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Exhibit 4.3    
    

 
 

AMENDED AND RESTATED
  CERTIFICATE OF INCORPORATION OF
  AMERON INTERNATIONAL CORPORATION    
    

        FIRST:    The name of this corporation is: Ameron International Corporation. 

        SECOND:    The
name and address of the registered agent of the corporation in the State of Delaware is: 

The
Corporation Trust Company

1209 Orange Street

Wilmington, Delaware 19801

County of New Castle 

        THIRD:    The
purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. 

        FOURTH:    1.
The total number of shares of stock which the corporation shall have authority to issue is Twenty Five Million (25,000,000), consisting of Twenty Four Million
(24,000,000) shares of Common Stock, par value Two dollars and 50/100 ($2.50) per share (the "Common Stock"), and One Million (1,000,000) shares of Preferred Stock, par value one Dollar ($1.00) per
share (the "Preferred Stock"). 

        2.
Shares of Preferred stock may be issued from time to time in one or more classes or series, each of which class or series shall have such distinctive designation or title as shall be
fixed by resolution of the Board of Directors of the Corporation (the "Board of Directors") prior to the issuance of any shares thereof. Each such class or series of Preferred Stock shall have such
voting powers, full or limited, or no voting powers, and such preferences and relative, participating, optional or other special rights and
such qualifications, limitations or restrictions thereof, as shall be stated in such resolution providing for the issuance of such class or series of Preferred Stock as may be adopted from time to
time by the Board of Directors prior to the issuance of any shares thereof pursuant to the authority hereby expressly vested in it, all in accordance with the laws of the State of Delaware. The Board
of Directors is further authorized to increase or decrease.(but not below the number of shares of such class or series then outstanding) the number of shares of any class or series subsequent to the
issuance of shares of that class or series. 

        FIFTH:    The
name and mailing address of the incorporator of the corporation is as follows: 

	Name
 
	 	Mailing Address

	R. H. Jenner	 	4700 Ramona Boulevard

Monterey Park, California 91754

        SIXTH:    New
bylaws may be adopted or the bylaws may be amended or repealed by a vote of eighty (80) percent of the outstanding stock of the corporation entitled to
vote thereon. Bylaws may also be adopted, amended or repealed by the Board of Directors as provided or permitted by law; however, any bylaw amendment adopted by the Board of Directors increasing or
reducing the authorized number of directors shall require a resolution adopted by the affirmative vote of not less than two-thirds of the directors. 

        SEVENTH:    The
number of directors which shall constitute the whole Board of Directors of the Corporation shall be specified in the bylaws of the Corporation, subject to the
provisions of Article SIXTH hereof, and this Article SEVENTH. The board is divided into three classes, Class I, Class II and Class III. Such classes shall be as nearly equal in
number of directors as possible. Each director shall serve for a term ending on the third annual meeting following the annual meeting at which such director was elected; provided, however, that the
directors first elected to Class I shall serve for a term ending at the annual meeting to be held in 1987, the directors first elected to Class II shall serve for a 

 

term
ending at the annual meeting to be held in 1988, and the directors first elected to Class III shall serve for a term ending at the annual meeting to be held in 1989. The foregoing
notwithstanding, each director shall serve until his successor shall have been duly elected and qualified, unless he shall resign, become disqualified, disabled or shall otherwise be removed. 

        At
each annual election, the directors chosen to succeed those whose terms then expire shall be of the same class as the directors they succeed, unless, by reason of any intervening
changes in the authorized number of directors the Board shall designate one or more directorships whose term then expires as directorships of another class in order more nearly to achieve equality of
number of directors among the classes. 

        Notwithstanding
the rule that the three classes shall be as nearly equal in number of directors.as possible, in the event of any change in the authorized number of directors. each
director then continuing to serve as such shall nevertheless continue as a director of the class of which he is a member until the expiration of his current term, or his prior death, resignation or
removal. 

        In
any election of directors of the Corporation, a holder of any class or series of stock then entitled to vote in such election shall be entitled to as many votes as shall
equal:(i) the number of votes which (except for this provision as to cumulative voting) he would be entitled to cast for the election of directors with respect to his shares of stock multiplied
by (ii) the number of directors to be elected in the election in which his class or series of shares is entitled to vote, and each stockholder may cast all of such votes for a single director
or for any two or more of them as he may see fit. 

        EIGHTH:    Notwithstanding
any other vote which may be required under applicable law, and in addition thereto, the affirmative vote of holders of net less than eighty percent
(80%) of the total voting power of all outstanding shares of voting stock of this corporation shall be required to approve: (a) any merger (other than a merger with a 90% stockholder of this
Corporation effected in accordance with Section 253 of the Delaware General Corporation Law), consolidation, combination or reorganization of this corporation or any of its subsidiaries with
any other corporation if such other corporation is a substantial Stockholder (as defined below) or an Associate (as defined below) of a Substantial Stockholder, or (b) the sale, lease or
exchange by this corporation or any of its subsidiaries of all or a Substantial Part (as defined below) of its assets to or with a Substantial Stockholder or an Associate thereof, or (c) the
issuance or delivery of any stock or other securities of this corporation or any of its subsidiaries in exchange or payment for any cast; or other properties or assets of such Substantial Stockholder
or Associate thereof or securities of such Substantial Stockholder or Associate thereof, or (d) any reverse stock split of, or exchange of securities, cash or other properties or assets for,
any outstanding securities of this corporation or any of its subsidiaries or liquidation or dissolution of this Corporation or any of its subsidiaries, in any such case in which a Substantial
Stockholder—or an Associate thereof receives or retains any securities, cash or other
properties or assets whether or not different from those received or retained by any holder of securities of the same class as held by such Substantial Stockholder or Associate thereof; provided,
however, that the foregoing shall not apply to any such merger, consolidation, combination, reorganization, sale, lease or exchange, or for issuance or delivery of stock or other securities, or
reverse stock split, exchange, liquidation or dissolution which, is approved by. resolution adopted by a majority of the Continuing Directors (as defined below) of this corporation, nor shall it apply
to any such transaction solely between this corporation and another corporation controlled by this corporation and none of the securities of which is owned before or after such transaction directly or
indirectly by a Substantial Stockholder or Associate thereof. 

        As
used in this Certificate of Incorporation, the following terms shall have the respective meanings set forth below. 

          (i)  "Substantial
Stockholder" shall mean any person or group of two or more persons who have agreed to act together for the purpose of acquiring, holding, voting or
disposing of securities who singly or together with its or their Associates own or owns beneficially, in the aggregate, 

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directly
or indirectly, securities representing ten percent (10%) or more of the voting power of all shares of voting stock of this corporation; provided, however, what the term "Substantial
Stockholder" shall not include any benefit plan or trust established by this corporation or any of its subsidiaries for the benefit of the employees of this corporation and/or any of its subsidiaries
or any trustee, agent or other representative of any such plan or trust; 

         (ii)  An
"Affiliate" of any specified person is any person (other than this corporation and any corporation controlled by this corporation and none of the voting securities
of which is owned directly or indirectly by a Substantial Stockholder or any Associate thereof) who directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with, the person specified; 

        (iii)  The
term "control" shall mean the possession, directly or indirectly, of the power to direct or sauce the direction of the management and policies of a person, whether
through the ownership of voting securities, by contract or otherwise; 

        (iv)  "Substantial
Part" of the assets shall mean assets of this corporation or any of its subsidiaries comprising more than ten percent (10%) of the book value or fair
market value of the total assets of this corporation and its subsidiaries taken as a whole; 

         (v)  An
"Associate" of a Substantial Stockholder is any person who is, or was within a period of five years prior to the time of determination, an officer, director,
employee, partner, trustee, agent, member of the immediate family or Affiliate of the Substantial Stockholder or of an Affiliate thereof; 

        (vi)  The
term "person" shall include a corporation, partnership, trust or government or political subdivision thereof, an individual, an estate, an association or any
unincorporated organization; 

       (vii)  The
term "member of the immediate family" shall mean any of a person's spouse, parents, children, siblings, mothers- and fathers-in-law,
sons- and daughters-in-law, and brothers- and sisters-in-law; 

      (viii)  The
term "Continuing Director" shall mean, as to any Substantial Stockholder, any member of the Board of Directors of this corporation who (a) is unaffiliated
with and is not the Substantial Stockholder and (b) was a member of the Board of Directors of this corporation prior to April 1, 1986 or thereafter became a member of the Board of
Directors of this corporation prior to the time the Substantial Stockholder became a Substantial Stockholder, and any successor of a Continuing Director who is recommended to succeed a Continuing
Director by a majority of Continuing Directors then on-the Board. 

        In
the context of any transaction described in this Article EIGHTH, the Board of Directors acting by majority vote shall have the exclusive power and duty to determine, on the basis of
information known to them after reasonable inquiry, (i) whether a person is a Substantial Stockholder, (ii) whether a person is an Affiliate or Associate of a Substantial Stockholder,
(iii) whether a person is a Continuing Director and (iv) whether a portion of the assets of this corporation constitutes a Substantial Part of such assets. Any such determination of the
Directors shall be final and binding in the absence of bad faith, fraud or gross negligence by such Directors. 

        NINTH:    No
action shall be taken by the stockholders except at an annual or special meeting of stockholders. No action shall be taken by stockholders by written consent. 

        TENTH:    Special
meetings of the stockholders of the corporation for any purpose or purposes may be called at any time by the Board of Directors, or by a majority of the
members of the Board of Directors, or by a committee of the Board of Directors which has been duly designated by the Board of Directors and whose powers and authority, as provided in a resolution of
the Board of Directors or in 

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the
by-laws of the corporation, include "the power to call such meetings, but such special meetings may not be called by any other person or persons; provided, however, that, if and to the
extent that any special meeting of stockholders may be called by any other person or persons specified in any provisions of this Certificate of Incorporation or any amendment thereto, then such
special meeting may also be called by the person or persons, in the manner, at the times and for the purposes so specified. 

        ELEVENTH:    1.
No director shall be personally liable to the Corporation or any stockholder for monetary damages for breach of fiduciary duty as a director, except for any
matter in respect of which such director shall be liable under Section 174 of the Delaware Corporation Law or any amendment thereto or successor provision thereof or shall be liable by reason
that, in addition to any and all other requirements for such liability, such person (i) shall have breached such person's duty of loyalty to the Corporation or its stockholders, (ii) in
acting or in failing to act, shall not have acted in good faith or shall have acted in a manner involving intentional misconduct or a knowing violation of law or (iii) shall have derived an
improper personal benefit from the transaction in respect of which such breach of fiduciary duty occurred. Neither the amendment nor repeal of Section 1 of this Article ELEVENTH shall eliminate
or reduce the effect of Section 1 of this Article ELEVENTH in respect of any matter occurring, or any cause of action, suit or claim that, but for Section 1 of this Article ELEVENTH
would accrue or arise, prior to such amendment or repeal. If the Delaware Corporation Law is amended after approval by the stockholders of this Article ELEVENTH to authorize corporate action further
eliminating or limiting the personal liability of directors, then the liability of the director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Delaware
Corporation Law, as so amended from: time to time. 

        2.
(i) Each person who was or is a party, or is threatened to be made a party, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (hereinafter a "proceeding"), by reason of the fact that such person, or a person of whom such person is the legal representative, is or was a director or officer of the Corporation
or is or was serving at the request of the Corporation as a director or officer of another.:corporation or in any capacity with respect to an employee benefit plan maintained or sponsored by the,
Corporation, shall be indemnified and held harmless by the Corporation to the fullest extent permissible under the Delaware Corporation Law, as the same exists or may hereafter be amended, against all
expenses, liabilities and losses (including attorneys' fees, judgments, fines, excise taxes pursuant to the Employee Retirement Income Security Act of 1974 or penalties and amounts paid or to be paid
in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director, officer, employee or agent
and shall inure to the benefit of his or her heirs, executors and administrators: provided, however, that, except as provided in paragraph (ii)
hereof, the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was
authorized by the Board of Directors of the Corporation. The right to indemnification conferred in this Section shall be a contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final disposition; provided however, that, if the Delaware Corporation Law so
requires, the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such
person while a director or officer, including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding,;hall be made only upon delivery to the
Corporation of an undertaking, by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately he determined that such director or officer is not entitled to be
indemnified under this Section or otherwise. The Corporation may, by action of its Board of Directors, provide indemnification to employees and agents of the Corporation with the same scope and effect
as the foregoing indemnification of directors and officers. 

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         (ii)  If
a claim under paragraph (i) of this Section is not paid in full by the Corporation within thirty days after a written claim has been received by the
Corporation, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled
to be paid also the expense of prosecuting such claim. It shall be a defense to any such action (other than action brought to enforce a claim for expenses incurred in defending any proceeding in
advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation) that the claimant has not met the standard of conduct required under Delaware
Corporation Law for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the corporation. Neither the failure of the Corporation
(including its Board of Directors, independent legal counsel, or its - stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is
proper in the circumstances because he or she has met the applicable standard of conduct set forth in the Delaware Corporation, Law, nor an actual determination by the Corporation (including its Board
of Directors, independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the
claimant has not met the applicable standard of conduct. 

        (iii)  The
right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Section shall not be
exclusive of any other right which any person may have or hereafter acquire under any statute, provision of this Certificate of Incorporation, by-law, agreement, vote of stockholders or
disinterested directors or otherwise. 

        (iv)  The
Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation,
partnership, joint venture, trust or other enterprise against any such expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense,
liability or loss under the Delaware Corporation Law. 

        TWELFTH:    This
corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter
prescribed by statute, and all rights conferred on stockholders herein are granted subject to this reservation. Notwithstanding the foregoing, the provisions set forth in Articles SIXTH, SEVENTH,
EIGHTH, NINTH, TENTH and this Article TWELFTH may not be repealed or amended in any respect unless such repeal or amendment is approved by the affirmative vote of the holders of not less than eighty
percent (80%) of the total voting power of all outstanding shares of voting stock of this corporation and no provision may be added to this Certificate of Incorporation permitting the removal of
directors of its corporation otherwise than for cause, sinless such provision is so approved. 

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Exhibit 4.3

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF AMERON INTERNATIONAL CORPORATION<PAGE>

                                                                     Exhibit 4.1

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

                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of March 23, 2004

                                  by and among

                           NORSKE SKOG CANADA LIMITED

                                       and

               THE GUARANTORS listed on the signature page herein

                                       and

                              MERRILL LYNCH & CO.,

                      MERRILL LYNCH, PIERCE, FENNER & SMITH
                                  INCORPORATED,

                                       and

        THE OTHER INITIAL PURCHASERS listed on the signature page herein

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

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made
and entered into as of March 23, 2004 by and among Norske Skog Canada Limited, a
Canadian corporation (the "COMPANY"), certain of its subsidiaries listed on the
signature pages herein, (the "GUARANTORS" and, together with the Company, the
"ISSUERS") Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MERRILL LYNCH"), and each of the other Initial Purchasers named
in Schedule A (collectively, the "INITIAL PURCHASERS") of the Purchase Agreement
(as defined below), for whom Merrill Lynch is acting as representative (in such
capacity, the "REPRESENTATIVE").

                  This Agreement is made pursuant to the Purchase Agreement
dated as of March 10, 2004 by and among the Company, the Guarantors and the
Initial Purchasers (the "PURCHASE AGREEMENT"), which provides for, among other
things, the sale by the Company to the Initial Purchasers of an aggregate of
U.S.$250,000,000 principal amount of the Company's 7 3/8% Senior Notes due 2014
(the "NOTES") which are to be unconditionally guaranteed by the Guarantors on a
senior basis (the "GUARANTEE" and, together with the Notes, the "SECURITIES") as
described in the Purchase Agreement. In order to induce the Initial Purchasers
to enter into the Purchase Agreement, the Issuers have agreed to provide to the
Initial Purchasers and their direct and indirect transferees the registration
rights set forth in this Agreement. The execution and delivery of this Agreement
is a condition to the closing under the Purchase Agreement.

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

                  1.  DEFINITIONS. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

                  "ADDITIONAL AMOUNTS" shall have the meaning set forth in the
         Indenture.

                  "ADDITIONAL INTEREST" shall have the meaning set forth in
         Section 2(e)(i) hereof.

                  "ADVICE" shall have the meaning set forth in Section 3(i)
         hereof.

                  "APPLICABLE PERIOD" shall have the meaning set forth in
         Section 3(s) hereof.

                  "BUSINESS DAY" shall mean a day that is not a Saturday, a
         Sunday, or a day on which banking institutions in New York, New York or
         Vancouver, Canada are required to be closed.

                  "CANADIAN SECURITIES LAWS" shall have the meaning set forth in
         Section 3(r) hereof.

<PAGE>

                                      -2-

                   "COMPANY" shall have the meaning set forth in the preamble to
         this Agreement and also includes the Company's successors and permitted
         assigns.

                  "CT" shall mean CT Corporation System, a Delaware corporation.

                  "DEPOSITARY" shall mean The Depository Trust Company or any
         other depositary appointed by the Company; PROVIDED, HOWEVER, that such
         depositary must have an address in the Borough of Manhattan, in the
         City of New York.

                  "EFFECTIVENESS PERIOD" shall have the meaning set forth in
         Section 2(b)(ii) hereof.

                  "EFFECTIVENESS TARGET DATE" shall have the meaning set forth
         in Section 2(e)(i) hereof.

                  "EVENT DATE" shall have the meaning set forth in Section
         2(e)(ii) hereof.

                  "EXCHANGE ACT" shall mean the United States Securities
         Exchange Act of 1934, as amended.

                  "EXCHANGE OFFER" shall mean the exchange offer by the Issuers
         of Exchange Securities for Securities pursuant to Section 2(a) hereof.

                  "EXCHANGE OFFER REGISTRATION" shall mean a registration under
         the Securities Act effected pursuant to Section 2(a) hereof.

                  "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean an exchange
         offer registration statement on an appropriate form under the
         Securities Act, and all amendments and supplements to such registration
         statement, in each case including the Prospectus contained therein, all
         exhibits thereto and all materials incorporated by reference therein.

                  "EXCHANGE PERIOD" shall have the meaning set forth in Section
         2(a)(ii) hereof.

                  "EXCHANGE SECURITIES" shall mean the 7 3/8% Senior Notes due
         2014, issued by the Issuers pursuant to and entitled to the benefits
         of, the Indenture (which shall be qualified under the TIA) and
         registered pursuant to an effective Registration Statement under the
         Securities Act, to be offered to Holders of Securities in exchange for
         Securities pursuant to the Exchange Offer, which shall be identical to
         such Securities (except that the transfer restrictions thereon shall be
         eliminated).

                  "GUARANTORS" shall have the meaning set forth in the preamble
         to this Agreement and also includes their successors and permitted
         assigns.

<PAGE>

                                      -3-

                  "HOLDER" shall mean each of the Initial Purchasers, for so
         long as they own any Transfer Restricted Securities, each successor,
         assign or transferee of an Initial Purchaser who becomes a registered
         owner of Transfer Restricted Securities under the Indenture and each
         Participating Broker-Dealer that holds Exchange Securities for so long
         as such Participating Broker-Dealer is required to deliver a prospectus
         meeting the requirements of the Securities Act in connection with any
         resale of such Exchange Securities.

                  "INDENTURE" shall mean the Indenture relating to the
         Securities dated as of March 23, 2004 among the Issuers and Wells Fargo
         Bank, National Association, as trustee, as the same may be amended from
         time to time in accordance with the terms thereof.

                  "INITIAL PURCHASERS" shall have the meaning set forth in the
         preamble to this Agreement.

                  "INSPECTORS" shall have the meaning set forth in Section 3(m)
         hereof.

                  "ISSUE DATE" shall mean the date on which the Securities are
         originally issued.

                  "ISSUERS" shall have the meaning set forth in the preamble to
         this Agreement.

                  "MAJORITY HOLDERS" shall mean, subject to Section 7(m), the
         Holders of a majority of the aggregate principal amount of outstanding
         Transfer Restricted Securities.

                  "NASD" shall mean the National Association of Securities
         Dealers, Inc.

                  "PARTICIPATING BROKER-DEALER" shall mean any of the Initial
         Purchasers or other broker-dealer that holds Transfer Restricted
         Securities acquired for its own account as a result of market-making
         activities or other trading activities and that will be the beneficial
         owner (as defined in Rule 13d-3 under the Exchange Act) of the Exchange
         Securities to be received in the Exchange Offer.

                  "PERSON" shall mean an individual, partnership, corporation,
         limited liability company, trust or unincorporated organization, or a
         government or agency or political subdivision thereof.

                  "PRIVATE EXCHANGE" shall have the meaning set forth in Section
         2(a)(iii) hereof.

                  "PRIVATE EXCHANGE SECURITIES" shall have the meaning set forth
         in Section 2(a)(iii) hereof.

<PAGE>

                                      -4-

                  "PROSPECTUS" shall mean the prospectus included in a
         Registration Statement, including any preliminary prospectus, and any
         such prospectus as amended or supplemented by any prospectus
         supplement, including a prospectus supplement with respect to the terms
         of the offering of any portion of the Transfer Restricted Securities
         covered by a Shelf Registration Statement, and by all other amendments
         and supplements to a prospectus, including post-effective amendments,
         and in each case including all materials incorporated by reference
         therein.

                  "PURCHASE AGREEMENT" shall have the meaning set forth in the
         preamble to this Agreement.

                  "RECORDS" shall have the meaning set forth in Section 3(m)
         hereof.

                  "REGISTRATION DEFAULT" shall have the meaning set forth in
         Section 2(e)(i).

                  "REGISTRATION EXPENSES" shall mean any and all expenses
         incident to performance of or compliance by the Issuers with this
         Agreement, including without limitation: (i) all applicable SEC, stock
         exchange or NASD registration and filing fees, (ii) all fees and
         expenses incurred in connection with compliance with state securities
         or blue sky laws (including reasonable fees and disbursements of one
         counsel for any Holder that is an Initial Purchaser in connection with
         blue sky qualification of any of the Exchange Securities or Transfer
         Restricted Securities) and compliance with the rules of the NASD, (iii)
         all applicable expenses incurred by the Issuers in preparing or
         assisting in preparing, word processing, printing and distributing any
         Registration Statement, any Prospectus and any amendments or
         supplements thereto, and in preparing or assisting in preparing any
         other documents relating to the performance of and compliance with this
         Agreement, (iv) the fees and disbursements of counsel for the Issuers
         and of the independent certified public accountants of the Issuers,
         including the expenses of any "cold comfort" letters required by or
         incident to such performance or compliance with this Agreement, (v) the
         fees and expenses of the Trustee, and any exchange agent or custodian,
         (vi) all fees and expenses incurred in connection with the listing, if
         any, of any of the Transfer Restricted Securities on any securities
         exchange or exchanges, if the Company, in its discretion, elects to
         make any such listing, (vii) all rating agency fees, if any, (viii) the
         reasonable fees and expenses of one counsel up to $75,000, if any,
         designated in writing by the Majority Holders to act as counsel for the
         Holders of the Transfer Restricted Securities in connection with a
         Shelf Registration Statement and (ix) any fees and disbursements to be
         paid by the Issuers or sellers of securities and the fees and expenses
         of any special experts retained by the Issuers in connection with any
         Shelf Registration Statement; but excluding fees of counsel to the
         Holders (other than as set forth in (ii) and (viii) above) and
         underwriting discounts and commissions and

<PAGE>

                                      -5-

         transfer taxes, if any, relating to the sale or disposition of Transfer
         Restricted Securities by a Holder.

                  "REGISTRATION STATEMENT" shall mean any registration statement
         (including, without limitation, the Exchange Offer Registration
         Statement and the Shelf Registration Statement) of the Issuers which
         covers any of the Transfer Restricted Securities pursuant to the
         provisions of this Agreement, and all amendments and supplements to any
         such Registration Statement, including post-effective amendments, in
         each case including the Prospectus contained therein, all exhibits
         thereto and all material incorporated by reference therein.

                  "REPRESENTATIVE" shall have the meaning set forth in the
         preamble to this Agreement.

                  "SEC" shall mean the United States Securities and Exchange
         Commission.

                  "SECURITIES" shall have the meaning set forth in the preamble
         to this Agreement.

                  "SECURITIES ACT" shall mean the United States Securities Act
         of 1933, as amended.

                  "SHELF REGISTRATION" shall mean a registration effected
         pursuant to Section 2(b) hereof.

                  "SHELF REGISTRATION EVENT" shall have the meaning set forth in
         Section 2(b)(i) hereof.

                  "SHELF REGISTRATION STATEMENT" shall mean a "shelf"
         registration statement of the Issuers relating to a "shelf" offering in
         accordance with Rule 415 of the Securities Act, or any similar rule
         that may be adopted by the SEC, pursuant to the provisions of Section
         2(b) hereof which covers all of the Transfer Restricted Securities, on
         an appropriate form under the Securities Act, and all amendments and
         supplements to such registration statement, including post-effective
         amendments, in each case including the Prospectus contained therein,
         all exhibits thereto and all material incorporated by reference
         therein.

                  "TAXES" shall have the meaning set forth in the Indenture.

                  "TIA" shall mean the Trust Indenture Act of 1939, as amended.

                  "TRANSFER RESTRICTED SECURITIES" shall mean each Security and
         each Private Exchange Security, if issued; PROVIDED, HOWEVER, that each
         Security or Private

<PAGE>

                                      -6-

         Exchange Security, as the case may be, shall cease to be a Transfer
         Restricted Security when (i) with respect to a Security only, such
         Security has been exchanged by a person other than a Participating
         Broker-Dealer in the Exchange Offer for an Exchange Security which is
         entitled to be resold to the public by the Holder thereof without
         complying with the prospectus delivery requirements of the Securities
         Act, (ii) with respect to a Security only, following the exchange by a
         Participating Broker-Dealer in the Exchange Offer of a Security for an
         Exchange Security, such Exchange Security is sold to a purchaser who
         receives from such Participating Broker-Dealer on or prior to the date
         of such sale a copy of the Prospectus contained in the Exchange Offer
         Registration Statement, as amended or supplemented, (iii) such Security
         or Private Exchange Security, as the case may be, has been effectively
         registered under the Securities Act and disposed of in accordance with
         the Shelf Registration Statement, (iv) such Security or Private
         Exchange Security, as the case may be, is distributed to the public
         pursuant to Rule 144 under the Securities Act (or any similar provision
         then in force, but not Rule 144A under the Securities Act), (v) such
         Security or Private Exchange Security, as the case may be, shall have
         been otherwise transferred by the holder thereof and a new security not
         bearing a legend restricting further transfer shall have been delivered
         by the Issuers and subsequent disposition of such new security shall
         not require registration or qualification under the Securities Act or
         any similar state law then in force, or (vi) such Security or Private
         Exchange Security, as the case may be, ceases to be outstanding.

                  "TRUSTEE" shall mean the trustee with respect to the
         Securities under the Indenture.

                  2. REGISTRATION UNDER THE SECURITIES ACT.

         (a) EXCHANGE OFFER. (i) To the extent not prohibited by any applicable
law or applicable policy of the SEC, the Issuers shall, for the benefit of the
Holders, at the Company's cost, (A) prepare and, as soon as practicable but not
later than 120 days after the Issue Date, file with the SEC an Exchange Offer
Registration Statement on an appropriate form under the Securities Act covering
the offer by the Issuers to the Holders to exchange all of the Securities for a
like principal amount of Exchange Securities, (B) use their best efforts to
cause such Exchange Offer Registration Statement to be declared effective under
the Securities Act by the SEC not later than the date which is 180 days after
the Issue Date, (C) use their best efforts to keep such Registration Statement
effective until the closing of the Exchange Offer and (D) use their best efforts
to commence the Exchange Offer and, on or prior to 240 days after the Issue
Date, issue Exchange Securities in exchange for all Securities properly tendered
prior thereto in the Exchange Offer. Upon the effectiveness of the Exchange
Offer Registration Statement, the Issuers shall promptly commence the Exchange
Offer, it being the objective of such Exchange Offer to enable each Holder
eligible and electing to exchange Securities for Exchange Securities (assuming
that such Holder (A) is not

<PAGE>

                                      -7-

an affiliate of the Issuers within the meaning of Rule 405 under the Securities
Act or, if such Holder is an affiliate, that it will comply with the
registration and prospectus delivery requirements of the Securities Act to the
extent applicable, (B) is not a broker-dealer tendering Transfer Restricted
Securities acquired directly from the Issuers for its own account, (C) acquired
the Exchange Securities in the ordinary course of such Holder's business and (D)
has no arrangements or understandings with any Person to participate in the
Exchange Offer for the purpose of distributing (within the meaning of the
Securities Act) the Exchange Securities) and to transfer such Exchange
Securities from and after their receipt without any limitations or restrictions
on transfer under the Securities Act and under state securities or blue sky
laws.

          (ii) In connection with the Exchange Offer, the Issuers shall:

          (A) after the effectiveness of the Exchange Offer Registration
     Statement, mail as promptly as practicable to each Holder a copy of the
     Prospectus forming part of the Exchange Offer Registration Statement,
     together with an appropriate letter of transmittal and related documents;

          (B) keep the Exchange Offer open for acceptance for a period of 30
     calendar days after the date notice thereof is mailed to the Holders (or
     longer if required by applicable law) (such period referred to herein as
     the "EXCHANGE PERIOD");

          (C) utilize the services of the Depositary for the Exchange Offer;

          (D) permit Holders to withdraw tendered Securities at any time prior
     to 5:00 p.m. (New York time) on the last Business Day of the Exchange
     Period by sending to the institution specified in the notice, a telegram,
     telex, facsimile transmission or letter setting forth the name of such
     Holder, the principal amount of Securities delivered for exchange, and a
     statement that such Holder is withdrawing such Holder's election to have
     such Securities exchanged;

          (E) notify each Holder that any Securities not tendered or withdrawn
     will remain outstanding and continue to accrue interest but will not retain
     any rights under this Agreement (except in the case of the Initial
     Purchasers and Participating Broker-Dealers as provided herein); and

          (F) otherwise comply in all respects with all applicable laws relating
     to the Exchange Offer.

          (iii) If, prior to consummation of the Exchange Offer the Initial
Purchasers hold any Securities acquired by them and having the status of an
unsold allotment in the initial distribution, the Issuers upon the request of
any Initial Purchaser shall, simultaneously with the delivery of the Exchange
Securities in the Exchange Offer, issue and deliver to such

<PAGE>

                                      -8-

Initial Purchaser in exchange (the "PRIVATE EXCHANGE") for the Securities held
by such Initial Purchaser, a like principal amount of debt securities of the
Company, guaranteed by the Guarantors, issued pursuant to, and entitled to the
benefits of, the Indenture and identical to the Exchange Securities, except that
such securities shall bear appropriate transfer restrictions (the "PRIVATE
EXCHANGE SECURITIES").

         (iv) The Exchange Securities and the Private Exchange Securities shall
be issued under (A) the Indenture or (B) an indenture identical in all material
respects to the Indenture and which, in either case, has been qualified under
the TIA or is exempt from such qualification and shall provide that the Exchange
Securities shall not be subject to the transfer restrictions set forth in the
Indenture. The Indenture or such indenture shall provide that the Exchange
Securities, the Private Exchange Securities and the Securities shall vote and
consent together on all matters as one class and that none of the Exchange
Securities, the Private Exchange Securities or the Securities shall have the
right to vote or consent as a separate class on any matter. The Private Exchange
Securities shall be of the same series as, and the Company shall seek to cause
the CUSIP Service Bureau to issue the same CUSIP numbers for the Private
Exchange Securities as for the Exchange Securities issued pursuant to the
Exchange Offer; provided that the Company shall not have any liability under
this Agreement solely as a result of such Private Exchange Securities not having
the same CUSIP number as the Exchange Securities.

         (v) The Exchange Offer and the Private Exchange shall not be subject to
any conditions other than (A) in the reasonable opinion of counsel to the
Company, the Exchange Offer, or Private Exchange, as the case may be, does not
violate applicable law or any applicable policy of the SEC, (B) no action or
proceeding shall have been instituted or threatened in any court or by any
governmental agency which, in the judgment of the Issuers, would reasonably be
expected to impair the ability of the Issuers to proceed with the Exchange Offer
or the Private Exchange nor shall any material adverse development have occurred
in any such action or proceeding with respect to the Issuers, (C) all
governmental approvals which the Issuers deem reasonably necessary for the
consummation of the Exchange Offer or Private Exchange shall have been obtained
and (D) the due tendering of Transfer Restricted Securities in accordance with
the terms of the Exchange Offer.

         (vi) As soon as practicable after the close of the Exchange Offer
and/or the Private Exchange, as the case may be, the Issuers shall:

          (A) accept for exchange all Securities or portions thereof properly
     tendered and not validly withdrawn pursuant to the Exchange Offer or the
     Private Exchange; and

          (B) deliver, or cause to be delivered, to the Trustee for cancellation
     all Securities or portions thereof so accepted for exchange by the Issuers,
     and issue, and cause the Trustee under the Indenture to promptly
     authenticate and deliver to each

<PAGE>

                                      -9-

     Holder, a new Exchange Security or Private Exchange Security, as the case
     may be, representing the same indebtedness, and for greater certainty,
     equal in principal amount to the principal amount of the Securities
     surrendered by such Holder and accepted for exchange.

         (vii) To the extent not prohibited by any law or applicable policy of
the SEC, the Issuers shall use their best efforts to complete the Exchange Offer
as provided above, and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws in connection with
the Exchange Offer. Each Holder of Securities who wishes to exchange such
Securities for Exchange Securities in the Exchange Offer will be required to
make certain customary representations in connection therewith, including
representations that (A) such Holder is not an affiliate of any of the Issuers
within the meaning of Rule 405 under the Securities Act, or if it is an
affiliate, that it will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (B) it is not a
broker-dealer tendering Transfer Restricted Securities acquired directly from
the Issuers for its own account, (C) any Exchange Securities to be received by
it will be acquired in the ordinary course of business and (D) it has no
arrangement or understanding with any Person to participate in the distribution
(within the meaning of the Securities Act) of the Exchange Securities. Each
Participating Broker-Dealer will be required to acknowledge that it will deliver
the Prospectus included in the Exchange Offer Registration Statement in
connection with the resale of Exchange Securities to the extent it is subject to
the prospectus delivery requirements of the SEC. The Company shall inform the
Initial Purchasers of the names and addresses of the Holders to whom the
Exchange Offer is made, and the Initial Purchasers shall have the right to
contact such Holders and otherwise facilitate the tender of Securities in the
Exchange Offer.

         (viii) Upon consummation of the Exchange Offer in accordance with this
Section 2(a), (A) the provisions of this Agreement shall continue to apply,
modified as necessary, solely with respect to Transfer Restricted Securities
that are Private Exchange Securities, Exchange Securities held by Participating
Broker-Dealers and Transfer Restricted Securities entitled to a Shelf
Registration pursuant to the first paragraph of Section 2(b) hereof and (B) the
Company shall have no further obligation to register any Transfer Restricted
Securities other than the registration of Transfer Restricted Securities
pursuant to Section 2(b) hereof.

         (b) SHELF REGISTRATION. (i) In the event that (A) filing the Exchange
Offer Registration Statement would not be permitted by applicable law or SEC
policy, (B) the Exchange Offer is not consummated within 240 days after the
Issue Date or (C) any Holder of Securities notifies the Company within 20
Business Days after the commencement of the Exchange Offer that (1) due to a
change in applicable law or SEC policy it is not entitled to participate in the
Exchange Offer, (2) due to a change in applicable law or SEC policy it may not
resell the Exchange Securities to be acquired by it in the Exchange Offer to the
public

<PAGE>

                                      -10-

without delivering a prospectus and the prospectus contained in the Exchange
Offer Registration Statement is not appropriate or available for such resales by
such Holder or (3) it is a broker-dealer and owns Securities acquired directly
from the Company or an affiliate of the Company or (D) the Holders of a majority
of the Securities may not resell the Exchange Securities to be acquired by them
in the Exchange Offer to the public without restriction under the Securities Act
and without restriction under applicable blue sky or state securities laws (any
of the events specified in (A)-(D) being a "SHELF REGISTRATION EVENT"), then the
Issuers shall, at the Company's cost, use their best efforts to file as promptly
as practicable after the date of such Shelf Registration Event and, in any
event, prior to the later of (1) 240 days after the Issue Date or (2) 30 days
after such filing obligation arises, and use their best efforts to cause the
Shelf Registration Statement to be declared effective by the SEC on or prior to
60 days from the date the Shelf Registration Statement was first filed. No
Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in any Shelf Registration pursuant to this Agreement
unless and until such Holder furnishes to the Company in writing such
information as the Company may, after conferring with counsel with regard to
information relating to Holders that would be required by the SEC to be included
in such Shelf Registration Statement or Prospectus included therein, reasonably
request for inclusion in any Shelf Registration Statement or Prospectus included
therein. Each Holder as to which any Shelf Registration is being effected agrees
to furnish to the Company all information with respect to such Holder necessary
to make any information previously furnished to the Company by such Holder not
materially misleading.

         (ii) The Issuers agree to use their best efforts to keep the Shelf
Registration Statement continuously effective until the second anniversary of
the effective date of the Shelf Registration Statement (subject to extension
pursuant to Section 3(i) hereof) (or such shorter period that will terminate
when all of the Transfer Restricted Securities covered by such Shelf
Registration Statement have been sold pursuant thereto or cease to be
outstanding or otherwise cease to be Transfer Restricted Securities) (the
"EFFECTIVENESS PERIOD"). The Issuers shall not permit any securities other than
Transfer Restricted Securities to be included in the Shelf Registration. The
Company further agrees, if necessary, to supplement or amend the Shelf
Registration Statement, if required by the rules, regulations or instructions
applicable to the registration form used by the Issuers for such Shelf
Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registrations, and the Company agrees to
furnish to the Holders of Transfer Restricted Securities copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

         (c) EXPENSES. The Company shall pay all Registration Expenses in
connection with any registration pursuant to Section 2(a) or 2(b) hereof. Each
Holder shall pay all expenses of its counsel (other than as expressly agreed
otherwise in this Agreement), all underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of such Holder's
Transfer Restricted Securities pursuant to the Shelf Registration Statement.

<PAGE>

                                      -11-

         (d) EFFECTIVE REGISTRATION STATEMENT. (i) An Exchange Offer
Registration Statement pursuant to Section 2(a) hereof or a Shelf Registration
Statement pursuant to Section 2(b) hereof will not be deemed to have become
effective unless it has been declared effective by the SEC; PROVIDED, HOWEVER,
that if, after it has been declared effective, the offering of Transfer
Restricted Securities pursuant to an Exchange Offer Registration Statement or
Shelf Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or court,
such Registration Statement will be deemed not to have been effective during the
period of such interference, until the offering of Transfer Restricted
Securities may legally resume.

         (ii) The Issuers will be deemed not to have used their best efforts to
cause the Exchange Offer Registration Statement or the Shelf Registration
Statement, as the case may be, to become, or to remain, effective during the
requisite period if they voluntarily take any action that would result in any
such Registration Statement not being declared effective or in the Holders of
Transfer Restricted Securities covered thereby not being able to exchange or
offer and sell such Transfer Restricted Securities during that period, unless
such action (A) is required by applicable law, or (B) is taken by the Issuers in
good faith and for valid business reasons (not including the avoidance of the
Issuers' obligations hereunder), including a material corporate transaction, so
long as the Issuers promptly comply with the requirements of Section 3(i), if
applicable; PROVIDED that the foregoing shall not affect the rights of the
Holders to receive Additional Interest pursuant to Section 2(e) hereof.

         (iii) During any 365-day period, the Company may suspend the
availability of a Shelf Registration Statement and the use of a related
Prospectus, as provided in Section 3(i) of this Agreement, for periods up to 45
consecutive days (except for such 45-day period immediately prior to maturity of
the Securities), but no more than an aggregate 60 days during any 365-day
period, if (A) any event shall occur as a result of which it shall be necessary,
in the good faith determination of the board of directors of the Company, to
amend the Shelf Registration Statement or amend or supplement any prospectus or
prospectus supplement thereunder in order that each such document not include
any untrue statement of material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading and (B), so long as the Issuers without unreasonable
delay prepare and furnish to each of the Holders of the Transfer Restricted
Securities a reasonable number of copies of the supplemented or amended
prospectus contemplated by Section 3(i) hereof.

         (e) ADDITIONAL INTEREST. (i) In the event that (A) the applicable
Registration Statement is not filed with the SEC on or prior to the date
specified herein for such filing, (B) the applicable Registration Statement is
not declared effective by the SEC on or prior to the date specified herein for
such effectiveness (the "EFFECTIVENESS TARGET DATE"), (C) the Exchange Offer is
required to be consummated hereunder and the Issuers fail to consummate the
Exchange Offer within 60 days of the Effectiveness Target Date with respect to
the

<PAGE>

                                      -12-

Exchange Offer Registration Statement or (D) the applicable Registration
Statement is filed and declared effective prior to the Effectiveness Target Date
but thereafter ceases to be effective or usable during the periods specified
herein except in accordance with Section 2(d)(iii) hereof without being
immediately succeeded by an additional Registration Statement covering the
Transfer Restricted Securities which has been filed and declared effective (each
such event referred to in clauses (A) through (D), a "REGISTRATION DEFAULT"),
then the Issuers shall pay, jointly and severally, additional interest to each
Holder of Transfer Restricted Securities as to which such Registration Default
relates ("ADDITIONAL INTEREST"), with respect to the first 90-day period (or
portion thereof) while one or more Registration Defaults are continuing
immediately following the occurrence of such Registration Default or
Registration Defaults, at a rate equal to 0.25% per annum of the principal
amount of the Securities. The amount of Additional Interest will increase by an
additional 0.25% per annum of the principal amount of the Securities for each
subsequent 90-day period (or portion thereof) while one or more Registration
Defaults are continuing until all Registration Defaults have been cured, up to
an aggregate maximum amount of 1.00% per annum of the principal amount of the
Securities. Additional Interest shall be computed based on the actual number of
days elapsed during which any such Registration Default exists. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. Following the
cure of a Registration Default, the accrual of Additional Interest with respect
to such Registration Default will cease.

         (ii) The Company shall notify the Trustee within four Business Days
after each and every date on which an event occurs in respect of which
Additional Interest is required to be paid (an "EVENT DATE"). Additional
Interest shall be paid in arrears by depositing with the Trustee, in trust, for
the benefit of the Holders of Transfer Restricted Securities, on or before the
applicable semiannual interest payment date, immediately available funds in sums
sufficient to pay the Additional Interest then due. The Additional Interest due
shall be payable in arrears on each interest payment date to the record Holder
of Securities entitled to receive the interest payment to be paid on such date
as set forth in the Indenture. Each obligation to pay Additional Interest shall
be deemed to accrue from and including the day following the applicable Event
Date.

         (f) SPECIFIC ENFORCEMENT. Without limiting the remedies available to
the Initial Purchasers and the Holders, the Issuers acknowledge that any failure
by the Issuers to comply with their obligations under Section 2(a) and Section
2(b) hereof may result in material irreparable injury to the Initial Purchasers
or the Holders for which there is no adequate remedy at law, that it would not
be possible to measure damages for such injuries precisely and that, in the
event of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Issuers' obligations under
Section 2(a) and Section 2(b) hereof; PROVIDED, HOWEVER, that without limiting
the ability of the Initial Purchasers or any Holder to specifically enforce such
obligations, in the case of any terms of this Agreement for which Additional
Interest pursuant to Section 2(e) is expressly

<PAGE>

                                      -13-

provided as a remedy for a violation of such terms, such Additional Interest
shall be the sole monetary damages for such violation.

         3. REGISTRATION PROCEDURES. In connection with the obligations of the
Issuers with respect to the Registration Statements pursuant to Sections 2(a)
and 2(b) hereof, the Issuers shall use their best efforts to:

          (a) prepare and file with the SEC a Registration Statement or
     Registration Statements as prescribed by Sections 2(a) and 2(b) hereof
     within the relevant time period specified in Section 2 hereof on the
     appropriate form under the Securities Act, which form (i) shall be selected
     by the Company, (ii) shall, in the case of a Shelf Registration, be
     available for the sale of the Transfer Restricted Securities by the selling
     Holders thereof and (iii) shall comply as to form in all material respects
     with the requirements of the applicable form and include all financial
     statements required by the SEC to be filed therewith; and use their best
     efforts to cause such Registration Statement to become effective and remain
     effective in accordance with Section 2 hereof. The Issuers shall not file
     any Registration Statement or Prospectus or any amendments or supplements
     thereto in respect of which the Holders must provide information for
     inclusion therein without the Holders being afforded an opportunity to
     review such documentation a reasonable time prior to the filing of such
     document or if the Majority Holders or such Participating Broker-Dealer, as
     the case may be, their counsel or the managing underwriters, if any, shall
     reasonably object;

          (b) subject to Section 2(d)(iii), prepare and file with the SEC such
     amendments and post-effective amendments to each Registration Statement as
     may be necessary under applicable law to keep such Registration Statement
     effective for the Effectiveness Period or the Applicable Period, as the
     case may be; and cause each Prospectus to be supplemented by any required
     prospectus supplement and as so supplemented to be filed pursuant to Rule
     424 (or any similar provision then in force) under the Securities Act, and
     comply in all material respects with the provisions of the Securities Act,
     the Exchange Act and the rules and regulations promulgated thereunder
     applicable to it with respect to the disposition of all securities covered
     by each Registration Statement during the Effectiveness Period or the
     Applicable Period, as the case may be, in accordance with the intended
     method or methods of distribution by the selling Holders thereof described
     in this Agreement (including sales by any Participating Broker-Dealer);

          (c) in the case of a Shelf Registration, (i) notify each Holder of
     Transfer Restricted Securities, at least three Business Days prior to
     filing, that a Shelf Registration Statement with respect to the Transfer
     Restricted Securities is being filed and advising such Holder that the
     distribution of Transfer Restricted Securities will be made in accordance
     with the method selected by the Majority Holders participating in

<PAGE>

                                      -14-

     the Shelf Registration; (ii) furnish to each Holder of Transfer Restricted
     Securities, without charge, as many copies of each Prospectus, and any
     amendment or supplement thereto and such other documents as such Holder may
     reasonably request, in order to facilitate the disposition of the Transfer
     Restricted Securities; and (iii) subject to Section 3(i) hereof hereby
     consent to the use of the Prospectus or any amendment or supplement thereto
     by each of the selling Holders of Transfer Restricted Securities in
     accordance with applicable law in connection with the offering and sale of
     the Transfer Restricted Securities covered by and in the manner described
     in such Prospectus or any amendment or supplement thereto;

          (d) in the case of a Shelf Registration, use their best efforts to
     register or qualify, as may be required by applicable law, the Transfer
     Restricted Securities under all applicable state securities or "blue sky"
     laws of such jurisdictions by the time the applicable Registration
     Statement is declared effective by the SEC as any Holder of Transfer
     Restricted Securities covered by a Registration Statement shall reasonably
     request in advance of such date of effectiveness, and do any and all other
     acts and things which may be reasonably necessary or advisable to enable
     such Holder to consummate the disposition in each such jurisdiction of such
     Transfer Restricted Securities owned by such Holder; PROVIDED, HOWEVER,
     that the Issuers shall not be required to (i) qualify as a foreign
     corporation or as a dealer in securities in any jurisdiction where it would
     not otherwise be required to qualify but for this Section 3(d), or (ii)
     take any action which would subject it to general service of process or
     taxation in any such jurisdiction where it is not then so subject.

          (e) in the case of (i) a Shelf Registration or (ii) Participating
     Broker-Dealers who have notified the Company that they will be utilizing
     the Prospectus contained in the Exchange Offer Registration Statement as
     provided in Section 3(s) hereof, notify each Holder of Transfer Restricted
     Securities, or such Participating Broker-Dealers, as the case may be, and
     their counsel, if any, promptly and confirm such notice in writing (if such
     notice was not originally given in writing) (A) when a Registration
     Statement has become effective and when any post-effective amendments and
     supplements thereto become effective, (B) of any request by the SEC or any
     state securities authority for amendments and supplements to a Registration
     Statement or Prospectus or for additional information after the
     Registration Statement has become effective, (C) of the issuance by the SEC
     or any state securities authority of any stop order suspending the
     effectiveness of a Registration Statement or the initiation of any
     proceedings for that purpose, (D) if any of the Issuers receive any
     notification with respect to the suspension of the qualification of the
     Transfer Restricted Securities to be sold by any Participating
     Broker-Dealer for offer or sale in any jurisdiction or the initiation of
     any proceeding for such purpose, (E) of the happening of any event or the
     failure of any event to occur or the discovery of any facts or otherwise
     during the Effectiveness Period or the Applicable Period (including as
     contemplated in

<PAGE>

                                      -15-

     Section 2(d)(iii) hereof), as the case may be, which makes any statement of
     a material fact made in such Registration Statement or the related
     Prospectus untrue or which causes such Registration Statement or Prospectus
     to omit to state a material fact necessary to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading and (F) of the Company's reasonable determination that a
     post-effective amendment to the Registration Statement would be
     appropriate;

          (f) obtain the withdrawal of any order suspending the effectiveness of
     a Registration Statement as soon as practicable;

          (g) in the case of a Shelf Registration, furnish to counsel for the
     Holders of Transfer Restricted Securities, without charge, at least one
     conformed copy of each Registration Statement relating to such Shelf
     Registration and any post-effective amendment thereto (without documents
     incorporated therein by reference or exhibits thereto, unless requested);

          (h) in the case of a Shelf Registration, cooperate with the selling
     Holders of Transfer Restricted Securities to facilitate the timely
     preparation and delivery of certificates not bearing any restrictive
     legends representing Securities covered by such Shelf Registration to be
     sold and relating to the subsequent transfer of such Securities; and cause
     such Securities to be in such denominations (consistent with the provisions
     of the Indenture) and registered in such names as the selling Holders may
     reasonably request at least three Business Days prior to the closing of any
     sale of Transfer Restricted Securities;

          (i) in the case of (i) a Shelf Registration or (ii) a Participating
     Broker-Dealer who has notified the Company that it will be utilizing the
     Prospectus contained in the Exchange Offer Registration Statement, upon the
     occurrence of any circumstance contemplated by Section 3(e)(B), 3(e)(C),
     3(e)(E) or 3(e)(F) hereof, the Issuers shall be deemed to have used their
     best efforts to keep the applicable Registration Statement effective if the
     Issuers shall use their best efforts to prepare, file and have declared
     effective (if applicable) as soon as practicable a supplement or
     post-effective amendment to a Registration Statement or the related
     Prospectus or any document incorporated therein by reference or file any
     other required document so that, as thereafter delivered to the purchasers
     of the Transfer Restricted Securities, such Prospectus at the time of such
     delivery will not contain any untrue statement of a material fact or omit
     to state a material fact necessary to make the statements therein, in the
     light of the circumstances under which they were made, not misleading; and
     to notify each Holder or Participating Broker-Dealer, as applicable, to
     suspend use of the Prospectus as promptly as practicable after the
     occurrence of such an event; and such Holder or Participating
     Broker-Dealer, as the case may be, will forthwith discontinue

<PAGE>

                                      -16-

     disposition of Transfer Restricted Securities or Exchange Securities, as
     the case may be, pursuant to a Registration Statement until such Holder's
     or Participating Broker-Dealer's, as the case may be, receipt of the copies
     of the supplemented or amended Prospectus contemplated hereof or until it
     is advised in writing (the "ADVICE") by the Company that the use of the
     applicable Prospectus may be resumed; PROVIDED, HOWEVER that upon such
     suspension the period during which such Registration Statement to be
     maintained effective pursuant to this Agreement shall be extended by the
     number of days in the period from and including the date of the giving of
     such notice to and including the date when the Company shall have made
     available to the Holders or Participating Broker-Dealers, as the case may
     be, (A) copies of the supplemented or amended Prospectus necessary to
     resume such dispositions or (B) the Advice;

          (j) obtain a CUSIP number for all Exchange Securities or Private
     Exchange Securities or Securities, as the case may be, not later than the
     effective date of a Registration Statement, and provide the Trustee with
     printed certificates for the Exchange Securities or the Private Exchange
     Securities, as the case may be, in a form eligible for deposit with the
     Depositary;

          (k) (i) cause the Indenture or the indenture provided in Section 2(a)
     to be qualified under the TIA in connection with the registration of the
     Transfer Restricted Securities, (ii) cooperate with the Trustee or any
     trustee under such indenture and the Holders to effect such changes to the
     Indenture or such indenture as may be required for the Indenture or such
     indenture to be so qualified in accordance with the terms of the TIA and
     (iii) execute, and use its best efforts to cause the Trustee or any trustee
     under such indenture to execute, all documents as may be required to effect
     such changes, and all other forms and documents required to be filed with
     the SEC to enable the Indenture or such indenture to be so qualified in a
     timely manner;

          (l) in the case of a Shelf Registration, enter into customary
     agreements (including underwriting agreements) and take all other customary
     and appropriate actions as are reasonably requested by the Majority Holders
     in order to expedite or facilitate the disposition of such Transfer
     Restricted Securities, and in such connection, whether or not an
     underwriting agreement is entered into and whether or not the registration
     is an underwritten registration,

               (i) make such representations and warranties to Holders of such
          Transfer Restricted Securities and the underwriters (if any) with
          respect to the business of the Company and its subsidiaries as then
          conducted and the Registration Statement, Prospectus and documents, if
          any, incorporated or deemed to be incorporated by reference therein,
          in each case, as are

<PAGE>

                                      -17-

          customarily made by issuers to underwriters in underwritten offerings,
          and confirm the same if and when requested by the Majority Holders;

               (ii) obtain opinions of counsel to the Company in form and
          substance reasonably satisfactory to the managing underwriters (if
          any) and the Holders of a majority in principal amount of the Transfer
          Restricted Securities covered by such Registration Statement,
          addressed to each selling Holder and the managing underwriters
          covering the matters customarily covered in opinions requested in
          underwritten offerings;

               (iii) obtain "cold comfort" letters and updates thereof from the
          independent auditors of the Company (and, if necessary, any other
          independent auditors of any subsidiary of the Company or of any
          business acquired by the Company for which financial statements and
          financial data are, or are required to be, included in the
          Registration Statement), addressed to the Company and the underwriters
          (if any) with copies to each of the selling Holders of Transfer
          Restricted Securities, such letters to be in customary form and
          covering matters of the type customarily covered in "cold comfort"
          letters in connection with underwritten offerings and such other
          matters as reasonably requested by such selling Holder and the
          Underwriters; and

               (iv) if an underwriting agreement is entered into, the same shall
          contain indemnification provisions and procedures substantially
          identical to those set forth in Section 4 hereof (or such other
          provisions and procedures acceptable to the Company and the Holders of
          a majority in aggregate principal amount of Transfer Restricted
          Securities covered by such Registration Statement and the managing
          underwriters) with respect to all parties to be indemnified pursuant
          to said Section (including, without limitation, such selling Holders
          and such underwriters). The above shall be done at each closing in
          respect of the sale of Transfer Restricted Securities, or as and to
          the extent required thereunder;

          (m) if (i) a Shelf Registration is filed pursuant to Section 2(b) or
     (ii) a Prospectus contained in an Exchange Offer Registration Statement
     filed pursuant to Section 2(a) is required to be delivered under the
     Securities Act by any Participating Broker-Dealer who seeks to sell
     Exchange Securities during the Applicable Period, make available for
     inspection by one counsel representing the selling Holders of Transfer
     Restricted Securities and each such person who would be an "underwriter" as
     a result of either (A) the sale by such person of Securities covered by
     such Shelf Registration Statement or (B) the sale during the Applicable
     Period by a Participating Broker-Dealer of Exchange Securities (provided
     that a Participating Broker-Dealer shall not be deemed to be an underwriter
     solely as a result of it being required to

<PAGE>

                                      -18-

     deliver a prospectus in connection with any resale of Exchange Securities)
     and any attorney, accountant or other agent retained by any such person
     (collectively, the "INSPECTORS"), at the offices where normally kept,
     during reasonable business hours, all financial and other records,
     pertinent corporate documents and properties of the Issuers (collectively,
     the "RECORDS") as shall be reasonably necessary to enable them to fulfill
     their due diligence responsibilities, and cause the officers, directors and
     employees of the Issuers to supply all information in each case reasonably
     requested by any such Inspector in connection with such Registration
     Statement. Records which the Company determines, in good faith, to be
     confidential and any Records which they notify the Inspectors are
     confidential shall not be disclosed by the Inspectors to any other Person
     unless (1) the disclosure of such Records is necessary to avoid or correct
     a material misstatement or omission in such Registration Statement, (2) the
     disclosure is necessary in connection with any action, suit or proceeding,
     (3) the release of such Records is ordered pursuant to a subpoena or other
     order from a court of competent jurisdiction or (4) the information in such
     Records has been made generally available to the public. Each such Holder
     and each such Participating Broker-Dealer and their Inspectors and
     representatives will be required to agree that all information obtained by
     it as a result of such inspections shall be kept confidential and shall not
     be used by any such person as the basis for any market transactions in the
     securities of the Issuers unless and until such is made generally available
     to the public or for any purpose except as contemplated hereby. Each
     selling Holder of such Transfer Restricted Securities and each such
     Participating Broker-Dealer will be required to further agree that it will,
     upon learning that disclosure of such Records is sought under (1) or (2)
     above, give notice to the Company and allow the Company and its
     subsidiaries at their own expense to undertake appropriate action to
     prevent disclosure of the Records deemed confidential;

          (n) comply with all applicable rules and regulations of the SEC so
     long as the provisions of this Agreement are applicable and make generally
     available to its security holders earnings statements satisfying the
     provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
     (or any similar rule promulgated under the Securities Act) no later than 45
     days after the end of any 12-month period (or 90 days after the end of any
     12-month period if such period is a fiscal year) (i) commencing at the end
     of any fiscal quarter in which Transfer Restricted Securities are sold to
     underwriters in a firm commitment or best efforts underwritten offering and
     (ii) if not sold to underwriters in such an offering, commencing on the
     first day of the first fiscal quarter of the Company after the effective
     date of a Registration Statement, which statements shall cover said
     12-month periods;

          (o) upon consummation of an Exchange Offer or a Private Exchange,
     obtain a customary opinion of counsel to the Issuers addressed to the
     Trustee for the benefit of all Holders of Transfer Restricted Securities
     participating in the Exchange

<PAGE>

                                      -19-

     Offer or the Private Exchange, as the case may be, and which includes an
     opinion that (i) the Issuers have duly authorized, executed and delivered
     the Exchange Securities and Private Exchange Securities, as applicable, and
     (ii) each of the Exchange Securities or the Private Exchange Securities, as
     the case may be, constitute a legal, valid and binding obligation of the
     Issuers, enforceable against the Issuers in accordance with its respective
     terms (in each case, with customary exceptions);

          (p) if an Exchange Offer or a Private Exchange is to be consummated,
     upon proper delivery of Securities by Holders to the Company (or to such
     other Person as directed by the Company) in exchange for the Exchange
     Securities or the Private Exchange Securities, as the case may be, the
     Company shall mark, or cause to be marked, on such Securities and on the
     books of the Trustee, the Note Registrar (as defined in the Indenture) and,
     if necessary, the Depositary, delivered by such Holders that such
     Securities are being canceled in exchange for the Exchange Securities or
     the Private Exchange Securities, as the case may be; but in no event shall
     such Securities be marked as paid or otherwise satisfied solely as a result
     of being exchanged for Exchange Securities or Private Exchange Securities
     in the Exchange Offer or the Private Exchange, as the case may be;

          (q) cooperate with each seller of Transfer Restricted Securities
     covered by any Registration Statement participating in the disposition of
     such Transfer Restricted Securities and one counsel acting on behalf of all
     such sellers in connection with the filings, if any, required to be made
     with the NASD;

          (r) take all other steps necessary to effect the registration of the
     Transfer Restricted Securities covered by a Registration Statement
     contemplated hereby and to comply with any requirements under applicable
     Canadian securities laws, rules, regulations and policies ("CANADIAN
     SECURITIES LAWS") in respect of the registration and exchange of Transfer
     Restricted Securities under the Registration Statement; and

          (s) in the case of the Exchange Offer Registration Statement (A)
     include in the Exchange Offer Registration Statement a section entitled
     "Plan of Distribution," which section shall be reasonably acceptable to
     Merrill Lynch on behalf of the Initial Purchasers, and which shall contain
     a summary statement of the positions taken or policies made by the staff of
     the SEC with respect to the potential "underwriter" status of any
     Participating Broker-Dealer, including a statement that any such
     Participating Broker-Dealer who receives Exchange Securities for Transfer
     Restricted Securities pursuant to the Exchange Offer may be deemed a
     statutory underwriter and must deliver a prospectus meeting the
     requirements of the Securities Act in connection with any resale of such
     Exchange Securities, (B) furnish to each Participating Broker-Dealer who
     has delivered to the Company the notice referred to in Section 3(e),
     without charge, as many copies of each Prospectus included in the Exchange
     Offer

<PAGE>

                                      -20-

     Registration Statement, including any preliminary prospectus, and any
     amendment or supplement thereto, as such Participating Broker-Dealer may
     reasonably request, (C) subject to Section 3(i), consent hereby to the use
     of the Prospectus forming part of the Exchange Offer Registration Statement
     or any amendment or supplement thereto in accordance with applicable law,
     by any Person subject to the prospectus delivery requirements of the SEC,
     including all Participating Broker-Dealers, in connection with the sale or
     transfer of the Exchange Securities covered by and in the manner described
     in such Prospectus or any amendment or supplement thereto, (D) use their
     best efforts to keep the Exchange Offer Registration Statement effective
     and to amend and supplement the Prospectus contained therein in order to
     permit such Prospectus to be lawfully delivered by all Persons subject to
     the prospectus delivery requirements of the Securities Act for such period
     of time as such Persons must comply with such requirements in order to
     resell the Exchange Securities; PROVIDED, HOWEVER, that such period shall
     terminate on the earlier of 180 days from the date on which the Exchange
     Offer is declared effective or the date on which all Participating
     Broker-Dealers and the Initial Purchasers have sold all Exchange Notes held
     by them (or such later date if extended pursuant to Section 3(i) hereof)
     (the "APPLICABLE PERIOD"), and (E) include in the transmittal letter or
     similar documentation to be executed by an exchange offeree in order to
     participate in the Exchange Offer (1) the following provision:

                  "If the exchange offeree is a broker-dealer holding Securities
                  acquired for its own account as a result of market-making
                  activities or other trading activities, it will deliver a
                  prospectus meeting the requirements of the Securities Act in
                  connection with any resale of Exchange Securities received in
                  respect of such Securities pursuant to the Exchange Offer";

     and (2) a statement to the effect that by a broker-dealer executing a
     transmittal letter or similar documentation containing the provision
     described in clause (E) (1) and by delivering a Prospectus in connection
     with the exchange of Transfer Restricted Securities, such broker-dealer
     will not be deemed to admit that it is an underwriter within the meaning of
     the Securities Act;

          (t) in the case of any Exchange Offer Registration Statement, deliver,
     upon request, to the Trustee and to Participating Broker-Dealers upon
     consummation of the Exchange Offer (i) an opinion of counsel in a form
     reasonably satisfactory to the Initial Purchaser, and (ii) an officers'
     certificate containing certifications substantially similar to those set
     forth in Section 5(c) of the Purchase Agreement and such additional
     certifications as are customarily delivered in a public offering of debt
     securities.

<PAGE>

                                      -21-

     Each seller of Transfer Restricted Securities as to which any registration
is being effected shall be obligated to furnish to the Company such information
regarding such seller and the proposed distribution of such Transfer Restricted
Securities as the Company may from time to time reasonably request in writing.
The Company may exclude from such registration the Transfer Restricted
Securities of any seller who fails to furnish such information within a
reasonable time (not to exceed 15 Business Days) after receiving such request
and shall be under no obligation to compensate any such seller for any lost
income, interest or other opportunity forgone, or any liability incurred, as a
result of the Company's decision to exclude such seller.

     4. INDEMNIFICATION AND CONTRIBUTION. (a) Each of the Issuers shall jointly
and severally indemnify and hold harmless the Initial Purchasers, each Holder,
each Participating Broker-Dealer, each underwriter who participates in an
offering of Transfer Restricted Securities, their respective affiliates, and
each Person, if any, who controls any of such parties within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, as follows:

          (i) against any and all loss, liability, claim, damage and expense
     whatsoever, joint or several, as incurred, arising out of any untrue
     statement or alleged untrue statement of a material fact contained in any
     Registration Statement (or any amendment or supplement thereto), covering
     Transfer Restricted Securities or Exchange Securities, including all
     documents incorporated therein by reference, or the omission or alleged
     omission therefrom of a material fact required to be stated therein or
     necessary to make the statements therein not misleading or arising out of
     any untrue statement or alleged untrue statement of a material fact
     contained in any Prospectus (or any amendment or supplement thereto) or the
     omission or alleged omission therefrom of a material fact necessary in
     order to make the statements therein, in the light of the circumstances
     under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, joint or several, as incurred, to the extent of the aggregate
     amount paid in settlement of any litigation, or any investigation or
     proceeding by any governmental agency or body, commenced or threatened, or
     of any claim whatsoever based upon any such untrue statement or omission,
     or any such alleged untrue statement or omission; PROVIDED that (subject to
     Section 4(d) below) any such settlement is effected with the prior written
     consent of the Company; and

          (iii) against any and all expenses whatsoever, as incurred
     (including reasonable fees and disbursements of one counsel (in addition
     to any local counsel as may be necessary) chosen as provided in Section
     4(c) below) reasonably incurred in investigating, preparing or defending
     against any litigation, or any investigation or proceeding by any court
     or governmental agency or body, commenced or threatened,

<PAGE>

                                      -22-

          or any claim whatsoever based upon any such untrue statement or
          omission, or any such alleged untrue statement or omission, to the
          extent that any such expense is not paid under subparagraph (i) or
          (ii) of this Section 4(a);

PROVIDED, HOWEVER, that this indemnity does not apply to any loss, liability,
claim, damage or expense to the extent arising out of an untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
the Initial Purchasers, such Holder, such Participating Broker-Dealer or any
underwriter with respect to such Initial Purchasers, Holder, Participating
Broker-Dealer or underwriter, as the case may be, expressly for use in the
Registration Statement (or any amendment or supplement thereto) or any
Prospectus (or any amendment or supplement thereto).

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold
harmless the Issuers, the Initial Purchasers, any underwriter and the other
selling Holders and each of their respective directors and each Person, if any,
who controls any of the Issuers, the Initial Purchasers, any underwriter or any
other selling Holder within the meaning of Section 15 of the Act or Section 20
of the Exchange Act, against any and all loss, liability, claim, damage and
expense whatsoever of the kind described in the indemnity contained in Section
4(a) hereof, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendment or supplement thereto) or any Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Issuers by or on behalf of such selling Holder with
respect to such Holder expressly for use in the Registration Statement (or any
supplement thereto), or any such Prospectus (or any amendment thereto);
PROVIDED, HOWEVER, that, in the case of the Shelf Registration Statement, no
such Holder shall be liable for any claims hereunder in excess of the amount of
net proceeds received by such Holder from the sale of Transfer Restricted
Securities pursuant to the Shelf Registration Statement.

     (c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. In the case of parties indemnified
pursuant to Section 4(a) above, counsel to all the indemnified parties shall be
selected by the Initial Purchasers, and, in the case of parties indemnified
pursuant to Section 4(b) above, counsel to all the indemnified parties shall be
selected by the Issuers. An indemnifying party may participate at its own
expense in the defense of any such action; PROVIDED, HOWEVER, that counsel to
the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party. In no event shall the

<PAGE>

                                      -23-

indemnifying parties be liable for fees and expenses of more than one counsel
(in addition to any local counsel as may be necessary) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any litigation, or any investigation
or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever in respect of which indemnification or contribution is or
could be sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes a full and unconditional release of each indemnified party
from all liability arising out of such litigation, investigation, proceeding or
claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

     (d) If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for reasonable fees and
expenses of counsel, then such indemnifying party agrees that it shall be liable
for any settlement of the nature contemplated by Section 4(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45
days after receipt by such indemnifying party of the aforesaid request, (ii)
such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.
Notwithstanding the immediately preceding sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, an indemnifying party shall
not be liable for any settlement of the nature contemplated by Section 4(a)(ii)
effected without its consent if such indemnifying party (i) reimburses such
indemnified party in accordance with such request to the extent it reasonably
considers such request to be reasonable and (ii) provides written notice to the
indemnified party substantiating the unpaid balance as unreasonable, in each
case prior to the date of such settlement.

     (e) (i) In order to provide for just and equitable contribution in
circumstances under which any of the indemnity provisions set forth in this
Section 4 is for any reason held to be unavailable to the indemnified parties
although applicable in accordance with its terms, the Issuers and the Holders,
as applicable, shall contribute to the aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by such indemnity agreement
incurred by the Issuers and the Holders; PROVIDED, HOWEVER, that no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person that was
not guilty of such fraudulent misrepresentation. As between the Issuers and the
Holders, such parties shall contribute to such aggregate losses, liabilities,
claims, damages and expenses of the nature contemplated by such indemnity
agreement in such proportion as shall be appropriate to

<PAGE>

                                      -24-

reflect the relative fault of the Issuers, on the one hand, and the Holders of
Transfer Restricted Securities, the Participating Broker-Dealer or Initial
Purchasers, as the case may be, on the other hand, in connection with the
statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

         (ii) The relative fault of the Issuers, on the one hand, and the
Holders of Transfer Restricted Securities, the Participating Broker-Dealer or
the Initial Purchasers, as the case may be, on the other hand, shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Issuers, or by the Holder
of Transfer Restricted Securities, the Participating Broker-Dealer or the
Initial Purchasers, as the case may be, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

         (iii) Notwithstanding the provisions of this Section 4, no Holder shall
be required to contribute any amount in excess of the amount by which the net
proceeds received by such Holder from the sale of Transfer Restricted Securities
pursuant to the Shelf Registration Statement exceeds the amount of any damages
which such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

         (iv) The Issuers and the Holders of the Transfer Restricted Securities
and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 4.

         (v) For purposes of this Section 4, each affiliate of any Person, if
any, who controls a Holder of Transfer Restricted Securities, the Initial
Purchasers or a Participating Broker-Dealer within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act shall have the same rights
to contribution as such other Person, and each director of the Issuers, each
affiliate of the Issuers, each executive officer of the Issuers who signed the
Registration Statement, and each Person, if any, who controls the Issuers within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act shall have the same rights to contribution as the Issuers.

         5. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No Holder may
participate in any underwritten registration hereunder unless such Holder (i)
agrees to sell such Holder's Transfer Restricted Securities on the basis
provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (ii) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting

<PAGE>

                                      -25-

arrangements. The Issuers shall be under no obligation to compensate any Holder
for lost income, interest or other opportunity foregone, or other liability
incurred, as a result of the Issuers' decision to exclude such Holder from any
underwritten registration if such Holder has not complied with the provisions of
this Section 5 in all material respects following 15 Business Days' written
notice of non-compliance and the Issuers' decision to exclude such Holder.

         6. SELECTION OF UNDERWRITERS. The Holders of Transfer Restricted
Securities covered by the Shelf Registration Statement who desire to do so may
sell the securities covered by such Shelf Registration in an underwritten
offering. In any such underwritten offering, the underwriter or underwriters and
manager or managers that will administer the offering will be selected by the
Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities covered by the Shelf Registration Statement; PROVIDED, HOWEVER, that
such underwriters and managers must be reasonably satisfactory to the Company.

         6A. AGENT FOR SERVICE AND WAIVER OF IMMUNITIES. By the execution and
delivery of this Agreement, the Issuers (i) acknowledge that they have
designated and appointed CT (and any successor entity thereto), as their
authorized agent upon which process may be served in any suit or proceeding
arising out of or relating to this Agreement that may be instituted in any
federal or state court in the State of New York or brought under federal or
state securities laws, and acknowledge that CT has accepted such designation,
(ii) submit to the jurisdiction of any such court in any such suit or
proceeding, and (iii) agree that service of process upon CT and written notice
of said service to an Issuer in accordance with Section 7(e) shall be deemed
effective service of process upon an Issuer in any such suit or proceeding. The
Issuers further agree to take any reasonable action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment of CT in full force and effect so long
as any of the Notes shall be outstanding; PROVIDED, HOWEVER, that the Issuers
may, by written notice to the Initial Purchasers, designate such additional or
alternative agent for service of process under this Section 6A that (i)
maintains an office located in the Borough of Manhattan, City of New York in the
State of New York and (ii) is either (x) counsel for the Issuers or (y) a
corporate service company which acts as agent for service of process for other
persons in the ordinary course of its business. Such written notice shall
identify the name of such agent for process and the address of the office of
such agent for process in the Borough of Manhattan, City of New York, State of
New York.

         7. MISCELLANEOUS.

         (a) REPORTING REQUIREMENT. So long as any of the Transfer Restricted
Securities are outstanding, the Issuers will comply with the provisions of
Section 4.02 of the Indenture.

<PAGE>

                                      -26-

         (b) NO PROSPECTUS IN CANADA. For greater certainty, the parties hereto
acknowledge that nothing contained in this Agreement shall be construed as
requiring the Issuers to file a prospectus or other offering document in Canada
in respect of the Exchange Offer or a Shelf Registration or to entitle Holders
of Transfer Restricted Securities resident in Canada to obtain, upon the
Exchange Offer or a Shelf Registration, securities which are "free trading" in
Canada under applicable Canadian Securities Laws.

         (c) NO INCONSISTENT AGREEMENTS. The rights granted to the Holders
hereunder do not, and will not for the term of this Agreement in any way
conflict with and are not, and will not during the term of this Agreement be
inconsistent with the rights granted to the holders of the Issuers' other issued
and outstanding securities under any other agreements entered into by the
Issuers.

         (d) AMENDMENTS AND WAIVERS. The provisions of this Agreement, including
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
otherwise than with the prior written consent of the Issuers and the Majority
Holders; PROVIDED, HOWEVER, that no amendment, modification, or supplement or
waiver or consent to the departure with respect to the provisions of Section 4
hereof shall be effective as against any Holder of Transfer Restricted
Securities or the Issuers unless consented to in writing by such Holder of
Transfer Restricted Securities or the Issuers, as the case may be.

         (e) NOTICES. (i) All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, facsimile, or any courier guaranteeing overnight delivery (A)
if to a Holder, at the most current address given by such Holder to the Company
by means of a notice given in accordance with the provisions of this Section
7(e), which address initially is, with respect to the Initial Purchasers, the
address set forth in the Purchase Agreement; and (B) if to the Company,
initially at the Company's address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 7(e), and to CT as contemplated by Section 6A
hereof.

         (ii) All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when receipt is confirmed, if sent by facsimile; and on the next Business Day,
if timely delivered to an air courier guaranteeing overnight delivery.

         (iii) Copies of all such notices, demands, or other communications
shall be concurrently delivered by the Person giving the same to the Trustee, at
the address specified in the Indenture.

<PAGE>

                                      -27-

         (f) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of the Company
and the Initial Purchasers, including, without limitation and without the need
for an express assignment, subsequent Holders. If any transferee of any Holder
shall acquire Transfer Restricted Securities, in any manner, whether by
operation of law or otherwise, such Transfer Restricted Securities shall be held
subject to all of the terms of this Agreement, and by taking and holding such
Transfer Restricted Securities, such Person shall be conclusively deemed to have
agreed to be bound by and to perform all of the terms and provisions of this
Agreement and such Person shall be entitled to receive the benefits hereof.

         (g) THIRD PARTY BENEFICIARY. Each Holder shall be a third party
beneficiary of the agreements made hereunder between the Issuers, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

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

         (i) HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (j) APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT,
AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (k) SUBMISSION TO JURISDICTION. EACH OF THE ISSUERS AND HOLDERS HEREBY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE
COURTS LOCATED IN THE CITY OF NEW YORK IN CONNECTION WITH ANY DISPUTE RELATED TO
THIS AGREEMENT OR ANY MATTERS CONTEMPLATED HEREBY. SERVICE OF ANY PROCESS,
SUMMONS, NOTICE OR DOCUMENT BY REGISTERED MAIL ADDRESSED TO SUCH ISSUER AND
HOLDERS AT THE ADDRESS SPECIFIED ABOVE SHALL BE EFFECTIVE SERVICE OF PROCESS
AGAINST SUCH ISSUER OR HOLDER FOR ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT. EACH OF THE ISSUERS AND HOLDERS IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH ACTION OR
PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. A FINAL JUDGMENT IN ANY
SUCH SUIT, ACTION OR PROCEEDING

<PAGE>

                                      -28-

BROUGHT IN ANY SUCH COURT MAY BE ENFORCED IN ANY OTHER COURTS TO WHOSE
JURISDICTION SUCH ISSUER OR HOLDER IS OR MAY BE SUBJECT, BY SUIT UPON JUDGMENT.

         (l) SEVERABILITY. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

         (m) SECURITIES HELD BY THE COMPANY OR ANY OF ITS AFFILIATES. Whenever
the consent or approval of Holders of a specified percentage of Transfer
Restricted Securities is required hereunder, Transfer Restricted Securities held
by the Issuers or any of their affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

         (n) GUARANTORS. So long as any Transfer Restricted Securities remain
outstanding, the Company shall cause each of its subsidiaries that becomes a
guarantor of the Securities under the Indenture to execute and deliver a
counterpart to this Agreement which subjects all such subsidiaries to the
provision of this Agreement as the Guarantors. Each of the Guarantors joins the
Company in all of its undertakings hereunder to effect or cause the be effected
the Exchange Offer for the Exchange Securities (performance of which
undertakings which will be guaranteed by each of the Guarantors with terms
identical to such Guarantors' guaranty of the Securities) and to file any Shelf
Registration Statement required hereunder.

         (o) TAXES. All amounts paid or credited by the Issuers under or with
respect to the Securities will be made free and clear of and without withholding
or deduction for or on account of any present or future Taxes, unless the Issuer
is required to withhold or deduct any amount for or on account of Taxes by law
or by interpretation or administration of law. If the Issuers are required to
withhold or deduct any amount for or on account of Taxes from any amounts paid
or credited under or with respect to the Securities, the Issuers will pay such
Additional Amounts as may be necessary so that the net amount received by each
holder of the Securities, including Additional Amounts, after such withholding
or deduction (including any withholding or deduction in respect of Additional
Amounts) will not be less than the amount the holder would have received if such
Taxes had not been withheld or deducted; PROVIDED that no Additional Amounts
will be payable with respect to a payment made to a holder of Securities:

         (1)      with whom any of the Issuers do not deal at arm's length,
                  within the meaning of the INCOME TAX ACT (Canada), at the time
                  of making such payment;

<PAGE>

                                      -29-

         (2)      who is subject to the Taxes in question by reason of its being
                  connected with the jurisdiction imposing such Taxes otherwise
                  than by the mere acquisition or holding of the Securities or
                  the receipt of payments thereunder or the enforcement of its
                  rights thereunder; or

         (3)      who is subject to such Taxes because the holder is or is
                  deemed to be resident in Canada or uses or holds or is deemed
                  or considered to use or hold the Securities in carrying on
                  business in Canada for purposes of the INCOME TAX ACT
                  (Canada).

                            [Signature Pages Follow]

<PAGE>

                                       S-1

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

                                            NORSKE SKOG CANADA LIMITED

                                                       /s/ Valerie Seager
                                            By:  _______________________________
                                                 Name:  Valerie Seager
                                                 Title: Corporate Secretary
                                                        and Legal Counsel

<PAGE>

                                           THE GUARANTORS:

                                           ELK FALLS PULP AND PAPER LIMITED

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NORSKE SKOG CANADA (JAPAN) LTD.

                                                     /s/ James E. Armitage
                                           By:  ________________________________
                                                Name:   James E. Armitage
                                                Title:  Director

                                            NORSKE SKOG CANADA FINANCE LIMITED

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NORSKE SKOG CANADA PULP OPERATIONS
                                            LIMITED

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NORSKE SKOG CANADA PULP SALES INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

<PAGE>

                                      S-3

                                            NORSKE SKOG CANADA SALES INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NORSKE SKOG CANADA SERVICES
                                            (HUNGARY) LIMITED LIABILITY COMPANY

                                                       /s/ Pat Sakai
                                           By:  ________________________________
                                                Name:   Pat Sakai
                                                Title:  Managing Director

                                            NORSKE SKOG CANADA (USA) INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NSCL HOLDINGS INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            PACIFICA PAPERS SALES LTD.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            PACIFICA PAPERS SALES INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

<PAGE>

                                       S-4

                                            PACIFICA POPLARS LTD.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            PACIFICA POPLARS INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            PACIFICA PAPERS US INC.

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

                                            NORSKECANADA

                                            by its managing general partner,
                                            Norske Skog Canada Limited

                                                       /s/ Valerie Seager
                                           By:  ________________________________
                                                Name:   Valerie Seager
                                                Title:  Corporate Secretary
                                                        and Legal Counsel

<PAGE>

                                      S-5

CONFIRMED AND ACCEPTED,
as of the date first above written:

MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
               INCORPORATED

For themselves and as Representative of the other Initial Purchasers named
above.

BY:   MERRILL LYNCH, PIERCE, FENNER & SMITH
                     INCORPORATED

                 /s/ Greg Margolies
By:   __________________________________________
       Name:     Greg Margolies
       Title:

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