleum (including, without limitation, crude oil or any fraction
thereof) or petroleum products or any hazardous or toxic substances or
materials or wastes defined or regulated as such in or under or which may give
rise to liability under any applicable Environmental Law, including, without
limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation.

 

“Merger
Agreement”:  as defined in the
Recitals hereto.

 

“Mergers”:  as defined in the Recitals hereto.

 

“Merger Sub”:  as defined in the Recitals hereto.

 

“Midco Merger”:  as defined in the Recitals hereto.

 

“Moody’s”:  as defined in the definition of “Cash
Equivalents” in this subsection 1.1.

 

“Mortgaged Fee
Properties”:  the collective
reference to the real properties owned in fee by the Loan Parties described on
Part I(b) of Schedule 5.8, including, without limitation, all buildings,
improvements, structures and fixtures now or subsequently located thereon and
owned by any such Loan Party.

 

“Mortgaged
Leased Properties”:  the collective
reference to the real properties leased by the Loan Parties described on Part
II of Schedule 5.8, including, without limitation, all buildings, improvements,
structures and fixtures now or subsequently located thereon and owned or leased
by any such Loan Party.

 

“Mortgaged
Properties”:  the collective
reference to each of the Insured Fee Properties, the Mortgaged Fee Properties
and the Mortgaged Leased Properties.

 

“Mortgages”:  each of the mortgages and deeds of trust, if
any, executed and delivered by any Loan Party to the Administrative Agent,
substantially in the form of Exhibit C, as the same may be amended,
supplemented, waived or otherwise modified from time to time.

 

“Multiemployer
Plan”:  a Plan which is a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Net Cash
Proceeds”:  with respect to any
Asset Sale (including, without limitation, any Sale and Leaseback Transaction),
any Recovery Event, the issuance of any debt securities or any borrowings by
Holding or any of its Subsidiaries (other than issuances and borrowings
permitted pursuant to subsection 8.2, except as otherwise specified), or
any Permitted Receivables Transaction, an amount equal to the gross proceeds in
cash and Cash Equivalents of such Asset Sale, Recovery Event, sale, issuance,
borrowing or Permitted Receivables Transaction, net of (a) reasonable
attorneys’ fees, accountants’ fees, brokerage, consultant and other customary
fees, underwriting commissions and other reasonable fees and expenses actually
incurred in connection with such Asset Sale, Recovery Event, sale, issuance,
borrowing or Permitted Receivables Transaction, (b) taxes paid or reasonably
estimated to be payable as a result thereof, (c) appropriate amounts provided
or to be provided by Holding or any of its Subsidiaries as a reserve, in
accordance with GAAP, with respect to any liabilities associated with such
Asset Sale

 

21

 

or Recovery Event and retained by Holding or any such Subsidiary after
such Asset Sale or Recovery Event and other appropriate amounts to be used by
Holding or any of its Subsidiaries to discharge or pay on a current basis any
other liabilities associated with such Asset Sale or Recovery Event (including,
without limitation, in connection with any Asset Sale in respect of packaging
machines appropriate amounts, if any, required to be prepaid under any
Machinery Financing Indebtedness), (d) in the case of a sale, Recovery Event or
Sale and Leaseback Transaction of or involving an asset subject to a Lien
securing any Indebtedness, payments made and installment payments required to
be made to repay such Indebtedness, including, without limitation, payments in
respect of principal, interest and prepayment premiums and penalties and (e) in
the case of any Permitted Receivables Transaction, any escrowed or pledged cash
proceeds which effectively secure, or are required to be maintained as reserves
by the applicable Receivables Subsidiary for, the Indebtedness of Holding and
its Subsidiaries in respect of, or the obligations of Holding and its
Subsidiaries under, such Permitted Receivables Transaction.

 

“1996 Senior
Subordinated Notes”:  the 10-7/8%
Senior Subordinated Notes due 2008 in an aggregate principal amount of
$400,000,000 issued by Riverwood.

 

“1997 Senior
Notes”:  the 10-5/8% Senior Notes
due 2007 in an aggregate principal amount of $250,000,000 issued by Riverwood.

 

“No More
Favorable Terms and Conditions”: 
with respect to any Indebtedness with reference to other specified Indebtedness,
(a) such Indebtedness has a maturity date no earlier than the reference
Indebtedness, (b) such Indebtedness has an Average Life at the time such
Indebtedness is incurred that is equal to or greater than the reference
Indebtedness as of such date, (c) such Indebtedness is subordinated to the
Loans to the same or greater extent as the reference Indebtedness and (d) such
Indebtedness contains covenants, events of default, remedies, acceleration
rights, amortization schedules and other material terms that (i) are no more
favorable to the holders of such Indebtedness than the similar terms of the
reference Indebtedness and (ii) are no less favorable to the Lenders under the
Loan Documents as of the date that such Indebtedness is incurred.

 

“Non-Excluded
Taxes”:  as defined in
subsection 4.11.

 

“Notes”:  the collective reference to the Revolving
Credit Notes, the Tranche A Term Notes, the Tranche B Term Notes and the Swing
Line Note.

 

“Obligor”:  any purchaser of goods or services or other
Person obligated to make payment to the Borrower or any of its Subsidiaries
(other than any Receivables Subsidiaries and the Foreign Subsidiaries) in
respect of a purchase of such goods or services.

 

“Opco Merger”:  as defined in the Recitals hereto.

 

“Other Representatives”:  each of J.P. Morgan Securities Inc., in its
capacity as joint bookrunner and joint lead arranger of the Commitments
hereunder, Deutsche Bank Securities Inc., in its respective capacities as joint
bookrunner and joint lead arranger and as Syndication Agent, Goldman Sachs
Credit Partners L.P., in its capacity as a Documentation Agent, Morgan Stanley
Senior Funding, Inc., in its capacity as a Documentation Agent, and the Issuing
Lender, in its capacity as such.

 

22

 

“Participants”:  as defined in subsection 11.6(c).

 

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA (or any successor
thereto).

 

“Permitted
Acquisition Amount”:  with respect
to any incurrence of Indebtedness permitted by subsection 8.2(d), that
portion of the Net Cash Proceeds thereof as shall, according to a certificate
of a Responsible Officer of the Borrower delivered to the Administrative Agent
no later than the date of incurrence of such Indebtedness, be applied to pay
the cash consideration for an acquisition expressly permitted by
subsection 8.10(b) within 90 days of the receipt of such Net Cash
Proceeds, provided that any Net Cash Proceeds not so applied by the date
that is 90 days after the receipt of such Net Cash Proceeds shall be utilized
on such date to prepay the Loans pursuant to subsection 4.4(b).

 

“Permitted
Hedging Arrangement”:  as defined in
subsection 8.19.

 

“Permitted
Holders”:  the Persons listed on
Schedule B and their Affiliates and any Management Investor.

 

“Permitted
Receivables Transaction”:  any
transaction or series of related transactions providing for the financing of
any Receivables; provided that any such transaction shall be consummated
(a) on terms that include terms substantially as described on Schedule C or as
the Required Lenders may otherwise consent, such consent not to be unreasonably
withheld, and (b) pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent, as evidenced by its written approval
thereof (such approval not to be unreasonably withheld).

 

“Permitted
Receivables Transaction Prepayment Amount”:  with respect to the initial transfer of Receivables pursuant to
any Permitted Receivables Transaction, an amount equal to 100% of the Net Cash
Proceeds thereof.

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

 

“Plan”:  at a particular time, any employee benefit
plan which is covered by ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is an “employer” as defined in Section 3(5) of
ERISA.

 

“Prepayment Date”:  as defined in subsection 4.4(j).

 

“Prepayment
Option Notice”:  as defined in
subsection 4.4(j).

 

“Pricing Grid”:  (a) with respect to Revolving Credit Loans:

 

23

 

	
  Consolidated
  Leverage

  Ratio

  	
   

  	
  Applicable
  Margin for

  ABR Loans

  	
   

  	
  Applicable
  Margin for

  Eurodollar Loans

  	
   

  
	
  Greater than
  4.50 to 1.00

  	
   

  	
  2.00%

  	
   

  	
  3.00%

  	
   

  
	
  Greater than
  4.00, but less than or equal to 4.50 to 1.00

  	
   

  	
  1.75%

  	
   

  	
  2.75%

  	
   

  
	
  Less than or
  equal to 4.00

  	
   

  	
  1.50%

  	
   

  	
  2.50%

  	
   

  

 

and (b) with respect to
Tranche A Term Loans:

 

	
  Consolidated
  Leverage

  Ratio

  	
   

  	
  Applicable
  Margin for

  ABR Loans

  	
   

  	
  Applicable
  Margin for

  Eurodollar Loans

  	
   

  
	
  Greater than
  4.50 to 1.00

  	
   

  	
  1.75%

  	
   

  	
  2.75%

  	
   

  
	
  Greater than
  4.00, but less than or equal to 4.50 to 1.00

  	
   

  	
  1.50%

  	
   

  	
  2.50%

  	
   

  
	
  Less than or
  equal to 4.00

  	
   

  	
  1.25%

  	
   

  	
  2.25%

  	
   

  

 

Each determination
of the Consolidated Leverage Ratio pursuant to the Pricing Grids shall be made
in a manner consistent with the determination thereof pursuant to
subsection 7.1.

 

“Prime Rate”:  as defined in the definition of the term
“ABR” in this subsection 1.1.

 

“Pro Forma Date”:  as defined in subsection 5.1(c).

 

“Pro Forma
Financial Statements”:  as defined
in subsection 5.1(c).

 

“Receivables”:  all Accounts and accounts receivable of the
Borrower or any of its Domestic Subsidiaries (other than any Receivables
Subsidiaries), including, without limitation, any thereof constituting or
evidenced by chattel paper, instruments or general intangibles, and all
proceeds thereof and rights (contractual and other) and collateral related thereto.

 

“Receivables
Subsidiary”:  any special purpose,
bankruptcy-remote Subsidiary of the Borrower that purchases, on a revolving
basis, Receivables generated by the Borrower or any of its Subsidiaries.

 

24

 

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of the Borrower or any of its Subsidiaries giving rise to
Net Cash Proceeds to the Borrower or such Subsidiary, as the case may be, in
excess of $500,000, to the extent that such settlement or payment does not
constitute reimbursement or compensation for amounts previously paid by the
Borrower or any of its Subsidiaries in respect of such casualty or condemnation.

 

“Refinancing”:  as defined in the Recitals hereto.

 

“Refunded Swing
Line Loans”:  as defined in
subsection 2.4(c).

 

“Register”:  as defined in subsection 11.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

“Reimbursement
Obligations”:  the obligation of the
Borrower to reimburse the Issuing Lender pursuant to subsection 3.5(a) for
amounts drawn under Letters of Credit.

 

“Reinvested
Amount”:  with respect to any Asset
Sale permitted by subsection 8.6(i) or Recovery Event, that portion of the
Net Cash Proceeds thereof (which portion shall not exceed, with respect to any
Asset Sale occurring on or after the Closing Date (but not any Recovery Event),
$75,000,000 minus the aggregate Reinvested Amounts with respect to all
such Asset Sales on or after the Closing Date) as shall, according to a
certificate of a Responsible Officer of the Borrower delivered to the
Administrative Agent within 30 days of such Asset Sale or Recovery Event, be
reinvested in the business of the Borrower and its Subsidiaries in a manner
consistent with the requirements of subsection 8.17 and the other
provisions hereof within 180 days of the receipt of such Net Cash Proceeds with
respect to any such Asset Sale or Recovery Event or, if such reinvestment is in
a project authorized by the board of directors of the Borrower that will take
longer than such 180 days to complete, the period of time necessary to complete
such project; provided that (a) if any such certificate of a Responsible
Officer is not delivered to the Administrative Agent on the date of such Asset
Sale or Recovery Event, any Net Cash Proceeds of such Asset Sale or Recovery
Event shall be immediately (i) deposited in a cash collateral account
established at JPMCB to be held as collateral in favor of the Administrative
Agent for the benefit of the Lenders on terms reasonably satisfactory to the
Administrative Agent and shall remain on deposit in such cash collateral
account until such certificate of a Responsible Officer is delivered to the
Administrative Agent or (ii) used to make a prepayment of the Revolving Credit
Loans in accordance with subsection 4.4(a); provided that,
notwithstanding anything in this Agreement to the contrary, the Borrower may
not request any Extension of Credit under the Revolving Credit Commitments that
would reduce the aggregate amount of the Available Revolving Credit Commitments
to an amount that is less than the amount of any such prepayment until such
certificate of a Responsible Officer is delivered to the Administrative Agent
and (b) any Net Cash Proceeds not so reinvested by the date required pursuant
to the terms of this definition shall be utilized on such day to prepay the
Loans pursuant to subsection 4.4(b).

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.

 

25

 

“Reportable
Event”:  any of the events set forth
in Section 4043(c) of ERISA, other than those events as to which the
thirty day notice period is waived under subsections .13, .14, .16, .18, .19 or
..20 of PBGC Reg. § 2615 or any successor regulation thereto.

 

“Required
Collateral Release Lenders”:  at any
time, Lenders the Total Credit Percentages of which aggregate at least 80%.

 

“Required
Lenders”:  at any time, Lenders the
Total Credit Percentages of which aggregate greater than 50%.

 

“Requirement of
Law”:  as to any Person, the
certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and any law, statute, ordinance, code, decree,
treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its material property or to which such Person or any of its
material property is subject, including, without limitation, laws, ordinances
and regulations pertaining to zoning, occupancy and subdivision of real
properties; provided that the foregoing shall not apply to any
non-binding recommendation of any Governmental Authority.

 

“Responsible
Officer”:  as to any Person, any of
the following officers of such Person: 
(a) the chief executive officer or the president of such Person and,
with respect to financial matters, the chief financial officer, the treasurer
or the controller of such Person, (b) any vice president of such Person or,
with respect to financial matters, any assistant treasurer or assistant
controller of such Person, who has been designated in writing to the
Administrative Agent as a Responsible Officer by such chief executive officer
or president of such Person or, with respect to financial matters, such chief
financial officer of such Person, (c) with respect to subsection 7.7 and
without limiting the foregoing, the general counsel of such Person and (d) with
respect to ERISA matters, the senior vice president - human resources (or
substantial equivalent) of such Person.

 

“Revolving
Credit Commitment”:  as to any
Revolving Credit Lender, its obligation to make Revolving Credit Loans to,
and/or make or participate in Swing Line Loans made to, and/or issue or
participate in Letters of Credit issued on behalf of, the Borrower in an
aggregate amount not to exceed at any one time outstanding the amount set forth
opposite such Revolving Credit Lender’s name in Schedule A under the heading
“Revolving Credit Commitment” or, in the case of any Lender that is an
Assignee, the amount of the assigning Lender’s Revolving Credit Commitment
assigned to such Assignee pursuant to subsection 11.6(b) (in each case as
such amount may be adjusted from time to time as provided herein);
collectively, as to all the Revolving Credit Lenders, the “Revolving Credit
Commitments”.  The original amount
of the aggregate Revolving Credit Commitments of the Revolving Credit Lenders
is $325,000,000.

 

“Revolving
Credit Commitment Percentage”:  as
to any Revolving Credit Lender, the percentage of the aggregate Revolving
Credit Commitments constituted by its Revolving Credit Commitment (or, if the
Revolving Credit Commitments have terminated or expired, the percentage which
(a) the sum of (i) such Lender’s then outstanding Revolving Credit Loans plus
(ii) such Lender’s interests in the aggregate L/C Obligations and Swing Line Loans
then outstanding then constitutes of (b) the sum of (i) the aggregate Revolving
Credit Loans of all the

 

26

 

Revolving Credit Lenders then outstanding plus (ii) the aggregate L/C
Obligations and Swing Line Loans then outstanding).

 

“Revolving
Credit Commitment Period”:  the
period from and including the Closing Date to but not including the Termination
Date, or such earlier date as the Revolving Credit Commitments shall terminate
as provided herein.

 

“Revolving
Credit Lender”:  any Lender having a
Revolving Credit Commitment hereunder and/or a Revolving Credit Loan
outstanding hereunder.

 

“Revolving
Credit Loans”:  as defined in
subsection 2.1(a).

 

“Revolving
Credit Note”:  as defined in
subsection 2.1(c).

 

“RIC Holding”:  as defined in the Recitals hereto.

 

“Riverwood”:  as defined in the Recitals hereto.

 

“Sale and
Leaseback Transaction”:  as defined
in subsection 8.12.

 

“S&P”:  as defined in the definition of the term
“Cash Equivalents” in this subsection 1.1.

 

“Securities Act”:  the Securities Act of 1933, as amended from
time to time.

 

“Security
Documents”:  the collective
reference to the Mortgages, the Guarantee and Collateral Agreement and all
other similar security documents hereafter delivered to the Administrative
Agent granting a Lien on any asset or assets of any Person to secure the
obligations and liabilities of the Borrower hereunder and/or under any of the
other Loan Documents or to secure any guarantee of any such obligations and
liabilities, including, without limitation, any security documents executed and
delivered or caused to be delivered to the Administrative Agent pursuant to
subsection 7.9(b) or 7.9(c), in each case, as amended, supplemented,
waived or otherwise modified from time to time.

 

“Set”:  the collective reference to Eurodollar
Loans, the then current Interest Periods with respect to all of which begin on
the same date and end on the same later date (whether or not such Loans shall
originally have been made on the same day).

 

“Single
Employer Plan”:  any Plan which is
covered by Title IV of ERISA, but which is not a Multiemployer Plan.

 

“Solvent”
and “Solvency”:  with respect to
any Person on a particular date, the condition that, on such date, (a) the fair
value of the property of such Person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such
Person, (b) the present fair salable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such Person
does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay as such debts and liabilities mature,
and (d) such 

 

27

 

Person is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which such Person’s property would
constitute an unreasonably small amount of capital.

 

“Standby Letter
of Credit”:  as defined in
subsection 3.1(a).

 

“Subsidiary”:  as to any Person, a corporation, partnership
or other entity (a) of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned by such Person,
or (b) the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person and, in the case of
this clause (b), which is treated as a consolidated subsidiary for accounting
purposes.  Unless otherwise qualified,
all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall
refer to a Subsidiary or Subsidiaries of the Borrower.  Notwithstanding the foregoing, for all
purposes of this Agreement (other than (i) the delivery of financial
information as set forth in subsection 7.1 and (ii) the calculation of the
financial covenants set forth in subsection 8.1 and the related
definitions), Golden Properties shall not be included in the definition of
“Subsidiary”.

 

“Surplus
Payment Amount”:  as defined in
subsection 4.4(j).

 

“Swing Line
Commitment”:  the Swing Line
Lender’s obligation to make Swing Line Loans pursuant to subsection 2.4.

 

“Swing Line
Lender”:  JPMCB, in its capacity as
provider of the Swing Line Loans.

 

“Swing Line Loan
Participation Certificate”:  a
certificate in substantially the form of Exhibit G.

 

“Swing Line
Loans”:  as defined in
subsection 2.4(a).

 

“Swing Line
Note”:  as defined in
subsection 2.4(b).

 

“Syndication
Agent”:  as defined in the Preamble
hereto.

 

“Synthetic
Purchase Agreement”:  any agreement
pursuant to which the Borrower or any of its Subsidiaries is or may become
obligated to make any payment (except as otherwise permitted by this Agreement)
to any third party (other than Holding or any of its Subsidiaries) in
connection with the purchase or the notional purchase by such third party or
any Affiliate thereof from a Person other than Holding or any of its
Subsidiaries of any Capital Stock of Holding or any Existing Notes referred to
in subsection 8.14; provided that the term “Synthetic Purchase
Agreement” shall not be deemed to include (a) any phantom stock, stock
appreciation rights, equity purchase or similar plan or arrangement providing
for payments only to current or former officers, directors, employees and other
members of the management of Holding, GPI Holding, the Borrower or any of their
respective Subsidiaries, or family members or relatives thereof or trusts for
the benefit of any of the foregoing (or to their heirs, successors, assigns, legal
representatives or estates), or (b) any agreement evidencing or relating to (i)
one or more

 

28

 

Guarantee Obligations in connection with Indebtedness incurred by any
Management Investors in connection with any Management Subscription Agreements
or other purchases by them of Capital Stock of Holding, or any refinancing,
refunding, extension or renewal thereof, or (ii) one or more loans or advances
to one or more Management Investors in connection with the purchase by such
Management Investors of Capital Stock of Holding (including in each case under
this clause (b), without limitation, any agreement evidencing any right or
option to acquire any such stock in connection with payment under any such
Guarantee Obligation or in partial or full satisfaction of any such loan or
advance).

 

“Tax Matters
Agreement”:  the Tax Matters
Agreement dated as of October 25, 1995 among GPI Holding (as successor to
RIC Holding) and Manville, as the same may be amended, supplemented, waived or
otherwise modified from time to time.

 

“Tax Sharing Agreement”:  the Tax Sharing Agreement among Holding, GPI
Holding and the Borrower, in form and substance reasonably satisfactory to the
Administrative Agent, to be entered into on or prior to the Closing Date, as
the same may be amended, supplemented or otherwise modified from time to time
in accordance with subsection 8.14(e).

 

“Term Loan”:  a Tranche A Term Loan or a Tranche B Term
Loan, as the context shall require; collectively, the “Term Loans”.

 

“Term Loan
Commitment”:  a Tranche A Term Loan
Commitment or a Tranche B Term Loan Commitment, as the context shall require;
collectively, the “Term Loan Commitments”.

 

“Term Loan
Commitment Termination Date”:  as
defined in subsection 2.5(a).

 

“Term Loan
Lender”:  any Lender having a Term
Loan Commitment hereunder and/or a Term Loan outstanding hereunder.

 

“Term Note”:  a Tranche A Term Note or a Tranche B Term
Note, as the context shall require; collectively, the “Term Notes”.

 

“Termination Date”:  August 8, 2009.

 

“Three Month
Secondary CD Rate”:  as defined in
the definition of the term “ABR” in this subsection 1.1.

 

“Total Credit
Percentage”:  as to any Lender at
any time, the percentage of the aggregate Revolving Credit Commitments (or, in
the case of the termination or expiration of the Revolving Credit Commitments,
the Aggregate Outstanding Revolving Credit of the Lenders), aggregate
outstanding Tranche A Term Loans and Tranche B Term Loans of the Lenders, and
aggregate unused Term Loan Commitments of the Lenders, then constituted by such
Lender’s Revolving Credit Commitment (or, in the case of the termination or
expiration of the Revolving Credit Commitments, such Lender’s Aggregate
Outstanding Revolving Credit), outstanding Tranche A Term Loans and Tranche B
Term Loans and unused Term Loan Commitments.

 

“Tranche A Term
Loan”:  as defined in
subsection 2.5(a).

 

29

 

“Tranche A Term
Loan Commitment”:  as to any Tranche
A Term Loan Lender, its obligation to make Tranche A Term Loans to the Borrower
in an aggregate amount not to exceed at any one time outstanding the amount set
forth opposite such Tranche A Term Loan Lender’s name in Schedule A under the
heading “Tranche A Term Loan Commitment” or, in the case of any Lender that is
an Assignee, the amount of the assigning Lender’s Tranche A Term Loan
Commitment assigned to such Assignee pursuant to subsection 11.6(b) (in
each case as such amount may be adjusted from time to time as provided herein);
collectively, as to all the Tranche A Term Loan Lenders, the “Tranche A Term
Loan Commitments”.  The original
aggregate amount of the Tranche A Term Loan Commitments on the Closing Date is
$150,000,000.  After the Closing Date,
the aggregate amount of Tranche A Term Loan Commitments may not exceed
$150,000,000.

 

“Tranche A Term
Loan Lender”:  any Lender having a
Tranche A Term Loan Commitment hereunder and/or a Tranche A Term Loan
outstanding hereunder.

 

“Tranche A Term
Loan Percentage”:  as to any Tranche
A Term Loan Lender at any time, the percentage which (a) the sum of (i) such
Lender’s Tranche A Term Loans then outstanding and (ii) such Lender’s unused
Tranche A Term Loan Commitment then outstanding constitutes of (b) the sum of
(i) the aggregate Tranche A Term Loans of all the Tranche A Term Loan Lenders
then outstanding and (ii) the aggregate unused Tranche A Term Loan Commitments
then outstanding (or, if the Tranche A Term Loan Commitments have terminated or
expired, the percentage which such Lender’s Tranche A Term Loans then
outstanding constitutes of the aggregate Tranche A Term Loans then
outstanding).

 

“Tranche A Term
Note”:  as defined in
subsection 2.6(a).

 

“Tranche B
Prepayment Amount”:  as defined in
subsection 4.4(j).

 

“Tranche B Term
Loan”:  as defined in
subsection 2.5(a).

 

“Tranche B Term
Loan Commitment”:  as to any Tranche
B Term Loan Lender, its obligation to make Tranche B Term Loans to the Borrower
in an aggregate amount not to exceed at any one time outstanding the amount set
forth opposite such Tranche B Term Loan Lender’s name in Schedule A under the
heading “Tranche B Term Loan Commitment” or, in the case of any Lender that is
an Assignee, the amount of the assigning Lender’s Tranche B Term Loan
Commitment assigned to such Assignee pursuant to subsection 11.6(b) (in
each case as such amount may be adjusted from time to time as provided herein);
collectively, as to all the Tranche B Term Loan Lenders, the “Tranche B Term
Loan Commitments”.  The original
aggregate amount of the Tranche B Term Loan Commitments on the Closing Date is
$1,125,000,000.  After the Closing Date,
the aggregate amount of Tranche B Term Loan Commitments may not exceed
$150,000,000.

 

“Tranche B Term
Loan Lender”:  any Lender having a
Tranche B Term Loan Commitment hereunder and/or a Tranche B Term Loan
outstanding hereunder.

 

“Tranche B Term
Loan Percentage”:  as to any Tranche
B Term Loan Lender at any time, the percentage which (a) the sum of (i) such
Lender’s Tranche B Term Loans then outstanding and (ii) such Lender’s unused
Tranche B Term Loan Commitment then outstanding

 

30

 

constitutes of (b) the sum of (i) the aggregate Tranche B Term Loans of
all the Tranche B Term Loan Lenders then outstanding and (ii) the aggregate
unused Tranche B Term Loan Commitments then outstanding (or, if the Tranche B
Term Loan Commitments have terminated or expired, the percentage which such
Lender’s Tranche B Term Loans then outstanding constitutes of the aggregate
Tranche B Term Loans then outstanding).

 

“Tranche B Term
Note”:  as defined in
subsection 2.7(a).

 

“Transaction
Documents”:  the collective
reference to the Merger Agreement, the 2003 Senior Note Documents and the 2003
Senior Subordinated Note Documents.

 

“Transactions”:  as defined in the Recitals hereto.

 

“Transferee”:  any Participant or Assignee.

 

“2001 Senior
Notes”:  the 10-5/8% Senior Notes
due 2007 in an aggregate principal amount of $250,000,000 issued by Riverwood.

 

“2002 Senior
Subordinated Note Documents”:  the
collective reference to the 2002 Senior Subordinated Notes and the 2002 Senior
Subordinated Note Indenture; individually, a “2002 Senior Subordinated Note
Document”.

 

“2002 Senior
Subordinated Note Indenture”:  the
indenture dated as of February 28, 2002 among Graphic Packaging, each of
the guarantors named therein and Wells Fargo Bank Minnesota, National
Association, as trustee, as amended through the date hereof and as the same may
be further amended, supplemented, waived or otherwise modified from time to
time in accordance with subsection 8.14 to the extent applicable.

 

“2002 Senior
Subordinated Notes”:  the 8-5/8%
Senior Subordinated Notes due 2012 in an aggregate principal amount of
$300,000,000 originally issued by Graphic Packaging (the obligations of which
are being assumed by the Borrower after the Opco Merger), as the same may be or
have been exchanged for substantially similar unsecured senior subordinated
notes that have been registered under the Securities Act, and as the same or
such substantially similar notes may be amended, supplemented, waived or
otherwise modified from time to time in accordance with subsection 8.14 to
the extent applicable.

 

“2003 Senior
Note Documents”:  the collective
reference to the 2003 Senior Notes and the 2003 Senior Note Indenture;
individually, a “2003 Senior Note Document”.

 

“2003 Senior
Note Indenture”:  the indenture
dated as of August 8, 2003 between the Borrower and Wells Fargo Bank
Minnesota, National Association, as trustee, as the same may be amended, supplemented,
waived or otherwise modified from time to time in accordance with
subsection 8.14 to the extent applicable.

 

“2003 Senior
Notes”:  the 8.50% Senior Notes due
2011 in an aggregate principal amount of $425,000,000 issued by the Borrower,
as the same may be exchanged for substantially similar unsecured senior notes
that have been registered under the Securities Act, and as the

 

31

 

same or such substantially similar notes may be amended, supplemented,
waived or otherwise modified from time to time in accordance with
subsection 8.14 to the extent applicable.

 

“2003 Senior
Subordinated Note Documents”:  the
collective reference to the 2003 Senior Subordinated Notes and the 2003 Senior
Subordinated Note Indenture; individually, a “2003 Senior Subordinated Note
Document”.

 

“2003 Senior
Subordinated Note Indenture”:  the
indenture dated as of August 8, 2003 between the Borrower and Wells Fargo
Bank Minnesota, National Association, as trustee, as the same may be amended,
supplemented, waived or otherwise modified from time to time in accordance with
subsection 8.14 to the extent applicable.

 

“2003 Senior
Subordinated Notes”:  the 9.50%
Senior Subordinated Notes due 2013 in an aggregate principal amount of $425,000,000
issued by the Borrower, as the same may be exchanged for substantially similar
unsecured senior subordinated notes that have been registered under the
Securities Act, and as the same or such substantially similar notes may be
amended, supplemented, waived or otherwise modified from time to time in
accordance with subsection 8.14 to the extent applicable.

 

“Type”:  as to any Loan, its nature as an ABR Loan or
a Eurodollar Loan.

 

“Underfunding”:  the excess of the present value of all
accrued benefits under a Plan (based on those assumptions used to fund such
Plan), determined as of the most recent annual valuation date, over the value
of the assets of such Plan allocable to such accrued benefits.

 

“Underlying
Lease”:  with respect to any
Mortgaged Leased Property, the lease agreement under which an interest in such
leased property is held, as the same may be amended, supplemented, waived or
otherwise modified from time to time.

 

“Uniform
Customs”:  the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, as the same may be amended from time to time.

 

“Wholly Owned
Subsidiary”:  as to any Person, any
Subsidiary of such Person of which such Person owns, directly or indirectly
through one or more Wholly Owned Subsidiaries, all of the Capital Stock of such
Subsidiary other than directors qualifying shares or shares held by nominees.

 

1.2.                              Other Definitional Provisions.  (a) 
Unless otherwise specified therein, all terms defined in this Agreement
shall have the defined meanings when used in any Notes, any other Loan Document
or any certificate or other document made or delivered pursuant hereto.

 

(b)                                 As used herein and in any Notes and any other
Loan Document, and any certificate or other document made or delivered pursuant
hereto or thereto, accounting terms relating to Holding and its Subsidiaries
not defined in subsection 1.1 and accounting terms partly defined in
subsection 1.1, to the extent not defined, shall have the respective meanings
given to them under GAAP.

 

32

 

(c)                                  The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, subsection, Schedule and Exhibit references are to this Agreement
unless otherwise specified.

 

(d)                                 The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

 

SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS

 

2.1.                              Revolving Credit Commitments.  (a) 
Subject to the terms and conditions hereof, each Revolving Credit Lender
severally agrees to make revolving credit loans (“Revolving Credit Loans”)
to the Borrower from time to time during the Revolving Credit Commitment Period
in an aggregate principal amount at any one time outstanding which, when added
to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the
sum of the then outstanding L/C Obligations and the then outstanding Swing Line
Loans, does not exceed the amount of such Lender’s Revolving Credit Commitment
then in effect.  During the Revolving
Credit Commitment Period the Borrower may use the Revolving Credit Commitments
by borrowing, prepaying the Revolving Credit Loans in whole or in part, and
reborrowing, all in accordance with the terms and conditions hereof.

 

(b)                                 The Revolving Credit Loans shall be made in
Dollars and may from time to time be (i) Eurodollar Loans, (ii) ABR Loans or
(iii) a combination thereof, as determined by the Borrower and notified to the
Administrative Agent in accordance with subsections 2.2 and 4.2, provided
that no Revolving Credit Loan shall be made as a Eurodollar Loan after the day
that is one month prior to the Termination Date.

 

(c)                                  The Borrower agrees that, upon the request to
the Administrative Agent by any Revolving Credit Lender made on or prior to the
Closing Date or in connection with any assignment pursuant to
subsection 11.6(b), in order to evidence such Lender’s Revolving Credit
Loans the Borrower will execute and deliver to such Lender a promissory note
substantially in the form of Exhibit A-1, with appropriate insertions as to
payee, date and principal amount (each, as amended, supplemented, replaced or
otherwise modified from time to time, a “Revolving Credit Note”),
payable to the order of such Lender and in a principal amount equal to the
aggregate unpaid principal amount of all Revolving Credit Loans made by such
Lender to the Borrower.  Each Revolving
Credit Note shall (i) be dated the Closing Date, (ii) be stated to mature on
the Termination Date and (iii) provide for the payment of interest in
accordance with subsection 4.1.

 

2.2.                              Procedure for Revolving Credit
Borrowing.  The Borrower may
borrow under the Revolving Credit Commitments during the Revolving Credit
Commitment Period on any Business Day, provided that the Borrower shall
give the Administrative Agent irrevocable notice (which notice must be received
by the Administrative Agent prior to 12:30 P.M., New York City time, at least
(a) three Business Days prior to the requested Borrowing Date, if all or any
part of the requested Revolving Credit Loans are to be initially Eurodollar
Loans made in Dollars or (b) one Business Day prior to the requested Borrowing
Date, otherwise), specifying (i) the amount to be borrowed, (ii) the requested
Borrowing Date, (iii) whether the borrowing is to be of

 

33

 

Eurodollar Loans, ABR Loans or a combination thereof and (iv) if the
borrowing is to be entirely or partly of Eurodollar Loans, the respective
amounts of each such Type of Loan, the respective lengths of the initial
Interest Periods therefor.  Each borrowing
under the Revolving Credit Commitments shall be in an amount equal to (x) in
the case of ABR Loans, except any ABR Loan to be used solely to pay a like
amount of outstanding Reimbursement Obligations or Swing Line Loans, $2,000,000
or a whole multiple of $1,000,000 in excess thereof (or, if the then Available
Revolving Credit Commitments are (A) less than $2,000,000, $1,000,000 or a
whole multiple thereof or (B) less than $1,000,000, such lesser amount) and (y)
in the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in
excess thereof.  Upon receipt of any
such notice from a Borrower, the Administrative Agent shall promptly notify
each Revolving Credit Lender thereof. 
Subject to the satisfaction of the conditions precedent specified in
subsection 6.2, each Revolving Credit Lender will make the amount of its pro
rata share of each borrowing of Revolving Credit Loans available to the
Administrative Agent for the account of the Borrower identified in such notice
at the office of the Administrative Agent specified in subsection 11.2
prior to 12:30 P.M. (or 10:00 A.M., in the case of the initial borrowing
hereunder), New York City time, or at such other office of the Administrative
Agent or at such other time as to which the Administrative Agent shall notify
such Revolving Credit Lender and the Borrower reasonably in advance of the
Borrowing Date with respect thereto on the Borrowing Date requested by the
Borrower in Dollars and in funds immediately available to the Administrative
Agent.  Such borrowing will then be made
available to the Borrower identified in such notice by the Administrative Agent
crediting the account of the Borrower on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the
Revolving Credit Lenders and in like funds as received by the Administrative
Agent.

 

2.3.                              Termination or Reduction of
Revolving Credit Commitments. 
The Borrower shall have the right, upon not less than three Business
Days’ notice to the Administrative Agent (which will promptly notify the
Lenders thereof), to terminate the Revolving Credit Commitments or, from time
to time, to reduce the amount of the Revolving Credit Commitments; provided
that no such termination or reduction shall be permitted if, after giving
effect thereto and to any prepayments of the Revolving Credit Loans and Swing
Line Loans made on the effective date thereof, the aggregate principal amount
of the Revolving Credit Loans then outstanding, when added to the sum of the
then outstanding L/C Obligations and the then outstanding Swing Line Loans,
would exceed the Revolving Credit Commitments then in effect.  Any such reduction shall be in an amount
equal to $10,000,000 or a whole multiple of $1,000,000 in excess thereof and
shall reduce permanently the Revolving Credit Commitments then in effect.

 

2.4.                              Swing Line Commitments.  (a) 
Subject to the terms and conditions hereof, the Swing Line Lender agrees
to make swing line loans (individually, a “Swing Line Loan”;
collectively, the “Swing Line Loans”) to the Borrower from time to time
during the Revolving Credit Commitment Period in an aggregate principal amount
at any one time outstanding not to exceed $20,000,000, provided that at
no time may the sum of the then outstanding Swing Line Loans, Revolving Credit
Loans and L/C Obligations exceed the Revolving Credit Commitments then in
effect.  Amounts borrowed by the
Borrower under this subsection 2.4 may be repaid and, through but
excluding the Termination Date, reborrowed. 
All Swing Line Loans shall be made as ABR Loans and shall not be
entitled to be converted into Eurodollar Loans.  The Borrower

 

34

 

shall give the Swing Line Lender irrevocable notice (which notice must
be received by the Swing Line Lender prior to 12:00 Noon, New York City time)
on the requested Borrowing Date specifying the amount of the requested Swing
Line Loan which shall be in a minimum amount of $100,000 or whole multiples of
$50,000 in excess thereof.  The proceeds
of the Swing Line Loan will be made available by the Swing Line Lender to the
Borrower at the office of the Swing Line Lender by crediting the account of the
Borrower at such office with such proceeds in Dollars.

 

(b)                                 The Borrower agrees that, upon the request to
the Administrative Agent by the Swing Line Lender made on or prior to the
Closing Date or in connection with any assignment pursuant to
subsection 11.6(b), in order to evidence the Swing Line Loans the Borrower
will execute and deliver to the Swing Line Lender a promissory note substantially
in the form of Exhibit A-4, with appropriate insertions (as the same may be
amended, supplemented, replaced or otherwise modified from time to time, the “Swing
Line Note”), payable to the order of the Swing Line Lender and representing
the obligation of the Borrower to pay the amount of the Swing Line Commitment
or, if less, the unpaid principal amount of the Swing Line Loans made to the
Borrower, with interest thereon as prescribed in subsection 4.1.  The Swing Line Note shall (i) be dated the Closing
Date, (ii) be stated to mature on the Termination Date and (iii) provide for
the payment of interest in accordance with subsection 4.1.

 

(c)                                  The Swing Line Lender, at any time in its
sole and absolute discretion may, and, at any time as there shall be a Swing
Line Loan outstanding for more than seven Business Days, the Swing Line Lender
shall, on behalf of the Borrower (which hereby irrevocably directs and
authorizes the Swing Line Lender to act on its behalf), request each Revolving
Credit Lender, including the Swing Line Lender, to make a Revolving Credit Loan
as an ABR Loan in an amount equal to such Revolving Credit Lender’s Revolving
Credit Commitment Percentage of the principal amount of all of the Swing Line
Loans (the “Refunded Swing Line Loans”) outstanding on the date such
notice is given; provided that the provisions of this
subsection shall not affect the obligations of the Borrower to prepay
Swing Line Loans in accordance with the provisions of
subsection 4.4(d).  Unless the
Revolving Credit Commitments shall have expired or terminated (in which event
the procedures of paragraph (d) of this subsection 2.4 shall apply), each
Revolving Credit Lender will make the proceeds of its Revolving Credit Loan
available to the Administrative Agent for the account of the Swing Line Lender
at the office of the Administrative Agent prior to 12:00 Noon, New York City
time, in funds immediately available on the Business Day next succeeding the
date such notice is given.  The proceeds
of such Revolving Credit Loans shall be immediately applied to repay the
Refunded Swing Line Loans.

 

(d)                                 If the Revolving Credit Commitments shall
expire or terminate at any time while Swing Line Loans are outstanding, each
Revolving Credit Lender shall, at the option of the Swing Line Lender exercised
reasonably, either (i) notwithstanding the expiration or termination of the
Revolving Credit Commitments, make a Revolving Credit Loan as an ABR Loan
(which Revolving Credit Loan shall be deemed a “Revolving Credit Loan”
for all purposes of this Agreement and the other Loan Documents) or (ii)
purchase an undivided participating interest in such Swing Line Loans, in
either case in an amount equal to such Revolving Credit Lender’s Revolving
Credit Commitment Percentage determined on the date of, and immediately prior
to, expiration or termination of the Revolving Credit Commitments of the
aggregate principal amount of such Swing Line Loans.  Each Revolving Credit Lender will make the proceeds of

 

35

 

any Revolving Credit Loan made pursuant to the
immediately preceding sentence available to the Administrative Agent for the
account of the Swing Line Lender at the office of the Administrative Agent
prior to 12:00 Noon, New York City time, in funds immediately available on the
Business Day next succeeding the date on which the Revolving Credit Commitments
expire or terminate.  The proceeds of
such Revolving Credit Loans shall be immediately applied to repay the Swing
Line Loans outstanding on the date of termination or expiration of the
Revolving Credit Commitments.  In the
event that the Revolving Credit Lenders purchase undivided participating
interests pursuant to the first sentence of this paragraph (d), each Revolving
Credit Lender shall immediately transfer to the Swing Line Lender, in
immediately available funds, the amount of its participation and upon receipt
thereof the Swing Line Lender will deliver to such Revolving Credit Lender a
Swing Line Loan Participation Certificate dated the date of receipt of such
funds and in such amount.

 

(e)                                  Whenever, at any time after the Swing Line
Lender has received from any Revolving Credit Lender such Revolving Credit
Lender’s participating interest in a Swing Line Loan, the Swing Line Lender
receives any payment on account thereof (whether directly from the Borrower in
respect of such Swing Line Loan or otherwise, including proceeds of Collateral
applied thereto by the Swing Line Lender), or any payment of interest on
account thereof, the Swing Line Lender will, if such payment is received prior
to 1:00 P.M., New York City time, on a Business Day, distribute to such
Revolving Credit Lender its pro rata share thereof prior to the end of
such Business Day and otherwise, the Swing Line Lender will distribute such
payment on the next succeeding Business Day (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such
Revolving Credit Lender’s participating interest was outstanding and funded); provided,
however, that in the event that such payment received by the Swing Line
Lender is required to be returned, such Revolving Credit Lender will return to
the Swing Line Lender any portion thereof previously distributed by the Swing
Line Lender to it.

 

(f)                                    Each Revolving Credit Lender’s obligation to
make the Revolving Credit Loans and to purchase participating interests with
respect to Swing Line Loans in accordance with subsections 2.4(c) and 2.4(d)
shall be absolute and unconditional and shall not be affected by any
circumstance, including without limitation (i) any set-off, counterclaim,
recoupment, defense or other right that such Revolving Credit Lender or the
Borrower may have against the Swing Line Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default or an Event of Default; (iii) any adverse change in condition
(financial or otherwise) of the Borrower; (iv) any breach of this Agreement or
any other Loan Document by the Borrower, any other Loan Party or any other
Revolving Credit Lender; (v) any inability of the Borrower to satisfy the
conditions precedent to borrowing set forth in this Agreement on the date upon
which such Revolving Credit Loan is to be made or participating interest is to
be purchased or (vi) any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.

 

2.5.                              Term Loans. 
(a)  Subject to the terms and
conditions hereof, each Term Loan Lender severally agrees (i) to make, in up to
two separate draws, one or more term loans (each, a “Tranche A Term Loan”)
to the Borrower in an aggregate principal amount not to exceed the amount set
forth opposite such Lender’s name in Schedule A under the heading “Tranche A
Term Loan Commitment”, provided that the first such draw shall be made
on the Closing Date and the second such draw shall be made on a date not later
than 60 days after the Closing Date 

 

36

 

(the “Term Loan Commitment Termination Date”) and shall be in a
principal amount not to exceed the lesser of (A) the Available Tranche A Term
Loan Commitments and (B) $150,000,000, and (ii) to make, in up to two separate
draws, one or more term loans (each, a “Tranche B Term Loan”) to the
Borrower in an aggregate principal amount not to exceed the amount set forth
opposite such Lender’s name in Schedule A under the heading “Tranche B Term
Loan Commitment”, provided that the first such draw shall be made on the
Closing Date and the second such draw shall be made on a date not later than
the Term Loan Commitment Termination Date and shall be in a principal amount
not to exceed the lesser of (A) the Available Tranche B Term Loan Commitments
and (B) $150,000,000.  The Term Loans
may from time to time be (x) Eurodollar Loans in Dollars, (y) ABR Loans or (z)
a combination thereof, as determined by the Borrower and notified to the
Administrative Agent in accordance with subsections 2.8 and 4.2.  The portion of each Term Loan Lender’s Term
Loan Commitment which is not utilized by the Term Loan Commitment Termination
Date shall be automatically and permanently cancelled.

 

(b)                                 The Borrower shall have the right, after the
Closing Date, upon not less than three Business Days’ notice to the
Administrative Agent (which will promptly notify the Lenders thereof), to
terminate the Tranche A Term Loan Commitments and the Tranche B Term Loan
Commitments or, from time to time, to reduce the amount of such Commitments
then in effect.  Any such reduction
shall be in an amount equal to $10,000,000 or a whole multiple of $1,000,000 in
excess thereof and shall reduce permanently the Tranche A Term Loan Commitments
or Tranche B Term Loan Commitments, as applicable, then in effect.

 

2.6.                              Tranche A Term Notes.  (a) 
The Borrower agrees that, upon the request to the Administrative Agent
by any Tranche A Term Loan Lender made on or prior to the Closing Date or in
connection with any assignment pursuant to subsection 11.6(b), in order to
evidence such Lender’s Tranche A Term Loan the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-2 (each, as amended, supplemented, replaced or otherwise modified from time
to time, a “Tranche A Term Note”), with appropriate insertions therein
as to payee, date and principal amount, payable to the order of such Tranche A
Term Loan Lender and in a principal amount equal to the lesser of (i) the
amount set forth opposite such Tranche A Term Loan Lender’s name on Schedule A
under the heading “Tranche A Term Loan Commitment” and (ii) the unpaid
principal amount of the Tranche A Term Loans made by such Tranche A Term Loan
Lender to the Borrower.  Each Tranche A
Term Note shall (x) be dated the Closing Date, (y) be payable as provided in
subsection 2.6(b) and (z) provide for the payment of interest in
accordance with subsection 4.1.

 

(b)                                 The aggregate Tranche A Term Loans of all the
Tranche A Term Loan Lenders shall be payable in consecutive semi-annual
installments (subject to reduction as provided in subsection 4.4), on the
dates and in the principal amounts, subject to adjustment as set forth below,
equal to the respective amounts set forth below (together with all accrued
interest thereon) opposite the applicable installment dates (or, if less, the
aggregate amount of the Tranche A Term Loans then outstanding):

 

37

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2003

  	
   

  	
  $

  	
  3,750,000

  	
   

  
	
  June 30,
  2004

  	
   

  	
  $

  	
  3,750,000

  	
   

  
	
  December 31,
  2004

  	
   

  	
  $

  	
  7,500,000

  	
   

  
	
  June 30,
  2005

  	
   

  	
  $

  	
  7,500,000

  	
   

  
	
  December 31,
  2005

  	
   

  	
  $

  	
  11,250,000

  	
   

  
	
  June 30,
  2006

  	
   

  	
  $

  	
  11,250,000

  	
   

  
	
  December 31,
  2006

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  June 30,
  2007

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  18,750,000

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  18,750,000

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  18,750,000

  	
   

  
	
  Termination
  Date

  	
   

  	
  $

  	
  18,750,000

  	
   

  

 

In the event that on the
Term Loan Commitment Termination Date, after giving effect to any Tranche A
Term Loans to be made on such date, the aggregate principal amount of the
Tranche A Term Loans then outstanding is less than an amount (the “Adjusted Tranche
A Installment Amount”) equal to (x) $150,000,000 minus (y) the
aggregate amount by which the semi-annual installments of the Tranche A Term
Loans shall have been previously reduced by reason of the prepayments of the
Tranche A Term Loans pursuant to subsection 4.4 on or prior to the Term
Loan Commitment Termination Date, the semi-annual installments of the Tranche A
Term Loans shall be reduced pro  rata, in an aggregate amount
equal to the difference between the Adjusted Tranche A Installment Amount and
such outstanding aggregate principal amount. 
Amounts repaid in respect of Tranche A Term Loans may not be reborrowed.

 

2.7.                              Tranche B Term Notes.  (a) 
The Borrower agrees that, upon the request to the Administrative Agent
by any Tranche B Term Loan Lender made on or prior to the Closing Date or in
connection with any assignment pursuant to subsection 11.6(b), in order to
evidence such Lender’s Tranche B Term Loan the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-3 (each, as amended, supplemented, replaced or otherwise modified from time
to time, a “Tranche B Term Note”), with appropriate insertions therein
as to payee, date and principal amount, payable to the order of such Tranche B
Term Loan Lender and in a principal amount equal to the lesser of (i) the
amount set forth opposite such Tranche B Term Loan Lender’s name on Schedule A
under the heading “Tranche B Term Loan Commitment” and (ii) the unpaid
principal amount of the Tranche B Term Loans made by such Tranche B Term Loan
Lender to the Borrower.  Each Tranche B
Term Note shall (x) be dated the Closing Date, (y) be payable as provided in
subsection 2.7(b) and (z) provide for the payment of interest in
accordance with subsection 4.1.

 

(b)                                 The
aggregate Tranche B Term Loans of all the Tranche B Term Loan Lenders shall be
payable in consecutive semi-annual installments (subject to reduction as
provided in subsection 4.4), on the dates and in the principal amounts,
subject to adjustment as set forth below, equal to the respective amounts set
forth below (together with all accrued interest thereon) opposite the
applicable installment dates (or, if less, the aggregate amount of the Tranche
B Term Loans then outstanding): 

 

38

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2003

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2004

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2004

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  5,625,000

  	
   

  
	
  Final Maturity Date

  	
   

  	
  $

  	
  1,051,875,000

  	
   

  

 

In the event that on the Term Loan Commitment Termination
Date, after giving effect to any Tranche B Term Loans to be made on such date,
the aggregate principal amount of the Tranche B Term Loans then outstanding is
less than an amount (the “Adjusted Tranche B Installment Amount”) equal
to (x) $1,125,000,000 minus (y) the aggregate amount by which the
semi-annual installments of the Tranche B Term Loans shall have been previously
reduced by reason of the prepayments of the Tranche B Term Loans pursuant to
subsection 4.4 on or prior to the Term Loan Commitment Termination Date,
the semi-annual installments of the Tranche B Term Loans shall be reduced pro
rata, in an aggregate amount equal to the difference between the
Adjusted Tranche B Installment Amount and such outstanding aggregate principal
amount.  Amounts repaid in respect of
Tranche B Term Loans may not be reborrowed.

 

2.8.                              Procedure for Term Loan Borrowing.  The Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to
12:30 P.M., New York City time), at least (a) three Business Days prior to the
Closing Date (or, in the case of any second draw under the Tranche A Term Loan
Commitments or the Tranche B Term Loan Commitments subsequent to the Closing
Date, the requested Borrowing Date), if all or any part of the Term Loans are
to be initially Eurodollar Loans or (b) one Business Day prior to the Closing
Date (or, in the case of any second draw under the Tranche A Term Loan Commitments
or the Tranche B Term Loan Commitments subsequent to the Closing Date, the
requested Borrowing Date), in all other cases requesting that the Term Loan
Lenders make the Term Loans on the Closing Date (or, in the case of any second
draw under the Tranche A Term Loan Commitments or the Tranche B Term Loan
Commitments subsequent to the Closing Date, the requested Borrowing Date) and
specifying (i) the amount to be borrowed, (ii) whether the Term Loans are to be
initially Eurodollar Loans, ABR Loans or a combination thereof, (iii) if the
Term Loans are to be entirely or partly Eurodollar Loans, the respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Periods therefor and (iv) in the case of any second draw under the Tranche
A Term Loan Commitments or the Tranche B Term Loan Commitments subsequent to
the Closing Date, the requested Borrowing Date.  The Tranche B Term Loans made on the Closing Date shall initially
be ABR Loans or Eurodollar Loans having a one-month Interest Period and, unless
otherwise agreed to by the Administrative Agent in its

 

39

 

reasonable discretion, prior
to the date that is 30 days after the Closing Date, no Tranche B Term Loan may
be converted into or continued as a Eurodollar Loan having an interest period
in excess of one month.  Upon receipt of
such notice the Administrative Agent shall promptly notify each Term Loan
Lender thereof.  Each Term Loan Lender
will make the amount of its pro rata share of the Term Loans available
to the Administrative Agent for the account of the Borrower at the office of
the Administrative Agent specified in subsection 11.2 prior to 10:00 A.M.,
New York City time, on the Closing Date (or, in the case of any second draw
under the Tranche A Term Loan Commitments or the Tranche B Term Loan
Commitments subsequent to the Closing Date, 12:30 P.M., New York City time, on
the requested Borrowing Date) in Dollars and in funds immediately available to
the Administrative Agent.  The
Administrative Agent shall on such date credit the account of the Borrower on
the books of such office of the Administrative Agent with the aggregate of the
amounts made available to the Administrative Agent by the Term Loan Lenders and
in like funds as received by the Administrative Agent.

 

2.9.                              Repayment
of Loans.  (a)  The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account
of:  (i) each Revolving Credit Lender,
the then unpaid principal amount of each Revolving Credit Loan of such Lender
made to the Borrower, on the Termination Date (or such earlier date on which
the Revolving Credit Loans become due and payable pursuant to Section 9);
(ii) the Swing Line Lender, the then unpaid principal amount of the Swing Line
Loans made to the Borrower, on the Termination Date (or such earlier date on
which the Swing Line Loans become due and payable pursuant to Section 9);
(iii) each Tranche A Term Loan Lender, the amounts specified in
subsection 2.6(b) (or, if less in any case, the aggregate amount of the
Tranche A Term Loans made to the Borrower then outstanding), on the dates set
forth in subsection 2.6(b) (or such earlier date on which the Tranche A
Term Loans become due and payable pursuant to Section 9); and (iv) each Tranche
B Term Loan Lender, the amounts specified in subsection 2.7(b) (or, if
less in any case, the aggregate amount of the Tranche B Term Loans made to the
Borrower then outstanding), on the dates set forth in subsection 2.7(b)
(or such earlier date on which the Tranche B Term Loans become due and payable
pursuant to Section 9).  The
Borrower hereby further agrees to pay interest on the unpaid principal amount
of the Loans from time to time outstanding from the date hereof until payment
in full thereof at the rates per annum, and on the dates, set forth in
subsection 4.1.

 

(b)                                 Each
Lender (including the Swing Line Lender) shall maintain in accordance with its
usual practice an account or accounts evidencing indebtedness of the Borrower
to such Lender resulting from each Loan of such Lender from time to time,
including, without limitation, the amounts of principal and interest payable
and paid to such Lender from time to time under this Agreement.

 

(c)                                  The
Administrative Agent shall maintain the Register pursuant to
subsection 11.6(b), and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Loan made hereunder, the Type thereof
and each Interest Period, if any, applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) both the amount of any sum received
by the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

 

40

 

(d)                                 The
entries made in the Register and the accounts of each Lender maintained
pursuant to subsection 2.9(b) shall, to the extent permitted by applicable
law, be prima  facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain the
Register or any such account, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the
Loans made to the Borrower by such Lender in accordance with the terms of this
Agreement.

 

SECTION 3.  LETTERS OF CREDIT

 

3.1.                              L/C
Commitment.  (a)  Subject to the terms
and conditions hereof, each Issuing Lender, in reliance on the agreements of
the other Revolving Credit Lenders set forth in subsection 3.4(a), agrees
to continue under this Agreement the Existing Letters of Credit and issue
letters of credit (the letters of credit issued on and after the Closing Date
pursuant to this Section 3, together with the Existing Letters of Credit,
collectively, the “Letters of Credit”) for the account of the Borrower
on any Business Day during the Revolving Credit Commitment Period in such form
as may be approved from time to time by the Issuing Lender; provided
that the Issuing Lender shall not issue any Letter of Credit if, after giving
effect to such issuance, (i)  the L/C
Obligations in respect of Letters of Credit would exceed $75,000,000 or (ii)
the Aggregate Outstanding Revolving Credit of all the Revolving Credit Lenders
would exceed the Revolving Credit Commitments of all the Revolving Credit
Lenders then in effect.  Each Letter of
Credit shall (i) be denominated in Dollars and shall be either (A) a standby
letter of credit issued to support obligations of the Borrower or any of its
Subsidiaries, contingent or otherwise, which finance the working capital and
business needs of the Borrower and its Subsidiaries incurred in the ordinary
course of business (a “Standby Letter of Credit”), or (B) a commercial
letter of credit in respect of the purchase of goods or services by the
Borrower or any of its Subsidiaries in the ordinary course of business (a “Commercial
Letter of Credit”), (ii) expire no later than five days prior to the
Termination Date and (iii) unless otherwise agreed by the Administrative Agent,
expire no later than 365 days after its date of issuance in the case of Standby
Letters of Credit, and 180 days after its date of issuance in the case of
Commercial Letters of Credit.

 

(b)                                 Each
Letter of Credit shall be subject to the Uniform Customs and, to the extent not
inconsistent therewith, the laws of the State of New York.

 

(c)                                  The
Issuing Lender shall not at any time issue any Letter of Credit hereunder if
such issuance would conflict with, or cause the Issuing Lender or any L/C
Participant to exceed any limits imposed by, any applicable Requirement of Law.

 

3.2.                              Procedure for Issuance of Letters of Credit.  The Borrower may from time to time request that the Issuing
Lender issue a Letter of Credit by delivering to the Issuing Lender, at its
address for notices specified herein, an Application therefor, completed to the
reasonable satisfaction of the Issuing Lender, and such other certificates,
documents and other papers and information as the Issuing Lender may reasonably
request.  Upon receipt of any
Application, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the Letter of Credit requested thereby (but in no event shall

 

41

 

the Issuing Lender be
required to issue any Letter of Credit earlier than three Business Days after
its receipt of the Application therefor and all such other certificates,
documents and other papers and information relating thereto) by issuing the
original of such Letter of Credit to the beneficiary thereof or as otherwise
may be agreed by the Issuing Lender and the Borrower.  The Issuing Lender shall furnish a copy of such Letter of Credit
to the Borrower promptly following the issuance thereof.  The Issuing Lender shall promptly furnish to
the Administrative Agent, which shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit (including the amount thereof).

 

3.3.                              Fees, Commissions and Other Charges.  (a)  The Borrower shall
pay to the Administrative Agent, for the account of the relevant Issuing Lender
and the L/C Participants, a letter of credit commission with respect to each
Letter of Credit issued by such Issuing Lender, computed for the period from
and including the date of issuance of such Letter of Credit to the expiration
date of such Letter of Credit, computed at a rate per annum equal to the
Applicable Margin then in effect for Eurodollar Loans that are Revolving Credit
Loans calculated on the basis of a 365- (or 366-, as the case may be) day year,
of the aggregate amount available to be drawn under such Letter of Credit,
payable quarterly in arrears on each L/C Fee Payment Date with respect to such
Letter of Credit and on the Termination Date or such earlier date as the
Revolving Credit Commitments shall terminate as provided herein.  Such commission shall be payable to the
Administrative Agent for the account of the Revolving Credit Lenders to be
shared ratably among them in accordance with their respective Revolving Credit
Commitment Percentages.  The Borrower
shall also pay to the Administrative Agent, for the account of the relevant
Issuing Lender, a fee equal to 1/4 of 1% per annum of the aggregate amount
available to be drawn under such Letter of Credit, payable quarterly in arrears
on each L/C Fee Payment Date with respect to such Letter of Credit and on the
Termination Date or such other date as the Revolving Credit Commitments shall
terminate.  Such commissions and fees
shall be nonrefundable.  Such fees and commissions
shall be payable in Dollars.

 

(b)                                 In
addition to the foregoing commissions and fees, the Borrower shall pay or
reimburse the Issuing Lender for such normal and customary costs and expenses
as are incurred or charged by the Issuing Lender in issuing, effecting payment
under, amending or otherwise administering any Letter of Credit issued by such
Issuing Lender.

 

(c)                                  The
Administrative Agent shall, promptly following its receipt thereof, distribute
to the Issuing Lender and the L/C Participants all commissions and fees
received by the Administrative Agent for their respective accounts pursuant to
this subsection.

 

3.4.                              L/C
Participations.  (a)  The Issuing Lender
irrevocably agrees to grant and hereby grants to each L/C Participant, and, to
induce the Issuing Lender to issue Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Lender, on the terms and conditions hereinafter
stated, for such L/C Participant’s own account and risk an undivided interest
equal to such L/C Participant’s Revolving Credit Commitment Percentage
(determined on the date of issuance of the relevant Letter of Credit) in the
Issuing Lender’s obligations and rights under each Letter of Credit issued
hereunder and the amount of each draft paid by the Issuing Lender thereunder.  Each L/C Participant unconditionally and
irrevocably agrees with the Issuing Lender that, if a draft is paid under any
Letter of Credit for which the Issuing Lender is not reimbursed in full by the
Borrower

 

42

 

in respect of such Letter of
Credit in accordance with subsection 3.5(a), such L/C Participant shall
pay to the Issuing Lender upon demand at the Issuing Lender’s address for
notices specified herein an amount equal to such L/C Participant’s Revolving
Credit Commitment Percentage of the amount of such draft, or any part thereof,
which is not so reimbursed; provided that nothing in this paragraph
shall relieve the Issuing Lender of any liability resulting from the gross
negligence or willful misconduct of the Issuing Lender, or otherwise affect any
defense or other right that any L/C Participant may have as a result of such
gross negligence or willful misconduct.

 

(b)                                 If
any amount required to be paid by any L/C Participant to the Issuing Lender on
demand by the Issuing Lender pursuant to subsection 3.4(a) in respect of
any unreimbursed portion of any payment made by the Issuing Lender under any
Letter of Credit is paid to the Issuing Lender within three Business Days after
the date such demand is made, such L/C Participant shall pay to the Issuing
Lender on demand an amount equal to the product of such amount, times the daily
average Federal Funds Effective Rate during the period from and including the
date such payment is required to the date on which such payment is immediately
available to the Issuing Lender, times a fraction the numerator of which is the
number of days that elapse during such period and the denominator of which is
360.  If any such amount required to be
paid by any L/C Participant pursuant to subsection 3.4(a) is not in fact
made available to the Issuing Lender by such L/C Participant within three
Business Days after the date such payment is due, the Issuing Lender shall be
entitled to recover from such L/C Participant, on demand, such amount with
interest thereon calculated from such due date at the rate per annum applicable
to ABR Loans hereunder.  A certificate
of the Issuing Lender submitted to any L/C Participant with respect to any amounts
owing under this subsection (which shall include calculations of any such
amounts in reasonable detail) shall be conclusive in the absence of manifest
error.

 

(c)                                  Whenever,
at any time after the Issuing Lender has made payment under any Letter of
Credit and has received from any L/C Participant its pro rata share of
such payment in accordance with subsection 3.4(a), the Issuing Lender
receives any payment related to such Letter of Credit (whether directly from
the Borrower in respect of such Letter of Credit or otherwise, including
proceeds of Collateral applied thereto by the Issuing Lender), or any payment
of interest on account thereof, the Issuing Lender will, if such payment is
received prior to 1:00 P.M., New York City time, on a Business Day, distribute
to such L/C Participant its pro rata share thereof prior to the end of
such Business Day and otherwise the Issuing Lender will distribute such payment
on the next succeeding Business Day; provided, however, that in
the event that any such payment received by the Issuing Lender shall be required
to be returned by the Issuing Lender, such L/C Participant shall return to the
Issuing Lender the portion thereof previously distributed by the Issuing Lender
to it.

 

3.5.                              Reimbursement Obligation of the Borrower.  (a)  The Borrower agrees
to reimburse the Issuing Lender, upon receipt by the Borrower of notice from
the Issuing Lender of the date and amount of a draft presented under any Letter
of Credit and paid by the Issuing Lender, for the amount of such draft so paid
and any taxes, fees, charges or other costs or expenses reasonably incurred by
the Issuing Lender in connection with such payment.  Each such payment shall be made to the Issuing Lender, at its
address for notices specified herein in Dollars and in immediately available
funds, on the date on which the Borrower receives such

 

43

 

notice, if received prior to
11:00 A.M., New York City time, on a Business Day and otherwise on the next
succeeding Business Day.

 

(b)                                 Interest
shall be payable on any and all amounts remaining unpaid by the Borrower under
this subsection (i) from the date the draft presented under the affected
Letter of Credit is paid to the date on which the Borrower is required to pay
such amounts pursuant to paragraph (a) above at the rate which would then be
payable on any outstanding ABR Loans that are Revolving Credit Loans and (ii)
thereafter until payment in full at the rate which would be payable on any
outstanding ABR Loans that are Revolving Credit Loans which were then overdue.

 

3.6.                              Obligations
Absolute.  (a)  Each of the
Borrower’s obligations under this Section 3 shall be absolute and
unconditional under any and all circumstances and irrespective of any set-off,
counterclaim or defense to payment which the Borrower may have or have had
against the Issuing Lender, any L/C Participant or any beneficiary of a Letter
of Credit, provided that this paragraph shall not relieve the Issuing
Lender or any L/C Participant of any liability resulting from the gross
negligence or willful misconduct of the Issuing Lender or such L/C Participant,
or otherwise affect any defense or other right that the Borrower may have as a
result of any such gross negligence or willful misconduct.

 

(b)                                 The
Borrower also agrees with the Issuing Lender that the Issuing Lender and the
L/C Participants shall not be responsible for, and the Borrower’s Reimbursement
Obligations under subsection 3.5(a) shall not be affected by, among other
things, the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between or among the Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of
Credit may be transferred or any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee, provided
that this paragraph shall not relieve the Issuing Lender or any L/C Participant
of any liability resulting from the gross negligence or willful misconduct of
the Issuing Lender or such L/C Participant, or otherwise affect any defense or
other right that the Borrower may have as a result of any such gross negligence
or willful misconduct.

 

(c)                                  Neither
the Issuing Lender nor any L/C Participant shall be liable for any error,
omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any Letter of
Credit, except for errors or omissions caused by such Person’s gross negligence
or willful misconduct.

 

(d)                                 The
Borrower agrees that any action taken or omitted by the Issuing Lender under or
in connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct and in accordance
with the standards of care specified in the Uniform Commercial Code of the
State of New York, shall be binding on the Borrower and shall not result in any
liability of the Issuing Lender or any L/C Participant to the Borrower.

 

3.7.                              Letter
of Credit Payments.  If any draft shall be presented for payment under any Letter of
Credit, the Issuing Lender shall promptly notify the Borrower of the date and
amount thereof.  The responsibility of
the Issuing Lender to the Borrower in respect of any Letter of

 

44

 

Credit in connection with
any draft presented for payment under such Letter of Credit shall, in addition
to any payment obligation expressly provided for in such Letter of Credit, be limited
to determining that the documents (including each draft) delivered under such
Letter of Credit in connection with such presentment are in conformity with
such Letter of Credit, provided that this paragraph shall not relieve
the Issuing Lender of any liability resulting from the gross negligence or
willful misconduct of the Issuing Lender, or otherwise affect any defense or
other right that the Borrower may have as a result of any such gross negligence
or willful misconduct.

 

3.8.                              Application.  To the extent
that any provision of any Application related to any Letter of Credit is
inconsistent with the provisions of this Section 3, the provisions of this
Section 3 shall apply.

 

SECTION 4.  GENERAL PROVISIONS APPLICABLE TO

LOANS AND LETTERS OF CREDIT

 

4.1.                              Interest Rates and Payment Dates.  (a)  Each Eurodollar Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the Eurodollar Rate determined for such
day plus the Applicable Margin in effect for such day.

 

(b)                                 Each
ABR Loan shall bear interest for each day that it is outstanding at a rate per
annum equal to the ABR for such day plus the Applicable Margin in effect for
such day.

 

(c)                                  If
all or a portion of (i) the principal amount of any Loan, (ii) any interest
payable thereon or (iii) any commitment fee, letter of credit commission,
letter of credit fee or other amount payable hereunder shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such
overdue amount shall bear interest at a rate per annum which is (x) in the case
of overdue principal, the rate that would otherwise be applicable thereto
pursuant to the relevant foregoing provisions of this subsection plus
2.00%, (y) in the case of overdue interest, the rate that would be otherwise
applicable to principal of the related Loan pursuant to the relevant foregoing
provisions of this subsection (other than clause (x) above) plus 2.00% and
(z) in the case of, fees, commissions or other amounts, the rate described in
paragraph (b) of this subsection for ABR Loans that are Revolving Credit
Loans plus 2.00%, in each case from the date of such non-payment until such
amount is paid in full (as well after as before judgment).

 

(d)                                 Interest
shall be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this subsection shall be
payable from time to time on demand.

 

(e)                                  It
is the intention of the parties hereto to comply strictly with applicable usury
laws; accordingly, it is stipulated and agreed that the aggregate of all
amounts which constitute interest under applicable usury laws, whether
contracted for, charged, taken, reserved, or received, in connection with the
indebtedness evidenced by this Agreement or any Notes, or any other document
relating or referring hereto or thereto, now or hereafter existing, shall never
exceed under any circumstance whatsoever the maximum amount of interest allowed
by applicable usury laws.

 

4.2.                              Conversion and Continuation Options.  (a)  The Borrower may
elect from time to time to convert outstanding Tranche A Term Loans, Tranche B
Term Loans and Revolving

 

45

 

Credit Loans from Eurodollar
Loans to ABR Loans by giving the Administrative Agent at least two Business
Days’ prior irrevocable notice of such election, provided that any such
conversion of Eurodollar Loans may only be made on the last day of an Interest
Period with respect thereto.  The
Borrower may elect from time to time to convert outstanding Tranche A Term
Loans, Tranche B Term Loans and Revolving Credit Loans from ABR Loans to
Eurodollar Loans by giving the Administrative Agent at least three Business
Days’ prior irrevocable notice of such election.  Any such notice of conversion to Eurodollar Loans shall specify
the length of the initial Interest Period or Interest Periods therefor.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each affected Lender thereof.  All or any part of outstanding Eurodollar
Loans and ABR Loans may be converted as provided herein, provided that
(i) (unless the Required Lenders otherwise consent) no Loan may be converted
into a Eurodollar Loan when any Default or Event of Default has occurred and is
continuing and, in the case of any Default, the Administrative Agent has given
notice to the Borrower that no such conversions may be made and (ii) no Loan
may be converted into a Eurodollar Loan after the date that is one month prior
to either the Termination Date (in the case of conversions of Revolving Credit
Loans or Tranche A Term Loans) or the Final Maturity Date (in the case of
Tranche B Term Loans).

 

(b)                                 Any
Eurodollar Loan may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving notice to
the Administrative Agent of the length of the next Interest Period to be
applicable to such Loan, determined in accordance with the applicable
provisions of the term “Interest Period” set forth in subsection 1.1, provided
that no Eurodollar Loan may be continued as such (i) (unless the Required
Lenders otherwise consent) when any Default or Event of Default has occurred
and is continuing and, in the case of any Default, the Administrative Agent has
given notice to the Borrower that no such continuations may be made or (ii)
after the date that is one month prior to either the Termination Date (in the
case of continuations of Revolving Credit Loans or Tranche A Term Loans) or the
Final Maturity Date (in the case of Tranche B Term Loans), and provided,
further, that if the Borrower shall fail to give any required notice as
described above in this paragraph or if such continuation is not permitted
pursuant to the preceding proviso such Eurodollar Loans shall be automatically
converted to ABR Loans on the last day of such then expiring Interest
Period.  Upon receipt of any such notice
of continuation pursuant to this subsection 4.2(b), the Administrative
Agent shall promptly notify each affected Lender thereof.

 

4.3.                              Minimum
Amounts of Sets.  All borrowings, conversions and continuations of Loans hereunder
and all selections of Interest Periods hereunder shall be in such amounts and
be made pursuant to such elections so that, after giving effect thereto, the
aggregate principal amount of the Eurodollar Loans outstanding comprising each
Set shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess
thereof and there shall not be more than 20 Sets at any one time outstanding.

 

4.4.                              Optional and Mandatory Prepayments.  (a)  The Borrower may at
any time and from time to time prepay the Loans made to it and the
Reimbursement Obligations in respect of Letters of Credit issued for its
account, in whole or in part, without premium or penalty, upon at least three
Business Days’ irrevocable notice by the Borrower to the Administrative Agent
(in the case of Eurodollar Loans and Reimbursement Obligations), at least one
Business Day’s irrevocable notice by the Borrower to the Administrative Agent
(in the case of ABR Loans other

 

46

 

than Swing Line Loans) or
same-day irrevocable notice by the Borrower to the Administrative Agent (in the
case of Swing Line Loans), specifying, in the case of any prepayment of Loans,
the date and amount of prepayment and whether the prepayment is (i) of Tranche
A Term Loans, Tranche B Term Loans, Revolving Credit Loans or Swing Line Loans,
or a combination thereof, and (ii) of Eurodollar Loans, ABR Loans or a
combination thereof, and, in each case if a combination thereof, the principal
amount allocable to each and, in the case of any prepayment of Reimbursement
Obligations, the date and amount of prepayment, the identity of the applicable
Letter of Credit or Letters of Credit and the amount allocable to each of such
Reimbursement Obligations.  Upon the
receipt of any such notice the Administrative Agent shall promptly notify each
affected Lender thereof.  If any such notice
is given, the amount specified in such notice shall be due and payable on the
date specified therein, together with (if a Eurodollar Loan is prepaid other
than at the end of the Interest Period applicable thereto) any amounts payable
pursuant to subsection 4.12 and, in the case of prepayments of the Tranche
A Term Loans and Tranche B Term Loans only, accrued interest to such date on
the amount prepaid.  Partial prepayments
of (i) the Tranche A Term Loans and Tranche B Term Loans pursuant to this
subsection (x) shall be made pro rata between the Tranche A Term
Loans and the Tranche B Term Loans according to the respective outstanding
principal amounts thereof and (y) shall be applied pro rata to the
respective installments of principal thereof, provided that
notwithstanding clauses (x) and (y) above, any such partial prepayment may, at
the option of the Borrower, be first allocated to the Tranche A Term Loans and
the Tranche B Term Loans pro rata based upon the aggregate amount of the
installments thereof due in the next twelve months and then applied, at the
option of the Borrower, against any of such installments of the Tranche A Term
Loans or the Tranche B Term Loans, as the case may be, and, thereafter, the
remainder of such partial prepayment shall be allocated and applied as provided
in clauses (x) and (y) above, and (ii) the Revolving Credit Loans and the
Reimbursement Obligations pursuant to this subsection shall (unless the
Borrower otherwise directs) be applied, first, to payment of the Swing
Line Loans then outstanding, second, to payment of the Revolving Credit
Loans then outstanding, third, to payment of any Reimbursement
Obligations then outstanding and, last, to cash collateralize any
outstanding L/C Obligation on terms reasonably satisfactory to the
Administrative Agent.  Partial
prepayments pursuant to this subsection 4.4(a) shall be in an aggregate
principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess
thereof.

 

(b)                                 If
on or after the Closing Date (i) the Borrower or any of its Subsidiaries shall
incur Indebtedness for borrowed money (other than Indebtedness permitted
pursuant to subsection 8.2, except as otherwise specified in
subsection 8.2) pursuant to a public offering or private placement or
otherwise, (ii) the Borrower or any of its Subsidiaries shall make an Asset
Sale pursuant to subsection 8.6(i), (iii) a Recovery Event occurs or (iv)
the Borrower or any of its Subsidiaries shall enter into a Sale and Leaseback
Transaction, then, in each case, the Borrower shall prepay, in accordance with
subsection 4.4(f), the Loans and cash collateralize the L/C Obligations in
an amount equal to (x) in the case of the incurrence of any such Indebtedness,
100% of the Net Cash Proceeds thereof minus any Permitted Acquisition
Amount, (y) in the case of any such Asset Sale or Recovery Event, 100% of the
Net Cash Proceeds thereof minus (1) any Reinvested Amounts and (2)
amounts, if any, required to be used to prepay Existing RIC Holding
Indebtedness (and not permitted by the agreements governing the Existing RIC
Holding Indebtedness to be used to prepay Indebtedness under this Agreement and
the other Loan Documents) in accordance with the terms thereof as in effect on
the Closing Date, and (z) in the case of any such Sale and Leaseback
Transaction, 100% of the Net Cash Proceeds thereof, in

 

47

 

each case
with such prepayment to be made on the Business Day following the date of
receipt of any such Net Cash Proceeds (except as provided in
subsection 4.4(j) and except that, in the case of clause (x), if any such
Net Cash Proceeds are eligible to be used to pay the cash consideration for an
acquisition permitted by subsection 8.10(b) in accordance with the
definition of the term “Permitted Acquisition Amount” in subsection 1.1
and the Borrower has not elected to so apply such proceeds, such prepayment to
be made on the earlier of (1) the date occurring 90 days after the receipt of
such Net Cash Proceeds and (2) the date on which the Borrower shall have
determined not to acquire any business, assets or Capital Stock in an acquisition
permitted by subsection 8.10(b) with all or any portion of such Net Cash
Proceeds and except that, in the case of clause (y), if any such Net Cash
Proceeds are eligible to be reinvested in accordance with the definition of the
term “Reinvested Amount” in subsection 1.1 and the Borrower has not
elected to reinvest such proceeds, such prepayment to be made on the earlier of
(1) the date on which the certificate of a Responsible Officer of the Borrower
to such effect is delivered to the Administrative Agent in accordance with such
definition and (2) the last day of the period within which a certificate
setting forth such election is required to be delivered in accordance with such
definition).  Nothing in this paragraph
(b) shall limit the rights of the Administrative Agent and the Lenders set
forth in Section 9.

 

(c)                                  Commencing
March 31, 2005, and on each March 31 thereafter, the Borrower shall
apply toward the prepayment, in accordance with subsection 4.4(f), of the
Loans and the cash collateralization of the L/C Obligations the ECF Percentage
of Holding’s Excess Cash Flow for the fiscal year ending on the immediately
preceding December 31.

 

(d)                                 The
Borrower shall prepay all Swing Line Loans then outstanding simultaneously with
each borrowing of Revolving Credit Loans.

 

(e)                                  If
the Borrower or any of its Subsidiaries enters into any Permitted Receivables
Transaction, on the next Business Day the Borrower shall prepay, in accordance
with subsection 4.4(f), the Loans and cash collateralize the L/C Obligations
in an aggregate amount equal to the Permitted Receivables Transaction
Prepayment Amount in respect of such Permitted Receivables Transaction.

 

(f)                                    Prepayments
pursuant to subsections 4.4(b), 4.4(c) and 4.4(e) shall be applied, first,
to prepay Term Loans then outstanding pro rata according to the
respective outstanding principal amounts thereof, second, to prepay
Swing Line Loans then outstanding, third, to prepay Revolving Credit
Loans then outstanding, fourth, to pay any Reimbursement Obligations
then outstanding and, last, to cash collateralize any outstanding L/C
Obligations on terms reasonably satisfactory to the Administrative Agent.  Prepayments of Term Loans pursuant to
subsections 4.4(b), 4.4.(c) and 4.4(e) shall be applied (i) pro rata (based
on outstanding principal amount) to the Tranche A Term Loans and the Tranche B
Term Loans and (ii) pro rata to the respective installments of principal
thereof, provided that notwithstanding clauses (i) and (ii) above, any
such payment may, at the option of the Borrower, be first allocated to the
Tranche A Term Loans and the Tranche B Term Loans pro rata based upon
the aggregate amount of the installments thereof due in the next twelve months
and then applied, at the option of the Borrower, against any of such
installments of the Tranche A Term Loans or the Tranche B Term Loans, as the
case may be, and, thereafter, the remainder of such prepayment shall be
allocated and applied as provided in clauses (i) and (ii) above.

 

48

 

(g)                                 Amounts
prepaid on account of Term Loans pursuant to subsection 4.4(a), 4.4(b),
4.4(c) or 4.4(e) may not be reborrowed.

 

(h)                                 The
Revolving Credit Commitments shall be permanently reduced by the amount of all
prepayments of Revolving Credit Loans, payments of Reimbursement Obligations
and cash collateralizations of L/C Obligations, in each case, made under
subsections 4.4(b), 4.4(c) or 4.4(e).

 

(i)                                     Notwithstanding
the foregoing provisions of this subsection 4.4, if at any time any
prepayment of the Loans pursuant to subsection 4.4(b), 4.4(c), 4.4(e) or
4.4(j) would result, after giving effect to the procedures set forth in this
Agreement, in the Borrower incurring breakage costs under subsection 4.12
as a result of Eurodollar Loans being prepaid other than on the last day of an
Interest Period with respect thereto, then, the Borrower may, so long as no
Default or Event of Default shall have occurred and be continuing, in its sole
discretion, initially (i) deposit a portion (up to 100%) of the amounts that
otherwise would have been paid in respect of such Eurodollar Loans with the
Administrative Agent (which deposit must be equal in amount to the amount of
such Eurodollar Loans not immediately prepaid) to be held as security for the
obligations of the Borrower to make such prepayment pursuant to a cash
collateral agreement to be entered into on terms reasonably satisfactory to the
Administrative Agent, with such cash collateral to be directly applied upon the
first occurrence thereafter of the last day of an Interest Period with respect
to such Eurodollar Loans (or such earlier date or dates as shall be requested
by the Borrower) or (ii) make a prepayment of the Revolving Credit Loans in
accordance with subsection 4.4(a) with an amount equal to a portion (up to
100%) of the amounts that otherwise would have been paid in respect of such
Eurodollar Loans (which prepayment, together with any deposits pursuant to
clause (i) above, must be equal in amount to the amount of such Eurodollar
Loans not immediately prepaid); provided that, notwithstanding anything
in this Agreement to the contrary, the Borrower may not request any Extension
of Credit under the Revolving Credit Commitments that would reduce the
aggregate amount of the Available Revolving Credit Commitments to an amount
that is less than the amount of such prepayment until the related portion of
such Eurodollar Loans have been prepaid upon the first occurrence thereafter of
the last day of an Interest Period with respect to such Eurodollar Loans; provided
that, in the case of either clause (i) or (ii), such unpaid Eurodollar Loans
shall continue to bear interest in accordance with subsection 4.1 until
such unpaid Eurodollar Loans or the related portion of such Eurodollar Loans,
as the case may be, have or has been prepaid.

 

(j)                                     Notwithstanding
anything to the contrary in subsection 4.4(b), 4.4(c), 4.4(e), 4.4(f) or
4.8, with respect to the amount of any optional prepayment or mandatory
prepayment described in subsection 4.4 that is allocated to Tranche B Term
Loans (such amount, the “Tranche B Prepayment Amount”), at any time when
Tranche A Term Loans remain outstanding, the Borrower will, in lieu of applying
such amount to the prepayment of Tranche B Term Loans, as provided in
subsection 4.4(b), 4.4(c), 4.4(e) or 4.4(f) above, on the date specified
in this subsection 4.4 for such prepayment, give the Administrative Agent
telephonic notice (promptly confirmed in writing) thereof and the
Administrative Agent shall prepare and provide to each Tranche B Lender a
notice (each, a “Prepayment Option Notice”) as described below.  As promptly as practicable after receiving
such notice from the Borrower, the Administrative Agent will send to each
Tranche B Term Loan Lender a Prepayment Option Notice, which shall be in the
form of Exhibit K, and shall include an offer by the Borrower to prepay on the
date

 

49

 

(each a “Prepayment
Date”) that is five Business Days after the date of the Prepayment Option
Notice, the Tranche B Term Loans of such Lender by an amount equal to the
portion of the Tranche B Prepayment Amount indicated in such Lender’s
Prepayment Option Notice as being applicable to such Lender’s Tranche B Term
Loans.  On the Prepayment Date the
Borrower shall prepay the Tranche B Prepayment Amount, and (i) the aggregate
amount thereof necessary to prepay that portion of the outstanding relevant
Tranche B Term Loans in respect of which such Tranche B Term Loan Lenders have
accepted prepayment as described above shall be applied to the prepayment of
the Tranche B Term Loans, and (ii) the aggregate amount (if any) equal to the
portion of the Tranche B Prepayment Amount not accepted by the relevant Tranche
B Term Loan Lenders (the “Surplus Prepayment Amount”) shall be applied
to the prepayment of the Tranche A Term Loans (with any such prepayment to be
applied, at the option of the Borrower, first to any of the installments of the
Tranche A Term Loans due in the next twelve months); provided that (x)
no Tranche B Term Loan Lender shall have the right to decline such payment if,
after giving effect to the otherwise required prepayment(s), no Tranche A Term
Loans shall remain outstanding and (y) if the Surplus Prepayment Amount exceeds
the aggregate amount of the Tranche A Term Loans then outstanding, such excess
shall be applied to prepay any then outstanding Tranche B Term Loans as set
forth in the last sentence of subsection 4.4(f) notwithstanding that any
Tranche B Term Loan Lender has accepted or declined such prepayment, and
otherwise in accordance with subsection 4.4(f).

 

4.5.                              Commitment Fees; Administrative Agent’s Fee; Other Fees.  (a)  The Borrower agrees
to pay to the Administrative Agent, for the account of each Revolving Credit
Lender, a commitment fee for the period from and including the first day of the
Revolving Credit Commitment Period to the Termination Date, computed at the
Commitment Fee Rate on the average daily amount of the Available Revolving
Credit Commitment of such Lender during the period for which payment is made,
payable quarterly in arrears on the last day of each March, June,
September and December and on the Termination Date or such earlier
date as the Revolving Credit Commitments shall terminate as provided herein,
commencing on September 30, 2003.

 

(b)                                 The
Borrower agrees to pay to the Administrative Agent, for the account of each
Tranche A Term Loan Lender, a commitment fee for the period from and including
the Closing Date to the Term Loan Commitment Termination Date, computed at the
rate of 0.75% per annum on the average daily amount of the Available Tranche A
Term Loan Commitment of such Lender, payable in arrears on the date of the
second draw thereunder or such earlier date as the Tranche A Term Loan
Commitment shall terminate as provided herein.

 

(c)                                  The
Borrower agrees to pay to the Administrative Agent, for the account of each
Tranche B Term Loan Lender, a commitment fee for the period from and including
the Closing Date to the Term Loan Commitment Termination Date, computed at the
rate of 0.75% per annum on the average daily amount of the Available Tranche B
Term Loan Commitment of such Lender, payable in arrears on the date of the
second draw thereunder or such earlier date as the Tranche B Term Loan
Commitment shall terminate as provided herein.

 

(d)                                 The
Borrower agrees to pay to the Administrative Agent and the Other
Representatives any fees in the amounts and on the dates previously agreed to
in writing by the

 

50

 

Borrower,
the Other Representatives and the Administrative Agent in connection with this
Agreement.

 

4.6.                              Computation of Interest and Fees.  (a)  Interest (other than
interest based on the Prime Rate) shall be calculated on the basis of a 360-day
year for the actual days elapsed; and commitment fees and interest based on the
Prime Rate shall be calculated on the basis of a 365- (or 366-, as the case may
be) day year for the actual days elapsed. 
The Administrative Agent shall as soon as practicable notify the Borrower
and the affected Lenders of each determination of a Eurodollar Rate.  Any change in the interest rate on a Loan
resulting from a change in the ABR, the Eurodollar Reserve Requirements, the
C/D Assessment Rate or the C/D Reserve Percentage shall become effective as of
the opening of business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the affected Lenders of the effective date
and the amount of each such change in interest rate.

 

(b)                                 Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. 
The Administrative Agent shall, at the request of the Borrower or any
Lender, deliver to the Borrower or such Lender a statement showing in
reasonable detail the calculations used by the Administrative Agent in
determining any interest rate pursuant to subsection 4.1.

 

4.7.                              Inability to Determine Interest Rate.  If prior to the first day of any Interest Period, the
Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate with respect to any Eurodollar Loan (the “Affected
Eurodollar Rate”) for such Interest Period, the Administrative Agent shall
give telecopy or telephonic notice thereof to the Borrower and the Lenders as
soon as practicable thereafter.  If such
notice is given (a) any Eurodollar Loans the rate of interest applicable to
which is based on the Affected Eurodollar Rate requested to be made on the
first day of such Interest Period shall be made as ABR Loans and (b) any
outstanding Loans, as applicable, that were to have been converted on the first
day of such Interest Period to or continued as Eurodollar Loans the rate of
interest applicable to which is based upon the Affected Eurodollar Rate shall
be converted to or continued as ABR Loans. 
If any such repayment occurs on a day which is not the last day of the
then current Interest Period with respect to such affected Eurodollar Loan, the
Borrower shall pay to each of the Revolving Credit Lenders such amounts, if
any, as may be required pursuant to subsection 4.12.  Until such notice has been withdrawn by the
Administrative Agent, no further Eurodollar Loans the rate of interest
applicable to which is based upon the Affected Eurodollar Rate shall be made or
continued as such, nor shall the Borrower have the right to convert ABR Loans
to Eurodollar Loans the rate of interest applicable to which is based upon the
Affected Eurodollar Rate.

 

4.8.                              Pro Rata Treatment and Payments.  (a)  Each borrowing of
Revolving Credit Loans (other than Swing Line Loans) by the Borrower from the
Lenders hereunder shall be made, each payment by the Borrower on account of any
commitment fee in respect of the Revolving Credit Commitments hereunder shall
be allocated by the Administrative Agent, and any reduction of the Revolving
Credit Commitments of the Lenders shall be allocated by the 

 

51

 

Administrative Agent, pro
rata according to the relevant Revolving Credit Commitment Percentages of
the Lenders.  Each payment (including
each prepayment) by the Borrower on account of principal of and interest on any
Revolving Credit Loans shall be allocated by the Administrative Agent pro
rata according to the respective outstanding principal amounts of such
Revolving Credit Loans then held by the Revolving Credit Lenders.  Each payment by the Borrower on account of
any commitment fee in respect of the Tranche A Term Loan Commitments or the
Tranche B Term Loan Commitments hereunder shall be allocated by the
Administrative Agent pro rata according to the relevant Tranche A Term
Loan Percentages or Tranche B Term Loan Percentages of the Lenders, as
applicable.  Each payment (including
each prepayment) by the Borrower on account of principal of and interest on any
Term Loans shall, subject to subsection 4.4.(j), be allocated by the
Administrative Agent pro rata according to the respective outstanding
principal amounts of the Term Loans then held by the Term Loan Lenders.  All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest,
fees, Reimbursement Obligations or otherwise, shall be made without set-off or
counterclaim and shall be made prior to 1:00 P.M., New York City time, on the
due date thereof to the Administrative Agent, for the account of the Lenders
holding the relevant Loans or the L/C Participants, as the case may be, at the
Administrative Agent’s office specified in subsection 11.2, in Dollars and
in immediately available funds. 
Payments received by the Administrative Agent after such time shall be
deemed to have been received on the next Business Day.  The Administrative Agent shall distribute
such payments to such Lenders, if any such payment is received prior to 1:00
P.M., New York City time, on a Business Day, in like funds as received prior to
the end of such Business Day and otherwise the Administrative Agent shall
distribute such payment to such Lenders on the next succeeding Business Day.  If any payment hereunder (other than
payments on the Eurodollar Loans) becomes due and payable on a day other than a
Business Day, the maturity of such payment shall be extended to the next
succeeding Business Day, and, with respect to payments of principal, interest thereon
shall be payable at the then applicable rate during such extension.  If any payment on a Eurodollar Loan becomes
due and payable on a day other than a Business Day, the maturity of such
payment shall be extended to the next succeeding Business Day (and, with
respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension) unless the result of such extension
would be to extend such payment into another calendar month, in which event
such payment shall be made on the immediately preceding Business Day.

 

(b)                                 Unless
the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute its Revolving Credit Commitment Percentage, Tranche A Term Loan
Percentage or Tranche B Term Loan Percentage, as the case may be, of such
borrowing available to the Administrative Agent, the Administrative Agent may
assume that such Lender is making such amount available to the Administrative
Agent, and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower in respect of such borrowing a corresponding
amount.  If such amount is not made
available to the Administrative Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Administrative Agent, on demand,
such amount with interest thereon at a rate equal to the daily average Federal
Funds Effective Rate, as quoted by the Administrative Agent, in each case for
the period until such Lender makes such amount immediately available to the
Administrative Agent.  A certificate of
the Administrative Agent submitted to any Lender with respect to any amounts
owing under this subsection shall be conclusive in the absence of manifest
error.  If such Lender’s Revolving

 

52

 

Credit
Commitment Percentage, Tranche A Term Loan Percentage or Tranche B Term Loan
Percentage, as the case may be, of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days of such
Borrowing Date, (x) the Administrative Agent shall notify the Borrower of the
failure of such Lender to make such amount available to the Administrative
Agent and the Administrative Agent shall also be entitled to recover such
amount with interest thereon at the rate per annum applicable to ABR Loans
hereunder plus the Applicable Margin hereunder, on demand, from the Borrower
and (y) then the Borrower may, without waiving or limiting any rights or
remedies it may have against such Lender hereunder or under applicable law or
otherwise, (i) borrow a like amount on an unsecured basis from any commercial
bank for a period ending on the date upon which such Lender does in fact make
such borrowing available, provided that at the time such borrowing is
made and at all times while such amount is outstanding the Borrower would be
permitted to borrow such amount pursuant to subsection 2.1 and/or (ii)
take any action permitted by the following subsection 4.8(c).

 

(c)                                  Notwithstanding
anything contained in this Agreement:

 

(i)                                     If
at any time a Revolving Credit Lender or a Term Loan Lender shall not make a
Revolving Credit Loan or a Term Loan required to be made by it hereunder (any
such Lender, a “Defaulting Lender”), the Borrower shall have the right
to seek one or more Persons reasonably satisfactory to the Administrative Agent
and the Borrower to each become a substitute Revolving Credit Lender or Term
Loan Lender, as the case may be, and assume all or part of the Revolving Credit
Commitment or Term Loan Commitment of such Defaulting Lender.  In such event, the Borrower, the
Administrative Agent and any such substitute Revolving Credit Lender or Term
Loan Lender, as the case may be, shall execute and deliver, and such Defaulting
Lender shall thereupon be deemed to have executed and delivered, an
appropriately completed Assignment and Acceptance to effect such substitution.

 

(ii)                                  In
determining the Required Collateral Release Lenders or Required Lenders, any
Lender that at the time is a Defaulting Lender (and the Loans, Revolving Credit
Commitment and/or Term Loan Commitments of such Defaulting Lender) shall be
excluded and disregarded.  No commitment
fee shall accrue for the account of a Defaulting Lender so long as such Lender
shall be a Defaulting Lender.

 

(iii)                               If
at any time the Borrower shall be required to make any payment under any Loan
Document to or for the account of a Defaulting Lender, then the Borrower, so
long as it is then permitted to borrow Revolving Credit Loans hereunder, may
set off and otherwise apply its obligation to make such payment against the
obligation of such Defaulting Lender to make such Defaulted Loan.  In such event, the amount so set off and
otherwise applied shall be deemed to constitute a Revolving Credit Loan or Term
Loan by such Defaulting Lender made on the date of such set-off and included
within any borrowing of Revolving Credit Loans or Term Loans, as applicable, as
the Administrative Agent may reasonably determine.

 

53

 

(iv)                              If,
with respect to any Defaulting Lender, which for the purposes of this
subsection 4.8(c)(iv), shall include any Revolving Credit Lender or Term
Loan Lender that has taken any action or become the subject of any action or
proceeding of a type described in subsection 9(f), the Borrower shall be
required to pay any amount under any Loan Document to or for the account of
such Defaulting Lender, then the Borrower, so long as it is then permitted to
borrow Revolving Credit Loans or Term Loans hereunder, may satisfy such payment
obligation by paying such amount to the Administrative Agent, to be (to the
extent permitted by applicable law and to the extent not utilized by the
Administrative Agent to satisfy obligations of the Defaulting Lender owing to
it) held by the Administrative Agent in escrow pursuant to its standard terms
(including as to the earning of interest), and applied (together with any
accrued interest) by it from time to time to make any Revolving Credit Loans,
Term Loans or other payments as and when required to be made by such Defaulting
Lender hereunder.

 

4.9.                              Illegality.  Notwithstanding
any other provision herein, if the adoption of or any change in any Requirement
of Law or in the interpretation or application thereof occurring after the
Closing Date shall make it unlawful for any Lender to make or maintain any
Eurodollar Loans as contemplated by this Agreement (“Affected Eurodollar
Loans”), (a) such Lender shall promptly give written notice of such
circumstances to the Borrower and the Administrative Agent (which notice shall
be withdrawn whenever such circumstances no longer exist), (b) the commitment
of such Lender hereunder to make Affected Eurodollar Loans, continue Affected Eurodollar
Loans as such and convert an ABR Loan to an Affected Eurodollar Loan shall
forthwith be cancelled and, until such time as it shall no longer be unlawful
for such Lender to make or maintain such Affected Eurodollar Loans, such Lender
shall then have a commitment only to make an ABR Loan when an Affected
Eurodollar Loan is requested and (c) such Lender’s Loans then outstanding as
Affected Eurodollar Loans, if any, shall be converted automatically to ABR
Loans on the respective last days of the then current Interest Periods with
respect to such Loans or within such earlier period as required by law.  If any such conversion or prepayment of an
Affected Eurodollar Loan occurs on a day which is not the last day of the then
current Interest Period with respect thereto, the Borrower shall pay to such
Lender such amounts, if any, as may be required pursuant to
subsection 4.12.

 

4.10.                        Requirements
of Law.  (a)  If the adoption of or
any change in any Requirement of Law or in the interpretation or application thereof
applicable to any Lender, or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or
other Governmental Authority, in each case made subsequent to the Closing Date
(or, if later, the date on which such Lender becomes a Lender):

 

(i)                                     shall
subject such Lender to any tax of any kind whatsoever with respect to any
Letter of Credit, any Application or any Eurodollar Loans made by it or its
obligation to make Eurodollar Loans, or change the basis of taxation of
payments to such Lender in respect thereof (except for Non-Excluded Taxes
covered by subsection 4.11 (including Non-Excluded Taxes imposed solely by
reason of any failure of such Lender to comply with its obligations (if any) under
subsection 4.11(b) or with respect to fees paid under this Agreement) and
changes

 

54

 

in taxes measured by or imposed
upon the overall net income, or franchise taxes, or taxes measured by or
imposed upon overall capital or net worth, or branch taxes (in the case of such
capital, net worth or branch taxes, imposed in lieu of such net income tax), of
such Lender or its applicable lending office, branch, or any affiliate
thereof);

 

(ii)                                  shall
impose, modify or hold applicable any reserve, special deposit, compulsory loan
or similar requirement against assets held by, deposits or other liabilities in
or for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender which is not otherwise
included in the determination of the Eurodollar Rate hereunder; or

 

(iii)                               shall
impose on such Lender any other condition (excluding any tax of any kind
whatsoever);

 

and the result of any of the foregoing is to increase the
cost to such Lender, by an amount which such Lender deems to be material, of
making, converting into, continuing or maintaining Eurodollar Loans or issuing
or participating in Letters of Credit or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, upon notice to the
Borrower from such Lender, through the Administrative Agent, in accordance
herewith, the Borrower shall promptly pay such Lender, upon its demand, any
additional amounts necessary to compensate such Lender for such increased cost
or reduced amount receivable with respect to such Eurodollar Loans or Letters
of Credit, provided that, in any such case, the Borrower may elect to
convert Eurodollar Loans made by such Lender hereunder to ABR Loans by giving
the Administrative Agent at least one Business Day’s notice of such election,
in which case the Borrower shall promptly pay to such Lender, upon demand,
without duplication, amounts theretofore required to be paid to such Lender
pursuant to this subsection 4.10(a) and such amounts, if any, as may be
required pursuant to subsection 4.12. 
If any Lender becomes entitled to claim any additional amounts pursuant
to this subsection, it shall provide prompt notice thereof to the Borrower,
through the Administrative Agent, certifying (x) that one of the events
described in this paragraph (a) has occurred and describing in reasonable
detail the nature of such event, (y) as to the increased cost or reduced amount
resulting from such event and (z) as to the additional amount demanded by such
Lender and a reasonably detailed explanation of the calculation thereof.  Such a certificate as to any additional
amounts payable pursuant to this subsection submitted by such Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the
absence of manifest error.  This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

 

(b)                                 If
any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority, in each case,
made subsequent to the Closing Date (or, if later, the date on which such
Lender becomes a Lender), does or shall have the effect of reducing the rate of
return on such Lender’s or such corporation’s capital as a consequence of such
Lender’s obligations hereunder or under or in respect of any Letter of Credit
to a level below that which such Lender or such corporation could have achieved
but for such change or compliance (taking

 

55

 

into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, within ten Business Days after submission by such Lender to the
Borrower (with a copy to the Administrative Agent) of a written request
therefor certifying (x) that one of the events described in this paragraph (b)
has occurred and describing in reasonable detail the nature of such event, (y)
as to the reduction of the rate of return on capital resulting from such event
and (z) as to the additional amount or amounts demanded by such Lender or
corporation and a reasonably detailed explanation of the calculation thereof,
the Borrower shall pay to such Lender such additional amount or amounts as will
compensate such Lender or corporation for such reduction.  Such a certificate as to any additional
amounts payable pursuant to this subsection submitted by such Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the
absence of manifest error.  This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

 

4.11.                        Taxes.  (a) 
Except as provided below in this subsection, all payments made by the
Borrower under this Agreement and any Notes shall be made free and clear of,
and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding taxes measured by
or imposed upon the overall net income of any Lender or its applicable lending
office, or any branch or affiliate thereof, and all franchise taxes, branch
taxes, taxes on doing business or taxes measured by or imposed upon the overall
capital or net worth of any Lender or its applicable lending office, or any
branch or affiliate thereof, in each case imposed:  (i) by the jurisdiction under the laws of which such Lender,
applicable lending office, branch or affiliate is organized or is located, or
in which its principal executive office is located, or any nation within which
such jurisdiction is located or any political subdivision thereof; or (ii) by
reason of any connection between the jurisdiction imposing such tax and such
Lender, applicable lending office, branch or affiliate other than a connection
arising solely from such Lender having executed, delivered or performed its
obligations under, or received payment under or enforced, this Agreement or any
Notes.  If any such non-excluded taxes,
levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable to the
Administrative Agent or any Lender hereunder or under any Notes, the amounts so
payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower shall be entitled to deduct and withhold any Non-Excluded
Taxes and shall not be required to increase any such amounts payable to any
Lender that is not organized under the laws of the United States of America or
a state thereof, as the case may be, (x) if such Lender fails to comply with
the requirements of paragraph (b) of this subsection or (y) with respect
to any Non-Excluded Taxes imposed in connection with the payment of any fees
paid under this Agreement unless such Non-Excluded Taxes are imposed as a
result of a change in treaty, law or regulation that occurred after such Lender
becomes a Lender hereunder (or, if such Lender is a foreign intermediary or
flow-through entity for U.S. federal income tax purposes, after the relevant
beneficiary or member of such Lender became such a beneficiary or member, if
later).  Whenever any Non-Excluded Taxes
are payable by the Borrower, as promptly as possible thereafter the Borrower
shall send to the Administrative Agent for its own account or for the account
of such Lender, as

 

56

 

the case may be, a certified
copy of an original official receipt received by the Borrower showing payment
thereof.  If the Borrower fails to pay
any Non-Excluded Taxes when due to the appropriate taxing authority or fails to
remit to the Administrative Agent the required receipts or other required
documentary evidence, the Borrower shall indemnify the Administrative Agent and
the Lenders for any incremental taxes, interest or penalties that may become
payable by the Administrative Agent or any Lender as a result of any such
failure.  The agreements in this
subsection 4.11 shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

 

(b)                                 Each
Lender that is not incorporated under the laws of the United States of America
or a state thereof shall:

 

(X)                               (i)  on or before the date of any payment by the
Borrower under this Agreement or any Notes to such Lender, deliver to the
Borrower and the Administrative Agent (A) two duly completed copies of United
States Internal Revenue Service Form W-8BEN (certifying that it is a resident
of the applicable country within the meaning of the income tax treaty between
the United States and that country) or Form W-8ECI, or successor applicable form,
as the case may be, certifying that it is entitled to receive all payments
under this Agreement and any Notes without deduction or withholding of any
United States federal income taxes and (B) such other forms, documentation or
certifications, as the case may be, certifying that it is entitled to an
exemption from United States backup withholding tax with respect to payments
under this Agreement and any Notes;

 

(ii)                                  deliver
to the Borrower and the Administrative Agent two further copies of any such
form or certification on or before the date that any such form or certification
expires or becomes obsolete and after the occurrence of any event requiring a
change in the most recent form or certificate previously delivered by it to the
Borrower; and

 

(iii)                               obtain
such extensions of time for filing and completing such forms or certifications
as may reasonably be requested by the Borrower or the Administrative Agent; or

 

(Y)                                in
the case of any such Lender that is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Code,

 

(i)                                     represent
to the Borrower (for the benefit of the Borrower and the Administrative Agent)
that it is not a bank within the meaning of Section 881(c)(3)(A) of the
Code;

 

(ii)                                  agree
to furnish to the Borrower on or before the date of any payment by the
Borrower, with a copy to the Administrative Agent, (A) two certificates
substantially in the form of Exhibit E (any such certificate a “U.S. Tax
Compliance Certificate”) and (B) two accurate and complete original signed
copies of Internal Revenue Service Form W-8BEN, or successor applicable form
certifying to such Lender’s legal entitlement at the date of such certificate
to an

 

57

 

exemption from U.S. withholding tax
under the provisions of Section 871(h) or Section 881(c) of the Code
with respect to payments to be made under this Agreement and any Notes (and to
deliver to the Borrower and the Administrative Agent two further copies of such
form or certificate on or before the date it expires or becomes obsolete and
after the occurrence of any event requiring a change in the most recently
provided form or certificate and, if necessary, obtain any extensions of time
reasonably requested by the Borrower or the Administrative Agent for filing and
completing such forms or certificates); and

 

(iii)                               agree,
to the extent legally entitled to do so, upon reasonable request by the
Borrower, to provide to the Borrower (for the benefit of the Borrower and the
Administrative Agent) such other forms as may be reasonably required in order
to establish the legal entitlement of such Lender to an exemption from
withholding with respect to payments under this Agreement and any Notes, provided
that in determining the reasonableness of a request under this clause (iii)
such Lender shall be entitled to consider the cost (to the extent unreimbursed
by the Borrower) which would be imposed on such Lender of complying with such
request; or

 

(Z)                                in
the case of any such Lender that is a foreign intermediary or flow-through entity
for U.S. federal income tax purposes,

 

(i)                                     on
or before the date of any payment by the Borrower under this Agreement or any
Notes to such Lender, deliver to the Borrower and the Administrative Agent two
accurate and complete original signed copies of United States Internal Revenue
Service Form W-8IMY; and

 

(A)                              with respect to each
beneficiary or member of such Lender that is a bank within the meaning of
Section 881(c)(3)(A) of the Code, on or before the date of any payment by
the Borrower under this Agreement or any Notes to such Lender, also deliver to
the Borrower and the Administrative Agent 
(I) two duly completed copies of United States Internal Revenue Service
Form W-8BEN (certifying that such beneficiary or member is a resident of the
applicable country within the meaning of the income tax treaty between the
United States and that country), Form W-8ECI or Form W-9, or successor
applicable form, as the case may be, in each case certifying that each such
beneficiary or member is entitled to receive all payments under this Agreement
and any Notes without deduction or withholding of any United States federal
income taxes and (II) such other forms, documentation or certifications, as the
case may be, certifying that each such beneficiary or member is entitled to an
exemption from United States backup withholding tax with respect to all
payments under this Agreement and any Notes; and

 

58

 

(B)                                with respect to each
beneficiary or member of such Lender that is not a bank within the meaning of
Section 881(c)(3)(A) of the Code, (I) represent to the Borrower (for the
benefit of the Borrower and the Administrative Agent) that such beneficiary or
member is not a bank within the meaning of Section 881(c)(3)(A) of the
Code, and (II) also deliver to the Borrower and the Administrative Agent on or
before the date of any payment by the Borrower under this Agreement or any
Notes to such Lender, (x) two accurate and complete original signed copies of
Internal Revenue Service Form W-9, or successor applicable form, certifying
that each such beneficiary or member is entitled to receive all payments under
this Agreement and any Notes without deduction or withholding of any United
States federal income taxes, or (y) two U.S. Tax Compliance Certificates from
each beneficiary or member and two accurate and complete original signed copies
of Internal Revenue Service Form W-8BEN, or successor applicable form,
certifying to such beneficiary’s or member’s legal entitlement at the date of
such certificate to an exemption from U.S. withholding tax under the provisions
of Section 871(h) or Section 881(c) of the Code with respect to
payments to be made under this Agreement and any Notes;

 

(ii)                                  deliver to the Borrower and
the Administrative Agent two further copies of any such forms, certificates or
certifications referred to above on or before the date any such form,
certificate or certification expires or becomes obsolete, or any beneficiary or
member changes, and after the occurrence of any event requiring a change in the
most recently provided form, certificate or certification and, obtain such
extensions of time reasonably requested by the Borrower or the Administrative
Agent for filing and completing such forms, certificates or certifications; and

 

(iii)                               agree, to the extent legally
entitled to do so, upon reasonable request by the Borrower, to provide to the
Borrower (for the benefit of the Borrower and the Administrative Agent) such
other forms as may be reasonably required in order to establish the legal
entitlement of such Lender (or beneficiary or member) to an exemption from
withholding with respect to payments under this Agreement and any Notes,
provided that in determining the reasonableness of a request under this clause
(iii) such Lender shall be entitled to consider the cost (to the extent
unreimbursed by the Borrower) which would be imposed on such Lender (or
beneficiary or member) of complying with such request;

 

unless in any such case any change in treaty, law or
regulation has occurred after the date such Person becomes a Lender hereunder
(or a beneficiary or member in the circumstances described in clause (Z) above,
if later) which renders all such forms inapplicable or which would prevent such
Lender (or such beneficiary or member) from duly completing and delivering any
such form with respect to it and such Lender so advises the Borrower and the
Administrative Agent.

 

59

 

Each Person that shall
become a Lender or a Participant pursuant to subsection 11.6 shall, upon
the effectiveness of the related transfer, be required to provide all of the
forms, certifications and statements required pursuant to this subsection, provided
that in the case of a Participant the obligations of such Participant pursuant
to this paragraph (b) shall be determined as if such Participant were a Lender
except that such Participant shall furnish all such required forms,
certifications and statements to the Lender from which the related participation
shall have been purchased.

 

4.12.                        Indemnity.  The Borrower
agrees to indemnify each Lender and to hold each Lender harmless from any loss
or expense which such Lender may sustain or incur (other than through such
Lender’s gross negligence or willful misconduct) as a consequence of (a)
default by the Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (b)
default by the Borrower in making any prepayment or conversion of Eurodollar
Loans after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a payment or prepayment of
Eurodollar Loans or the conversion of Eurodollar Loans on a day which is not
the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest which would have
accrued on the amount so prepaid, or converted, or not so borrowed, converted
or continued, for the period from the date of such prepayment or conversion or
of such failure to borrow, convert or continue to the last day of the
applicable Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Eurodollar
Loans provided for herein (excluding, however, the Applicable Margin included
therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) which would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank eurocurrency market. 
If any Lender becomes entitled to claim any amounts under the indemnity
contained in this subsection 4.12, it shall provide prompt notice thereof
to the Borrower, through the Administrative Agent, certifying (x) that one of
the events described in clause (a), (b) or (c) has occurred and describing in
reasonable detail the nature of such event, (y) as to the loss or expense
sustained or incurred by such Lender as a consequence thereof and (z) as to the
amount for which such Lender seeks indemnification hereunder and a reasonably
detailed explanation of the calculation thereof.  Such a certificate as to any indemnification pursuant to this
subsection submitted by such Lender, through the Administrative Agent, to
the Borrower shall be conclusive in the absence of manifest error.  This covenant shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

 

4.13.                        Certain Rules Relating to the Payment of Additional Amounts.  (a)  Upon the request, and
at the expense, of the Borrower, each Lender to which the Borrower is required
to pay any additional amount pursuant to subsection 4.10 or 4.11, and any
Participant in respect of whose participation such payment is required, shall
reasonably afford the Borrower the opportunity to contest, and reasonably
cooperate with the Borrower in contesting, the imposition of any Non-Excluded
Tax giving rise to such payment; provided that (i) such Lender shall not
be required to afford the Borrower the opportunity to so contest unless the
Borrower shall have confirmed in writing to such Lender its obligation to pay
such amounts pursuant to this Agreement and (ii) the Borrower shall reimburse
such Lender for its reasonable attorneys’ and

 

60

 

accountants’ fees and
disbursements incurred in so cooperating with the Borrower in contesting the
imposition of such Non-Excluded Tax; provided, however, that
notwithstanding the foregoing no Lender shall be required to afford the
Borrower the opportunity to contest, or cooperate with the Borrower in
contesting, the imposition of any Non-Excluded Taxes, if such Lender in its
sole discretion in good faith determines that to do so would have an adverse
effect on it.

 

(b)                                 If
a Lender changes its applicable lending office (other than pursuant to
paragraph (c) below) and the effect of such change, as of the date of such
change, would be to cause the Borrower to become obligated to pay any
additional amount under subsection 4.10 or 4.11, the Borrower shall not be
obligated to pay such additional amount.

 

(c)                                  If
a condition or an event occurs which would, or would upon the passage of time
or giving of notice, result in the payment of any additional amount to any
Lender by the Borrower pursuant to subsection 4.10 or 4.11, such Lender
shall promptly notify the Borrower and the Administrative Agent and shall take
such steps as may reasonably be available to it to mitigate the effects of such
condition or event (which shall include efforts to rebook the Loans held by
such Lender at another lending office, or through another branch or an
affiliate, of such Lender); provided that such Lender shall not be
required to take any step that, in its reasonable judgment, would be materially
disadvantageous to its business or operations or would require it to incur
additional costs (unless the Borrower agrees to reimburse such Lender for the
reasonable incremental out-of-pocket costs thereof).

 

(d)                                 If
the Borrower shall become obligated to pay additional amounts pursuant to subsection 4.10
or 4.11 and any affected Lender shall not have promptly taken steps necessary
to avoid the need for payments under subsection 4.10 or 4.11, the Borrower
shall have the right, for so long as such obligation remains, (i) with the assistance
of the Administrative Agent, to seek one or more substitute Lenders reasonably
satisfactory to the Administrative Agent and the Borrower to purchase the
affected Loan, in whole or in part, at an aggregate price no less than such
Loan’s principal amount plus accrued interest, and assume the affected
obligations under this Agreement, or (ii) upon at least four Business Days’
irrevocable notice to the Administrative Agent, to prepay the affected Loan, in
whole or in part, subject to subsection 4.12, without premium or
penalty.  In the case of the
substitution of a Lender, the Borrower, the Administrative Agent, the affected
Lender, and any substitute Lender shall execute and deliver an appropriately
completed Assignment and Acceptance pursuant to subsection 11.6(b) to
effect the assignment of rights to, and the assumption of obligations by, the
substitute Lender; provided that any fees required to be paid by
subsection 11.6(b) in connection with such assignment shall be paid by the
Borrower or the substitute Lender.  In
the case of a prepayment of an affected Loan, the amount specified in the
notice shall be due and payable on the date specified therein, together with
any accrued interest to such date on the amount prepaid.  In the case of each of the substitution of a
Lender and of the prepayment of an affected Loan, the Borrower shall first pay
the affected Lender any additional amounts owing under subsections 4.10 and
4.11 (as well as any commitment fees and other amounts then due and owing to
such Lender, including, without limitation, any amounts under
subsection 4.13) prior to such substitution or prepayment.

 

(e)                                  For
purposes of subsections 4.10 and 4.11, a change in treaty, law, rule or
regulation shall not include the ratification or entry into force of (i) the
protocol amending the

 

61

 

income
tax treaty between Canada and the United States, signed August 31, 1995,
(ii) the protocol amending the income tax treaty between the Netherlands and
the United States, signed October 15, 1995, (iii) the income tax treaty
between Italy and the United States, signed August 25, 1999 and (iv) the
protocol amending the income tax treaty between Mexico and the United States,
signed November 26, 2002.

 

(f)                                    If
the Administrative Agent or any Lender receives a refund directly attributable
to taxes for which the Borrower has made additional payments pursuant to
subsection 4.10(a) or 4.11(a), the Administrative Agent or such Lender, as
the case may be, shall promptly pay such refund (together with any interest
with respect thereto received from the relevant taxing authority) to the
Borrower, provided, however, that the Borrower agrees promptly to
return such refund (together with any interest with respect thereto due to the
relevant taxing authority) (free of all Non-Excluded Taxes) to the
Administrative Agent or the applicable Lender, as the case may be, upon receipt
of a notice that such refund is required to be repaid to the relevant taxing
authority.

 

(g)                                 The
obligations of a Lender or Participant under this subsection 4.13 shall
survive the termination of this Agreement and the payment of the Loans and all
amounts payable hereunder.

 

SECTION 5.  REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and each Lender to make
the Extensions of Credit requested to be made by it on the Closing Date and on
each Borrowing Date thereafter, the Borrower hereby represents and warrants, on
the Closing Date, and on every Borrowing Date thereafter, to the Administrative
Agent and each Lender that:

 

5.1.                              Financial
Condition.  (a)  The audited
consolidated balance sheets of Holding and its consolidated Subsidiaries as of
December 31, 2000, December 31, 2001 and December 31, 2002 and
the related consolidated statements of income, shareholders’ equity and cash
flows for the fiscal years ended on such dates, reported on by and accompanied
by unqualified reports from Deloitte & Touche LLP (in the case of the
December 31, 2000 and December 31, 2001 financial statements) and PricewaterhouseCoopers
LLP (in the case of the December 31, 2002 financial statements), present
fairly, in all material respects, the consolidated financial condition as at
such date, and the consolidated results of operations and consolidated cash
flows for the respective fiscal years then ended, of Holding and its
consolidated Subsidiaries. The unaudited consolidated balance sheet of Holding
and its consolidated Subsidiaries as at March 31, 2003, and the related
unaudited consolidated statements of income and cash flows for the three-month
period ended on such date, present fairly, in all material respects, the
consolidated financial condition as at such date, and the consolidated results
of operations and consolidated cash flows for the three-month period then
ended, of Holding and its consolidated Subsidiaries (subject to the omission of
footnotes and normal year-end audit and other adjustments).  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
consistently applied throughout the periods covered thereby (except as approved
by a Responsible Officer, and disclosed in any such schedules and notes, and
subject to the omission of footnotes from such unaudited financial statements).  During the period from December 31,
2002 to and including the Closing Date, except as provided in the Merger

 

62

 

Agreement, there has been no
sale, transfer or other disposition by Holding and its consolidated
Subsidiaries of any material part of the business or property of Holding and
its consolidated Subsidiaries, taken as a whole, and no purchase or other
acquisition by any of them of any business or property (including any Capital
Stock of any other Person) material in relation to the consolidated financial
condition of Holding and its consolidated Subsidiaries, taken as a whole, in
each case, which is not reflected in the foregoing financial statements or in
the notes thereto and has not otherwise been disclosed in writing to the
Lenders on or prior to the Closing Date.

 

(b)                                 The
audited consolidated balance sheets of Graphic Packaging Holding and its
consolidated Subsidiaries as of December 31, 2000, December 31, 2001
and December 31, 2002 and the related consolidated statements of income,
shareholders’ equity and cash flows for the fiscal years ended on such dates,
reported on by and accompanied by an unqualified report from
PricewaterhouseCoopers LLP, present fairly, in all material respects, the
consolidated financial condition as at such date, and the consolidated results
of operations and consolidated cash flows for the respective fiscal years then
ended, of Graphic Packaging Holding and its consolidated Subsidiaries.  The unaudited consolidated balance sheet of
Graphic Packaging Holding and its consolidated Subsidiaries as at
March 31, 2003, and the related unaudited consolidated statements of
income and cash flows for the three-month period ended on such date, present
fairly, in all material respects, the consolidated financial condition as at
such date, and the consolidated results of operations and consolidated cash
flows for the three-month period then ended, of Graphic Packaging Holding and
its consolidated Subsidiaries (subject to the omission of footnotes and normal
year-end audit and other adjustments). 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP consistently applied
throughout the periods covered thereby (except as approved by a Responsible
Officer, and disclosed in any such schedules and notes, and subject to the
omission of footnotes from such unaudited financial statements).  During the period from December 31,
2002 to and including the Closing Date, except as provided in the Merger
Agreement, there has been no sale, transfer or other disposition by Graphic
Packaging Holding and its consolidated Subsidiaries of any material part of the
business or property of Graphic Packaging Holding and its consolidated
Subsidiaries, taken as a whole, and no purchase or other acquisition by any of
them of any business or property (including any Capital Stock of any other
Person) material in relation to the consolidated financial condition of Graphic
Packaging Holding and its consolidated Subsidiaries, taken as a whole, in each
case, which is not reflected in the foregoing financial statements or in the
notes thereto and has not otherwise been disclosed in writing to the Lenders on
or prior to the Closing Date.

 

(c)                                  The
pro forma balance sheet and statements of operations of Holding and its
consolidated Subsidiaries (the “Pro Forma Financial Statements”), copies
of which have heretofore been furnished to each Lender, are the balance sheet
and statements of operations of Holding and its consolidated Subsidiaries as of
March 31, 2003 (the “Pro Forma Date”), adjusted to give effect (as
if such events had occurred on such date for purposes of the balance sheet and
on January 1, 2002 for purposes of the statement of operations) to (i) the
consummation of the Transactions, (ii) the receipt by the Borrower of the gross
cash proceeds (prior to any underwriting discount or other associated fees and
commissions or any deduction of associated fees and expenses) from the issuance
of the 2003 Senior Notes and the 2003 Senior Subordinated Notes, (iii) the
making of the Extensions of Credit to be made on the Closing Date and the
application of the proceeds thereof as contemplated hereby, and (iv) the
payment of actual or

 

63

 

estimated
fees, expenses, financing costs and tax payments related to the transactions
contemplated hereby and thereby.  The
Pro Forma Financial Statements were prepared in accordance with Article 11 (Pro
Forma Financial Information) of Regulation S-X under the Securities Act.

 

5.2.                              No
Change; Solvent.  Since December 31, 2002, except as and to the extent
disclosed on Schedule 5.2, (a) there has been no development or event relating
to or affecting any Loan Party which has had or would be reasonably expected to
have a Material Adverse Effect (after giving effect to the transactions
described in clauses (i) through (iv) of subsection 5.1(c)), and (b)
except in connection with the Transactions or as otherwise permitted under this
Agreement or any other Loan Document, and except for dividends or other
distributions by Graphic Packaging or Riverwood made or declared prior to the
Closing Date consistent with past practice, no dividends or other distributions
have been declared, paid or made upon the Capital Stock of any such Person, nor
has any of the Capital Stock of any such Person been redeemed, retired,
purchased or otherwise acquired for value by any such Person or any of its
Subsidiaries.  As of the Closing Date,
after giving effect to the consummation of the transactions described in
clauses (i) through (iv) of subsection 5.1(c), the Borrower is Solvent.

 

5.3.                              Corporate Existence; Compliance with Law.  Each of the Loan Parties (a) is duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation, (b) has the corporate power and authority, and the legal right,
to own and operate its property, to lease the property it operates as lessee
and to conduct the business in which it is currently engaged, except to the
extent that the failure to have such legal right would not be reasonably
expected to have a Material Adverse Effect, (c) is duly qualified as a foreign
corporation and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification, other than in such jurisdictions where the failure
to be so qualified and in good standing would not be reasonably expected to
have a Material Adverse Effect, and (d) is in compliance with all Requirements
of Law, except to the extent that the failure to comply therewith would not, in
the aggregate, be reasonably expected to have a Material Adverse Effect.

 

5.4.                              Corporate Power; Authorization; Enforceable Obligations.  Each Loan Party has the corporate power and authority, and the
legal right, to make, deliver and perform the Loan Documents to which it is a
party and, in the case of the Borrower, to obtain Extensions of Credit
hereunder, and each such Loan Party has taken all necessary corporate action to
authorize the execution, delivery and performance of the Loan Documents to
which it is a party and, in the case of the Borrower, to authorize the
Extensions of Credit on the terms and conditions of this Agreement, any Notes and
the Applications.  No consent or
authorization of, filing with, notice to or other similar act by or in respect
of, any Governmental Authority or any other Person is required to be obtained
or made by or on behalf of any Loan Party in connection with the execution,
delivery, performance, validity or enforceability of the Loan Documents to
which it is a party or, in the case of the Borrower, with the Extensions of
Credit hereunder, except for (a) consents, authorizations, notices and filings
described in Schedule 5.4, all of which have been obtained or made prior to the
Closing Date, (b) filings to perfect the Liens created by the Security
Documents, (c) filings pursuant to the Assignment of Claims Act of 1940, as
amended (31 U.S.C. § 3727 et seq.), in respect of Accounts of the Borrower and
its Subsidiaries the Obligor in respect of which is the United States of
America or any department, agency or

 

64

 

instrumentality thereof and
(d) consents, authorizations, notices and filings which the failure to obtain
or make would not reasonably be expected to have a Material Adverse
Effect.  This Agreement has been duly
executed and delivered by the Borrower, and each other Loan Document to which
any Loan Party is a party will be duly executed and delivered on behalf of such
Loan Party.  This Agreement constitutes
a legal, valid and binding obligation of the Borrower, and each other Loan
Document to which any Loan Party is a party when executed and delivered will
constitute a legal, valid and binding obligation of such Loan Party,
enforceable against such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

5.5.                              No
Legal Bar.  The execution, delivery and performance of the Loan Documents by
any of the Loan Parties, the Extensions of Credit hereunder and the use of the
proceeds thereof (a) will not violate any Requirement of Law or Contractual
Obligation of such Loan Party in any respect that would reasonably be expected
to have a Material Adverse Effect and (b) will not result in, or require, the
creation or imposition of any Lien (other than the Liens permitted by
subsection 8.3) on any of its properties or revenues pursuant to any such
Requirement of Law or Contractual Obligation.

 

5.6.                              No
Material Litigation.  No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of the
Borrower, threatened by or against Holding or any of its Subsidiaries or against
any of their respective properties or revenues, (a) except as described on
Schedule 5.6, which is so pending or threatened at any time on or prior to the
Closing Date and relates to any of the Loan Documents or any of the
transactions contemplated hereby or thereby or (b) which would be reasonably
expected to have a Material Adverse Effect.

 

5.7.                              No
Default.  Neither the Borrower nor any of its Subsidiaries is in default
under or with respect to any of its Contractual Obligations in any respect
which would be reasonably expected to have a Material Adverse Effect.  No Default or Event of Default has occurred
and is continuing.

 

5.8.                              Ownership
of Property; Liens.  Each of the Borrower and its Subsidiaries has good record and
marketable title in fee simple to, or a valid leasehold interest in, all its
material real property, and good title to, or a valid leasehold interest in,
all its other material property, and none of such property is subject to any
Lien, except for Liens permitted by subsection 8.3.  Except for the Excluded Properties, the Insured
Fee Properties as listed on Part I(a) of Schedule 5.8 and the Mortgaged Fee
Properties as listed on Part I(b) of Schedule 5.8 together constitute all the
material real properties owned in fee by the Loan Parties as of the Closing
Date and the Mortgaged Leased Properties listed on Part II of Schedule 5.8
constitute all of the material real properties leased by the Loan Parties as of
the Closing Date.

 

5.9.                              Intellectual
Property.  The Borrower and each of its Subsidiaries owns, or has the legal
right to use, all United States patents, patent applications, trademarks,
trademark applications, trade names, copyrights, technology, know-how and
processes necessary for each of them to conduct its business as currently
conducted (the “Intellectual Property”) except for

 

65

 

those the failure to own or
have such legal right to use would not be reasonably expected to have a
Material Adverse Effect.  Except as
provided on Schedule 5.9, no claim has been asserted and is pending by any
Person challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does the
Borrower know of any such claim, and, to the knowledge of the Borrower, the use
of such Intellectual Property by the Borrower and its Subsidiaries does not
infringe on the rights of any Person, except for such claims and infringements
which in the aggregate, would not be reasonably expected to have a Material
Adverse Effect.

 

5.10.                        No
Burdensome Restrictions.  Neither the Borrower nor any of its Subsidiaries is in violation
of any Requirement of Law or Contractual Obligation of or applicable to the
Borrower or any of its Subsidiaries that would be reasonably expected to have a
Material Adverse Effect.

 

5.11.                        Taxes.  To the knowledge of the Borrower, each of
Holding and its Subsidiaries has filed or caused to be filed all United States
federal income tax returns and all other material tax returns which are
required to be filed and has paid (a) all taxes shown to be due and payable on
such returns and (b) all taxes shown to be due and payable on any assessments
of which it has received notice made against it or any of its property
(including, without limitation, the Mortgaged Properties) and all other taxes,
fees or other charges imposed on it or any of its property by any Governmental
Authority (other than any (i) taxes, fees or other charges with respect to
which the failure to pay, in the aggregate, would not have a Material Adverse
Effect or (ii) taxes, fees or other charges the amount or validity of which are
currently being contested in good faith by appropriate proceedings diligently
conducted and with respect to which reserves in conformity with GAAP have been
provided on the books of Holding or its Subsidiaries, as the case may be); and
no tax Lien has been filed, and no claim is being asserted, with respect to any
such tax, fee or other charge.  The
preceding sentence shall not apply to any taxes, fees or other charges which
are subject to indemnification by Manville under the Tax Matters Agreement with
respect to which the Borrower has disclosed to the Administrative Agent the
failure to file or pay, the filing of a tax lien, or the assertion of a claim.

 

5.12.                        Federal
Regulations.  No part of the proceeds of any Extensions of Credit will be used
for any purpose which violates the provisions of the Regulations of the Board,
including without limitation, Regulation T, Regulation U or Regulation X of the
Board.  If requested by any Lender or
the Administrative Agent, the Borrower will furnish to the Administrative Agent
and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1, referred to in said Regulation U.

 

5.13.                        ERISA.  During the five year period prior to each
date as of which this representation is made, or deemed made, with respect to
any Plan (or, with respect to (f) or (h) below, as of the date such
representation is made or deemed made), none of the following events or
conditions, either individually or in the aggregate, has resulted or is
reasonably likely to result in a Material Adverse Effect:  (a) a Reportable Event; (b) an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or
Section 302 of ERISA); (c) any noncompliance with the applicable
provisions of ERISA or the Code; (d) a termination of a Single Employer Plan
(other than a standard termination pursuant to Section 4041(b) of ERISA);
(e) a Lien on the property of the Borrower or its Subsidiaries in favor of the
PBGC or a Plan;

 

66

 

(f) any Underfunding with
respect to any Single Employer Plan; (g) a complete or partial withdrawal from
any Multiemployer Plan by the Borrower or any Commonly Controlled Entity; (h)
any liability of the Borrower or any Commonly Controlled Entity under ERISA if
the Borrower or any such Commonly Controlled Entity were to withdraw completely
from all Multiemployer Plans as of the annual valuation date most closely
preceding the date on which this representation is made or deemed made; or (i)
the Reorganization or Insolvency of any Multiemployer Plan.  There have been no transactions that
resulted or could reasonably be expected to result in any liability to the
Borrower or any Commonly Controlled Entity under Section 4069 of ERISA or
Section 4212(c) of ERISA.

 

5.14.                        Collateral.  Upon execution
and delivery thereof by the parties thereto, the Guarantee and Collateral
Agreement and the Mortgages will be effective to create (to the extent
described therein) in favor of the Administrative Agent, for the ratable
benefit of the Lenders, a legal, valid and enforceable security interest in the
Collateral described therein, except as may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.  When (a) the actions specified in Schedule 3 to the Guarantee and
Collateral Agreement have been duly taken, (b) all applicable Instruments,
Chattel Paper and Documents a security interest in which is perfected by
possession have been delivered to, and/or are in the continued possession of,
the Administrative Agent, (c) all Deposit Accounts, the Collateral Proceeds
Account, Electronic Chattel Paper and Pledged Stock (each as defined in the
Guarantee and Collateral Agreement) a security interest in which is required to
be or is perfected by “control” (as described in the Uniform Commercial Code as
in effect in the State of New York from time to time) are under the “control”
of the Administrative Agent and (d) the Mortgages have been duly recorded, the
security interests granted pursuant thereto shall constitute (to the extent
described therein) a perfected security interest in, all right, title and
interest of each pledgor or mortgagor (as applicable) party thereto in the
Collateral described therein with respect to such pledgor or mortgagor (as
applicable).  Notwithstanding any other
provision of this Agreement, capitalized terms which are used in this
subsection 5.14 and not defined in this Agreement are so used as defined
in the applicable Security Document.

 

5.15.                        Investment Company Act; Other Regulations.  The Borrower is not an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment
Company Act.  The Borrower is not subject
to regulation under any Federal or State statute or regulation (other than
Regulation X of the Board) which limits its ability to incur Indebtedness as
contemplated hereby.

 

5.16.                        Subsidiaries.  Schedule 5.16
sets forth all the Subsidiaries of Holding at the Closing Date, the
jurisdiction of their incorporation and the direct or indirect ownership
interest of Holding therein.

 

5.17.                        Purpose
of Loans.  The proceeds of the Term Loans (other than Term Loans made after
the Closing Date) and a portion of the Revolving Credit Loans shall be used by
the Borrower (a) to finance the Transactions and (b) to pay certain transaction
fees and expenses related to the Transactions. 
The proceeds of Term Loans made after the Closing Date shall be used by
the Borrower to satisfy any change of control offer or tender offer for the
2002 Senior

 

67

 

Subordinated Notes and for
general corporate purposes.  The
proceeds of Revolving Credit Loans and Swing Line Loans shall be used by the
Borrower to finance the working capital and business requirements of, and for
general corporate purposes of, the Borrower and its Subsidiaries.

 

5.18.                        Environmental
Matters.  Other than exceptions to any of the following that would not,
individually or in the aggregate, reasonably be expected to give rise to a
Material Adverse Effect:

 

(a)                                  The
Borrower and its Subsidiaries:  (i) are,
and within the period of all applicable statutes of limitation have been, in
compliance with all applicable Environmental Laws; (ii) hold all Environmental
Permits (each of which is in full force and effect) required for any of their
current operations or for any property owned, leased, or otherwise operated by
any of them and reasonably expect to timely obtain without material expense all
such Environmental Permits required for planned operations; (iii) are, and
within the period of all applicable statutes of limitation have been, in
compliance with all of their Environmental Permits; and (iv) have no reason to
believe that:  any of their
Environmental Permits will not be, or will entail material expense to be,
timely renewed or complied with; any additional Environmental Permits that may
be required of any of them will not be, or will entail material expense to be, timely granted or complied with; or that compliance with
any Environmental Law that is applicable to any of them will not be, or will
entail material expense to be, timely attained and maintained.

 

(b)                                 Materials
of Environmental Concern have not been transported, disposed of, emitted,
discharged, or otherwise released or threatened to be released, to or at any
real property presently or formerly owned, leased or operated by the Borrower
or any of its Subsidiaries or at any other location, which could reasonably be
expected to (i) give rise to liability of 
the Borrower or any of its Subsidiaries under any applicable
Environmental Law, or (ii) interfere with the Borrower’s planned or continued
operations, or (iii) impair the fair saleable value of any real property owned
or leased by the Borrower or any of its Subsidiaries.

 

(c)                                  There
is no judicial, administrative, or arbitral proceeding (including any notice of
violation or alleged violation) under any Environmental Law to which the
Borrower or any of its Subsidiaries is, or to the knowledge of the Borrower or
any of its Subsidiaries will be, named as a party that is pending or, to the
knowledge of the Borrower or any of its Subsidiaries, threatened.

 

(d)                                 Neither
the Borrower nor any of its Subsidiaries has received any written request for
information, or been notified that it is a potentially responsible party, under
the federal Comprehensive Environmental Response, Compensation, and Liability
Act or any similar Environmental Law, or received any other written request for
information with respect to any Materials of Environmental Concern.

 

(e)                                  Neither
the Borrower nor any of its Subsidiaries has entered into or agreed to any
consent decree, order, or settlement or other agreement, nor is subject to any

 

68

 

judgment, decree, or order or other
agreement, in any judicial, administrative, arbitral, or other forum, relating
to compliance with or liability under any Environmental Law.

 

5.19.                        No
Material Misstatements.  The written information (including, without limitation, the
Confidential Information Memorandum), reports, financial statements, exhibits
and schedules furnished by or on behalf of the Borrower to the Administrative
Agent, the Other Representatives and the Lenders in connection with the
negotiation of any Loan Document or included therein or delivered pursuant
thereto, taken as a whole, did not contain as of the Closing Date any material
misstatement of fact and did not omit to state as of the Closing Date any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading in their
presentation of the Borrower and its Subsidiaries taken as a whole.  It is understood that (a) no representation
or warranty is made concerning the forecasts, estimates, pro  forma
information, projections and statements as to anticipated future performance or
conditions, and the assumptions on which they were based, contained in any such
information, reports, financial statements, exhibits or schedules, except that
as of the date such forecasts, estimates, pro  forma information,
projections and statements were generated, (i) such forecasts, estimates, pro
forma information, projections and statements were based on the good
faith assumptions of the management of the Borrower and (ii) such assumptions
were believed by such management to be reasonable and (b) such forecasts,
estimates, pro  forma information and statements, and the
assumptions on which they were based, may or may not prove to be correct.

 

5.20.                        Delivery of the Merger Agreement.  The Borrower has delivered to the Administrative Agent a complete
photocopy the Merger Agreement (including all exhibits, schedules and
disclosure letters referred to therein or delivered pursuant thereto, if any)
and all amendments thereto, waivers relating thereto and other side letters or
agreements affecting the terms thereof in any material respect.

 

5.21.                        Representations and Warranties Contained in the Transaction Documents.  Each of the Transaction Documents will have been duly executed
and delivered by each of the Loan Parties which is a party thereto prior to the
Closing Date and, to the knowledge of the Borrower, all other parties thereto,
and is in full force and effect on the Closing Date.  As of the Closing Date, the representations and warranties of
Holding, Graphic Packaging Holding and their respective Subsidiaries and, to
the knowledge of the Borrower, any of the other parties thereto contained in
any of the Transaction Documents (after giving effect to any amendments,
supplements, waivers or other modifications of any of the Transaction Documents
prior to the Closing Date in accordance with this Agreement) are true and
correct in all material respects except as otherwise disclosed to the
Administrative Agent in writing prior to the Closing Date.

 

5.22.                        Senior
Indebtedness.  The Loans, L/C Obligations and all other obligations hereunder
and under the other Loan Documents constitute “Designated Senior Indebtedness”
under and as defined in the 2002 Senior Subordinated Note Indenture and the
2003 Senior Subordinated Note Indenture. 
For the avoidance of doubt, the Borrower (as successor to Graphic
Packaging) hereby designates the Loans, L/C Obligations and all other
obligations hereunder as “Designated Senior Indebtedness” under and as

 

69

 

defined in the 2002 Senior
Subordinated Note Indenture and the 2003 Senior Subordinated Note
Indenture.  The obligations of each Guarantor
under the Guarantee and Collateral Agreement constitute “Senior Indebtedness”
under and as defined in the 2002 Senior Subordinated Note Indenture and
“Guarantor Senior Indebtedness” of such Guarantor under and as defined in the
2003 Senior Subordinated Note Indenture.

 

5.23.                        Labor
Matters.  There are no strikes pending or, to the knowledge of the
Borrower, reasonably expected to be commenced against the Borrower or any of
its Subsidiaries which, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect. 
The hours worked and payments made to employees of the Borrower and each
of its Subsidiaries have not been in violation of any applicable laws, rules or
regulations, except where such violations would not reasonably be expected to
have a Material Adverse Effect.

 

SECTION 6.  CONDITIONS PRECEDENT

 

6.1.                              Conditions to Initial Extension of Credit.  This Agreement, including, without limitation, the agreement of
each Lender to make the initial Extension of Credit requested to be made by it,
shall become effective on the date on which the following conditions precedent
shall have been satisfied or waived:

 

(a)                                  Loan
Documents.  The
Administrative Agent shall have received the following Loan Documents, executed
and delivered as required below, with, in the case of clause (i), a copy for
each Lender:

 

(i)                                     this
Agreement, executed and delivered by a duly authorized officer of the Borrower;

 

(ii)                                  the
Guarantee and Collateral Agreement, executed and delivered by a duly authorized
officer of Holding, GPI Holding, the Borrower and each other Loan Party
signatory thereto and an Acknowledgement and Consent in the form attached to
the Guarantee and Collateral Agreement, executed and delivered by each Issuer
(as defined therein), if any, that is not a Loan Party;

 

(iii)                               each
of the Mortgages, executed and delivered by a duly authorized officer of the
Loan Party signatory thereto; and

 

(iv)                              an
Acknowledgement and Consent, in form and substance reasonably satisfactory to
the Administrative Agent, executed and delivered by a duly authorized officer
of the PBGC.

 

(b)                                 Merger
Agreement; Consummation of the Mergers.  The Merger Agreement shall not have been amended, supplemented,
waived or otherwise modified in any material respect since the date thereof,
except as may have been consented to in writing by the Administrative Agent on
behalf of the Lenders, and the Administrative Agent shall have received an
executed certificate of a Responsible Officer of Holding dated the Closing
Date, which certificate shall be in form and substance reasonably satisfactory
to the Administrative Agent, to such effect. 
The Graphic Packaging Holding/Newco Merger shall have been consummated
substantially in accordance with the terms and conditions of the Merger
Agreement and the other Mergers shall have been consummated in accordance with
applicable Requirements of Law.  None of
the conditions to the respective obligations of Holding or any of its
Subsidiaries to consummate the Mergers and the other transactions contemplated
by the Merger Agreement shall

 

70

 

have been
waived by Holding or any of its Subsidiaries in any material respect without
the prior consent of the Administrative Agent, and the Administrative Agent
shall have received an executed certificate of a Responsible Officer of Holding
dated the Closing Date, to the effect that, except as may have been consented
to by the Administrative Agent on behalf of the Lenders, all conditions to the
obligations to consummate the Graphic Packaging Holding/Newco Merger in
accordance with the Merger Agreement have been satisfied in all material
respects, except as so waived.

 

(c)                                  Filing
of Merger Documents. 
The Administrative Agent shall receive, substantially concurrently with
the satisfaction of the other conditions precedent set forth in this
subsection 6.1, evidence reasonably satisfactory to it that the
certificates of merger with respect to each of the Mergers shall have been
filed with the applicable filing offices, and that each of the Mergers shall
have become effective in accordance with applicable laws and the Merger
Agreement.  The Administrative Agent
shall receive, substantially concurrently with the satisfaction of the other
conditions precedent set forth in this subsection 6.1, a photocopy of each
of the documents filed publicly with the applicable filing offices in
connection with the Mergers.

 

(d)                                 2003
Senior Notes and 2003 Senior Subordinated Notes.  The Administrative Agent shall receive,
substantially concurrently with the satisfaction of the other conditions
precedent set forth in this subsection 6.1, evidence, in form and
substance reasonably satisfactory to it, that the Borrower or its account shall
have received gross cash proceeds from the issuance of its 2003 Senior Notes
and its 2003 Senior Subordinated Notes (of which at least $425,000,000 shall be
from the issuance of the 2003 Senior Subordinated Notes) in an aggregate amount
which equals $850,000,000.

 

(e)                                  Capitalization
and Structure of Holding and its Subsidiaries.  Since the date of the Merger Agreement, except in connection with
the Transactions, there shall have been no material change in the corporate and
capital structure of Holding, the Borrower and their respective Subsidiaries
from that contemplated to exist after giving effect to the Mergers (it being
understood and agreed that neither (i) a merger of Merger Sub and Holding
following the consummation of the Transactions, with Holding being the
surviving corporation, nor (ii) the ACX Liquidation Transaction shall
constitute such a material change).  All
documents, instruments and other matters relating to the 2003 Senior Notes, the
2003 Senior Subordinated Notes and all other material Indebtedness of Holding
and its Subsidiaries remaining outstanding after the Closing Date (other than
the 2002 Senior Subordinated Notes) shall be reasonably satisfactory to the
Agents.  The Administrative Agent shall
have received a complete and correct copy of the 2003 Senior Note Indenture,
the 2003 Senior Subordinated Note Indenture and the 2002 Senior Subordinated
Note Indenture, certified as to authenticity by the Borrower.

 

(f)                                    Termination
of Existing Credit Agreements. 
The Administrative Agent shall receive, substantially concurrently with
the satisfaction of the other conditions precedent set forth in this
subsection 6.1, evidence reasonably satisfactory to it that (i) each of
the Existing Credit Agreements shall be simultaneously terminated, (ii) all
amounts thereunder shall be simultaneously paid in full, (iii) all letters of
credit (other than any Existing Letter of Credit) and other contingent
obligations in connection with the Existing Credit Agreements shall have been
terminated and (iv) arrangements reasonably satisfactory to the Administrative
Agent shall have been made for the termination of Liens and security interests
granted in connection therewith.

 

71

 

(g)                                 1996
Senior Subordinated Notes, 1997 Senior Notes and 2001 Senior Notes.  The Administrative Agent shall receive,
substantially concurrently with the satisfaction of the other conditions
precedent set forth in this subsection 6.1, evidence reasonably
satisfactory to it that each of the 1996 Senior Subordinated Notes, the 1997
Senior Notes and the 2001 Senior Notes shall be simultaneously paid, redeemed
or repurchased in full or the indentures relating thereto shall be
simultaneously satisfied and discharged.

 

(h)                                 Financial
Information.  The Lenders shall
have received copies of and shall be reasonably satisfied, in form and
substance, with (i) the financial statements referred to in subsections 5.1(a)
and 5.1(b) and (ii) the Pro Forma Financial Statements.

 

(i)                                     Projections.  The Administrative Agent shall have received
a copy of the projections by Holding of the operating budget and cash flow
budget of Holding and its Subsidiaries after giving effect to the Transactions,
for the period from the Closing Date to December 31, 2007, together with a
statement of assumptions underlying such projections, in form and substance
reasonably satisfactory to the Lenders.

 

(j)                                     Consents,
Licenses and Approvals. 
The Administrative Agent shall have received a certificate of a
Responsible Officer of the Borrower stating that all consents, authorizations,
notices and filings referred to in Schedule 5.4 are in full force and effect or
have the status described therein, and the Administrative Agent shall have
received evidence thereof reasonably satisfactory to it.

 

(k)                                  Lien
Searches.  The
Administrative Agent shall have received the results of a recent search by a
Person reasonably satisfactory to the Administrative Agent, of the Uniform
Commercial Code, judgment and tax lien filings which have been filed with
respect to personal property of Holding, the Borrower and their respective
Subsidiaries in any of the jurisdictions set forth in Schedule 6.1(k), and the
results of such search shall not reveal any liens other than liens permitted by
subsection 8.3.

 

(l)                                     Legal
Opinions.  The
Administrative Agent shall have received the following executed legal opinions:

 

(i)                                     the
executed legal opinion of Debevoise & Plimpton, special counsel to each of
Holding, the Borrower and the other Loan Parties, substantially in the form of
Exhibit D-1;

 

(ii)                                  the
executed legal opinion of Edward W. Stroetz, Jr., counsel to each of Holding,
the Borrower and certain other Loan Parties, substantially in the form of
Exhibit D-2;

 

(iii)                               the
executed legal opinion of Holme Roberts & Owen LLP, counsel to GPI Holding
and certain other Loan Parties, substantially in the form of Exhibit D-3;

 

(iv)                              the
executed legal opinion of Richards, Layton & Finger, special Delaware
counsel to each of Holding, the Borrower and certain other Loan Parties,
substantially in the form of Exhibit D-4; and

 

72

 

(v)                                 the
executed legal opinions of special local counsel in the jurisdictions set forth
in Schedule 6.1(l) with respect to collateral security matters in connection
with the Mortgages, each in form and substance reasonably satisfactory to the
Administrative Agent.

 

(m)                               Closing
Certificate.  The
Administrative Agent shall have received a certificate from each Loan Party,
dated the Closing Date, substantially in the form of Exhibit J, with
appropriate insertions and attachments.

 

(n)                                 Actions
to Perfect Liens.  The
Administrative Agent shall have received evidence in form and substance
reasonably satisfactory to it that all filings, recordings, registrations and
other actions, including, without limitation, the filing of duly executed
financing statements on Form UCC-1 in each jurisdiction set forth on Schedule
6.1(n), necessary or, in the reasonable opinion of the Administrative Agent,
advisable to perfect the Liens created by the Security Documents, shall have
been completed or shall be ready to be completed promptly following the Closing
Date, and all agreements, statements and other documents relating thereto shall
be in form and substance reasonably satisfactory to the Administrative Agent.

 

(o)                                 Pledged
Stock; Stock Powers; Pledged Notes; Endorsements; Initial Transaction
Statements.  The
Administrative Agent shall have received:

 

(i)                                     the
certificates, if any, representing the Pledged Stock under (and as defined in)
the Guarantee and Collateral Agreement, together with an undated stock power
for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof; and

 

(ii)                                  the
promissory notes representing each of the Pledged Notes under (and as defined
in) the Guarantee and Collateral Agreement, duly endorsed as required by the
Guarantee and Collateral Agreement.

 

(p)                                 Title
Insurance Policy.  The
Administrative Agent shall have received in respect of each of the Insured Fee
Properties and Mortgaged Leased Properties an irrevocable written commitment to
issue a mortgagee’s title policy (or policies) or marked up unconditional
binder for such insurance dated the Closing Date.  Each such policy shall (i) be in the amount set forth with
respect to such policy in Part I of Schedule 6.1(p); (ii) insure that the
Mortgage insured thereby creates a valid first Lien on the Mortgaged Property
encumbered thereby free and clear of all defects and encumbrances, except those
permitted by subsection 8.3 and such as may be approved by the
Administrative Agent; (iii) name the Administrative Agent for the benefit of
the Lenders as the insured thereunder; (iv) be in the form of an ALTA Loan
Policy; (v) contain such endorsements and affirmative coverage as were
contained in the ALTA Loan Policy listed with respect to such policy in Part II
of Schedule 6.1(p); and (vi) be issued by title companies reasonably
satisfactory to the Administrative Agent (including any such title companies
acting as co-insurers or reinsurers, at the option of the Administrative
Agent).  The Administrative Agent shall
have received evidence reasonably satisfactory to it that all premiums in
respect of each such policy, and all charges for mortgage recording tax, if
any, have been paid.  The Administrative
Agent shall have also received a copy of all recorded documents referred to,

 

73

 

or listed
as exceptions to title in, the title policy or policies referred to in this
subsection and a copy, certified by such parties as the Administrative
Agent may deem reasonably appropriate, of all other documents affecting the
property covered by each Mortgage as shall have been reasonably requested by
the Administrative Agent.

 

(q)                                 Fees.  The Administrative Agent and the Lenders
shall have received all fees and expenses required to be paid or delivered by
the Borrower to them on or prior to the Closing Date, including, without
limitation, the fees referred to in subsection 4.5.

 

(r)                                    Borrowing
Certificate.  The
Administrative Agent shall have received a certificate of the Borrower, dated
the Closing Date, substantially in the form of Exhibit H, with appropriate
insertions and attachments, reasonably satisfactory in form and substance to
the Administrative Agent, executed by a Responsible Officer and the Secretary
or any Assistant Secretary of the Borrower.

 

(s)                                  Corporate
Proceedings of the Loan Parties. 
The Administrative Agent shall have received a copy of the resolutions,
in form and substance reasonably satisfactory to the Administrative Agent, of
the board of directors of each Loan Party authorizing, as applicable, (i) the
execution, delivery and performance of this Agreement, any Notes and the other
Loan Documents to which it is or will be a party as of the Closing Date, (ii)
the Extensions of Credit to such Loan Party (if any) contemplated hereunder and
(iii) the granting by it of the Liens to be created pursuant to the Security
Documents to which it will be a party as of the Closing Date, certified by the
Secretary or an Assistant Secretary of such Loan Party as of the Closing Date,
which certificate shall be in form and substance reasonably satisfactory to the
Administrative Agent and shall state that the resolutions thereby certified
have not been amended, modified (except as any later such resolution may modify
any earlier such resolution), revoked or rescinded and are in full force and
effect.

 

(t)                                    Incumbency
Certificates of the Loan Parties.  The Administrative Agent shall have received a certificate of
each Loan Party, dated the Closing Date, as to the incumbency and signature of
the officers of such Loan Party executing any Loan Document, reasonably
satisfactory in form and substance to the Administrative Agent, executed by a
Responsible Officer and the Secretary or any Assistant Secretary of such Loan
Party.

 

(u)                                 Governing
Documents.  The
Administrative Agent shall have received copies of the certificate or articles
of incorporation and by-laws (or other similar governing documents serving the
same purpose) of each Loan Party, certified as of the Closing Date as complete
and correct copies thereof by the Secretary or an Assistant Secretary of such
Loan Party.

 

(v)                                 Insurance.  The Administrative Agent shall have received
evidence in form and substance reasonably satisfactory to it that all of the
requirements of subsection 7.5 of this Agreement and subsection 5.2.2
of the Guarantee and Collateral Agreement shall have been satisfied.

 

(w)                               No
Material Adverse Effect. 
Since December 31, 2002, after giving effect to the Transactions,
there shall not have occurred a Material Adverse Effect.

 

74

 

(x)                                   No
Material Litigation. 
No litigation, liability, obligations relating to environmental matters
(including asbestos), inquiry, investigation, injunction or restraining order
shall be pending, entered or threatened that would reasonably be expected to
have a Material Adverse Effect or a material adverse effect on the Transactions
or the transactions contemplated hereby.

 

(y)                                 Ratings.  The Indebtedness of the Borrower under this
Agreement shall be rated not less than B (with a stable outlook or better) by
S&P and B1 (with a stable outlook or better) by Moody’s.

 

(z)                                   Environmental
Reports.  The
Administrative Agent shall have received all environmental reports specified by
the Administrative Agent regarding environmental matters relating to the
Borrower and/or any of its Subsidiaries, and such reports shall be prepared by
an environmental consultant acceptable to the Administrative Agent and shall be
satisfactory in form, scope, and substance to the Lenders.

 

(aa)                            Estoppel
Certificate.  The
Administrative Agent shall have received, with a photocopy for each Lender, a
certificate in form and substance reasonably satisfactory to Administrative
Agent and its counsel from the landlord under each Underlying Lease with
respect to each Mortgaged Leased Property set forth on Schedule 5.8 certifying
(i) that the Loan Party who is the tenant under the Underlying Lease is not in
default in the performance of any of its obligations under such Underlying
Lease and (ii) to such other matters as may be reasonably requested by
Administrative Agent.

 

(bb)                          Flood
Insurance.  With respect to
any of the Mortgaged Properties which is located in an area identified by the
Secretary of Housing and Urban Development as having special flood hazards, if
the Administrative Agent shall have delivered notice(s) to the relevant Loan
Party as required pursuant to Section 208.8(e)(3) of Regulation H of the
Board, such Loan Party shall have delivered an acknowledgment to the
Administrative Agent.

 

(cc)                            Tax
Sharing Agreement.  Holding, GPI
Holding and the Borrower shall have entered into the Tax Sharing
Agreement.  The Administrative Agent
shall have received a complete and correct copy of the Tax Sharing Agreement,
certified as to authenticity by the Borrower.

 

The making of the initial Extensions of Credit by the
Lenders hereunder shall conclusively be deemed to constitute an acknowledgement
by the Administrative Agent and each Lender that each of the conditions
precedent set forth in this subsection 6.1 shall have been satisfied in
accordance with its respective terms or shall have been irrevocably waived by
such Person.

 

6.2.                              Conditions to Each Other Extension of Credit.  The agreement of each Lender to make any Extension of Credit
requested to be made by it on any date (including, without limitation, the
initial Extension of Credit and each Swing Line Loan) is subject to the
satisfaction or waiver of the following conditions precedent:

 

(a)                                  Representations
and Warranties.  Each of the
representations and warranties made by any Loan Party pursuant to this
Agreement or any other Loan Document (or

 

75

 

in any
amendment, modification or supplement hereto or thereto) to which it is a
party, and each of the representations and warranties contained in any
certificate furnished at any time by or on behalf of any Loan Party pursuant to
this Agreement or any other Loan Document, shall, except to the extent that
they relate to a particular date, be true and correct in all material respects
on and as of such date as if made on and as of such date.

 

(b)                                 No
Default.  No Default or
Event of Default shall have occurred and be continuing on such date or after
giving effect to the Extensions of Credit requested to be made on such date.

 

(c)                                  Letter
of Credit Application. 
With respect to the issuance of any Letter of Credit, the Issuing Lender
shall have received an Application, completed to its satisfaction, and such
other certificates, documents and other papers and information as the Issuing
Lender may reasonably request.

 

Each borrowing by and Letter of Credit issued on behalf of
the Borrower hereunder shall constitute a representation and warranty by the
Borrower as of the date of such borrowing or such issuance that the conditions
contained in this subsection 6.2 have been satisfied.

 

SECTION 7.  AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, from and after the Closing
Date and so long as the Revolving Credit Commitments remain in effect, and
thereafter until payment in full of the Loans, all Reimbursement Obligations
and any other amount then due and owing to any Lender or the Administrative
Agent hereunder and under any Note and termination or expiration of all Letters
of Credit, the Borrower shall and (except in the case of delivery of financial
information, reports and notices) shall cause each of its Subsidiaries to:

 

7.1.                              Financial
Statements.  Furnish to the Administrative Agent for delivery to each Lender
(and the Administrative Agent agrees to make and so deliver such copies):

 

(a)                                  as
soon as available, but in any event not later than the fifth Business Day after
the 90th day following the end of each fiscal year of Holding ending on or
after December 31, 2003, a copy of the consolidated balance sheet of
Holding and its consolidated Subsidiaries as at the end of such year and the
related consolidated statements of operations, changes in common stockholders’
equity and cash flows for such year, setting forth in each case, in comparative
form the figures for and as of the end of the previous year, reported on
without a “going concern” or like qualification or exception, or qualification
arising out of the scope of the audit, by PricewaterhouseCoopers LLP or other
independent certified public accountants of nationally recognized standing not
unacceptable to the Administrative Agent in its reasonable judgment (it being
agreed that the furnishing of Holding’s Annual Report on Form 10-K for such
year, as filed with the Securities and Exchange Commission, will satisfy the
Borrower’s obligation under this subsection 7.1(a) with respect to such
year except with respect to the requirement that such financial statements be
reported on without a “going concern” or like qualification or exception, or
qualification arising out of the scope of the audit); and

 

76

 

(b)                                 as
soon as available, but in any event not later than the fifth Business Day after
the 45th day following the end of each of the first three quarterly periods of
each fiscal year of Holding, the unaudited consolidated balance sheet of
Holding and its consolidated Subsidiaries as at the end of such quarter and the
related unaudited consolidated statements of operations and cash flows of
Holding and its consolidated Subsidiaries for such quarter and the portion of
the fiscal year through the end of such quarter, certified by a Responsible
Officer of Holding as being fairly stated in all material respects (subject to
normal year-end audit and other adjustments) (it being agreed that the
furnishing of Holding’s Quarterly Report on Form 10-Q for such quarter, as
filed with the Securities and Exchange Commission, will satisfy the Borrower’s
obligations under this subsection 7.1(b) with respect to such quarter);

 

all such financial statements delivered pursuant to
subsection 7.1(a) or (b) to be (and, in the case of any financial
statements delivered pursuant to subsection 7.1(b) shall be certified by a
Responsible Officer of Holding as being) complete and correct in all material
respects in conformity with GAAP and to be (and, in the case of any financial
statements delivered pursuant to subsection 7.1(b) shall be certified by a
Responsible Officer of Holding as being) prepared in reasonable detail in
accordance with GAAP applied consistently throughout the periods reflected
therein and with prior periods that began on or after the Closing Date (except
as approved by such accountants or officer, as the case may be, and disclosed
therein, and except, in the case of any financial statements delivered pursuant
to subsection 7.1(b), for the absence of certain notes).

 

7.2.                              Certificates; Other Information.  Furnish to the Administrative Agent for delivery to each Lender
(and the Administrative Agent agrees to make and so deliver such copies):

 

(a)                                  concurrently
with the delivery of the financial statements referred to in
subsection 7.1(a), a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
audit necessary therefor no knowledge was obtained of any Default or Event of
Default insofar as the same relates to any financial accounting matters covered
by their audit, except as specified in such certificate;

 

(b)                                 concurrently
with the delivery of the financial statements and reports referred to in
subsections 7.1(a) and (b), a certificate signed by a Responsible Officer of
each of Holding and the Borrower (i) stating that, to the best of such
Responsible Officer’s knowledge, each of Holding, the Borrower and their
respective Subsidiaries during such period has observed or performed all of its
covenants and other agreements, and satisfied every condition, contained in
this Agreement or the other Loan Documents to which it is a party to be
observed, performed or satisfied by it, and that such Responsible Officer has
obtained no knowledge of any Default or Event of Default, except, in each case,
as specified in such certificate, and (ii) setting forth the calculations
required to determine (A) compliance with all covenants set forth in
subsection 8.1 (in the case of a certificate furnished with the financial
statements referred to in subsections 7.1(a) and (b)), and (B) compliance with
the covenant set forth in subsection 8.8 (in the case of a certificate
furnished with the financial statements referred to in subsection 7.1(a));

 

(c)                                  as
soon as available, but in any event not later than the fifth Business Day
following the 90th day after the beginning of each fiscal year of Holding, a copy
of the projections by Holding of the operating budget and cash flow budget of
Holding and its

 

77

 

Subsidiaries
for such fiscal year, such projections to be accompanied by a certificate of a
Responsible Officer of Holding to the effect that such Responsible Officer
believes such projections to have been prepared on the basis of reasonable
assumptions;

 

(d)                                 within
five Business Days after the same are sent, copies of all financial statements
and reports which Holding, GPI Holding or the Borrower sends to its public
security holders, and within five Business Days after the same are filed,
copies of all financial statements and periodic reports which Holding, GPI
Holding or the Borrower may file with the Securities and Exchange Commission or
any successor or analogous Governmental Authority;

 

(e)                                  within
five Business Days after the same are filed, copies of all registration
statements and any amendments and exhibits thereto, which Holding, GPI Holding
or the Borrower may file with the Securities and Exchange Commission or any
successor or analogous Governmental Authority, and such other documents or
instruments as may be reasonably requested by the Administrative Agent in
connection therewith; and

 

(f)                                    promptly,
such additional financial and other information as any Lender may from time to
time reasonably request.

 

7.3.                              Payment
of Obligations.  Pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all its material obligations
of whatever nature, except where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings diligently conducted
and reserves in conformity with GAAP with respect thereto have been provided on
the books of Holding or any of its Subsidiaries, as the case may be.

 

7.4.                              Conduct of Business and Maintenance of Existence.  Continue to engage in business of the same general type as
conducted by the Borrower and its Subsidiaries on the Closing Date, taken as a
whole, and preserve, renew and keep in full force and effect its corporate
existence and take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of the business of the
Borrower and its Subsidiaries, taken as a whole, except as otherwise expressly
permitted pursuant to subsection 8.5, provided that the Borrower
and its Subsidiaries shall not be required to maintain any such rights,
privileges or franchises, if the failure to do so would not reasonably be
expected to have a Material Adverse Effect; and comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith, in the aggregate, would not reasonably be expected to have a Material
Adverse Effect.

 

7.5.                              Maintenance of Property; Insurance.  Keep all property useful and necessary in the business of the
Borrower and its Subsidiaries, taken as a whole, in good working order and
condition; maintain with financially sound and reputable insurance companies
insurance on all property material to the business of the Borrower and its
Subsidiaries, taken as a whole, in at least such amounts and against at least
such risks (but including in any event public liability, product liability and
business interruption) as are usually insured against in the same general area
by companies engaged in the same or a similar business; and furnish to the
Administrative Agent, upon written request, information in reasonable detail as
to the insurance carried.

 

78

 

7.6.                              Inspection of Property; Books and Records; Discussions.  Keep proper books of records and account in which full, complete
and correct entries in conformity with GAAP and all material Requirements of
Law shall be made of all dealings and transactions in relation to its business
and activities; and permit representatives of any Lender to visit and inspect
any of its properties and examine and, to the extent reasonable, make abstracts
from any of its books and records and to discuss the business, operations,
properties and financial and other condition of the Borrower and its
Subsidiaries with officers and employees of the Borrower and its Subsidiaries
and with its independent certified public accountants, in each case at any
reasonable time, upon reasonable notice, and as often as may reasonably be
desired.

 

7.7.                              Notices.  Promptly give
notice to the Administrative Agent and each Lender of:

 

(a)                                  as
soon as possible after a Responsible Officer of the Borrower knows or
reasonably should know thereof, the occurrence of any Default or Event of
Default;

 

(b)                                 as
soon as possible after a Responsible Officer of the Borrower knows or
reasonably should know thereof, any (i) default or event of default under any
Contractual Obligation of the Borrower or any of its Subsidiaries, other than
as previously disclosed in writing to the Lenders, or (ii) litigation,
investigation or proceeding which may exist at any time between the Borrower or
any of its Subsidiaries and any Governmental Authority, which in either case,
if not cured or if adversely determined, as the case may be, would reasonably
be expected to have a Material Adverse Effect;

 

(c)                                  as
soon as possible after a Responsible Officer of the Borrower knows or reasonably
should know thereof, the occurrence of any default or event of default under
any of the Existing Notes;

 

(d)                                 as
soon as possible after a Responsible Officer of the Borrower knows or
reasonably should know thereof, any litigation or proceeding affecting Holding
or any of its Subsidiaries in which the amount involved (not covered by
insurance) is $10,000,000 or more or in which injunctive or similar relief is
sought that would reasonably be expected to have a Material Adverse Effect;

 

(e)                                  the
following events, as soon as possible and in any event within 30 days after a
Responsible Officer of the Borrower or any of its Subsidiaries knows or
reasonably should know thereof:  (i) the
occurrence or expected occurrence of any Reportable Event with respect to any
Single Employer Plan, a failure to make any required contribution to a Single
Employer Plan or Multiemployer Plan, the creation of any Lien on the property
of the Borrower or its Subsidiaries in favor of the PBGC or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan; (ii) the institution of proceedings or the taking of any
other formal action by the PBGC or the Borrower or any of its Subsidiaries or
any Commonly Controlled Entity or any Multiemployer Plan which could reasonably
be expected to result in the withdrawal from, or the termination,
Reorganization or Insolvency of, any Single Employer Plan or Multiemployer
Plan; provided, however, that no such notice will be required
under clause (i) or (ii) above unless the event giving rise to such notice,
when aggregated with all other such events under clause (i) or (ii) above,
could be reasonably expected to result in liability to the Borrower or its
Subsidiaries in an amount that would exceed

 

79

 

$10,000,000; or (iii) the first
occurrence of an Underfunding under a Single Employer Plan that exceeds 10% of
the value of the assets of such Single Employer Plan, in each case, determined
as of the most recent annual valuation date of such Single Employer Plan on the
basis of the actuarial assumptions used to determine the funding requirements
of such Single Employer Plan as of such date;

 

(f)                                    as
soon as possible after a Responsible Officer of the Borrower knows or
reasonably should know thereof, any material adverse change in the business,
operations, property, condition (financial or otherwise) or prospects of the
Borrower and its Subsidiaries taken as a whole; and

 

(g)                                 as
soon as possible after a Responsible Officer of the Borrower knows or
reasonably should know thereof, (i) any release or discharge by the Borrower or
any of its Subsidiaries of any Materials of Environmental Concern required to
be reported under applicable Environmental Laws to any Governmental Authority,
unless the Borrower reasonably determines that the total Environmental Costs
arising out of such release or discharge are unlikely to exceed $10,000,000 or
to have a Material Adverse Effect; (ii) any condition, circumstance, occurrence
or event not previously disclosed in writing to the Administrative Agent that
could result in liability under applicable Environmental Laws, unless the
Borrower reasonably determines that the total Environmental Costs arising out
of such condition, circumstance, occurrence or event are unlikely to exceed
$10,000,000 or to have a Material Adverse Effect, or could reasonably be
expected to result in the imposition of any lien or other material restriction
on the title, ownership or transferability of any facilities and properties
owned, leased or operated by the Borrower or any of its Subsidiaries; and (iii)
any proposed action to be taken by the Borrower or any of its Subsidiaries that
would reasonably be expected to subject Holding or any of its Subsidiaries to any
material additional or different requirements or liabilities under
Environmental Laws, unless the Borrower reasonably determines that the total
Environmental Costs arising out of such proposed action are unlikely to exceed
$10,000,000 or to have a Material Adverse Effect.

 

Each notice pursuant to this subsection shall be
accompanied by a statement of a Responsible Officer of the Borrower (and, if
applicable, the relevant Commonly Controlled Entity or Subsidiary) setting
forth details of the occurrence referred to therein and stating what action the
Borrower (or, if applicable, the relevant Commonly Controlled Entity or
Subsidiary) proposes to take with respect thereto.

 

7.8.                              Environmental
Laws.  (a)  (i) Comply
substantially with, and require substantial compliance by all tenants,
subtenants, contractors, and invitees with, all applicable Environmental Laws;
(ii) obtain, comply substantially with and maintain any and all Environmental
Permits necessary for its operations as conducted and as planned; and (iii)
require that all tenants, subtenants, contractors, and invitees obtain, comply
substantially with and maintain any and all Environmental Permits necessary for
their operations as conducted and as planned, with respect to any property
leased or subleased from, or operated by the Borrower or its Subsidiaries.  For purposes of this subsection 7.8(a),
noncompliance shall be deemed not to constitute a breach of this covenant, provided
that, upon learning of any actual or suspected noncompliance, the Borrower and
any such affected Subsidiary shall promptly undertake

 

80

 

reasonable efforts, if any,
to achieve compliance, and provided, further, that in any case
such noncompliance would not reasonably be expected to have a Material Adverse
Effect.

 

(b)                                 Promptly
comply, in all material respects, with all orders and directives of all
Governmental Authorities regarding Environmental Laws, other than such orders
or directives as to which an appeal or other appropriate contest is or has been
timely and properly taken, is being diligently pursued in good faith, and as to
which appropriate reserves have been established in accordance with GAAP, and,
if the effectiveness of such order or directive has not been stayed, the pendency
of such appeal or other appropriate contest does not give rise to a Material
Adverse Effect.

 

(c)                                  Maintain,
update as appropriate, and implement in all material respects an ongoing
program reasonably designed to ensure that all the properties and operations of
the Borrower and its Subsidiaries are regularly and reasonably reviewed by
competent professionals to identify and promote compliance with and to
reasonably and prudently manage any liabilities or potential liabilities under
any Environmental Law that may affect the Borrower or any of its Subsidiaries,
including, without limitation, compliance and liabilities relating to:  discharges to air and water; acquisition,
transportation, storage and use of hazardous materials; waste disposal; repair,
maintenance and improvement of properties; employee health and safety; species
protection; and recordkeeping.

 

7.9.                              After-Acquired Real Property and Fixtures.  (a)  With respect to any
owned real property or fixtures, in each case with a purchase price or a fair
market value of at least $2,500,000, in which the Borrower or any of its
Subsidiaries (other than a Foreign Subsidiary, a Subsidiary of a Foreign
Subsidiary, or a Receivables Subsidiary) acquires ownership rights at any time
after the Closing Date, promptly grant to the Administrative Agent, for the
benefit of the Lenders, a Lien of record on all such owned real property and
fixtures, upon terms reasonably satisfactory in form and substance to the
Administrative Agent and in accordance with any applicable requirements of any
Governmental Authority (including, without limitation, any required appraisals
of such property under FIRREA); provided that (i) nothing in this
subsection 7.9 shall defer or impair the attachment or perfection of any
security interest in any Collateral covered by any of the Security Documents
which would attach or be perfected pursuant to the terms thereof without action
by the Borrower, any of its Subsidiaries or any other Person and (ii) no such
Lien shall be required to be granted as contemplated by this
subsection 7.9 on any owned real property or fixtures the acquisition of
which is financed, or is to be financed within any time period permitted by
subsection 8.2(f) or (g), in whole or in part through the incurrence of
Indebtedness permitted by subsection 8.2(f) or (g), until such
Indebtedness is repaid in full (and not refinanced as permitted by
subsection 8.2(f) or (g)) or, as the case may be, the Borrower determines
not to proceed with such financing or refinancing.  In connection with any such grant to the Administrative Agent,
for the benefit of the Lenders, of a Lien of record on any such real property
in accordance with this subsection, the Borrower or such Subsidiary shall
deliver or cause to be delivered to the Administrative Agent any surveys, title
insurance policies, environmental reports and other documents in connection
with such grant of such Lien obtained by it in connection with the acquisition
of such ownership rights in such real property or as the Administrative Agent
shall reasonably request (in light of the value of such real property and the
cost and availability of such surveys, title insurance policies, environmental
reports and other documents and whether the delivery of such surveys, title
insurance policies, environmental

 

81

 

reports and other documents
would be customary in connection with such grant of such Lien in similar
circumstances).

 

(b)                                 With
respect to any Domestic Subsidiary created or acquired subsequent to the
Closing Date by the Borrower or any of its Domestic Subsidiaries (other than a
Subsidiary of a Foreign Subsidiary), promptly notify the Administrative Agent
of such occurrence and if the Administrative Agent or the Required Lenders so
request (it being understood that if the Administrative Agent does not so
request with respect to any such Domestic Subsidiary that it believes is or is
likely to become material to the Borrower and its Subsidiaries taken as a
whole, it will provide notice to the Lenders thereof), promptly (i) execute and
deliver to the Administrative Agent for the benefit of the Lenders such
amendments to the Guarantee and Collateral Agreement as the Administrative
Agent shall reasonably deem necessary or reasonably advisable to grant to the
Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest (as and to the extent provided in the Guarantee and
Collateral Agreement) in the Capital Stock of such new Domestic Subsidiary,
(ii) deliver (or, in the case of a Receivables Subsidiary, cause to be
delivered) to the Administrative Agent the certificates (if any) representing
such Capital Stock, together with undated stock powers, executed and delivered
in blank by a duly authorized officer of the parent corporation of such new
Domestic Subsidiary and (iii) unless such Subsidiary is a Receivables
Subsidiary, cause such new Domestic Subsidiary (A) to become a party to the
Guarantee and Collateral Agreement and (B) to take all actions reasonably deemed
by the Administrative Agent to be necessary or advisable to cause the Lien
created by the Guarantee and Collateral Agreement in such new Domestic
Subsidiary’s Collateral to be duly perfected in accordance with all applicable
Requirements of Law, including, without limitation, the filing of financing
statements in such jurisdictions as may be reasonably requested by the
Administrative Agent.

 

(c)                                  With
respect to any Foreign Subsidiary created or acquired subsequent to the Closing
Date by the Borrower or any of its Domestic Subsidiaries, the Capital Stock of
which is owned directly by the Borrower or a Domestic Subsidiary (other than a
Receivables Subsidiary or a Subsidiary of a Foreign Subsidiary), promptly
notify the Administrative Agent of such occurrence and if the Administrative
Agent or the Required Lenders so request (it being understood that if the
Administrative Agent does not so request with respect to any such Foreign
Subsidiary that it believes is or is likely to become material to the Borrower
and its Subsidiaries taken as a whole, it will provide notice to the Lenders
thereof), promptly (i) execute and deliver to the Administrative Agent a new
pledge agreement or such amendments to the Guarantee and Collateral Agreement
as the Administrative Agent shall reasonably deem necessary or reasonably
advisable to grant to the Administrative Agent, for the benefit of the Lenders,
a perfected first priority security interest (as and to the extent provided in
the Guarantee and Collateral Agreement) in the Capital Stock of such new
Foreign Subsidiary that is owned by the Borrower or any of its Domestic
Subsidiaries (other than a Receivables Subsidiary or a Subsidiary of a Foreign
Subsidiary) (provided that in no event shall more than 65% of the
Capital Stock of any such new Foreign Subsidiary be required to be so pledged
and, provided, further, that no such pledge or security shall be
required with respect to any non-Wholly Owned Foreign Subsidiary to the extent
that the grant of such pledge or security interest would violate the terms of
any agreements under which the Investment by the Borrower or any of its
Subsidiaries was made therein) and (ii) to the extent reasonably deemed
advisable by the Administrative Agent, deliver to the Administrative Agent the certificates,
if any, representing

 

82

 

such
Capital Stock, together with undated stock powers, executed and delivered in
blank by a duly authorized officer of the relevant parent corporation of such
new Foreign Subsidiary and take such other action as may be reasonably deemed
by the Administrative Agent to be necessary or desirable to perfect the
Administrative Agent’s security interest therein.

 

(d)                                 At
its own expense, execute, acknowledge and deliver, or cause the execution,
acknowledgement and delivery of, and thereafter register, file or record in an
appropriate governmental office, any document or instrument reasonably deemed
by the Administrative Agent to be necessary or desirable for the creation, perfection
and priority and the continuation of the validity, perfection and priority of
the foregoing Liens or any other Liens created pursuant to the Security
Documents.

 

(e)                                  At
its own expense, request, and use commercially reasonable efforts to obtain,
(i) a consent, substantially in the form of Exhibit I or such other form as may
be reasonably satisfactory to the Administrative Agent, from the landlord of
each of the existing facilities located in the United States and listed in
Schedule 7.9(e) in which Inventory with a value in excess of $500,000 of any
Loan Party is located, as of the Closing Date, in which such landlord
acknowledges the Administrative Agent’s first priority security interest in the
Inventory pledged by each Loan Party to the Administrative Agent for the
benefit of the Lenders and (ii) prior to entering into a lease of a facility
located in the United States in which Inventory will be located on or after the
Closing Date (other than any such facility for which there is not a lease of
more than one year and which the Borrower and its Subsidiaries intend to use as
a seasonal storage facility), a consent, substantially in the form of Exhibit I
or such other form as may be reasonably satisfactory to the Administrative
Agent, from each landlord of any such facility, in which such landlord
acknowledges the Administrative Agent’s first priority security interest in the
Inventory pledged by each Loan Party to the Administrative Agent for the
benefit of the Lenders.

 

7.10.                        Interest
Rate Protection.  No later than 90 days following the Closing Date, enter into
Interest Rate Protection Agreements, which, together with the fixed interest
rates then applicable to the Consolidated Funded Indebtedness of Holding and
its Subsidiaries, shall provide interest rate protection in respect of at least
50% of the Consolidated Funded Indebtedness of Holding and its
Subsidiaries.  Such Interest Rate
Protection Agreements shall be in form and substance, and for a term (not to exceed
two years), reasonably satisfactory to the Administrative Agent.

 

7.11.                        Surveys.  Within a
reasonable period following the Closing Date, with respect to those Insured Fee
Properties and Mortgaged Leased Properties for which the title policies
delivered pursuant to Section 6.1(p) contain the standard “survey
exception”, obtain surveys in such form as is sufficient to obtain from the
respective title companies endorsements which have the effect of deleting such
exceptions.

 

SECTION 8.  NEGATIVE COVENANTS

 

The Borrower hereby agrees that, from and after the Closing
Date and so long as the Revolving Credit Commitments remain in effect, and
thereafter until payment in full of the Loans, all Reimbursement Obligations
and any other amount then due and owing to any Lender

 

83

 

or the Administrative Agent
hereunder and under any Note and termination or expiration of all Letters of
Credit, the Borrower shall not and shall not permit any of its Subsidiaries to,
directly or indirectly:

 

8.1.                              Financial Condition Covenants.

 

(a)                                  Consolidated
Leverage Ratio.  Permit the
Consolidated Leverage Ratio as at the last day of any period of four
consecutive fiscal quarters of Holding ending with any fiscal quarter set forth
below to exceed the ratio set forth below opposite such fiscal quarter:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  
	
  October 1, 2003 -
  December 30, 2004

  	
   

  	
  6.40 to 1.00

  	
   

  
	
  December 31, 2004 -
  December 30, 2005

  	
   

  	
  6.15 to 1.00

  	
   

  
	
  December 31, 2005 -
  December 30, 2006

  	
   

  	
  5.75 to 1.00

  	
   

  
	
  December 31, 2006 – December 30,
  2007

  	
   

  	
  5.25 to 1.00

  	
   

  
	
  December 31, 2007 –
  December 30, 2008

  	
   

  	
  4.75 to 1.00

  	
   

  
	
  December 31, 2008 –
  June 30, 2010

  	
   

  	
  4.50 to 1.00

  	
   

  

 

(b)                                 Maintenance
of Consolidated Interest Expense Ratio.  Permit, for any period of four consecutive fiscal quarters of
Holding ending during any test period set forth below, the Consolidated
Interest Expense Ratio at the last day of such consecutive fiscal quarter
period, to be less than the ratio set forth opposite such test period below:

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Interest

  Expense Ratio

  	
   

  
	
  October 1, 2003 –
  December 30, 2004

  	
   

  	
  2.00 to 1.00

  	
   

  
	
  December 31, 2004 -
  December 30, 2005

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  December 31, 2005 -
  December 30, 2006

  	
   

  	
  2.35 to 1.00

  	
   

  
	
  December 31, 2006 –
  December 30, 2007

  	
   

  	
  2.50 to 1.00

  	
   

  
	
  December 31, 2007 –
  December 30, 2008

  	
   

  	
  2.75 to 1.00

  	
   

  
	
  December 31, 2008 –
  June 30, 2010

  	
   

  	
  2.90 to 1.00

  	
   

  

 

8.2.                              Limitation
on Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness
(including any Indebtedness of any of its Subsidiaries), except:

 

(a)                                  Indebtedness
of the Borrower under this Agreement;

 

84

 

(b)                                 Indebtedness
evidenced by the Existing Notes; provided that the Existing Notes shall
not be extended, renewed, replaced, refinanced or otherwise amended, except as
permitted by subsection 8.2(c) or 8.14;

 

(c)                                  Indebtedness
incurred to refinance the 2002 Senior Subordinated Notes; provided that
such Indebtedness shall be on No More Favorable Terms and Conditions than the
2002 Senior Subordinated Notes;

 

(d)                                 unsecured
senior subordinated or subordinated notes or debentures of the Borrower in a
principal amount not to exceed $150,000,000, which either (i) have terms,
representations, covenants, defaults and subordination provisions that are no
less favorable to the Lenders than those applicable to offerings of
“high-yield” subordinated debt by similar issuers of similar debt at or about
the same time, as may be reasonably determined by the Administrative Agent, or
(ii) have No More Favorable Terms and Conditions than those in respect of the
2003 Senior Subordinated Notes; provided, however, that all such
Indebtedness (together with any refinancings thereof, which shall not exceed
the principal amount being refinanced) shall, at the time such Indebtedness is
incurred or refinanced, (i) have a final, stated maturity (and an Average Life)
at least one year after the Final Maturity Date (as of the time of such
incurrence or refinancing), and (ii) in the case of Indebtedness incurred to
refinance other Indebtedness, have terms and provisions (including
subordination provisions) no less favorable to the Lenders than the
Indebtedness being refinanced; provided  further that an amount
equal to 100% of the Net Cash Proceeds of such Indebtedness (other than any
refinancing Indebtedness referred to in clause (ii) above) less any Permitted
Acquisition Amount is applied in accordance with subsection 4.4(b)(i);

 

(e)                                  Indebtedness
of the Borrower to any Guarantor or any Subsidiary of the Borrower and of any
Subsidiary of the Borrower to the Borrower, any Guarantor or any other
Subsidiary of the Borrower;

 

(f)                                    Indebtedness
of the Borrower and any of its Subsidiaries incurred to finance or refinance
the acquisition of fixed or capital assets (whether pursuant to a loan, a Financing
Lease or otherwise) otherwise permitted pursuant to this Agreement, and any
other Financing Leases, in an aggregate principal amount not exceeding in the
aggregate as to the Borrower and its Subsidiaries $75,000,000 at any one time
outstanding, provided that such Indebtedness is incurred substantially
simultaneously with such acquisition or within six months after such
acquisition or in connection with a refinancing thereof;

 

(g)                                 Indebtedness
of the Borrower and any of its Subsidiaries incurred to finance or refinance
the purchase price of, or Indebtedness of the Borrower and any of its
Subsidiaries assumed in connection with, any acquisition permitted by
subsection 8.10, provided that (i) such Indebtedness is incurred
prior to, substantially simultaneously with or within six months after such
acquisition or in connection with a refinancing thereof, (ii) if such
Indebtedness is owed to a Person, other than the Person from whom such
acquisition is made or any Affiliate thereof, such Indebtedness shall have
terms and conditions reasonably satisfactory to the Administrative Agent and
shall not exceed 70% of the purchase price of such acquisition (including any
Indebtedness assumed in connection with such acquisition) (or such greater
percentage as shall be reasonably satisfactory to the Administrative Agent or,
if any such

 

85

 

purchase
price shall be greater than $40,000,000, such greater percentage as shall be
reasonably satisfactory to the Required Lenders) and (iii) immediately after
giving effect to such acquisition no Default or Event of Default shall have
occurred and be continuing;

 

(h)                                 to
the extent that any Indebtedness may be incurred or arise thereunder,
Indebtedness of the Borrower and its Subsidiaries under Interest Rate
Protection Agreements and under Permitted Hedging Arrangements;

 

(i)                                     other
Indebtedness outstanding or incurred under facilities in existence on the
Closing Date and listed on Schedule 8.2(i), and any refinancings, refundings,
renewals or extensions thereof on financial and other terms, in the reasonable
judgment of the Borrower, no more onerous to the Borrower or any of its
Subsidiaries in the aggregate than the financial and other terms of such
Indebtedness, provided that the amount of such Indebtedness is not
increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to the premium or other amounts paid, and fees and
expenses incurred, in connection with such refinancing, refunding, renewal or
extension;

 

(j)                                     to
the extent that any Guarantee Obligation permitted under subsection 8.4
constitutes Indebtedness, such Indebtedness;

 

(k)                                  Indebtedness
of the Borrower or any of its Subsidiaries pursuant to any Permitted
Receivables Transaction; provided that upon the effectiveness of any
such Permitted Receivables Transaction, the Loans shall be automatically
prepaid, the L/C Obligations shall be automatically cash collateralized and the
Revolving Credit Commitments shall be automatically and permanently reduced to
the extent required by subsections 4.4(e), 4.4(f) and 4.4(h);

 

(l)                                     Indebtedness
of Foreign Subsidiaries of the Borrower (in addition to Indebtedness of Foreign
Subsidiaries of the Borrower permitted by subsection 8.2(i)) for working
capital purposes (including in respect of overdrafts) not exceeding, as to all
such Foreign Subsidiaries, $50,000,000 in aggregate principal amount at any one
time outstanding;

 

(m)                               Indebtedness
of the Borrower or any of its Subsidiaries in respect of Sale and Leaseback
Transactions permitted under subsection 8.12;

 

(n)                                 Indebtedness
of the Borrower or any of its Subsidiaries incurred to finance insurance
premiums in the ordinary course of business;

 

(o)                                 Indebtedness
of any Foreign Subsidiary of the Borrower fully supported on the date of the
incurrence thereof by a Foreign Backstop Letter of Credit;

 

(p)                                 Indebtedness
arising from the honoring of a check, draft or similar instrument against
insufficient funds; provided that such Indebtedness is extinguished
within two Business Days of its incurrence;

 

(q)                                 Indebtedness
in respect of Financing Leases which have been funded solely by Investments of
the Borrower and its Subsidiaries permitted by subsection 8.9(m);

 

86

 

(r)                                    Machinery
Financing Indebtedness, provided that (i) the aggregate Machinery
Financing Indebtedness incurred pursuant to this subsection 8.2(r) shall
not exceed $75,000,000 at any one time outstanding and (ii) the aggregate book
value of packaging machines owned by the Borrower or any of its Subsidiaries on
the Closing Date that are refinanced by Machinery Financing Indebtedness
pursuant to this subsection 8.2(r) shall not exceed $50,000,000;

 

(s)                                  Indebtedness
not otherwise permitted by the preceding clauses of this subsection 8.2
not exceeding $40,000,000 in aggregate principal amount at any one time
outstanding.

 

For purposes of determining compliance with clauses (i),
(l) and (s) of this subsection 8.2, the amount of any Indebtedness
denominated in any currency other than Dollars shall be calculated based on
customary currency exchange rates in effect, in the case of such Indebtedness
incurred (in respect of term debt) or committed (in respect of revolving debt)
on or prior to the Closing Date, on the Closing Date and, in the case of such
Indebtedness incurred (in respect of term debt) or committed (in respect of
revolving debt) after the Closing Date, on the date that such Indebtedness was
incurred (in respect of term debt) or committed (in respect of revolving debt).

 

8.3.                              Limitation
on Liens.  Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, except
for:

 

(a)                                  Liens
for taxes, assessments and similar charges not yet delinquent or the nonpayment
of which in the aggregate would not reasonably be expected to have a Material
Adverse Effect, or which are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

 

(b)                                 carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period
of more than 60 days or which are being contested in good faith by appropriate
proceedings diligently conducted;

 

(c)                                  Liens
of landlords or of mortgagees of landlords arising by operation of law or
pursuant to the terms of real property leases, provided that the rental
payments secured thereby are not yet due and payable;

 

(d)                                 pledges,
deposits or other Liens in connection with workers’ compensation, unemployment
insurance, other social security benefits or other insurance related obligations
(including, without limitation, pledges or deposits securing liability to
insurance carriers under insurance or self-insurance arrangements);

 

(e)                                  Liens
arising by reason of any judgment, decree or order of any court or other
Governmental Authority, if appropriate legal proceedings which may have been
duly initiated for the review of such judgment, decree or order, are being
diligently prosecuted and shall not have been finally terminated or the period
within which such proceedings may be initiated shall not have expired;

 

87

 

(f)                                    Liens
to secure the performance of bids, trade contracts (other than for borrowed
money), obligations for utilities, leases, statutory obligations, surety and
appeal bonds, performance bonds, judgment and like bonds, replevin and similar
bonds and other obligations of a like nature incurred in the ordinary course of
business;

 

(g)                                 zoning
restrictions, easements, rights-of-way, restrictions on the use of property,
other similar encumbrances incurred in the ordinary course of business and
minor irregularities of title, or, in the case of timberland, discrepancies,
conflicts in boundary lines, shortages in area, encroachments or any other
facts which a correct survey would disclose, which do not materially interfere
with the ordinary conduct of the business of the Borrower and its Subsidiaries
taken as a whole;

 

(h)                                 Liens
securing or consisting of Indebtedness of the Borrower and its Subsidiaries
permitted by subsection 8.2(f) incurred to finance the acquisition of
fixed or capital assets or Indebtedness of the Borrower and its Subsidiaries
permitted by subsection 8.2(g) incurred to finance the purchase price of,
or assumed in connection with, any acquisition permitted by subsection 8.10,
provided that (i) such Liens shall be created no later than the later of
the date of such acquisition or the date of the incurrence or assumption of
such Indebtedness, and (ii) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and, in the case of
Indebtedness assumed in connection with any such acquisition, the property
subject thereto immediately prior to such acquisition;

 

(i)                                     Liens
existing on assets or properties at the time of the acquisition thereof by the
Borrower or any of its Subsidiaries which do not materially interfere with the
use, occupancy, operation and maintenance of structures existing on the
property subject thereto or extend to or cover any assets or properties of the
Borrower or such Subsidiary other than the assets or property being acquired;

 

(j)                                     Liens
(i) in existence on the Closing Date and listed in Schedule 8.3(j) and other
Liens securing Indebtedness of the Borrower and its Subsidiaries permitted by
subsection 8.2(i), provided that no such Lien is spread to cover
any additional property after the Closing Date and that the amount of
Indebtedness secured thereby is not increased except as permitted by
subsection 8.2(i), or (ii) not otherwise permitted hereunder, all of which
Liens permitted pursuant to this subsection 8.3(j)(ii) secure obligations
not exceeding (as to the Borrower and all of its Subsidiaries) $20,000,000 in
aggregate amount at any time outstanding;

 

(k)                                  Liens
securing Guarantee Obligations permitted under subsection 8.4(f) not
exceeding (as to the Borrower and all of its Subsidiaries) $10,000,000 in
aggregate amount at any time outstanding;

 

(l)                                     Liens
created pursuant to the Security Documents;

 

(m)                               Liens
created pursuant to and in accordance with any Permitted Receivables
Transaction;

 

(n)                                 Liens
in favor of lessees or sublessees of packaging machinery leased or subleased to
customers of the Borrower and its Subsidiaries on such packaging machinery and
related rights;

 

88

 

(o)                                 any
encumbrance or restriction (including, without limitation, put and call
agreements) with respect to the Capital Stock of any joint venture or similar
arrangement pursuant to the joint venture or similar agreement with respect to
such joint venture or similar arrangement, provided that no such
encumbrance or restriction affects in any way the ability of the Borrower or
any of its Subsidiaries to comply with subsection 7.9(b) or (c);

 

(p)                                 Liens
on property subject to Sale and Leaseback Transactions permitted under
subsection 8.12 and general intangibles related thereto;

 

(q)                                 easements,
rights-of-way, servitudes, restrictive covenants, permits, licenses, use
agreements, surface leases, subsurface leases or other similar encumbrances
(including hunting and recreational leases and leases and other encumbrances in
respect of pipelines, compressor stations and television antennas) on, over or
in respect of timberland, none of which, singly or in the aggregate, materially
adversely affects the operations of the Borrower and its Subsidiaries or the
value of such timberland;

 

(r)                                    pay-as-you-harvest
timber sales agreements, lump sum timber deeds or sales agreements and similar
encumbrances entered into in the ordinary course of business;

 

(s)                                  Liens
on property of any Foreign Subsidiary of the Borrower securing Indebtedness of
such Foreign Subsidiary permitted by subsection 8.2(l);

 

(t)                                    Liens
on property financed or refinanced by Machinery Financing Indebtedness
permitted by subsection 8.2(r) securing such Machinery Financing
Indebtedness; and

 

(u)                                 Liens
on Intellectual Property or on foreign patents, trademarks, trade names,
copyrights, technology, know-how or processes; provided that such Liens
result from the granting of licenses in the ordinary course of business to any
Person to use such Intellectual Property or such foreign patents, trademarks,
trade names, copyrights, technology, know-how or processes, as the case may be.

 

8.4.                              Limitation on Guarantee Obligations.  Create, incur, assume or suffer to exist any Guarantee Obligation
except:

 

(a)                                  Guarantee
Obligations in existence on the Closing Date and listed in Schedule 8.4(a), and
any refinancings, refundings, extensions or renewals thereof, provided
that the amount of such Guarantee Obligation shall not be increased at the time
of such refinancing, refunding, extension or renewal except to the extent that
the amount of Indebtedness in respect of such Guarantee Obligations is
permitted to be increased by subsection 8.2(i);

 

(b)                                 Guarantee
Obligations in connection with up to an aggregate principal amount of
$25,000,000 of Indebtedness outstanding at any time incurred by any Management
Investors in connection with any Management Subscription Agreements or other
purchases by them of Capital Stock of Holding, and any refinancings,
refundings, extensions or renewals thereof; provided that such amount
shall be reduced by the aggregate then outstanding principal amount of loans
and advances permitted by subsection 8.9(o);

 

89

 

(c)                                  Guarantee
Obligations for performance, appeal, judgment, replevin and similar bonds and
suretyship arrangements, all in the ordinary course of business;

 

(d)                                 Guarantee
Obligations in respect of indemnification and contribution agreements expressly
permitted by subsection 8.11(iii) or similar agreements by the Borrower;

 

(e)                                  Reimbursement
Obligations in respect of the Letters of Credit;

 

(f)                                    Guarantee
Obligations in respect of third-party loans and advances to officers or
employees of the Borrower or any of its Subsidiaries (i) for travel and
entertainment expenses incurred in the ordinary course of business, (ii) for
relocation expenses incurred in the ordinary course of business, or (iii) for
other purposes in an aggregate amount (as to Holding and all of its
Subsidiaries), together with the aggregate amount of all Investments permitted
under subsection 8.9(e)(iv), of up to $10,000,000 outstanding at any time;

 

(g)                                 obligations
to insurers required in connection with worker’s compensation and other
insurance coverage incurred in the ordinary course of business;

 

(h)                                 obligations
of the Borrower and its Subsidiaries under any Interest Rate Protection
Agreements or under Permitted Hedging Arrangements;

 

(i)                                     Guarantee
Obligations incurred in connection with acquisitions permitted under
subsection 8.10, provided that if any such Guarantee Obligation
inures to the benefit of any Person other than the Person from whom such
acquisition is made or any Affiliate thereof, such Guarantee Obligation shall
not exceed, with respect to any such acquisition, 70% of the purchase price of
such acquisition (including any Indebtedness assumed in connection with any
such acquisition) (or such greater percentage as shall be reasonably
satisfactory to the Administrative Agent or, if any such purchase price shall
be greater than $40,000,000, such greater percentage shall be reasonably
satisfactory to the Required Lenders);

 

(j)                                     guarantees
made by the Borrower or any of its Subsidiaries of obligations of the Borrower
or any of its Subsidiaries, which obligations are otherwise permitted under
this Agreement;

 

(k)                                  Guarantee
Obligations in connection with sales or other dispositions permitted under
subsection 8.6, including indemnification obligations with respect to
leases, and guarantees of collectability in respect of accounts receivable or
notes receivable for up to face value;

 

(l)                                     Guarantee
Obligations incurred pursuant to the Guarantee and Collateral Agreement or
otherwise in respect of Indebtedness permitted by subsection 8.2(a);

 

(m)                               Guarantees
by Subsidiaries of the Borrower set forth in the Existing Note Documents,
which, in the case of such Guarantees set forth in the 2002 Senior Subordinated
Note Documents and the 2003 Senior Subordinated Note Documents are subordinated
as provided therein;

 

90

 

(n)                                 (i)
Guarantee Obligations represented by contracts entered into by the Borrower or
any of its Subsidiaries for the purchase of woodchips in the ordinary course of
business and (ii) accommodation guarantees for the benefit of trade creditors
of the Borrower or any of its Subsidiaries in the ordinary course of business;

 

(o)                                 Guarantee
Obligations of the Borrower and its Subsidiaries in respect of recourse events
in connection with any Permitted Receivables Transaction; and

 

(p)                                 Guarantee
Obligations in respect of Indebtedness of a Person in connection with a joint
venture or similar arrangement in respect of which no other co-investor or
other Person has a greater legal or beneficial ownership interest than the
Borrower or any of its Subsidiaries, and as to all of such Persons does not at
any time exceed $30,000,000 in aggregate principal amount; provided that
(i) such amount shall be increased by an amount equal to $10,000,000 on each
anniversary of the Closing Date, so long as no Default or Event of Default
shall have occurred and be continuing on any date on which such amount is to be
increased and (ii) such amount and any increase in such amount permitted by
clause (i) shall be reduced by the aggregate amount of Investments permitted by
subsection 8.9(l).

 

8.5.                              Limitation on Fundamental Changes.  Enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution),
or convey, sell, lease, assign, transfer or otherwise dispose of, all or
substantially all of its property, business or assets, except:

 

(a)                                  any
Subsidiary of the Borrower may be merged or consolidated with or into the
Borrower (provided that the Borrower shall be the continuing or
surviving corporation) or with or into any one or more Wholly Owned
Subsidiaries of the Borrower (provided that the Wholly Owned Subsidiary
or Subsidiaries of the Borrower shall be the continuing or surviving entity);

 

(b)                                 any
Subsidiary of the Borrower may sell, lease, transfer or otherwise dispose of
any or all of its assets (upon voluntary liquidation or otherwise) to the
Borrower or any Wholly Owned Subsidiary of the Borrower; and

 

(c)                                  as
expressly permitted by subsection 8.6.

 

8.6.                              Limitation
on Sale of Assets.  Convey, sell, lease, assign, transfer or otherwise dispose of any
of its property, business or assets (including, without limitation, receivables
and leasehold interests), whether now owned or hereafter acquired, or, in the
case of any Subsidiary of the Borrower, issue or sell any shares of such
Subsidiary’s Capital Stock, to any Person other than the Borrower or any Wholly
Owned Subsidiary of the Borrower, except:

 

(a)                                  the
sale or other Disposition of obsolete, worn out or surplus property, whether
now owned or hereafter acquired, in the ordinary course of business;

 

(b)                                 the
sale or other Disposition of any property (including Inventory) in the ordinary
course of business (including Dispositions of timber properties in connection
with the management thereof or in connection with tax free or similar exchanges
for other properties);

 

91

 

(c)                                  the
sale or discount without recourse of accounts receivable or notes receivable
arising in the ordinary course of business, or the conversion or exchange of
accounts receivable into or for notes receivable, in connection with the
compromise or collection thereof; provided that, in the case of any
Foreign Subsidiary of the Borrower, any such sale or discount may be with
recourse if such sale or discount is consistent with customary practice in such
Foreign Subsidiary’s country of business;

 

(d)                                 as
permitted by subsection 8.5(b) and pursuant to Sale and Leaseback
Transactions permitted by subsection 8.12;

 

(e)                                  the
sale, transfer or discount of Receivables pursuant to any Permitted Receivables
Transaction; provided that upon the effectiveness of any such Permitted
Receivables Transaction, the Loans shall be prepaid, the L/C Obligations shall
be cash collateralized and the Revolving Credit Commitments shall be
permanently reduced to the extent required by subsections 4.4(e), 4.4(f) and
4.4(h);

 

(f)                                    Dispositions
of any assets or property by the Borrower or any of its Subsidiaries to the
Borrower or any Wholly Owned Subsidiary of the Borrower;

 

(g)                                 the
abandonment or other Disposition of patents, trademarks or other intellectual
property that are, in the reasonable judgment of the Borrower, no longer
economically practicable to maintain or useful in the conduct of the business
of the Borrower and its Subsidiaries taken as a whole;

 

(h)                                 any
Asset Sale by the Borrower or any of its Subsidiaries, provided that the
Net Cash Proceeds of each such Asset Sale do not exceed $5,000,000 and the aggregate
Net Cash Proceeds of all Asset Sales in any fiscal year made pursuant to this
paragraph (h) do not exceed $10,000,000; and

 

(i)                                     any
Asset Sale contemplated on Schedule 8.6(i), or any other Asset Sales by the
Borrower or any of its Subsidiaries the Net Cash Proceeds of which other Asset
Sales do not exceed $75,000,000 in the aggregate after the Closing Date, provided
that in the case of any such Asset Sale, an amount equal to 100% of the Net
Cash Proceeds of such Asset Sale less the Reinvested Amount is applied in
accordance with subsection 4.4(b)(ii).

 

8.7.                              Limitation
on Dividends.  Declare or pay any dividend (other than dividends payable solely
in common stock of the Borrower or options, warrants or other rights to
purchase common stock of the Borrower) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any shares of any
class of Capital Stock of the Borrower or any warrants or options to purchase
any such Capital Stock, whether now or hereafter outstanding, or make any other
distribution (other than distributions payable solely in common stock of the
Borrower or options, warrants or other rights to purchase common stock of the
Borrower) in respect thereof, either directly or indirectly, whether in cash or
property or in obligations of the Borrower, except that:

 

92

 

(a)                                  the
Borrower may pay cash dividends in an amount sufficient to allow Holding,
Merger Sub and GPI Holding to pay expenses incurred in the ordinary course of
business;

 

(b)                                 the
Borrower may pay cash dividends in an amount sufficient to cover reasonable and
necessary expenses (including professional fees and expenses) incurred by
Holding, Merger Sub or GPI Holding in connection with (a) registration, public
offerings and exchange listing of equity or debt securities and maintenance of
the same, (b) compliance with reporting obligations under, or in connection
with compliance with, federal or state laws or under this Agreement or any of
the other Loan Documents and (c) indemnification and reimbursement of
directors, officers and employees in respect of liabilities relating to their
serving in any such capacity, or obligations in respect of director and officer
insurance (including premiums therefor);

 

(c)                                  the
Borrower may pay (i) cash dividends in amounts sufficient to pay taxes to be
paid by Holding, Merger Sub or GPI Holding to any taxing authority and (ii)
other amounts due in accordance with the terms of the Tax Sharing Agreement;

 

(d)                                 the
Borrower may pay cash dividends in an amount sufficient to allow Holding to
repurchase shares of its Capital Stock or rights, options or units in respect
thereof from any Management Investors or former Management Investors (or any of
their respective heirs, successors, assigns, legal representatives or estates),
or as otherwise contemplated by any Management Subscription Agreements, for an
aggregate purchase price not to exceed $20,000,000 from and after the Closing
Date; provided that such amount shall be increased by (i) an amount
equal to $5,000,000 on each anniversary of the Closing Date, commencing on the
first anniversary of the Closing Date, and (ii) an amount equal to the proceeds
of any resales or new issuances of shares and options to any Management
Investors, at any time after the initial issuances to any Management Investors,
together with the aggregate amount of deferred compensation owed by Holding or
any of its Subsidiaries to any Management Investor that shall thereafter have
been cancelled, waived or exchanged at any time after the initial issuances to
any thereof in connection with the grant to such Management Investor of the
right to receive or acquire shares of Holding Capital Stock; provided, further,
that the cash dividends paid in respect of repurchases from Management
Investors shall not exceed in the aggregate during each fiscal year of Holding
an amount equal to $6,000,000;

 

(e)                                  the
Borrower may pay cash dividends in an amount sufficient to allow each of
Holding, Merger Sub and GPI Holding to pay all fees and expenses incurred in
connection with the transactions expressly contemplated by this Agreement and
the other Loan Documents, and to allow each of Holding, Merger Sub and GPI
Holding to perform its obligations under or in connection with the Loan
Documents to which it is a party; and

 

(f)                                    the
Borrower may pay cash dividends in an amount sufficient to allow GPI Holding
(as successor to RIC Holding) to make all payments of principal, interest, and
any fees or other amounts payable in connection with the Existing RIC Holding
Indebtedness.

 

8.8.                              Limitation on Capital Expenditures.  Make or commit to make any Capital Expenditures (excluding any
expenses incurred in connection with normal replacement and

 

93

 

maintenance programs
properly charged to current operations and Reinvested Amounts with respect to
any Recovery Event, both of which shall be permitted without regard to the
limits of this subsection 8.8); provided that (a) the Borrower and
its Subsidiaries may make Capital Expenditures in an aggregate amount not to
exceed $70,000,000 during the period commencing on the Closing Date and ending
on the third anniversary of the Closing Date, provided that such Capital
Expenditures are made to facilitate the integration of the operations of the
Borrower and its Subsidiaries following the Mergers and (b) in addition to the
Capital Expenditures permitted by clause (a) above, the Borrower and its
Subsidiaries may make Capital Expenditures in an amount not to exceed, for any
test period set forth below, the amount set forth opposite such test period
below:

 

	
  Test Period

  	
   

  	
  Amount

  	
   

  
	
  January 1, 2003 -
  December 31, 2003

  	
   

  	
  $

  	
  160,000,000

  	
   

  
	
  January 1, 2004 -
  December 31, 2004

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2005 -
  December 31, 2005

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2006 -
  December 31, 2006

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2007 -
  December 31, 2007

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2008 -
  December 31, 2008

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2009 –
  December 31, 2009

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  January 1, 2010 –
  December 31, 2010

  	
   

  	
  $

  	
  150,000,000;

  	
   

  

 

provided  further that (i) up to $50,000,000 of any Capital
Expenditures permitted by clause (b) above to be made during any test period
and not made during such test period may be carried over and expended during
the next succeeding test period and (ii) up to $25,000,000 of any Capital
Expenditures permitted by clause (b) above to be made during any test period
and not made during such test period (to the extent not expended during the
next succeeding test period) may be carried over and expended during the second
succeeding test period.

 

8.9.                              Limitation on Investments, Loans and Advances.  Make any advance, loan, extension of credit or capital
contribution to, or purchase any stock, bonds, notes, debentures or other
securities of or any assets constituting a business unit of, or make any other
investment, in cash or by transfer of assets or property, in (each an “Investment”),
any Person, except:

 

(a)                                  extensions
of trade credit in the ordinary course of business;

 

(b)                                 Investments
in cash and Cash Equivalents;

 

(c)                                  Investments
existing on the Closing Date and described in Schedule 8.9(c), setting forth
the respective amounts of such Investments as of a recent date;

 

94

 

(d)                                 Investments
in notes receivable and other instruments and securities obtained in connection
with transactions permitted by subsection 8.6(c);

 

(e)                                  loans
and advances to officers, directors or employees of Holding or any of its
Subsidiaries (i) in the ordinary course of business for travel and
entertainment expenses, (ii) existing on the Closing Date and described in
Schedule 8.9(c), (iii) made after the Closing Date for relocation expenses in
the ordinary course of business, (iv) made for other purposes in an aggregate
amount (as to Holding and all of its Subsidiaries), together with the aggregate
amount of all Guarantee Obligations permitted pursuant to subsection 8.4(f)(iii),
of up to $10,000,000 outstanding at any time and (v) relating to
indemnification or reimbursement of any officers, directors or employees in
respect of liabilities relating to their serving in any such capacity or as
otherwise specified in subsection 8.11;

 

(f)                                    (i)
Investments by the Borrower in its Wholly Owned Subsidiaries (other than any
Receivables Subsidiary) and by such Wholly Owned Subsidiaries in the Borrower
and in Wholly Owned Subsidiaries of the Borrower (other than any Receivables
Subsidiary) and (ii) Investments in Holding, Merger Sub and GPI Holding in
amounts and for purposes for which dividends are permitted under
subsection 8.7;

 

(g)                                 acquisitions
expressly permitted by subsection 8.10;

 

(h)                                 Investments
of the Borrower and its Subsidiaries under Interest Rate Protection Agreements
or under Permitted Hedging Arrangements;

 

(i)                                     Investments
in the nature of pledges or deposits with respect to leases or utilities
provided to third parties in the ordinary course of business or otherwise described
in subsection 8.3(c), (d) or (f);

 

(j)                                     Investments
representing non-cash consideration received by the Borrower or any of its
Subsidiaries in connection with any Asset Sale, provided that in the
case of any Asset Sale permitted under subsection 8.6(i), such non-cash
consideration constitutes not more than 25% of the aggregate consideration
received in connection with such Asset Sale and any such non-cash consideration
received by the Borrower or any of its Domestic Subsidiaries is pledged to the
Administrative Agent for the benefit of the Lenders pursuant to the Security
Documents;

 

(k)                                  any
Investment by the Borrower and its Subsidiaries in a Receivables Subsidiary
which, in the judgment of the Borrower, is prudent and reasonably necessary in
connection with, or otherwise required by the terms of, any Permitted
Receivables Transaction;

 

(l)                                     Investments
by the Borrower or any of its Subsidiaries in a Person in connection with a
joint venture or similar arrangement in respect of which no other co-investor
or other Person has a greater legal or beneficial ownership interest than the
Borrower or such Subsidiary in an aggregate amount not to exceed at any time an
amount equal to $30,000,000; provided that (i) such amount shall be
increased by an amount equal to $10,000,000 on each anniversary of the Closing
Date, so long as no Default or Event of Default shall have occurred and be
continuing on any date on which such amount is to be increased, (ii) such
amount and any increase in such amount permitted by clause (i) shall be reduced
by the aggregate principal

 

95

 

amount of
Indebtedness in respect of Guarantee Obligations permitted by
subsection 8.4(p), and (iii) the Borrower or such Subsidiary complies with
the provisions of subsection 7.9(b) and (c) hereof, if applicable, with
respect to such ownership interest;

 

(m)                               Investments
in industrial development or revenue bonds or similar obligations secured by
assets leased to and operated by the Borrower or any of its Subsidiaries that
were issued in connection with the financing of such assets, so long as the
Borrower or any such Subsidiary may obtain title to such assets at any time by
optionally cancelling such bonds or obligations, paying a nominal fee and terminating
such financing transaction;

 

(n)                                 Investments
representing evidences of Indebtedness, securities or other property received
from another Person by the Borrower or any of its Subsidiaries in connection
with any bankruptcy proceeding or other reorganization of such other Person or
as a result of foreclosure, perfection or enforcement of any Lien or exchange
for evidences of Indebtedness, securities or other property of such other
Person held by the Borrower or any of its Subsidiaries; provided that
any such securities or other property received by the Borrower or any of its
Domestic Subsidiaries (other than a Receivables Subsidiary or a Subsidiary of a
Foreign Subsidiary) is pledged to the Administrative Agent for the benefit of
the Lenders pursuant to the Security Documents;

 

(o)                                 loans
and advances to Management Investors in connection with the purchase by such
Management Investors of Capital Stock of Holding of up to $25,000,000
outstanding at any one time; provided that such amount shall be reduced
by the aggregate principal amount of Indebtedness in respect of Guarantee
Obligations permitted by subsection 8.4(b);

 

(p)                                 Investments
in Golden Properties not to exceed in the aggregate an amount equal to the
aggregate amount of dividends and other distributions received in cash by
Golden Equities from Golden Properties after the Closing Date; and

 

(q)                                 Investments
not otherwise permitted by the preceding clauses of this subsection 8.9
not to exceed in the aggregate $25,000,000.

 

8.10.                        Limitations on Certain Acquisitions.  Acquire by purchase or otherwise all the business or assets of,
or stock or other evidences of beneficial ownership of, any Person, except that
the Borrower and its Subsidiaries shall be allowed to make any such acquisitions
so long as:

 

(a)                                  such
acquisition is expressly permitted by subsection 8.5, or

 

(b)                                 the
aggregate consideration paid by the Borrower for such acquisition (including
cash and indebtedness incurred or assumed in connection with such acquisition)
consists solely of any combination of:

 

(i)                                     Capital
Stock of Holding;

 

(ii)                                  cash
in an amount equal to the Net Cash Proceeds of the sale or issuance of Capital
Stock of Holding which amount is contributed to the Borrower within 90 days
prior to the date of the relevant acquisition;

 

96

 

(iii)                               cash
and other property (excluding cash and other property covered under clauses
(i), (ii) and (iv) of this subsection 8.10(b)) and Indebtedness (whether
incurred or assumed) in an aggregate amount which, when aggregated with all
other amounts of cash and such other property paid for acquisitions, and
Indebtedness incurred or assumed, in each case in reliance on this clause
(iii), does not exceed $50,000,000; provided that such amount shall be
increased by an amount equal to $10,000,000 on each anniversary of the Closing
Date, so long as no Default or Event of Default shall have occurred and be
continuing on any date on which such amount is to be increased; and/or

 

(iv)                              additional
cash and other property (excluding cash and other property covered under
clauses (i), (ii) and (iii) of this subsection 8.10(b)) and Indebtedness
(whether incurred or assumed) in an aggregate amount which, when aggregated
with all other amounts of cash and such other property paid for acquisitions,
and Indebtedness incurred or assumed, in each case in reliance on this clause
(iv), does not exceed $100,000,000, provided that such acquisition is
made at a time when the Consolidated Leverage Ratio, calculated on a pro
forma basis after giving effect to such acquisition (such calculation to
be made in a manner reasonably satisfactory to the Administrative Agent and to
be evidenced by a certificate in form and substance reasonably satisfactory to
the Administrative Agent signed by a Responsible Officer of the Borrower and
delivered to the Administrative Agent (which shall promptly deliver copies to
each Lender) at least three Business Days prior to the consummation of such
acquisition), is equal to or less than 4.00:1.00;

 

provided, further that in the case of each such acquisition
pursuant to clauses (a) and (b) after giving effect thereto, no Default or
Event of Default shall occur as a result of such acquisition.

 

8.11.                        Limitation on Transactions with Affiliates.  Enter into any transaction, including, without limitation, any
purchase, sale, lease or exchange of property or the rendering of any service,
with any Affiliate unless such transaction is (a) otherwise permitted under
this Agreement, and (b) upon terms no less favorable to the Borrower or such
Subsidiary, as the case may be, than it would obtain in a comparable arm’s
length transaction with a Person which is not an Affiliate; provided
that nothing contained in this subsection 8.11 shall be deemed to
prohibit:

 

(i)                                     the
Borrower or any of its Subsidiaries from entering into or performing any
consulting, management or employment agreements or other compensation
arrangements with a director, officer or employee of the Borrower or any of its
Subsidiaries that provides for annual aggregate base compensation not in excess
of $1,000,000 for each such director, officer or employee;

 

(ii)                                  the
payment of transaction expenses in connection with this Agreement;

 

(iii)                               the
Borrower or any of its Subsidiaries from entering into, making payments
pursuant to and otherwise performing an indemnification and contribution
agreement in favor of any Permitted Holder and each person who is

 

97

 

or becomes a director, officer,
agent or employee of the Borrower or any of its Subsidiaries, in respect of
liabilities (A) arising under the Securities Act, the Exchange Act and any
other applicable securities laws or otherwise, in connection with any offering
of securities by Holding or any of its Subsidiaries, (B) incurred to third
parties for any action or failure to act of the Borrower or any of its
Subsidiaries, predecessors or successors, (C) arising out of the performance by
CD&R of management consulting or financial advisory services provided to the
Borrower or any of its Subsidiaries, (D) arising out of the fact that any
indemnitee was or is a director, officer, agent or employee of the Borrower or
any of its Subsidiaries, or is or was serving at the request of any such
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or enterprise or (E) to the fullest extent
permitted by Delaware or other applicable state law, arising out of any breach
or alleged breach by such indemnitee of his or her fiduciary duty as a director
or officer of the Borrower or any of its Subsidiaries;

 

(iv)                              the
Borrower or any of its Subsidiaries from performing any agreements or
commitments with or to any Affiliate existing on the Closing Date and described
on Schedule 8.11(iv);

 

(v)                                 any
transaction permitted under subsection 8.3(k), 8.4(b), 8.4(d), 8.4(f),
8.5, 8.7, 8.9(e), 8.9(f) or 8.9(o), or any transaction with a Wholly Owned
Subsidiary of the Borrower; or

 

(vi)                              the
Borrower or any of its Subsidiaries from performing its obligations under the
Tax Sharing Agreement.

 

For purposes of this subsection 8.11, (A) any
transaction with any Affiliate shall be deemed to have satisfied the standard
set forth in clause (b) of the first sentence hereof if (i) such transaction is
approved by a majority of the Disinterested Directors of the board of directors
of Holding, GPI Holding, the Borrower or such Subsidiary, or (ii) in the event
that at the time of any such transaction, there are no Disinterested Directors
serving on the board of directors of Holding, GPI Holding, the Borrower or such
Subsidiary, such transaction shall be approved by a nationally recognized
expert with expertise in appraising the terms and conditions of the type of
transaction for which approval is required, and (B) “Disinterested Director”
shall mean, with respect to any Person and transaction, a member of the board
of directors of such Person who does not have any material direct or indirect
financial interest in or with respect to such transaction.

 

8.12.                        Limitation on Sale and Leaseback Transactions.  Enter into any arrangement with any Person providing for the
leasing by the Borrower or any of its Subsidiaries of real or personal property
which has been or is to be sold or transferred by the Borrower or any such
Subsidiary to such Person or to any other Person to whom funds have been or are
to be advanced by such Person on the security of such property or rental
obligations of the Borrower or such Subsidiary (any of such arrangements, a “Sale
and Leaseback Transaction”), unless (a) the Borrower shall be in
compliance, on a pro  forma basis after giving effect to the
consummation of the Sale and Leaseback Transaction and the application of the
proceeds thereof, with the

 

98

 

Consolidated Leverage Ratio
set forth in subsection 8.1(a), recomputed as at the last day of the most
recently ended fiscal quarter of the Borrower for which the relevant
information is available as if such Sale and Leaseback Transaction had been consummated
on the first day of the relevant period for testing such compliance (such
calculation to be made in a manner reasonably satisfactory to the
Administrative Agent and to be evidenced by a certificate in form and substance
reasonably satisfactory to the Administrative Agent signed by a Responsible
Officer of the Borrower and delivered to the Administrative Agent (which shall
promptly deliver copies to each Lender) at least three Business Days prior to
the consummation of such Sale and Leaseback Transaction), (b) the lease entered
into by the Borrower or any of its Subsidiaries in connection with such Sale
and Leaseback Transaction is either (i) a Financing Lease or (ii) a lease the
payments under which will be treated as an operating expense for purposes of
determining EBITDA, and (c) an amount equal to 100% of the Net Cash Proceeds of
such Sale and Leaseback Transaction is applied in accordance with
subsection 4.4(b)(iv).

 

8.13.                        Limitations on Dispositions of Collateral.  Convey, sell, transfer, lease, or otherwise dispose of any of the
Collateral, or attempt, offer or contract to do so, except for (a) mergers,
consolidations, sales, leases, transfers or other Dispositions expressly
permitted under subsection 8.5 and (b) sales or other Dispositions expressly
permitted under subsection 8.6, including, without limitation, sales of
Inventory in the ordinary course of business; and the Administrative Agent
shall, and the Lenders hereby authorize the Administrative Agent to, execute
such releases of Liens and take such other actions as the Borrower may
reasonably request in connection with the foregoing.

 

8.14.                        Limitation on Optional Payments and Modifications of Debt
Instruments and Other Documents.  (a)  Make any optional payment or prepayment on
or repurchase or redemption of any Existing Notes (other than as provided in
the definition thereof), including, without limitation, any payments on account
of, or for a sinking or other analogous fund for, the repurchase, redemption,
defeasance or other acquisition thereof, except mandatory payments of
principal, interest, fees and expenses required by the terms of the Existing
Notes or the Existing Note Indentures (and, in the case of the 2002 Senior
Subordinated Notes and the 2003 Senior Subordinated Note Indenture, only to the
extent permitted under the subordination provisions applicable thereto), provided
that the 2002 Senior Subordinated Notes may be paid, repurchased, redeemed or
otherwise acquired (x) in a change of control offer or tender offer made in accordance
with the 2002 Senior Subordinated Note Indenture, (y) in any other manner
permitted by applicable Requirements of Law or (z) with the proceeds of
Indebtedness permitted by subsection 8.2(c).

 

(b)                                 In
the event of the occurrence of a Change of Control, repurchase the Existing
Notes then outstanding or any portion thereof, unless the Borrower shall have
(i) made payment in full of the Loans, all Reimbursement Obligations and any
other amounts then due and owing to any Lender or the Administrative Agent
hereunder and under any Note and cash collateralized the L/C Obligations on
terms reasonably satisfactory to the Administrative Agent or (ii) made an offer
to pay the Loans, all Reimbursement Obligations and any amounts then due and
owing to each Lender and the Administrative Agent hereunder and under any Note
and to cash collateralize the L/C Obligations in respect of each Lender and
shall have made payment in full thereof to each such Lender or the
Administrative Agent which has accepted such offer and

 

99

 

cash
collateralized the L/C Obligations in respect of each such Lender which has
accepted such offer.

 

(c)                                  Amend,
supplement, waive or otherwise modify any of the provisions of any Existing
Note Document:

 

(i)                                     which,
in the case of the 2002 Senior Subordinated Note Documents and the 2003 Senior
Subordinated Note Documents, amends or modifies the subordination provisions
contained therein;

 

(ii)                                  except
as permitted pursuant to subsection 8.14(a), which shortens the fixed
maturity or increases the principal amount of, or increases the rate or
shortens the time of payment of interest on, or increases the amount or
shortens the time of payment of any principal or premium payable whether at
maturity, at a date fixed for prepayment or by acceleration or otherwise of the
Indebtedness evidenced by the Existing Notes, or increases the amount of, or
accelerates the time of payment of, any fees or other amounts payable in
connection therewith;

 

(iii)                               which
relates to any material affirmative or negative covenants or any events of
default or remedies thereunder and the effect of which is to subject the
Borrower or any of its Subsidiaries to any more onerous or more restrictive
provisions; or

 

(iv)                              which
otherwise adversely affects the interests of the Lenders as senior creditors
with respect to the 2002 Senior Subordinated Notes and the 2003 Senior
Subordinated Notes or the interests of the Lenders under this Agreement or any
other Loan Document in any material respect.

 

(d)                                 Enter
into any Synthetic Purchase Agreement if under such Synthetic Purchase
Agreement it may be required to make (i) any payment relating to the Capital
Stock of Holding that has the same economic effect on the Borrower and its
Subsidiaries as any Investment by the Borrower in Capital Stock of Holding
prohibited by subsection 8.9 above or (ii) any payment relating to any
Existing Notes that has the same economic effect on the Borrower as any
optional payment or prepayment or repurchase or redemption of such Existing
Notes prohibited by subsection 8.14(a) above, unless, in each case, such
requirement is conditioned upon obtaining any requisite consent of the Lenders
hereunder.

 

(e)                                  (i)
Amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the
terms and conditions of the Tax Sharing Agreement in any manner that would
increase the amounts payable by the Borrower or any of its Subsidiaries
thereunder in any manner that could reasonably be expected to be materially
adverse to the Lenders, other than amendments reasonably reflecting changes in
law or regulations after the date hereof, or (ii) otherwise amend, supplement
or otherwise modify the terms and conditions of the Tax Sharing Agreement
except to the extent that any such amendment, supplement or modification could
not reasonably be expected to have a Material Adverse Effect.

 

8.15.                        Limitation on Changes in Fiscal Year.  Permit the fiscal year of Holding or the Borrower to end on a day
other than December 31.

 

100

 

8.16.                        Limitation on Negative Pledge Clauses.  Enter into with any Person any agreement which prohibits or
limits the ability of the Borrower or any of its Subsidiaries (other than any
Receivables Subsidiaries and any Foreign Subsidiaries or Subsidiaries of either
thereof) to create, incur, assume or suffer to exist any Lien in favor of the
Lenders in respect of obligations and liabilities under this Agreement or any
other Loan Documents upon any of its property, assets or revenues, whether now
owned or hereafter acquired, other than (a) this Agreement, the other Loan
Documents and any related documents, (b) any agreements with respect to
Machinery Financing Indebtedness permitted under this Agreement and any related
documents and (c) any industrial revenue or development bonds, purchase money
mortgages, acquisition agreements or Financing Leases or agreements in
connection with any Permitted Receivables Transaction permitted by this
Agreement (in which cases, any prohibition or limitation shall only be
effective against the assets financed or acquired thereby) or operating leases
of real property entered into in the ordinary course of business.

 

8.17.                        Limitation on Lines of Business.  (a)  Enter into any
business, either directly or through any Subsidiary or joint venture or similar
arrangement described in subsection 8.9(l), except for those businesses of
the same general type as those in which the Borrower and its Subsidiaries are
engaged on the Closing Date or which are reasonably related thereto.

 

(b)                                 In
the case of any Foreign Subsidiary Holdco, own any material assets other than
securities of one or more Foreign Subsidiaries and other assets relating to an
ownership interest in any such securities or Subsidiaries.

 

8.18.                        Establishment and Maintenance of Lockbox Accounts.  (a)  Establish or
maintain, or cause to be established or maintained, any bank or trust account
in which any Collateral or the proceeds thereof is to be deposited by or on behalf
of any Obligor, except:

 

(i)                                     a
“Lockbox Account” established in accordance with a Lockbox Agreement;

 

(ii)                                  any
trust account for the deposit of funds payable under any contract covered by
any surety or performance bond, which is not a “Lockbox Account”;

 

(iii)                               bank
accounts into which amounts being paid or transferred to the Borrower and its
Subsidiaries are deposited which are not “Lockbox Accounts” so long as (A) the
balances in such accounts are transferred every second Business Day with
respect to accounts maintained in the United States and every fifth Business
Day with respect to accounts maintained outside of the United States to a
Collateral Proceeds Account (as defined in the Guarantee and Collateral
Agreement) to the extent that the aggregate balance in any such account exceeds
$250,000 on such Business Day and (B) neither the Borrower nor any of its
Subsidiaries materially changes, in a manner materially adverse to the Lenders,
without the consent of the Administrative Agent, the mechanisms by which
Accounts Receivable (as defined in the Guarantee and Collateral Agreement) are
collected from that in effect on the Closing Date;

 

101

 

(iv)                              to
the extent that arrangements or agreements are not in existence on the Closing
Date, bank accounts into which amounts paid by Obligors located outside the
United States of America or amounts denominated in currencies other than
Dollars may be deposited which are not “Lockbox Accounts” so long as (A) such
accounts are maintained with banks which are reasonably satisfactory to the
Administrative Agent and amounts are deposited into such accounts on terms
reasonably satisfactory to the Administrative Agent and (B) the balances in
such accounts are transferred the second Business Day with respect to accounts
maintained in the United States and every fifth Business Day with respect to
accounts maintained outside of the United States after the Borrower is notified
of such deposit to a Collateral Proceeds Account (as defined in the Guarantee
and Collateral Agreement) to the extent that the aggregate balances in all such
accounts exceed $250,000 (or the equivalent thereof in any currency other than
Dollars) on such Business Day; and

 

(v)                                 in
the event of the consummation of any Permitted Receivables Transaction, (A) the
proceeds of Accounts Receivables (as defined in the Guarantee and Collateral
Agreement) or other property or assets subject to such Permitted Receivables
Transaction may be maintained pursuant to arrangements other than “Lockbox
Accounts” and (B) the proceeds of Accounts Receivables not subject to such
Permitted Receivables Transaction may be maintained pursuant to arrangements
other than “Lockbox Accounts” so long as such arrangements provide for the
periodic transfer of such Accounts Receivables proceeds to a Collateral
Proceeds Account (as defined in the Guarantee and Collateral Agreement) and
such arrangements are otherwise in form and substance reasonably satisfactory
to the Administrative Agent.

 

(b)                                 Take
any action, or omit to take any action, under any Lockbox Agreement which would
reasonably be expected to have a material adverse effect on the validity or
enforceability of such Agreement (including, without limitation, the orderly
collection of amounts due from Obligors), except as otherwise contemplated
hereby or by the terms of such Lockbox Agreement.

 

8.19.                        Limitations on Currency and Commodity Hedging Transactions.  Enter into, purchase or otherwise acquire agreements or
arrangements relating to currency, commodity or other hedging except, to the
extent and only to the extent that, such agreements or arrangements are entered
into, purchased or otherwise acquired in the ordinary course of business of the
Borrower or any of its Subsidiaries with reputable financial institutions or
vendors and not for purposes of speculation (any such agreement or arrangement
permitted by this subsection, a “Permitted Hedging Arrangement”).

 

SECTION 9.  EVENTS OF DEFAULT

 

If any of the following events shall occur and be
continuing:

 

(a)                                  The Borrower shall fail to
pay any principal of any Loan or any Reimbursement Obligation when due in
accordance with the terms hereof (whether at stated

 

102

 

maturity, by mandatory
prepayment or otherwise); or the Borrower shall fail to pay any interest on any
Loan, or any other amount payable hereunder, within five days after any such
interest or other amount becomes due in accordance with the terms hereof; or

 

(b)                                 Any representation or
warranty made or deemed made by any Loan Party herein or in any other Loan
Document (or in any amendment, modification or supplement hereto or thereto) or
which is contained in any certificate furnished at any time by or on behalf of
any Loan Party pursuant to this Agreement or any such other Loan Document shall
prove to have been incorrect in any material respect on or as of the date made
or deemed made; or

 

(c)                                  Any Loan Party shall default
in the observance or performance of any agreement contained in
subsection 7.7(a) or Section 8 of this Agreement; provided
that, in the case of a default in the observance or performance of its
obligations under subsection 7.7(a) hereof, such default shall have
continued unremedied for a period of two days after a Responsible Officer of
the Borrower shall have discovered or should have discovered such default; or

 

(d)                                 Any Loan Party shall default
in the observance or performance of any other agreement contained in this
Agreement or any other Loan Document (other than as provided in paragraphs (a)
through (c) of this Section 9), and such default shall continue unremedied
for a period ending on the earlier of (i) the date 32 days after a Responsible
Officer of Holding shall have discovered or should have discovered such default
and (ii) the date 15 days after written notice has been given to Holding by the
Administrative Agent or the Required Lenders; or

 

(e)                                  Holding or any of its
Subsidiaries shall (i) default in (x) any payment of principal of or interest
on any Indebtedness (other than the Loans and the Reimbursement Obligations) in
excess of $15,000,000 or (y) in the payment of any Guarantee Obligation in
excess of $15,000,000, beyond the period of grace (not to exceed 30 days), if
any, provided in the instrument or agreement under which such Indebtedness or Guarantee
Obligation was created; or (ii) default in the observance or performance of any
other agreement or condition relating to any Indebtedness or Guarantee
Obligation referred to in clause (i) above or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
or beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or
agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause, with the giving of notice or lapse of time if required, such
Indebtedness to become due prior to its stated maturity or such Guarantee Obligation
to become payable (an “Acceleration”), and such time shall have lapsed
and, if any notice (a “Default Notice”) shall be required to commence a
grace period or declare the occurrence of an event of default before notice of
Acceleration may be delivered, such Default Notice shall have been given; or

 

(f)          (i)  Any Loan Party
shall commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with

 

103

 

respect to
it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or any Loan Party shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against any Loan
Party any case, proceeding or other action of a nature referred to in clause
(i) above which (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged, unstayed
or unbonded for a period of 60 days; or (iii) there shall be commenced against
any Loan Party any case, proceeding or other action seeking issuance of a warrant
of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of an order for any
such relief which shall not have been vacated, discharged, stayed or bonded
pending appeal within 60 days from the entry thereof; or (iv) any Loan Party
shall take any corporate action in furtherance of, or indicating its consent
to, approval of, or acquiescence in, any of the acts set forth in clause (i),
(ii), or (iii) above; or (v) any Loan Party shall be generally unable to, or
shall admit in writing its general inability to, pay its debts as they become
due; or

 

(g)                                 (i) Any Person shall engage
in any “prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan shall arise on the assets of either of the Borrower or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is
in the reasonable opinion of the Administrative Agent likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA, (v) either of
the Borrower or any Commonly Controlled Entity shall, or in the reasonable
opinion of the Administrative Agent is likely to, incur any liability in
connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
Plan, or (vi) any other event or condition shall occur or exist with respect to
a Plan; and in each case in clauses (i) through (vi) above, such event or
condition, together with all other such events or conditions, if any, could be
reasonably expected to result in a Material Adverse Effect; or

 

(h)                                 One or more judgments or
decrees shall be entered against the Borrower or any of its Subsidiaries
involving in the aggregate at any time a liability (net of any insurance or
indemnity payments actually received in respect thereof prior to or within 60
days from the entry thereof, or to be received in respect thereof in the event
any appeal thereof shall be unsuccessful) of $15,000,000 or more, and all such
judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 60 days from the entry thereof; or

 

(i)                                     The outstanding 2002 Senior
Subordinated Notes or the 2003 Senior Subordinated Notes, for any reason, shall
not be or shall cease to be validly subordinated as provided therein and in the
2002 Senior Subordinated Note Documents and the 2003 Senior Subordinated Note
Documents, as applicable, to the obligations of the Borrower under this
Agreement and the other Loan Documents, or the obligations of any other Loan
Party under a guarantee of the 2002 Senior Subordinated Notes or the 2003
Senior Subordinated Notes, for any reason, shall not be or shall cease to be
validly subordinated as provided therein and in the 2002

 

104

 

Senior Subordinated Note
Documents and the 2003 Senior Subordinated Note Documents, as applicable, to
the obligations of such Loan Party under the Guarantee to which it is a party;
or

 

(j)                                     (i) Any of the Security
Documents shall cease for any reason to be in full force and effect (other than
pursuant to the terms hereof or thereof), or any Loan Party which is a party to
any of the Security Documents shall so assert in writing, or (ii) the Lien
created by any of the Security Documents shall cease to be perfected and
enforceable in accordance with its terms or of the same effect as to perfection
and priority purported to be created thereby with respect to any significant
portion of the Collateral (other than in connection with any termination of
such Lien in respect of any Collateral as permitted hereby or by any Security
Document), and such failure of such Lien to be perfected and enforceable with
such priority shall have continued unremedied for a period of 20 days; or

 

(k)                                  Any Loan Document (other than
this Agreement or any of the Security Documents) shall cease for any reason to
be in full force and effect (other than pursuant to the terms hereof or
thereof) or any Loan Party shall so assert in writing; or

 

(l)                                     A Change of Control shall
have occurred; or

 

(m)                               Any event or circumstance
entitling the Persons purchasing, or financing the purchase of, Receivables
under any Permitted Receivables Transaction to stop so purchasing or financing,
other than by reason of the occurrence of the stated expiry date of such
Permitted Receivables Transaction, a refinancing of such Permitted Receivables
Transaction through another Permitted Receivables Transaction, a reduction in
any applicable borrowing base,  or the
occurrence of any other event or circumstance which is not, or is not related
primarily to, an action or statement taken or made, or omitted to be taken or
made, by or on behalf of, or a condition of or relating to, Holding or any of
its Subsidiaries; provided that any notices or cure periods that are
conditions to the rights of such Persons to stop purchasing, or financing the
purchase of, such Receivables have been given or have expired, as the case may
be;

 

then, and in any such event, (A) if such event is an Event
of Default specified in clause (i) or (ii) of paragraph (f) above with respect
to the Borrower, automatically the Revolving Credit Commitments, the Tranche A
Term Loan Commitments and the Tranche B Term Loan Commitments, if any, shall
immediately terminate and the Loans hereunder (with accrued interest thereon)
and all other amounts owing under this Agreement (including, without
limitation, all amounts of L/C Obligations, whether or not the beneficiaries of
the then outstanding Letters of Credit shall have presented the documents
required thereunder) shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions
may be taken:  (i) with the consent of
the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders the Administrative Agent shall, by notice to the Borrower,
declare the Revolving Credit Commitments, the Tranche A Term Loan Commitments
and the Tranche B Term Loan Commitments to be terminated forthwith, whereupon
the Revolving Credit Commitments, the Tranche A Term Loan Commitments and the
Tranche B Term Loan Commitments, if any, shall immediately terminate; and (ii)
with the consent of the Required Lenders, the Administrative Agent may, or upon
the request of the Required Lenders, the Administrative Agent shall, by notice
to the Borrower, declare the Loans hereunder (with accrued interest thereon)
and all other amounts owing under

 

105

 

this Agreement (including,
without limitation, all amounts of L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented
the documents required thereunder) to be due and payable forthwith, whereupon
the same shall immediately become due and payable.

 

With respect to any Letter of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration
pursuant to the preceding paragraph, the Borrower shall at such time deposit in
a cash collateral account opened by the Administrative Agent an amount equal to
the aggregate then undrawn and unexpired amount of such Letter of Credit.  The Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Lender and the L/C
Participants, a security interest in such cash collateral to secure all
obligations of the Borrower in respect of such Letter of Credit under this
Agreement and the other Loan Documents. 
The Borrower shall execute and deliver to the Administrative Agent, for
the account of the Issuing Lender and the L/C Participants, such further
documents and instruments as the Administrative Agent may request to evidence
the creation and perfection of such security interest in such cash collateral
account.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letter of Credit, and the unused portion thereof
after all such Letters of Credit shall have expired or been fully drawn upon,
if any, shall be applied to repay other obligations of the Borrower
hereunder.  After all Letters of Credit
shall have expired or been fully drawn upon, all Reimbursement Obligations
shall have been satisfied and all other obligations of the Borrower hereunder shall
have been paid in full, the balance, if any, in such cash collateral account
shall be returned to the Borrower.

 

Except as expressly provided above in this Section 9,
presentment, demand, protest and all other notices of any kind are hereby
expressly waived.

 

SECTION 10.  THE ADMINISTRATIVE AGENT AND THE OTHER

REPRESENTATIVES

 

10.1.                        Appointment.  Each Lender
hereby irrevocably designates and appoints JPMCB as the Administrative Agent of
such Lender under this Agreement and the other Loan Documents, and each such
Lender irrevocably authorizes JPMCB, as the Administrative Agent for such
Lender, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Administrative Agent by the terms
of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto. 
Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Administrative Agent and the Other Representatives shall not
have any duties or responsibilities, except, in the case of the Administrative
Agent and the Issuing Lender, those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent or the Other Representatives.

 

10.2.                        Delegation
of Duties.  The Administrative Agent may execute any of its duties under this
Agreement and the other Loan Documents by or through agents or
attorneys-in-fact, and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  The

 

106

 

Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact or counsel selected by it with reasonable care.

 

10.3.                        Exculpatory
Provisions.  None of the Administrative Agent or any Other Representative nor
any of their officers, directors, employees, agents, attorneys-in-fact or
Affiliates shall be (a) liable for any action lawfully taken or omitted to be
taken by such Person under or in connection with this Agreement or any other
Loan Document (except for the gross negligence or willful misconduct of such
Person or any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates) or (b) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrower or any
other Loan Party or any officer thereof contained in this Agreement or any
other Loan Document or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Agreement or any other Loan Document or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any Notes or any other Loan Document or for any failure of
the Borrower or any other Loan Party to perform its obligations hereunder or
thereunder.  Neither the Administrative
Agent nor any Other Representative shall be under any obligation to any Lender
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Borrower or any
other Loan Party.  Each Lender agrees
that, except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or given to the
Administrative Agent for the account of or with copies for the Lenders, the
Administrative Agent and the Other Representatives shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Borrower or any other Loan
Party which may come into the possession of the Administrative Agent and the
Other Representatives or any of their officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

 

10.4.                        Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower, Holding or GPI Holding), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent may deem and treat the payee of any Note
as the owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent.  The Administrative Agent shall
be fully justified as between itself and the Lenders in failing or refusing to
take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders and/or such other
requisite percentage of the Lenders as is required pursuant to
subsection 11.1(a) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action.  The
Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and any Notes and the other Loan
Documents in accordance with a request of the Required Lenders and/or such
other requisite percentage of the Lenders as is

 

107

 

required pursuant to
subsection 11.1(a), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.

 

10.5.                        Notice
of Default.  The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless
the Administrative Agent has received notice from a Lender or the Borrower or
Holding referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give notice thereof to
the Lenders.  The Administrative Agent
shall take such action reasonably promptly with respect to such Default or
Event of Default as shall be directed by the Required Lenders and/or such other
requisite percentage of the Lenders as is required pursuant to
subsection 11.1(a); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

10.6.                        Acknowledgements and Representations by Lenders.  Each Lender expressly acknowledges that none of the Administrative
Agent or the Other Representatives nor any of their officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by the Administrative Agent or any Other
Representative hereafter taken, including any review of the affairs of the
Borrower or any other Loan Party, shall be deemed to constitute any
representation or warranty by the Administrative Agent or such Other
Representative to any Lender.  Each
Lender represents to the Administrative Agent, the Other Representatives and
each of the Loan Parties that, independently and without reliance upon the
Administrative Agent, the Other Representatives or any other Lender, and based
on such documents and information as it has deemed appropriate, it has made and
will make its own appraisal of and investigation into the business, operations,
property, financial and other condition and creditworthiness of the Borrower
and the other Loan Parties, it has made its own decision to make its Loans
hereunder and enter into this Agreement and it will make its own decisions in
taking or not taking action under this Agreement and the other Loan
Documents.  Each Lender represents to
each other party hereto that it is a bank, savings and loan association or
other similar savings institution, insurance company, investment fund or
company or other financial institution which makes or acquires commercial loans
in the ordinary course of its business, that it is participating hereunder as a
Lender for such commercial purposes, and that it has the knowledge and
experience to be and is capable of evaluating the merits and risks of being a
Lender hereunder.  Each Lender
acknowledges and agrees to comply with the provisions of subsection 11.6
applicable to the Lenders hereunder.

 

10.7.                        Indemnification.  The Lenders agree
to indemnify the Administrative Agent and the Other Representatives in their
capacities as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to their
respective Total Credit Percentages in effect on the date on which
indemnification is sought under this subsection (or, if indemnification is
sought after the date upon which the Revolving Credit Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance
with their Total Credit Percentages immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without

 

108

 

limitation, at any time
following the payment of the Loans) be imposed on, incurred by or asserted
against the Administrative Agent or any Other Representative in any way
relating to or arising out of this Agreement, any of the other Loan Documents
or the transactions contemplated hereby or thereby or any action taken or
omitted by the Administrative Agent or any Other Representative under or in
connection with any of the foregoing; provided that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
to the extent arising from (a) the Administrative Agent’s or any Other
Representative’s gross negligence or willful misconduct or (b) claims made or
legal proceedings commenced against the Administrative Agent or any Other
Representative by any securityholder or creditor thereof arising out of and
based upon rights afforded any such securityholder or creditor solely in its
capacity as such.  The obligations to
indemnify the Issuing Lender and Swing Line Lender shall be ratable among the Revolving
Credit Lenders in accordance with their respective Revolving Credit Commitments
(or, if the Revolving Credit Commitments have been terminated, the outstanding
principal amount of their respective Revolving Credit Loans and L/C Obligations
and their respective participating interests in the outstanding Letters of
Credit and shall be payable only by the Revolving Credit Lenders).  The agreements in this subsection shall
survive the payment of the Loans and all other amounts payable hereunder.

 

10.8.                        Administrative Agent and Other Representatives in Their Individual
Capacity.  The Administrative Agent, the Other
Representatives and their Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower or any other
Loan Party as though the Administrative Agent and the Other Representatives
were not the Administrative Agent and the Other Representatives hereunder and
under the other Loan Documents.  With
respect to Loans made or renewed by them and any Note issued to them and with
respect to any Letter of Credit issued or participated in by them, the
Administrative Agent and the Other Representatives shall have the same rights
and powers under this Agreement and the other Loan Documents as any Lender and may
exercise the same as though they were not the Administrative Agent or an Other
Representative, and the terms “Lender” and “Lenders” shall include the
Administrative Agent in its individual capacity.

 

10.9.                        Successor Administrative Agent.  The Administrative Agent may resign as Administrative Agent upon
10 days’ notice to the Lenders.  If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from
among the Lenders a successor agent (which shall be a bank) for the Lenders,
which successor agent shall be approved by the Borrower (such approval not to
be unreasonably withheld), whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term
“Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this subsection shall
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Administrative Agent under this Agreement and the other Loan Documents.

 

109

 

10.10.                  Syndication
Agent.  The Syndication Agent shall not have any duties or
responsibilities hereunder in its capacity as such.

 

10.11.                  Swing Line Lender.  The provisions of this Section 10 shall apply to the Swing Line Lender in its capacity as such to the
same extent that such provisions apply to the Administrative Agent.

 

SECTION 11.  MISCELLANEOUS

 

11.1.                        Amendments
and Waivers.  (a)  Neither this
Agreement nor any other Loan Document, nor any terms hereof or thereof, may be
amended, supplemented or modified except in accordance with the provisions of
this subsection.  The Required Lenders
may, or, with the written consent of the Required Lenders, the Administrative
Agent may, from time to time, (x) enter into with the Loan Parties hereto or thereto,
as the case may be, written amendments, supplements or modifications hereto and
to the other Loan Documents for the purpose of adding any provisions to this
Agreement or to the other Loan Documents or changing in any manner the rights
or obligations of the Lenders or the Loan Parties hereunder or thereunder or
(y) waive at any Loan Party’s request, on such terms and conditions as the
Required Lenders or the Administrative Agent, as the case may be, may specify
in such instrument, any of the requirements of this Agreement or the other Loan
Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or
modification shall:

 

(i)                                     reduce
the amount or extend the scheduled date of maturity of any Loan or any
Reimbursement Obligation or of any scheduled installment thereof or reduce the
stated rate of any interest or fee payable hereunder or extend the scheduled
date of any payment thereof or increase the amount or extend the expiration
date of any Lender’s Revolving Credit Commitment, Tranche A Term Loan
Commitment or Tranche B Term Loan Commitment or change the currency in which
any Loan or Reimbursement Obligation is payable, in each case without the
consent of each Lender directly affected thereby;

 

(ii)                                  amend,
modify or waive any provision of this subsection 11.1(a) or reduce the
percentage specified in the definition of Required Lenders or Required
Collateral Release Lenders, or consent to the assignment or transfer by
Holding, GPI Holding or the Borrower of any of its rights and obligations under
this Agreement and the other Loan Documents (other than pursuant to
subsection 8.5 or 11.1(b)), in each case without the written consent of
all the Lenders;

 

(iii)                               release
any Guarantor under the Guarantee and Collateral Agreement or, in the aggregate
(in a single transaction or a series of related transactions), substantially
all of the Collateral without the consent of the Required Collateral Release
Lenders, except as expressly permitted hereby or by any Security Document (as
such documents are in effect on the date hereof or, if later, the date of
execution and delivery thereof in accordance with the terms hereof);

 

110

 

(iv)                              subject
to paragraph (i) of this subsection 11.1(a), amend, modify or waive any
provision of subsection 2.5 or subsection 2.6 relating to the Tranche
A Term Loan Lenders without the written consent of the Tranche A Term Loan
Lenders the Tranche A Term Loan Percentages of which aggregate greater than
50%, or amend, modify or waive any provision of subsection 2.5 or
subsection 2.7 relating to the Tranche B Term Loan Lenders without the
written consent of the Tranche B Term Loan Lenders the Tranche B Term Loan
Percentages of which aggregate greater than 50%;

 

(v)                                 amend,
modify or waive any provision of subsection 2.1, 2.2, 2.3 or 2.4 or,
subject to paragraph (i) of this subsection 11.1(a), Section 3
without the written consent of the Revolving Credit Lenders the Revolving
Credit Commitment Percentages of which aggregate greater than 50%;

 

(vi)                              amend,
modify or waive the order of application of prepayment specified in
subsection 4.4(f) or the first four sentences of subsection 4.8(a)
without the consent of (x) Revolving Credit Lenders, the Revolving Credit Commitment
Percentages of which aggregate greater than 50%, (y) Tranche A Term Loan
Lenders, the Tranche A Term Loan Percentage of which aggregate greater than 50%
and (z) Tranche B Term Loan Lenders, the Tranche B Term Loan Percentages of
which aggregate greater than 50%;

 

(vii)                           amend,
modify or waive any provision of subsection 4.4(j) without the consent of
Tranche B Term Loan Lenders, the Tranche B Term Loan Percentages of which
aggregate greater than 50%;

 

(viii)                        require
any Lender to make Loans having an Interest Period of longer than six months
without the consent of such Lender;

 

(ix)                                amend,
modify or waive any provision of Section 10 without the written consent of
the then Administrative Agent and of any Other Representative affected thereby;

 

(x)                                   amend,
modify or waive any provision of the Swing Line Note (if any) or
subsection 2.4 without the written consent of the Swing Line Lender and
each other Lender, if any, which holds, or is required to purchase, a
participation in any Swing Line Loan pursuant to subsection 2.4(d);

 

(xi)                                amend,
modify or waive (A) subsection 8.1 or (B) any provision of this Agreement
at a time when any Default or Event of Default has occurred and is continuing
which amendment, waiver or modification would have the effect of eliminating
any such Default or Event of Default, in each case, for the purposes of
determining whether the conditions precedent set forth in Section 6 to the
making of any Revolving Credit Loan has been satisfied, without the written
consent of Revolving Credit Lenders the Revolving Credit Commitment Percentages
of which aggregate greater than 50%; or

 

111

 

(xii)                             amend,
modify or waive the provisions of any Letter of Credit or any L/C Obligation
without the written consent of the Issuing Lender and each affected L/C
Participant.

 

Any waiver and any amendment, supplement or modification
pursuant to this subsection 11.1 shall apply to each of the Lenders and
shall be binding upon the Loan Parties, the Lenders, the Administrative Agent
and all future holders of the Loans.  In
the case of any waiver, each of the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.

 

(b)                                 Notwithstanding
any provision herein to the contrary, this Agreement may be amended (or amended
and restated) with the written consent of the Required Lenders, the
Administrative Agent and the Borrower (i) to add one or more additional credit
facilities to this Agreement and to permit the extensions of credit from time
to time outstanding thereunder and the accrued interest and fees in respect
thereof to share ratably in the benefits of this Agreement and the other Loan
Documents with the existing Facilities and the accrued interest and fees in
respect thereof and (ii) to include, as appropriate, the Lenders holding such
credit facilities in any required vote or action of the Required Lenders or of
the Lenders of each Facility hereunder.

 

(c)                                  In
addition, notwithstanding the foregoing, this Agreement may be amended with the
written consent of the Administrative Agent, the Borrower and the Lenders
providing the relevant Replacement Term Loans (as defined below) to permit the
refinancing of all outstanding Tranche A Term Loans or all outstanding Tranche
B Term Loans (“Refinanced Term Loans”) with a replacement “A” or “B”
term loan tranche hereunder (“Replacement Term Loans”), provided
that (i) the aggregate principal amount of such Replacement Term Loans shall
not exceed the aggregate principal amount of such Refinanced Term Loans, (ii)
the Applicable Margin for such Replacement Term Loans shall not be higher than
the Applicable Margin for such Refinanced Term Loans, (iii) the weighted
average life to maturity of such Replacement Term Loans shall not be shorter
than the weighted average life to maturity of such Refinanced Term Loans at the
time of such refinancing and (iv) all other terms applicable to such
Replacement Term Loans shall be substantially identical to, or less favorable
to the Lenders providing such Replacement Term Loans than, those applicable to
such Refinanced Term Loans, except to the extent necessary to provide for
covenants and other terms applicable to any period after the latest final
maturity of the Term Loans in effect immediately prior to such refinancing.

 

11.2.                        Notices.  All notices,
requests and demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered
by hand, or three days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, or, in the case of delivery by a
nationally recognized overnight courier, when received, addressed as follows in
the case of the Borrower and the Administrative Agent, and as set forth in
Schedule A in the case of the other parties hereto, or to such other address as
may be hereafter notified by the respective parties hereto and any future holders
of the Loans: 

 

112

 

	
  The Borrower:

  	
   

  	
  Graphic Packaging International, Inc.

  814 Livingston Court

  Marietta, Georgia  30067

  

  Attention:  Chief Financial Officer

  Telecopy:   (770) 644-2923

  Telephone:  (770) 644-3000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:  Legal
  Department

  Telecopy:   (770) 644-2929

  Telephone:  (770) 644-3000

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Debevoise & Plimpton

  919 Third Avenue

  New York, New York 10022

  Attention:  William B. Beekman, Esq.

  Telecopy:   (212) 909-6836

  Telephone:  (212) 909-6000

  
	
   

  	
   

  	
   

  
	
  The Administrative Agent:

  	
   

  	
  JPMorgan Chase Bank

  270 Park Avenue

  New York, New York 10017

  Attention:  William J. Caggiano

  Telecopy:   (212) 270-3279

  Telephone:  (212) 270-1338

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  JPMorgan Chase Bank

  Agent Bank Services Group

  111 Fannin, Tenth Floor

  Houston, Texas 77002

  Attention:  Leah Hughes

  Telecopy:   (713) 750-2932

  Telephone:  (713) 750-2885

  

 

provided that any notice, request or demand to or upon the
Administrative Agent or the Lenders pursuant to subsection 2.2, 2.8, 4.2,
4.4 or 4.8 shall not be effective until received.

 

11.3.                        No
Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of
the Administrative Agent, any Lender or any Loan Party, any right, remedy, power
or privilege hereunder or under the other Loan Documents shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

113

 

11.4.                        Survival of Representations and Warranties.  All representations and warranties made hereunder and in the
other Loan Documents (or in any amendment, modification or supplement hereto or
thereto) and in any certificate delivered pursuant hereto or such other Loan
Documents shall survive the execution and delivery of this Agreement and the
making of the Loans hereunder.

 

11.5.                        Payment
of Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse the Administrative
Agent and the Other Representatives for all their reasonable out-of-pocket
costs and expenses incurred in connection with the preparation, execution and
delivery of, and any amendment, supplement, waiver or modification to, this
Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of
the transactions (including the syndication of the Revolving Credit
Commitments, Tranche A Term Loan Commitments, Tranche A Term Loans, Tranche B
Term Loan Commitments and Tranche B Term Loans (including the reasonable
expenses of the Administrative Agent’s due diligence investigation) and the
monitoring of the Collateral) contemplated hereby and thereby, including,
without limitation, the reasonable fees and disbursements of one firm of
counsel to the Administrative Agent and the Other Representatives, (b) to pay
or reimburse each Lender, each Other Representative and the Administrative
Agent for all its reasonable costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other Loan
Documents and any such other documents, including, without limitation, the
reasonable fees and disbursements of counsel to the Administrative Agent, the
Other Representatives and the several Lenders, and any reasonable Environmental
Costs incurred by any of them arising out of or in any way relating to any Loan
Party or any property in which any Loan Party has had any interest at any time,
(c) to pay, and indemnify and hold harmless each Lender, the Administrative
Agent and the Other Representatives from and against, any and all recording and
filing fees and any and all liabilities with respect to, or resulting from any
delay in paying, stamp, excise and other similar taxes, if any, which may be
payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, and indemnify and hold harmless each
Lender, the Administrative Agent and the Other Representatives (and their
respective directors, trustees, officers, employees, affiliates, controlling
persons, agents, successors and assigns) from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever
(whether or not caused by any such Person’s own negligence (other than gross
negligence) and including, without limitation, the reasonable fees and
disbursements of counsel) with respect to the execution, delivery, enforcement,
performance and administration of this Agreement, the other Loan Documents and
any such other documents (regardless of whether the Administrative Agent, any
such Other Representative or any Lender is a party to the litigation or other
proceeding giving rise thereto and regardless of whether any such litigation or
other proceeding is brought by the Borrower or any other Person), including,
without limitation, any of the foregoing relating to the violation of,
noncompliance with, or liability under, any Environmental Laws or any orders,
requirements or demands of Governmental Authorities related thereto applicable
to the operations of the Borrower, any of its Subsidiaries or any of the
facilities and properties owned, leased or operated by the Borrower or any of
its Subsidiaries (all the foregoing in this clause (d), collectively, the “indemnified

 

114

 

liabilities”), provided that the
Borrower shall not have any obligation hereunder to the Administrative Agent,
any such Other Representative or any Lender with respect to Environmental Costs
or indemnified liabilities arising from (i) the gross negligence or willful
misconduct of the Administrative Agent, any Other Representative or any such
Lender (or any of their respective directors, trustees, officers, employees,
agents, successors and assigns) or (ii) claims made or legal proceedings
commenced against the Administrative Agent, any Other Representative or any
such Lender by any securityholder or creditor thereof arising out of and based
upon rights afforded any such securityholder or creditor solely in its capacity
as such.  Notwithstanding the foregoing,
except as provided in clauses (b) and (c) above, the Borrower shall have no
obligation under this subsection 11.5 to the Administrative Agent, any
Other Representative or any Lender with respect to any tax, levy, impost, duty,
charge, fee, deduction or withholding imposed, levied, collected, withheld or
assessed by any Governmental Authority. 
The agreements in this subsection shall survive repayment of the
Loans and all other amounts payable hereunder.

 

11.6.                        Successors and Assigns; Participations and Assignments.  (a)  The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby (including
any affiliate of the Issuing Lender that issues any Letter of Credit), except
that (i) other than in accordance with subsection 8.5, none of the Loan
Parties may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Loan Party without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section.

 

(b)              (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
other than a Conduit Lender may, in the ordinary course of business and in
accordance with applicable law, assign to one or more assignees (each, an “Assignee”)
all or a portion of its rights and obligations under this Agreement (including,
without limitation, its Revolving Credit Commitment, Tranche A Term Loan
Commitment, Tranche B Term Loan Commitment and/or Loans, pursuant to an
Assignment and Acceptance, substantially in the form of Exhibit F) with the
prior written consent (such consent not to be unreasonably withheld or delayed)
of:

 

(A)                              the
Borrower, provided that no consent of any of the Borrower shall be required
for an assignment to a Lender, an affiliate of a Lender, an Approved Fund (as
defined below) or, if an Event of Default under subsection 9(a) or (f) has
occurred and is continuing, any other Person; provided  further
that if any Lender assigns all or a portion of its rights and obligations under
this Agreement to one of its affiliates in connection with or in contemplation
of the sale or other disposition of its interest in such affiliate, the
Borrower’s prior written consent shall be required for such assignment; and

 

(B)                                the
Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment

 

115

 

of (x) any Revolving Credit
Commitment to an assignee that is a Lender with a Revolving Credit Commitment
immediately prior to giving effect to such assignment or (y) all or any portion
of a Term Loan to a Lender, an affiliate of a Lender or an Approved Fund.

 

(ii)                                  Assignments
shall be subject to the following additional conditions:

 

(A)                              except
in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitments or Loans under any Facility, the amount of the Commitments
or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 (or,
in the case of the Tranche A Term Facility or the Tranche B Term Facility,
$1,000,000) unless the Borrower and the Administrative Agent otherwise consent,
provided that (1) no such consent of the Borrower shall be required if
an Event of Default under subsection 9(a) or (f) has occurred and is
continuing and (2) such amounts shall be aggregated in respect of each Lender
and its affiliates or Approved Funds, if any;

 

(B)                                the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500; and

 

(C)                                the
Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire.

 

For the purposes of this subsection 11.6, the term
“Approved Fund” has the following meaning:

 

“Approved Fund” means any
Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a
Lender, (b) an affiliate of a Lender or (c) an entity or an affiliate of an
entity that administers or manages a Lender.

 

(iii)                               Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) below, from
and after the effective date specified in each Assignment and Assumption the
Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have

 

116

 

the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of (and bound by any related
obligations under) subsections 4.10, 4.11, 4.12, 4.13 and 11.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection 11.6 shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this subsection.

 

(iv)                              The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and interest and principal amount of the Loans
and L/C Obligations owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). 
The entries in the Register shall be conclusive absent manifest error,
and the Borrower, the Administrative Agent, the Issuing Lender and the Lenders
shall treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower, the
Issuing Lender and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

 

(v)                                 Upon
its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an Assignee, the Assignee’s completed administrative
questionnaire (unless the Assignee shall already be a Lender hereunder), the processing
and recordation fee referred to in paragraph (b) of this subsection and
any written consent to such assignment required by paragraph (b) of this
subsection, the Administrative Agent shall accept such Assignment and
Assumption, record the information contained therein in the Register and give
prompt notice of such assignment and recordation to the Borrower.  No assignment shall be effective for
purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

 

(vi)                              On
or prior to the effective date of any assignment pursuant to this
subsection 11.6(b), the assigning Lender shall surrender any outstanding
Notes held by it all or a portion of which are being assigned.  Any Notes surrendered by the assigning
Lender shall be returned by the Administrative Agent to the Borrower marked
“cancelled”.

 

Notwithstanding the foregoing, no Assignee, which as of the
date of any assignment to it pursuant to this subsection 11.6(b) would be
entitled to receive any greater payment under subsection 4.10 or 4.11 than
the assigning Lender would have been entitled to receive as of such date under
such subsections with respect to the rights assigned, shall be

 

117

 

entitled to receive such payments
unless the Borrower has expressly consented in writing to waive the benefit of
this provision at the time of such assignment.

 

(c)                (i)
Any Lender other than a Conduit Lender may, in the ordinary course of its
business and in accordance with applicable law, without the consent of the
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations, (C) such Lender shall remain the holder of any such Loan for
all purposes under this Agreement and the other Loan Documents, and (D) the
Borrower, the Administrative Agent, the Issuing Lender and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that (1) requires the consent of
each Lender directly affected thereby pursuant to the proviso to the second
sentence of subsection 11.1(a) and (2) directly affects such
Participant.  Subject to paragraph
(c)(ii) of this subsection, the Borrower agrees that each Participant shall be
entitled to the benefits of (and shall have the related obligations under)
subsections 4.10, 4.11, 4.12, 4.13  and
11.5 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this subsection.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of subsection 11.7(b)
as though it were a Lender, provided such Participant shall be subject
to subsection 11.7(a) as though it were a Lender.

 

(ii)                                  No Loan Party shall be
obligated to make any greater payment under subsection 4.10 or 4.11 than
it would have been obligated to make in the absence of any participation,
unless the sale of such participation is made with the prior written consent of
the Borrower and the Borrower expressly waives the benefit of this provision at
the time of such participation.  Any
Participant that is a not incorporated under the laws of the United States of
America or a state thereof shall not be entitled to the benefits of subsection 4.11
unless such Participant complies with subsection 4.11(b) and provides the
forms and certificates referenced therein to the Lender that granted such
participation.

 

(d)                                 Any
Lender, without the consent of the Borrower or the Administrative Agent, may at
any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including,
without limitation, any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this subsection shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute (by foreclosure or otherwise) any such
pledgee or Assignee for such Lender as a party hereto.

 

(e)                                  No
assignment or participation made or purported to be made to any Assignee or
Participant shall be effective without the prior written consent of the
Borrower if it

 

118

 

would
require the Borrower to make any filing with any Governmental Authority or
qualify any Loan or Note under the laws of any jurisdiction, and the Borrower
shall be entitled to request and receive such information and assurances as it
may reasonably request from any Lender or any Assignee or Participant to
determine whether any such filing or qualification is required or whether any
assignment or participation is otherwise in accordance with applicable law.

 

(f)                                    Notwithstanding
the foregoing, any Conduit Lender may assign any or all of the Loans it may
have funded hereunder to its designating Lender without the consent of the
Borrower or the Administrative Agent and without regard to the limitations set
forth in subsection 11.6(b).  The
Borrower, each Lender and the Administrative Agent hereby confirms that it will
not institute against a Conduit Lender or join any other Person in instituting
against a Conduit Lender any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding under any state bankruptcy or similar law,
for one year and one day after the payment in full of the latest maturing
commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify,
save and hold harmless each other party hereto for any loss, cost, damage or
expense arising out of its inability to institute such a proceeding against
such Conduit Lender during such period of forbearance.  Each such indemnifying Lender shall pay in
full any claim received from the Borrower pursuant to this
subsection 11.6(f) within 30 Business Days of receipt of a certificate
from a Responsible Officer of the Borrower specifying in reasonable detail the
cause and amount of the loss, cost, damage or expense in respect of which the
claim is being asserted, which certificate shall be conclusive absent manifest
error.  Without limiting the
indemnification obligations of any indemnifying Lender pursuant to this
subsection 11.6(f), in the event that the indemnifying Lender fails timely
to compensate the Borrower for such claim, any Loans held by the relevant
Conduit Lender shall, if requested by the Borrower, be assigned promptly to the
Lender that administers the Conduit Lender and the designation of such Conduit
Lender shall be void.

 

(g)                                 If
the Borrower wishes to replace the Loans or Commitments under any Facility with
ones having different terms, it shall have the option, with the consent of the
Administrative Agent and subject to at least three Business Days’ advance
notice to the Lenders under such Facility, instead of prepaying the Loans or
reducing or terminating the Commitments to be replaced, to (i) require the
Lenders under such Facility to assign such Loans or Commitments to the
Administrative Agent or its designees and (ii) amend the terms thereof in
accordance with subsection 11.1 (with such replacement, if applicable,
being deemed to have been made pursuant to subsection 11.1(c)).  Pursuant to any such assignment, all Loans
and Commitments to be replaced shall be purchased at par (allocated among the
Lenders under such Facility in the same manner as would be required if such
Loans were being optionally prepaid or such Commitments were being optionally
reduced or terminated by the Borrower), accompanied by payment of any accrued
interest and fees thereon and any amounts owing pursuant to
subsection 4.12.  By receiving such
purchase price, the Lenders under such Facility shall automatically be deemed
to have assigned the Loans or Commitments under such Facility pursuant to the
terms of the form of Assignment and Acceptance attached hereto as Exhibit F,
and accordingly no other action by such Lenders shall be required in connection
therewith.  The provisions of this paragraph
are intended to facilitate the maintenance of the perfection and priority of
existing security interests in the Collateral during any such replacement.

 

119

 

11.7.                        Adjustments;
Set-off.  (a)  If any Lender (a “benefitted
Lender”) shall at any time receive any payment of all or part of its
Revolving Credit Loans, Tranche A Term Loans, Tranche B Term Loans or the
Reimbursement Obligations owing to it, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in
subsection 9(f), or otherwise (except pursuant to subsection 4.4,
4.13(d) or 11.6)), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other
Lender’s Revolving Credit Loans, Tranche A Term Loans, Tranche B Term Loans or
the Reimbursement Obligations, as the case may be, owing to it, or interest
thereon, such benefitted Lender shall purchase for cash from the other Lenders
an interest (by participation, assignment or otherwise) in such portion of each
such other Lender’s Revolving Credit Loans, Tranche A Term Loans, Tranche B
Term Loans or the Reimbursement Obligations, as the case may be, owing to it,
or shall provide such other Lenders with the benefits of any such collateral,
or the proceeds thereof, as shall be necessary to cause such benefitted Lender
to share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

(b)                                 In
addition to any rights and remedies of the Lenders provided by law, each Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable
law, upon the occurrence of an Event of Default under subsection 9(a) to
set-off and appropriate and apply against any amount then due and payable under
subsection 9(a) any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender or
any branch or agency thereof to or for the credit or the account of the
Borrower.  Each Lender agrees promptly
to notify the Borrower and the Administrative Agent after any such set-off and
application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such set-off and application.

 

11.8.                        Judgment.  (a)  If for the purpose of obtaining judgment in
any court it is necessary to convert a sum due hereunder in one currency into
another currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent could
purchase the first currency with such other currency on the Business Day
preceding the day on which final judgment is given.

 

(b)                                 The
obligations of the Borrower in respect of this Agreement and any Note due to
any party hereto or any holder of any bond shall, notwithstanding any judgment
in a currency (the “judgment currency”) other than the currency in which
the sum originally due to such party or such holder is denominated (the “original
currency”), be discharged only to the extent that on the Business Day
following receipt by such party or such holder (as the case may be) of any sum
adjudged to be so due in the judgment currency such party or such holder (as
the case may be) may in accordance with normal banking procedures purchase the
original currency with the judgment currency; if the amount of the original
currency so purchased is less than the

 

120

 

sum
originally due to such party or such holder (as the case may be) in the
original currency, the Borrower agrees as a separate obligation and
notwithstanding any such judgment, to indemnify such party or such holder (as
the case may be) against such loss, and if the amount of the original currency
so purchased exceeds the sum originally due to any party to this Agreement or
any holder of Notes (as the case may be), such party or such holder (as the
case may be), agrees to remit to the Borrower, such excess.  This covenant shall survive the termination
of this Agreement and payment of the Loans and all other amounts payable
hereunder.

 

11.9.                        Counterparts.  This Agreement
may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Agreement signed
by all the parties shall be delivered to the Borrower and the Administrative
Agent.

 

11.10.                  Severability.  Any provision of
this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

11.11.                  Integration.  This Agreement
and the other Loan Documents represent the entire agreement of each of the Loan
Parties party hereto, the Administrative Agent and the Lenders with respect to
the subject matter hereof, and there are no promises, undertakings,
representations or warranties by any of the Loan Parties party hereto, the
Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

11.12.                  GOVERNING
LAW.  THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

11.13.                  Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and unconditionally:

 

(a)                                  submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof;

 

(b)                                 consents
that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in
an inconvenient forum and agrees not to plead or claim the same;

 

121

 

(c)                                  agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Borrower, the applicable Lender
or the Administrative Agent, as the case may be, at the address specified in
subsection 11.2 or at such other address of which the Administrative
Agent, any such Lender and the Borrower shall have been notified pursuant
thereto;

 

(d)                                 agrees
that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and

 

(e)                                  waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this
subsection any consequential or punitive damages.

 

11.14.                  Acknowledgements.  The Borrower
hereby acknowledges that:

 

(a)                                  it
has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

 

(b)                                 neither
the Administrative Agent nor any Other Representative or Lender has any
fiduciary relationship with or duty to the Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Administrative Agent and Lenders, on the one hand, and
the Borrower, on the other hand, in connection herewith or therewith is solely
that of creditor and debtor; and

 

(c)                                  no
joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby and thereby among the
Lenders or among the Borrower and the Lenders.

 

11.15.                  WAIVER OF JURY TRIAL.  EACH OF THE
BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

11.16.                  Confidentiality.  The
Administrative Agent and each Lender agrees to keep confidential any
information (a) provided to it by or on behalf of Holding, the Borrower or any
of their respective Subsidiaries pursuant to or in connection with the Loan
Documents or (b) obtained by such Lender based on a review of the books and
records of Holding, GPI Holding, the Borrower or any of their respective
Subsidiaries; provided that nothing herein shall prevent any Lender from
disclosing any such information (i) to the Administrative Agent or any other
Lender, (ii) to any Transferee, or prospective Transferee or any creditor or
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations which
agrees to comply with the provisions of this subsection pursuant to an
instrument for the benefit of the Borrower (it being understood that each
relevant Lender shall be solely responsible for obtaining such instrument),
(iii) to its affiliates and the

 

122

 

employees, officers,
directors, agents, attorneys, accountants and other professional advisors of it
and its affiliates, provided that such Lender shall inform each such
Person of the agreement under this subsection 11.16 and take reasonable
actions to cause compliance by any such Person referred to in this clause (iii)
with this agreement (including, where appropriate, to cause any such Person to
acknowledge its agreement to be bound by the agreement under this
subsection 11.16), (iv) upon the request or demand of any Governmental
Authority having jurisdiction over such Lender or its affiliates or to the
extent required in response to any order of any court or other Governmental
Authority or as shall otherwise be required pursuant to any Requirement of Law,
provided that such Lender shall, unless prohibited by any Requirement of
Law, notify the Borrower of any disclosure pursuant to this clause (iv) as far
in advance as is reasonably practicable under such circumstances, (v) which has
been publicly disclosed other than in breach of this Agreement, (vi) in
connection with the exercise of any remedy hereunder or under any Interest Rate
Protection Agreement, (vii) in connection with periodic regulatory examinations
and reviews conducted by the National Association of Insurance Commissioners or
any Governmental Authority having jurisdiction over such Lender or its
affiliates (to the extent applicable), (viii) in connection with any litigation
to which such Lender (or, with respect to any Interest Rate Protection
Agreement, any affiliate of any Lender party thereto) may be a party, subject
to the proviso in clause (iv), and (ix) if, prior to such information having
been so provided or obtained, such information was already in the
Administrative Agent’s or a Lender’s possession on a nonconfidential basis
without a duty of confidentiality to the Borrower being violated.  Notwithstanding anything herein to the
contrary, any party subject to confidentiality obligations hereunder or under
any other related document (and any employee, representative or other agent of
such party) may disclose to any and all Persons, without limitation of any
kind, such party’s U.S. federal income tax treatment and the U.S. federal
income tax structure of the transactions contemplated by this Agreement
relating to such party and all materials of any kind (including opinions or
other tax analyses) that are provided to it relating to such tax treatment and
tax structure.  However, no such party
or any employee, representative or other agent of such party, shall disclose
any information relating to such tax treatment or tax structure to the extent
nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

 

123

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

	
  GRAPHIC PACKAGING
  INTERNATIONAL, INC.

  
	
   

  
	
  By:

  	
  /s/ Edward W. Stroetz,
  Jr.

  
	
   

  	
  Name:  Edward
  W. Stroetz, Jr.

  
	
   

  	
  Title:    Acting
  General Counsel and Secretary

  
	
   

  
	
   

  
	
  JPMORGAN CHASE BANK, as
  Administrative

  Agent, Swing Line Lender, Issuing Lender and

  Lender

  
	
   

  
	
  By:

  	
  /s/ Bruce Borden

  
	
   

  	
  Name:  Bruce
  Borden

  
	
   

  	
  Title:    Vice
  President

  
	
   

  
	
   

  
	
  DEUTSCHE BANK
  SECURITIES INC., as

  Syndication Agent

  
	
   

  
	
  By:

  	
  /s/ Martha Fitzpatrick

  
	
   

  	
  Name:  Martha
  Fitzpatrick

  
	
   

  	
  Title:    Director

  
	
   

  
	
  By:

  	
  /s/ Steven Winogred

  
	
   

  	
  Name:  Steven
  Winogred

  
	
   

  	
  Title:    Managing
  Director

  
	
   

  
	
   

  
	
  DEUTSCHE BANK TRUST
  COMPANY

  AMERICAS

  
	
   

  
	
  By:

  	
  /s/ Gregory Shefrin

  
	
   

  	
  Name:  Gregory
  Shefrin

  
	
   

  	
  Title:    Director

  

 

124

 

	
  GOLDMAN SACHS CREDIT
  PARTNERS L.P., as

  Documentation Agent and Lender

  
	
   

  
	
  By:

  	
  /s/ Robert Wagner

  
	
   

  	
  Name: 

  	
  Robert Wagner

  
	
   

  	
  Title:  

  	
  Authorized Signatory

  
	
   

  
	
   

  
	
  MORGAN STANLEY SENIOR
  FUNDING, INC., as 

  Documentation Agent and Lender

  
	
   

  	
   

  
	
  By:

  	
  /s/ Jaap L. Tonickens

  
	
   

  	
  Name: 

  	
  Jaap L. Tonickens

  
	
   

  	
  Title: 

  	
  Vice President 

  Morgan Stanley Senior Funding

  
	
   

  
	
   

  
	
  CITICORP NORTH AMERICA
  INC.

  
	
   

  
	
  By:

  	
  /s/ Edward T. Crook

  
	
   

  	
  Name: 

  	
  EDWARD T. CROOK

  
	
   

  	
  Title:  

  	
  Managing Director and
  Vice President

  
	
   

  
	
   

  
	
  CREDIT SUISSE FIRST
  BOSTON

  
	
   

  
	
  By:

  	
  /s/ Robert Hetu

  
	
   

  	
  Name:  

  	
  Robert Hetu

  
	
   

  	
  Title:  

  	
  Director

  
	
   

  	
   

  
	
  By:

  	
  /s/ S. William Fox

  
	
   

  	
  Name:  

  	
  S. William Fox

  
	
   

  	
  Title:  

  	
  Director

  
						

 

125

 

	
  Bank of America, NA

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ William H. Powell

  
	
   

  	
  Name:  

  	
  William H. Powell

  
	
   

  	
  Title:  

  	
  Senior Vice President

  
	
   

  
	
   

  
	
  General Electric
  Capital Corporation

  Managing Agent

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ Kenneth L. Gayson,
  Jr.

  
	
   

  	
  Name:  

  	
  Kenneth L. Gayson, Jr.

  
	
   

  	
  Title:  

  	
  Vice President

  
	
   

  
	
   

  
	
  LaSalle Bank National
  Association

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ Henry J. Munez

  
	
   

  	
  Name:  

  	
  Henry J. Munez

  
	
   

  	
  Title:  

  	
  First Vice President

  
	
   

  
	
   

  
	
  ARK CLO 2000-1, LIMITED

  
	
  Name of Lender

  
	
  

  By:

  	
  

  /s/ Patriarch Partners, LLC, its Collateral Manager

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Lynn Tilton

  
	
   

  	
  Name:

  	
  Lynn Tilton

  
	
   

  	
  Title:

  	
  Manager

  
							

 

126

 

	
  Protective Life
  Insurance Company

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ Richard J. Bielen

  
	
   

  	
  Name:

  	
  Richard J. Bielen

  
	
   

  	
  Title:

  	
  SVP, CIO &
  Treasurer

  
	
   

  
	
   

  
	
  NATEXIS BANQUES
  POPULAIRES

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ William J. Burke

  
	
   

  	
  Name:

  	
  William J. Burke

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  
	
  By:

  	
  /s/ Yosmery D. Ortega

  
	
   

  	
  Name:

  	
  Yosmery D. Ortega

  
	
   

  	
  Title:

  	
  Associate

  
	
   

  
	
   

  
	
  Metropolitan Life
  Insurance Company

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ Susan M. Garrett

  
	
   

  	
  Name:

  	
  Susan M. Garrett

  
	
   

  	
  Title:

  	
  Director

  
	
   

  
	
   

  
	
  EAST WEST BANK

  
	
  Name of Lender

  
	
   

  
	
  By:

  	
  /s/ Nancy A. Moore

  
	
   

  	
  Name:

  	
  Nancy A. Moore

  
	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

127

 

	
  KZH Riverside LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH SOLEIL LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH SOLEIL-2 LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH CRESCENT-2 LLC, as
  a Lender

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH CRESCENT-3 LLC, as
  a Lender

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
					

 

128

 

	
  KZH CYPRESSTREE-1 LLC,
  as a Lender

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH ING-2 LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH PONDVIEW LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH STERLING LLC

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  
	
   

  
	
  KZH WATERSIDE LLC, as a
  Lender

  
	
   

  
	
  By:

  	
  /s/ Hi Hua

  
	
   

  	
  Name:

  	
  Hi Hua

  
	
   

  	
  Title:

  	
  Authorized Agent

  

 

129

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]