Document:

exv4w1

 

EXHIBIT
4.1

EXECUTION COPY

 

CREDIT AGREEMENT

dated as of

June 16, 2006

among

LIBBEY GLASS INC.

and

LIBBEY EUROPE B.V.,

each as a Borrower,

LIBBEY INC., as a Loan Guarantor,

The Other Loan Parties Party Hereto,

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent with respect to the US Loans

J.P. MORGAN EUROPE LIMITED,

as Administrative Agent with respect to the Netherlands Loans

 

LASALLE BANK MIDWEST NATIONAL ASSOCIATION,

as Syndication Agent

 

WELLS FARGO FOOTHILL, LLC

FIFTH THIRD BANK

as Co-Documentation Agents

 

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

CHASE BUSINESS CREDIT

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	
Definitions
	 
	 	 	 	 
	SECTION 1.01. Defined Terms

	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings

	 	 	34	 
	SECTION 1.03. Terms of Usage

	 	 	34	 
	SECTION 1.04. Accounting Terms; GAAP

	 	 	35	 
	
ARTICLE II
	
The Credits
	 
	 	 	 	 
	SECTION 2.01. Commitments

	 	 	35	 
	SECTION 2.02. Loans and Borrowings

	 	 	37	 
	SECTION 2.03. Requests for Borrowings

	 	 	38	 
	SECTION 2.04. Protective Advances

	 	 	38	 
	SECTION 2.05. Swingline Loans

	 	 	39	 
	SECTION 2.06. Letters of Credit

	 	 	41	 
	SECTION 2.07. Funding of Borrowings

	 	 	45	 
	SECTION 2.08. Interest Elections

	 	 	45	 
	SECTION 2.09. Reduction or Termination of Commitments

	 	 	47	 
	SECTION 2.10. Repayment and Amortization of Loans; Evidence of Debt

	 	 	47	 
	SECTION 2.11. Prepayment of Loans

	 	 	48	 
	SECTION 2.12. Fees

	 	 	49	 
	SECTION 2.13. Interest

	 	 	50	 
	SECTION 2.14. Alternate Rate of Interest

	 	 	51	 
	SECTION 2.15. Increased Costs

	 	 	51	 
	SECTION 2.16. Break Funding Payments

	 	 	52	 
	SECTION 2.17. Taxes

	 	 	53	 
	SECTION 2.18. Payments Generally; Allocation of Proceeds; Sharing of Set-offs

	 	 	54	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders

	 	 	56	 
	SECTION 2.20. Returned Payments

	 	 	57	 
	
ARTICLE III
	
Representations and Warranties
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers

	 	 	58	 
	SECTION 3.02. Authorization; Enforceability

	 	 	58	 
	SECTION 3.03. Governmental Approvals; No Conflicts

	 	 	58	 
	SECTION 3.04. Financial Condition; No Material Adverse Change

	 	 	58	 
	SECTION 3.05. Properties

	 	 	59	 
	SECTION 3.06. Litigation and Environmental Matters

	 	 	59	 
	SECTION 3.07. Compliance with Laws and Agreements

	 	 	59	 
	SECTION 3.08. Investment Company Status

	 	 	60	 
	SECTION 3.09. Taxes

	 	 	60	 
	SECTION 3.10. ERISA

	 	 	60	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.11. Disclosure

	 	 	60	 
	SECTION 3.12. Reserved

	 	 	60	 
	SECTION 3.13. Solvency

	 	 	60	 
	SECTION 3.14. Insurance

	 	 	61	 
	SECTION 3.15. Capitalization and Subsidiaries

	 	 	61	 
	SECTION 3.16. Security Interest in Collateral

	 	 	61	 
	SECTION 3.17. Employment Matters

	 	 	61	 
	SECTION 3.18. Common Enterprise

	 	 	61	 
	SECTION 3.19. Intellectual Property

	 	 	62	 
	SECTION 3.20. Federal Regulations

	 	 	62	 
	SECTION 3.21. Senior Indebtedness

	 	 	62	 
	
ARTICLE IV
	
Conditions
	 
	 	 	 	 
	SECTION 4.01. Effective Date

	 	 	62	 
	SECTION 4.02. Each Credit Event

	 	 	66	 
	
ARTICLE V
	
Affirmative Covenants
	 
	 	 	 	 
	SECTION 5.01. Financial Statements; Borrowing Base and Other Information

	 	 	67	 
	SECTION 5.02. Notices of Material Events

	 	 	70	 
	SECTION 5.03. Existence; Conduct of Business

	 	 	71	 
	SECTION 5.04. Payment of Obligations

	 	 	71	 
	SECTION 5.05. Maintenance of Properties

	 	 	71	 
	SECTION 5.06. Books and Records; Inspection Rights

	 	 	71	 
	SECTION 5.07. Compliance with Laws

	 	 	72	 
	SECTION 5.08. Use of Proceeds

	 	 	72	 
	SECTION 5.09. Insurance

	 	 	72	 
	SECTION 5.10. [Reserved]

	 	 	72	 
	SECTION 5.11. Appraisals

	 	 	72	 
	SECTION 5.12. Depository Banks

	 	 	72	 
	SECTION 5.13. Environmental Laws

	 	 	72	 
	SECTION 5.14. Additional Collateral; Further Assurances

	 	 	73	 
	SECTION 5.15. Postclosing Mortgaged Properties

	 	 	74	 
	SECTION 5.16. Interest Rate Protection

	 	 	75	 
	SECTION 5.17. Post-Closing Matters

	 	 	75	 
	SECTION 5.18. USA PATRIOT Act

	 	 	75	 
	
ARTICLE VI
	
Negative Covenants
	 
	 	 	 	 
	SECTION 6.01. Indebtedness

	 	 	75	 
	SECTION 6.02. Liens

	 	 	78	 
	SECTION 6.03. Fundamental Changes

	 	 	79	 
	SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions

	 	 	79	 
	SECTION 6.05. Asset Sales

	 	 	81	 
	SECTION 6.06. Sale and Leaseback Transactions

	 	 	82	 

ii

 

	 	 	 	 	 
	 	 	Page
	SECTION 6.07. Swap Agreements

	 	 	82	 
	SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness

	 	 	82	 
	SECTION 6.09. Transactions with Affiliates

	 	 	83	 
	SECTION 6.10. Restrictive Agreements

	 	 	83	 
	SECTION 6.11. Amendment of Material Documents

	 	 	84	 
	SECTION 6.12. Optional Payments and Modifications of Certain Debt Instruments

	 	 	84	 
	SECTION 6.13. Capital Expenditures

	 	 	84	 
	SECTION 6.14. Changes in Fiscal Periods

	 	 	85	 
	SECTION 6.15. Financial Covenants

	 	 	85	 
	
ARTICLE VII
	
Events of Default
	
ARTICLE VIII
	
The Administrative Agent
	
ARTICLE IX
	
Miscellaneous
	 
	 	 	 	 
	SECTION 9.01. Notices

	 	 	90	 
	SECTION 9.02. Waivers; Amendments

	 	 	91	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver

	 	 	93	 
	SECTION 9.04. Successors and Assigns

	 	 	94	 
	SECTION 9.05. Survival

	 	 	97	 
	SECTION 9.06. Counterparts; Integration; Effectiveness

	 	 	97	 
	SECTION 9.07. Severability

	 	 	97	 
	SECTION 9.08. Right of Setoff

	 	 	98	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process

	 	 	98	 
	SECTION 9.10. WAIVER OF JURY TRIAL

	 	 	98	 
	SECTION 9.11. Headings

	 	 	99	 
	SECTION 9.12. Confidentiality

	 	 	99	 
	SECTION 9.13. Several Obligations; Nonreliance; Violation of Law

	 	 	100	 
	SECTION 9.14. USA PATRIOT Act

	 	 	100	 
	SECTION 9.15. Disclosure

	 	 	100	 
	SECTION 9.16. Appointment for Perfection

	 	 	100	 
	SECTION 9.17. Interest Rate Limitation

	 	 	100	 
	SECTION 9.18. Judgment Currency

	 	 	100	 
	SECTION 9.19. Netherlands Loans

	 	 	101	 
	SECTION 9.20. Several Liability of Netherlands Loan Parties

	 	 	101	 
	SECTION 9.21. Euro Loans

	 	 	101	 
	
ARTICLE X
	
Loan Guaranty
	 
	 	 	 	 
	SECTION 10.01. Guaranty

	 	 	102	 
	SECTION 10.02. Guaranty of Payment

	 	 	102	 
	SECTION 10.03. No Discharge or Diminishment of Loan Guaranty

	 	 	103	 
	SECTION 10.04. Defenses Waived

	 	 	103	 

iii

 

	 	 	 	 	 
	 	 	Page
	SECTION 10.05. Rights of Subrogation

	 	 	104	 
	SECTION 10.06. Reinstatement; Stay of Acceleration

	 	 	104	 
	SECTION 10.07. Information

	 	 	104	 
	SECTION 10.08. Termination

	 	 	104	 
	SECTION 10.09. Taxes

	 	 	104	 
	SECTION 10.10. Maximum Liability

	 	 	104	 
	SECTION 10.11. Contribution

	 	 	105	 
	SECTION 10.12. Liability Cumulative

	 	 	106	 
	SECTION 10.13. Effect of Netherlands Civil Code

	 	 	106	 
	
ARTICLE XI
	
The Borrower Representative
	 
	 	 	 	 
	SECTION 11.01. Appointment; Nature of Relationship

	 	 	106	 
	SECTION 11.02. Powers

	 	 	106	 
	SECTION 11.03. Employment of Agents

	 	 	107	 
	SECTION 11.04. Notices

	 	 	107	 
	SECTION 11.05. Successor Borrower Representative

	 	 	107	 
	SECTION 11.06. Execution of Loan Documents; Borrowing Base Certificate

	 	 	107	 
	SECTION 11.07. Reporting

	 	 	107	 

SCHEDULES:

Commitment Schedule

Schedule 3.05 — Properties

Schedule 3.06 — Disclosed Matters

Schedule 3.14 — Insurance

Schedule 3.15 — Capitalization and Subsidiaries

Schedule 5.17 — Post-Closing Matters

Schedule 6.01 — Existing Indebtedness

Schedule 6.02 — Existing Liens

Schedule 6.04 — Existing Investments

Schedule 6.10 — Existing Restrictions

EXHIBITS:

Exhibit A — Form of Assignment and Assumption

Exhibit B — [Reserved]

Exhibit C — Form of US Borrowing Base Certificate

Exhibit D — Form of Netherlands Borrowing Base Certificate

Exhibit E — Form of Increasing Lender Supplement

Exhibit F — Form of New Lender Supplement

Exhibit G — Form of Compliance Certificate

Exhibit H — Form of Joinder Agreement

Exhibit I — Form of Aggregate Borrowing Base Certificate

Exhibit J — Form of US Mortgage

Exhibit K — Form of Netherlands Mortgage

Exhibit L — Form of Borrowing Notice

Exhibit M — Form of Affidavit of Payment of Mortgage Recording Taxes

iv

 

          CREDIT AGREEMENT dated as of June 16, 2006 (as it may be amended or modified from time to
time, this “Agreement”), among LIBBEY GLASS INC. and LIBBEY EUROPE B.V., as Borrowers,
LIBBEY INC., as a Loan Guarantor, the other Loan Parties party thereto, the Lenders party hereto,
JPMORGAN CHASE BANK, N.A., as Administrative Agent, LASALLE BANK MIDWEST NATIONAL ASSOCIATION, as
Syndication Agent, and WELLS FARGO FOOTHILL, LLC AND FIFTH THIRD BANK, as Co-Documentation Agents.

          The parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have
the meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Account” has the meaning assigned to such term in the US Security Agreement and, with
respect to the Netherlands Loan Parties, “Receivables” as defined in the Deed of Disclosed Pledges
of Receivables and Deed of Undisclosed Pledges of Receivables.

          “Account Debtor” means any Person obligated on an Account.

          “Acquisition” means the acquisition by Holdings through its Subsidiaries of the
remaining 51% of the capital stock of Vitrocrisa Holdings, S. de R.L. de C.V. and related companies
that is not yet owned by Holdings as well as certain assets associated with such related companies
from Vitro, S.A. de C.V. and one of its Affiliates pursuant to the Acquisition Agreement.

          “Acquisition Agreement” means the Purchase Agreement dated as of April 2, 2006, and as
amended on May 31, 2006 and June 16, 2006, in each case, among Crisa Libbey S.A. de C.V.,
Vitrocrisa Holding, S. de R.L. de C.V., Vitrocrisa S. de R.L. de C.V., Vitrocrisa Comercial, S. de
R.L. de C.V., Crisa Industrial, L.L.C., Libbey Mexico, S. de R.L. de C.V., the Netherlands
Borrower, LGA3 Corporation, Vitro, S.A. de C.V. and one of its affiliates.

          “Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means, in the case of the US Borrower and the US Loans,
JPMorgan Chase Bank, N.A., and in the case of the Netherlands Borrower and the Netherlands Loans,
J.P. Morgan Europe Limited, each in its capacity as administrative agent for the Lenders hereunder.

          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

 

 

          “Aggregate Availability” means, with respect to all the Borrowers, at any time, an
amount equal to the sum of (a) the US Borrower’s Availability and (b) the Netherlands Borrower’s
Availability.

          “Aggregate Borrowing Base Certificate” means a certificate, signed and certified as
accurate and complete by a Financial Officer of the Borrower Representative, in substantially the
form of Exhibit I or another form which is acceptable to the Administrative Agent in its
sole discretion.

          “Aggregate Credit Exposure” means, at any time, the aggregate Credit Exposure of all
the Lenders.

          “Agreement Currency” has the meaning set forth in Section 9.18(b).

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, at any time, (a) with
respect to Revolving Loans, LC Exposure or Swingline Loans, a percentage equal to a fraction the
numerator of which is such Lender’s Revolving Commitment then in effect and the denominator of
which is the aggregate Revolving Commitment of all Revolving Lenders (if the Revolving Commitments
have terminated or expired, the Applicable Percentages shall be determined based upon such Lender’s
share of the aggregate Revolving Exposures at that time), (b) with respect to Revolving Loans made
to the Netherlands Borrower pursuant to the Revolving Netherlands Sublimit, a percentage equal to a
fraction the numerator of which is such Lender’s Revolving Netherlands Sublimit then in effect and
the denominator of which is the aggregate Revolving Netherlands Sublimit of all Revolving Lenders
(if the Revolving Netherlands Sublimit has terminated or expired, the Applicable Percentages shall
be determined based upon such Lender’s share of the aggregate Revolving Netherlands Exposures at
that time) and (c) with respect to Protective Advances or with respect to the Aggregate Credit
Exposure, a percentage based upon its share of the Aggregate Credit Exposure and the unused
Commitments.

          “Applicable Rate” means, for any day, with respect to any ABR or Eurocurrency Loan, or
with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per
annum set forth below under the caption “ABR Spread”, “Eurocurrency Spread” or “Commitment Fee
Rate”, as the case may be, based upon the Aggregate Availability as of the most recent
determination date, provided that until the delivery to the Administrative Agent, pursuant
to Section 5.01, of an Aggregate Borrowing Base Certificate and a Borrowing Base Certificates for
each Borrower for the sixth full calendar month ending after the Effective Date, the “Applicable
Rate” shall be the applicable rate per annum set forth below in Category 2:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aggregate	 	Eurocurrency	 	ABR	 	Commitment
	Availability	 	Spread	 	Spread	 	Fee Rate
	Category 1

3 $100,000,000

	 	 	1.50	%	 	 	0	%	 	 	0.25	%
	Category 2

< $100,000,000 but

3 $50,000,000

	 	 	1.75	%	 	 	0	%	 	 	0.25	%
	Category 3

< $50,000,000

	 	 	2.00	%	 	 	0.25	%	 	 	0.25	%

2

 

          For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end of
each fiscal quarter based upon the most recent Aggregate Borrowing Base Certificate and Borrowing
Base Certificates delivered pursuant to Section 5.01 and (b) each change in the Applicable Rate
resulting from a change in the Aggregate Availability shall be effective during the period
commencing on and including the Reset Date immediately succeeding the end of the last month of such
fiscal quarter for which the Aggregate Borrowing Base Certificate and Borrowing Base Certificates
received indicate such change and ending on the date immediately preceding the effective date of
the next such change, provided that the Aggregate Availability shall be deemed to be in
Category 3 at the option of the Administrative Agent or at the request of the Required Lenders (a)
if the Borrowers fail to deliver the Aggregate Borrowing Base Certificate and Borrowing Base
Certificates required to be delivered pursuant to Section 5.01 and (b) such failure shall have
continued unremedied for three (3) consecutive days following notice of such actual failure from
the Administrative Agent (provided, that no such notice shall be required during the
existence of an Event of Default of the type described in paragraphs (h) or (i) in Article VIII),
and shall continue to be so deemed in Category 3 during the period from the Reset Date immediately
succeeding the end of such fiscal quarter for which such Aggregate Borrowing Base Certificate and
Borrowing Base Certificates were required to be delivered until the later of (x) five days after
and (y) the Reset Date immediately succeeding, in each case, the date on which such Aggregate
Borrowing Base Certificate and Borrowing Base Certificates have been delivered in accordance with
Section 5.01 in all respects other than the original due date therefore.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent and in the case of such Assignment and Assumption not
substantially in the form of Exhibit A, the Borrower Representative.

          “Availability” means at any time, with respect to the US Borrower, U.S. General
Availability at such time and, with respect to the Netherlands Borrower, the Netherlands
Availability at such time.

          “Available Commitment” means, at any time, the difference of (a) the total Commitments
then in effect minus (b) the aggregate (USD Equivalent) amount of the Revolving Exposures
of all Revolving Lenders at such time.

          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

          “Banking Services” means each and any of the following bank services provided to any
Loan Party by any Lender or any of its Affiliates: (a) commercial credit cards, (b) stored value
cards and (c) treasury management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts, interstate depository network
services and international treasury management services).

          “Banking Services Obligations” with respect to any Loan Party means any and all
obligations of such Loan Party, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor) in connection with Banking Services.

3

 

          “Banking Services Reserves” means all Reserves which the Administrative Agent from
time to time establishes in its Permitted Discretion for Banking Services then provided or
outstanding.

          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

          “Borrower” or “Borrowers” means, individually or collectively, the US Borrower
and the Netherlands Borrower.

          “Borrower Representative” means the US Borrower, in its capacity as contractual
representative of the Borrowers pursuant to Article XI.

          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in
effect, (b) a Swingline Loan of the same type and (c) a Protective Advance of the same type.

          “Borrowing Base” means, at any time, with respect to each Borrower, the US Borrowing
Base at such time; provided, that with respect to the Netherlands Borrower, “Borrowing
Base” in respect of Borrowings pursuant to the Revolving Netherlands Sublimit means the Netherlands
Borrowing Base.

          “Borrowing Base Certificate” means, individually or collectively, the US Borrowing
Base Certificate and the Netherlands Borrowing Base Certificate.

          “Borrowing Date” means any Business Day specified by a Borrower as a date on which
such Borrower requests the relevant Lenders to make Loans hereunder.

          “Borrowing Notice” means a notice substantially in the form of Exhibit L by the
Borrower Representative requesting any Revolving Borrowing pursuant to Section 2.03 or such other
form satisfactory to the Administrative Agent.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Chicago (or, with respect to notices in respect of or Borrowings or payments of
Loans made to the Netherlands Borrower, London) are authorized or required by law to remain closed;
provided that, when used in connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude (a) with respect to a Eurocurrency Loan denominated in dollars, any day
on which banks are not open for dealings in dollar deposits in the London interbank market and (b)
with respect to a Loan denominated in Euros, (i) any day on which banks are not open for dealings
in or Euro deposits in the London interbank market and (ii) any day on which the TARGET payment
system is not open for the settlement of payment in Euro.

          “Calculation Date”: (a) the last calendar day of each month (or, if such day is not a
Business Day, the next succeeding Business Day) and (b) at any time when an Event of Default shall
have occurred and be continuing, any other Business Day which the Administrative Agent may
determine in its sole discretion to be a Calculation Date.

          “Capital Expenditures” means, without duplication, any cash expenditure for any
purchase or other acquisition of any asset which would be classified as a fixed or capital asset on
a consolidated balance sheet of Holdings and its Subsidiaries prepared in accordance with GAAP;
provided that Capital Expenditures shall exclude (i) the purchase price paid in connection
with any acquisition of a Person or of all or substantially all of the assets of any Person or a
division of any Person, (ii)

4

 

expenditures made with insurance proceeds and (iii) proceeds of any asset disposition that are
reinvested as contemplated in Section 2.11.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof but excluding any employee benefit plan of such Person or its subsidiaries), of Equity
Interests representing more than 30% of the aggregate ordinary voting power represented by the
issued and outstanding Equity Interests of Holdings; (b) occupation of a majority of the seats
(other than vacant seats) on the board of directors of Holdings by Persons who were neither (i)
nominated by the board of directors of Holdings nor (ii) appointed by directors so nominated; (c)
the acquisition of direct or indirect Control of Holdings by any Person or group; (d) Holdings
shall cease to own, free and clear of all Liens or other encumbrances other than Liens created
pursuant to the Collateral Documents, directly or indirectly, all of the outstanding voting Equity
Interests of each Borrower on a fully diluted basis; or (e) a Specified Change in Control shall
occur.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

          “Chase” means JPMorgan Chase Bank, N.A., a national banking association, in its
individual capacity, and its successors.

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Protective
Advances.

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

          “Co-Documentation Agents” has the meaning assigned to such term in the preamble.

          “Collateral” means, with respect to the US Borrower and the Netherlands Borrower, US
Collateral and Netherlands Collateral, respectively. Unless otherwise specified, “Collateral”
shall refer to the Collateral with respect to the Borrowers.

          “Collateral Access Agreement” has the meaning assigned to such term in the Security
Agreement.

          “Collateral Documents” means, collectively, the US Collateral Documents and the
Netherlands Collateral Documents.

5

 

          “Collection Account” has the meaning assigned to the term “Collection Account” in the
US Security Agreement.

          “Commitment” means, with respect to each Lender, such Lender’s Revolving Commitment
and Revolving Netherlands Sublimit, together with the commitment of such Lender to acquire
participations in Protective Advances hereunder. The initial amounts of each Lender’s Commitments
are set forth on the Commitment Schedule, as such Commitment Schedule may be amended in
connection with a Commitment increase effected in accordance with Section 2.01(c) or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its Commitments, as
applicable.

          “Commitment Schedule” means the Schedule attached hereto identified as such.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Credit Exposure” means, as to any Lender at any time, the sum of (a) such Lender’s
Revolving Exposure at such time, plus (b) an amount equal to its Applicable Percentage, if
any, of the aggregate principal amount of Protective Advances outstanding at such time.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Deposit Account Control Agreement” has the meaning assigned to such term in the
Security Agreement.

          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

          “Document” has the meaning assigned to such term in the Security Agreements.

          “dollars” or “$” refers to lawful money of the United States of America.

          “EBITDA” means, for any period, Net Income for such period plus (a) without
duplication and to the extent deducted in determining Net Income for such period, the sum of (i)
Interest Expense for such period, (ii) income Tax expense for such period, (iii) all amounts
attributable to depreciation and amortization expense for such period, (iv) any extraordinary or
non-recurring non-cash charges for such period and (v) any other non-cash charges for such period,
minus (b) without duplication and to the extent included in Net Income, (i) any cash
payments made during such period in respect of non-cash charges described in clause (a)(v) taken in
a prior period and (ii) any extraordinary gains and any non-cash items of income for such period,
all calculated for Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP.

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02) and the initial funding of the Revolving
Loans occurs.

          “Eligible Accounts” means, at any time, with respect to each Borrower and any Loan
Party, the Accounts of such Borrower or other Loan Party which the Administrative Agent determines
in its Permitted Discretion are eligible as the basis for the extension of Revolving Loans,
Swingline Loans

6

 

and the issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s
discretion provided herein, Eligible Accounts shall not include any Account:

          (a) which is not subject to a first priority perfected security interest in favor of
the Administrative Agent;

          (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor
of the Administrative Agent;

          (c) with respect to which (i) the scheduled due date is more than 60 days after the
original invoice date, (ii) is unpaid more than 90 days after the date of the original
invoice therefor, or (iii) which has been written off the books of such Borrower or Loan
Party or otherwise designated as uncollectible; provided, that the aggregate amount
of accounts with a scheduled due date of more than 30 days after the original invoice date
which remain unpaid after such scheduled due date shall not exceed $1,000,000.

          (d) which is owing by an Account Debtor for which more than 50% of the Accounts
owing from such Account Debtor and its Affiliates, other than Accounts arising from customer
chargebacks, are ineligible pursuant to clause (c) above;

          (e) which is owing by an Account Debtor to the extent the aggregate amount of Accounts
owing from such Account Debtor and its Affiliates to Loan Parties exceeds 20% of the
aggregate amount of Eligible Accounts of all Loan Parties;

          (f) with respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement has been materially breached or is not true in any
material respect;

          (g) which (i) does not arise from the sale of goods or performance of services in the
ordinary course of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Administrative Agent which has been sent to the Account Debtor, (iii)
represents a progress billing, (iv) is contingent upon such Loan Party’s completion of any
further performance, (v) represents a sale on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment, cash-on-delivery or any other repurchase or
return basis or (vi) relates to payments of interest;

          (h) for which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not been performed
by such Loan Party;

          (i) with respect to which any check or other instrument of payment has been returned
uncollected for any reason;

          (j) which is owed by an Account Debtor which has currently (i) applied for, suffered,
or consented to the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any
request or petition for liquidation, reorganization, arrangement, adjustment of debts,
adjudication as bankrupt, winding-up, or voluntary or involuntary case under any state or
federal bankruptcy laws (other than post-petition accounts payable of an Account Debtor that
is a debtor-in-possession under the

7

 

Bankruptcy Code and reasonably acceptable to the Administrative Agent), (iv) has
admitted in writing its inability, or is generally unable to, pay its debts as they become
due, (v) become insolvent, or (vi) ceased operation of its business;

          (k) which is owed by any Account Debtor which has sold all or a substantially all of
its assets;

          (l) which is owed by an Account Debtor which (A) in the case of a US Loan Party, (i)
does not maintain its chief executive office in the U.S. or Canada or (ii) is not organized
under applicable law of the U.S., any state of the U.S., Canada, or any province of Canada
or (B) in the case of a Netherlands Loan Party, (i) does not maintain its chief executive
office in The Netherlands or any other Member State of the European Union (as constituted
prior to May 1, 2004) satisfactory to the Administrative Agent or is not organized under
applicable law of The Netherlands or any other Member State of the European Union (as
constituted prior to May 1, 2004) satisfactory to the Administrative Agent unless, in each
case, such Account is backed by a Letter of Credit acceptable to the Administrative Agent
which is in the possession of, has been assigned to and is directly drawable by the
Administrative Agent;

          (m) which is owed in any currency other than U.S. dollars or Euros.

          (n) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the U.S. unless such Account is backed
by a Letter of Credit acceptable to the Administrative Agent which is in the possession of
the Administrative Agent, or (ii) the government of the U.S., or any department, agency,
public corporation, or instrumentality thereof, unless the Federal Assignment of Claims Act
of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et
seq.), and any other steps necessary to perfect the Lien of the Administrative Agent
in such Account have been complied with to the Administrative Agent’s satisfaction;

          (o) which is owed by any Affiliate, employee, officer or director of any Loan Party;

          (p) which, for any Account Debtor, exceeds a credit limit determined by the
Administrative Agent, to the extent of such excess;

          (q) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which
such Loan Party is indebted, but only to the extent of such indebtedness or is subject to
any security, deposit, progress payment, retainage or other similar advance made by or for
the benefit of an Account Debtor, in each case to the extent thereof;

          (r) which is subject to any counterclaim, deduction, defense, setoff or dispute but
only to the extent of any such counterclaim, deduction, defense, setoff or dispute;

          (s) which is evidenced by any promissory note, chattel paper, or instrument;

          (t) which is owed by an Account Debtor located in any jurisdiction which requires
filing of a “Notice of Business Activities Report” or other similar report in order to
permit such Loan Party to seek judicial enforcement in such jurisdiction of payment of such
Account, unless such Loan Party has filed such report or qualified to do business in such
jurisdiction;

8

 

          (u) with respect to which such Loan Party has made any agreement with the Account
Debtor for any reduction thereof, other than discounts and adjustments given in the ordinary
course of business, or any Account which was partially paid and such Loan Party created a
new receivable for the unpaid portion of such Account;

          (v) which does not comply in all material respects with the requirements of all
applicable laws and regulations, whether Federal, state or local, including without
limitation the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and
Regulation Z of the Board;

          (w) which is for goods that have been sold under a purchase order or pursuant to the
terms of a contract or other agreement or understanding (written or oral) that indicates or
purports that any Person other than such Loan Party has or has had an ownership interest in
such goods, or which indicates any party other than such Loan Party as payee or remittance
party;

          (x) which was created on cash on delivery terms; or

          (y) which the Administrative Agent determines may not be paid by reason of the Account
Debtor’s inability to pay or which the Administrative Agent otherwise determines is
unacceptable for any reason whatsoever.

          In determining the amount of an Eligible Account, the face amount of an Account may, in the
Administrative Agent’s Permitted Discretion, be reduced by, without duplication, to the extent not
reflected in such face amount or as otherwise taken into account in clause (p) or (r) above, (i)
the amount of all accrued and actual discounts, claims, credits or credits pending, promotional
program allowances, price adjustments, finance charges or other allowances (including any amount
that such Loan Party may be obligated to rebate to an Account Debtor pursuant to the terms of any
agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in
respect of such Account but not yet applied by such Loan Party to reduce the amount of such
Account.

          “Eligible Equipment” means, with respect to each Borrower and any other Loan Party,
the equipment owned by such Borrower or other Loan Party described in the most recent appraisal
received by the Administrative Agent in respect of such Loan Party and meeting each of the
following requirements:

          (a) such Loan Party has good title to such equipment;

          (b) such Loan Party has the right to subject such equipment to a Lien in favor of the
Administrative Agent; such equipment is subject to a first priority perfected Lien in favor
of the Administrative Agent and is free and clear of all other Liens of any nature
whatsoever (except for Permitted Encumbrances which do not have priority over the Lien in
favor of the Administrative Agent);

          (c) the full purchase price for such equipment has been paid by such Loan Party;

          (d) such equipment is located on premises (i) owned by such Loan Party, which premises
are subject to a first priority perfected Lien in favor of the Administrative Agent, or (ii)
leased by such Loan Party or, subject to such Loan Party’s compliance with Section 5.15,
constituting Non-Mortgaged Properties of such Loan Party where (x) with respect to any
leased

9

 

property, the lessor has delivered to the Administrative Agent a Collateral Access
Agreement; provided however that notwithstanding the foregoing, equipment located on
leased property with respect to which no Collateral Access Agreement shall have been
delivered shall be eligible, and no Reserve referred to in clause (y) of this clause (d)
shall be taken, for 75 days following the Effective Date; or (y) a Reserve without
duplication with respect to any Reserves to such facility relating to Eligible Inventory for
three months of rent, charges, and other amounts due or to become due with respect to such
facility has been established by the Administrative Agent in its Permitted Discretion;

          (e) such equipment is in good working order and condition (ordinary wear and tear
excepted) and is used or held for use by such Loan Party in the ordinary course of business
of such Loan Party;

          (f) such equipment is not subject to any agreement which restricts the ability of such
Loan Party to use, sell, transport or dispose of such equipment or which restricts the
Administrative Agent’s ability to take possession of, sell or otherwise dispose of such
equipment; and

          (g) unless the premises on which such equipment is located are subject to a first
priority perfected Lien in favor of the Administrative Agent, or, subject to compliance with
Section 5.15, constituting Non-Mortgaged Properties, such equipment does not constitute
“fixtures” under the applicable laws of the jurisdiction in which such equipment is located.

          “Eligible Inventory” means, at any time, with respect to each Borrower and any Loan
Party, the Inventory of such Borrower or Loan Party which the Administrative Agent determines in
its Permitted Discretion is eligible as the basis for the extension of Revolving Loans, Swingline
Loans and the issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s
discretion provided herein, Eligible Inventory shall not include any Inventory:

          (a) which is not subject to a first priority perfected Lien in favor of the
Administrative Agent;

          (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor
of the Administrative Agent;

          (c) which is, in the Administrative Agent’s Permitted Discretion, slow moving,
obsolete, unmerchantable, defective, used, unfit for sale, not salable at prices
approximating at least the cost of such Inventory in the ordinary course of business;

          (d) with respect to which any covenant, representation, or warranty contained in this
Agreement or the Security Agreement has been materially breached or is not true in any
material respect and which does not conform in all material respects to all standards
imposed by any Governmental Authority;

          (e) in which any Person other than such Borrower or Loan Party shall (i) have any
direct or indirect ownership, interest or title to such Inventory or (ii) be indicated on
any purchase order or invoice with respect to such Inventory as having or purporting to have
an interest therein;

10

 

          (f) which is not finished goods, raw materials, packaging and shipping materials or
which constitutes work-in-process, spare or replacement parts, subassemblies, manufacturing
supplies, samples, prototypes, displays or display items, bill-and-hold goods, goods that
are returned or marked for return, repossessed goods, defective or damaged goods, goods held
on consignment, or goods which are not of a type held for sale in the ordinary course of
business;

          (g) which is not located in the U.S. or, with respect to Inventory of a Netherlands
Loan Party, The Netherlands or is in transit with a common carrier from vendors and
suppliers , provided that, up to $2,000,000 of Inventory in transit from vendors and
suppliers may be included as eligible pursuant to this clause (g) so long as (i) the
Administrative Agent shall have received (1) a true and correct copy of the bill of lading
and other shipping documents for such Inventory, (2) evidence of satisfactory casualty
insurance naming the Administrative Agent as loss payee and otherwise covering such risks as
the Administrative Agent may reasonably request, and (3) if the bill of lading is (A)
non-negotiable, a duly executed Collateral Access Agreement from the applicable customs
broker for such Inventory or (B) negotiable, confirmation that the bill is issued in the
name of the Borrower or Loan Party and consigned to the order of the Administrative Agent,
and an acceptable agreement has been executed with such Borrower’s or Loan Party’s customs
broker, in which the customs broker agrees that it holds the negotiable bill as agent for
the Administrative Agent and has granted the Administrative Agent access to the Inventory
and (ii) the common carrier is not an Affiliate of the applicable vendor or supplier;

          (h) which is located in any location leased by such Borrower or Loan Party unless (i)
the lessor has delivered to the Administrative Agent a Collateral Access Agreement;
provided however that notwithstanding the foregoing, inventory located on leased
property with respect to which no Collateral Access Agreement shall have been delivered
shall be eligible, and no Reserve referred to in clause (ii) of this clause (h) shall be
taken, for 75 days following the Effective Date; or (ii) a Reserve without duplication of
any other Reserve with respect to such facility relating to Eligible Equipment for three
months rent, charges, and other amounts due or to become due with respect to such facility
has been established by the Administrative Agent in its Permitted Discretion;

          (i) which is located in any third party warehouse or is in the possession of a bailee
(other than a third party processor) and is not evidenced by a Document (other than bills of
lading to the extent permitted pursuant to clause (g) above), unless (i) such warehouseman
or bailee has delivered to the Administrative Agent a Collateral Access Agreement and such
other documentation as the Administrative Agent may require provided however that
notwithstanding the foregoing any such inventory with respect to which no Collateral Access
Agreement shall have been delivered shall be eligible, and no Reserve referred to in clause
(ii) of this clause (i) shall be taken, for 75 days following the Effective Date; or (ii) a
Reserve for three months of charges and other amounts due or to become with respect to such
facility has been established by the Administrative Agent in its Permitted Discretion;

          (j) which is being processed offsite at a third party location or outside processor, or
is in-transit to or from said third party location or outside processor;

          (k) which is a discontinued product or component thereof;

          (l) which is the subject of a consignment by such Borrower or Loan Party as consignor;

11

 

          (m) which is perishable;

          (n) which contains or bears any intellectual property rights licensed to such Borrower
or Loan Party unless the Administrative Agent is satisfied that it may sell or otherwise
dispose of such Inventory without (i) infringing the rights of such licensor, (ii) violating
any contract with such licensor, or (iii) incurring any liability with respect to payment of
royalties other than royalties incurred pursuant to sale of such Inventory under the current
licensing agreement; or

          (o) which is not reflected in a current perpetual inventory report of such Borrower or
Loan Party (unless such Inventory is reflected in a report to the Administrative Agent as
“in transit” Inventory);

          (p) for which reclamation rights have been asserted by the seller until such Inventory
is in the seller’s possession; or

          (q) which the Administrative Agent otherwise determines is unacceptable for any reason
whatsoever.

          “Eligible Real Property” means the real property owned by a Borrower and any Loan
Party (i) that is acceptable in the Permitted Discretion of the Administrative Agent for inclusion
in the Borrowing Base of such Borrower, (ii) in respect of which an appraisal report has been
delivered to the Administrative Agent in form, scope and substance reasonably satisfactory to the
Administrative Agent, (iii) in respect of which the Administrative Agent is satisfied that all
actions necessary or desirable in order to create perfected first priority Lien on such real
property have been taken, including, the filing and recording of Mortgages, (iv) in respect of
which an environmental assessment report has been completed and delivered to the Administrative
Agent in form and substance satisfactory to the Administrative Agent, (v) which is adequately
protected by fully-paid valid title insurance with endorsements and in amounts acceptable to the
Administrative Agent, insuring that the Administrative Agent, for the benefit of the Lenders, shall
have a perfected first priority Lien on such real property, evidence of which shall have been
provided in form and substance satisfactory to the Administrative Agent, and (vi) if required by
the Administrative Agent: (A) either (i) an ALTA survey has been delivered for which all necessary
fees have been paid and which is dated no more than 30 days prior to the date on which the
applicable Mortgage is recorded, certified to the Administrative Agent and the issuer of the title
insurance policy in a manner satisfactory to the Administrative Agent by a land surveyor duly
registered and licensed in the state in which such Eligible Real Property is located and acceptable
to the Administrative Agent, and shows all buildings and other improvements, any offsite
improvements, the location of any easements, parking spaces, rights of way, building setback lines
and other dimensional regulations and the absence of encroachments, either by such improvements or
on to such property, and other defects, other than encroachments and other defects acceptable to
the Administrative Agent or (ii) the title insurance policy referred to in clause (v) above shall
not contain an exception for any matter shown by a survey (except to the extent an existing survey
has been provided and specifically incorporated into such title insurance policy); (B) in respect
of which local counsel for the Agreement in states in which the Eligible Real Property is located
have delivered a letter of opinion with respect to the enforceability and perfection of the
Mortgages and any related fixture filings in form and substance reasonably satisfactory to the
Administrative Agent; and (C) in respect of which such Borrower or Loan Party shall have used its
reasonable best efforts to obtain estoppel certificates executed by all tenants of such Eligible
Real Property and such other consents, agreements and confirmations of lessors and third parties
have been delivered as the Administrative Agent may deem necessary or desirable, together with
evidence that all other actions that the Administrative Agent may deem necessary or desirable in
order to create perfected first priority Liens on the property described in the Mortgages have been
taken.

12

 

          “EMU Legislation” means legislative measures of the European Union (including, without
limitation, the European Council regulations) for the introduction of, changeover to or operation
of the Euro in one or more member states.

          “Environmental Laws” means all applicable laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any
Borrower or any Subsidiary resulting from or based upon (a) violation of any Environmental Law, (b)
the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any
Hazardous Materials into the environment or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests (however designated) in a Person, and any warrants, options or other rights entitling the
holder thereof to purchase or acquire any such equity interest.

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

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with a Borrower, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by any Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by any Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by any Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from any Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

          “Euro Sublimit” means an amount equal to $75,000,000.

          “Eurocurrency”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by

13

 

reference to the Adjusted LIBO Rate or another rate of interest reasonably determined by the
Administrative Agent.

          “Euros”
or “€” means the single currency of Participating Member States
introduced in accordance with the provision of Article 123 of the Treaty and, in respect of all
payments to be made under this Agreement in Euros, means immediately available, freely transferable
funds.

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Exchange Rate” means, with respect to Euros on a particular date, the rate at which
such currency may be exchanged into dollars, as set forth on such date on the applicable Reuters
currency page with respect to such currency. In the event that such rate does not appear on the
applicable Reuters currency page, the Exchange Rate with respect to such currency shall be
determined by reference to such other publicly available service for displaying exchange rates as
may be agreed upon by the Administrative Agent and the Borrower Representative or, in the absence
of such agreement, such Exchange Rate shall instead be Chase’s spot rate of exchange in the London
interbank or other market where its foreign currency exchange operations in respect of such
currency are then being conducted, at or about noon, Local Time, at such date for the purchase of
dollars with such alternative currency, for delivery two Business Days later; provided,
that if at the time of any such determination, for any reason, no such spot rate is being quoted,
the Administrative Agent may use any reasonable method it deems appropriate to determine such rate,
and such determination shall be conclusive absent manifest error.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
any Borrower hereunder, (a) income or franchise Taxes imposed on (or measured by) its net income by
the United States of America (or any political subdivision thereof), or by the jurisdiction (or any
political subdivision thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits Taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which any Borrower is located, (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by a Borrower under Section 2.19(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to
such Foreign Lender’s failure to comply with Section 2.17(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the Borrowers with respect to such
withholding tax pursuant to Section 2.17(a) and (d) any amount withheld from any payment made to a
Lender under this Agreement that is attributable to such Lender’s failure to comply with Section
2.17(g).

          “Fair Market Value Differential” means with respect to any sale, transfer or
disposition of any asset of a Loan Party to a Subsidiary that is not a Loan Party the difference
between the fair market value of such asset sold, transferred and disposed of and the cash proceeds
received by such Loan Party from such Subsidiary that is not a Loan Party.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

14

 

          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer, assistant treasurer or controller of a Loan Party.

          “Fixed Charge Coverage Ratio” means, the ratio, determined as of the end of each of
fiscal quarter of Holdings for the most-recently ended four fiscal quarters, of (a) EBITDA
minus the unfinanced portion of Capital Expenditures to (b) Fixed Charges, all calculated
for Holdings and its Subsidiaries on a consolidated basis in accordance with GAAP.

          “Fixed Charges” means, with reference to any period, without duplication, cash
Interest Expense, plus (i) scheduled principal payments on Indebtedness made during such
period, plus (ii) expense for Taxes paid in cash, plus (iii) dividends or
distributions paid by Holdings in cash, plus (iv) Capital Lease Obligation payments,
plus (v) cash contributions to any Plan in excess of expenses and, with respect to any cash
contribution to any Plan made in 2007 and 2008 (to the extent the date any such cash contribution
is required to be paid is extended to 2008 in accordance with applicable legislation),
minus the Traex Sale Net Proceeds, if any (provided that for any period the aggregate
amount of such cash contributions shall not be reduced to an amount less than $0), all calculated
for Holdings and its Subsidiaries on a consolidated basis.

          “Foreign Lender” means, with respect to a Borrower, any Lender that is organized under
the laws of a jurisdiction other than a jurisdiction in which the Borrower is organized or a
resident for Tax purposes. For purposes of this definition, the United States of America, each
State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

          “Foreign Subsidiary” has the meaning set forth in Section 1.3 of the U.S. Security
Agreement.

          “Funding Account” has the meaning assigned to such term in Section 4.01(h).

          “GAAP” means generally accepted accounting principles in the United States of America.

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other public entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Grants of Security Interests in Intellectual Property” means, collectively, the Grant
of Security Interest in Patent Rights, the Grant of Security Interest in Trademark Rights and the
Grant of Security Interest in Copyright Rights to be filed with the United States Patent and
Trademark Office.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of

15

 

credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

          “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

          “Holdings” means Libbey Inc., a Delaware corporation.

          “Increased Facility Closing Date” means any Business Day designated as such in an
Increasing Lender Supplement.

          “Increasing Lender Supplement” means an agreement substantially in the form of Exhibit
E between one or more Borrowers and a Lender, satisfactory to the Administrative Agent.

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations
of such Person under conditional sale or other title retention agreements relating to property
acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase
price of property or services (excluding current accounts payable and accrued liabilities with
respect to obligations owing to employees in the ordinary course of business), (e) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person,
whether or not the Indebtedness secured thereby has been assumed, provided, however, that such
Indebtedness, if not assumed, shall be valued at the lower of fair market value of such property on
the amount of such Indebtedness incurred, (f) all Guarantees by such Person of Indebtedness of
others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit and letters of
guaranty, (i) all obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances, (j) obligations under any liquidated earn-out and (k) any other Off-Balance Sheet
Liability. The Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the extent such Person is
liable therefor as a result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information Memorandum” means the Confidential Information Memorandum dated May 2006,
relating to the Borrowers and the Transactions.

          “Intellectual Property” means the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

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          “Intercreditor Agreement” means the Intercreditor Agreement, dated as of June 16,
2006, among the US Borrower, the Administrative Agent, the trustee under the Second Lien Senior
Notes Indenture and the purchaser of the Third Lien Senior Notes.

          “Interest Election Request” means a request by the Borrower Representative to convert
or continue a Revolving Borrowing in accordance with Section 2.07.

          “Interest Expense” means, with reference to any period, total interest expense
(including that attributable to Capital Lease Obligations) of Holdings and its Subsidiaries for
such period with respect to all outstanding Indebtedness of Holdings and its Subsidiaries
(including all commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing and net expenses under Swap Agreements in respect of
interest rates to the extent such net expenses are allocable to such period in accordance with
GAAP), calculated on a consolidated basis for Holdings and its Subsidiaries for such period in
accordance with GAAP.

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the first Business Day of each April, July, October and January and the Maturity Date, (b)
with respect to any Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency Borrowing with an
Interest Period of more than three months’ duration, each day prior to the last day of such
Interest Period that occurs at intervals of three months’ duration after the first day of such
Interest Period and the Maturity Date and (c) with respect to any Swingline Loan, the day that such
Loan is required to be repaid and the Maturity Date.

          “Interest Period” means (a) with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower Representative may
elect; provided, that (i) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case
of a Eurocurrency Borrowing only, such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period pertaining to a Eurocurrency Borrowing that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the
date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be
the effective date of the most recent conversion or continuation of such Borrowing.

          “Inventory” has the meaning assigned to such term in the US Security Agreement and,
with respect to the Netherlands Loan Parties, “Movables” as defined in the Deed of Disclosed
Pledges of Movables in so far as it constitutes inventory for the purposes hereof.

          “Issuing Bank” means Chase, in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.06(i) or if Chase is unable
to issue a requested Letter of Credit, subject to Chase’s consent (not to be unreasonably
withheld), any other Lender that upon request by the Borrower Representative consents to be an
Issuing Bank hereunder. The Issuing Bank may, in its discretion, arrange for one or more Letters
of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank”
shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

          “Joinder Agreement” has the meaning assigned to such term in Section 5.14.

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          “Judgment Currency” has the meaning set forth in Section 9.18(b).

          “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

          “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the US Borrower at such time. The LC Exposure
of any Revolving Lender at any time shall be its Applicable Percentage of the total LC Exposure at
such time.

          “Lenders” means the Persons listed on the Commitment Schedule and any other
Person that shall have become a party hereto pursuant to a New Lender Supplement or an Assignment
and Assumption, other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Assumption. Unless the context otherwise requires, the term “Lenders” includes the
Swingline Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “Libbey Europe Sublimit” means an amount equal to $75,000,000.

          “LIBO Rate” means, with respect to any Eurocurrency Borrowing made in dollars or
Euros, for any Interest Period, the rate appearing on Page 3750 of the Dow Jones Market Service (or
on any successor or substitute page of such service, or any successor to or substitute for such
service, providing rate quotations comparable to those currently provided on such page of such
service, as determined by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar or Euro deposits, as applicable, in the London
interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar or Euro deposits, as applicable, with
a maturity comparable to such Interest Period. In the event that such rate is not available at
such time for any reason, then the “LIBO Rate” with respect to such Eurocurrency Borrowing
for such Interest Period shall be the rate at which dollar or Euro deposits, as applicable, of
$5,000,000 and for a maturity comparable to such Interest Period are offered by the principal
London office of the Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period. It is understood and acknowledged that the LIBO Rate with respect to
borrowings in dollars may be different from the LIBO Rate with respect to borrowings in Euros.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

          “Loan Documents” means this Agreement, any promissory notes issued pursuant to the
Agreement, any Increasing Lender Supplement, any New Lender Supplement, any Letter of Credit
applications, the Collateral Documents, the Intercreditor Agreement, the Loan Guaranty, any
Collateral Access Agreement, any Deposit Account Control Agreement, and all Borrowing Base
Certificates and Borrowing Notices. Any reference in the Agreement or any other Loan Document to a
Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements

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           or other modifications thereto, and shall refer to the Agreement or such Loan Document as the
same may be in effect at any and all times such reference becomes operative.

          “Loan Guarantor” means each of the US Loan Guarantors and the Netherlands Loan
Guarantors.

          “Loan Guaranty” means Article X of this Agreement.

          “Loan Parties” means the Netherlands Loan Parties and the U.S. Loan Parties.

          “Loans” means the loans and advances made by the Lenders pursuant to this Agreement,
including Swingline Loans and Protective Advances.

          “Local Time” means, with respect to any Borrowing or payment made by the US Borrower
or the Netherlands Borrower, Chicago time and London time, respectively.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations or financial condition of Holdings and its Subsidiaries taken as a whole, (b) the
ability of any Loan Party to perform any of its material obligations under the Loan Documents to
which it is a party, (c) the Administrative Agent’s Liens (on behalf of itself and the Lenders) on
the Collateral or the priority of such Liens, or (d) the rights of or benefits available to the
Administrative Agent, the Issuing Bank or the Lenders hereunder.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of a Swap Agreement of any Loan Party or any of its Subsidiaries
in an aggregate principal amount exceeding $5,000,000. For purposes of determining Material
Indebtedness, the “obligations” of Holdings or any Subsidiary in respect of any Swap Agreement at
any time shall be the maximum aggregate amount (giving effect to any netting agreements) that
Holdings or such Subsidiary would be required to pay if such Swap Agreement were terminated at such
time.

          “Maturity Date” means December 16, 2010, or any earlier date on which the Commitments
are permanently reduced to zero or otherwise terminated pursuant to the terms hereof.

          “Maximum Liability” has the meaning assigned to such term in Section 10.10.

          “Moody’s” means Moody’s Investors Service, Inc.

          “Mortgages” means any mortgage, deed of trust or other agreement which conveys or
evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent
and the Lenders, on real property of a Loan Party, including any amendment, modification or
supplement thereto.

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

          “Netherlands Availability” means, with respect to the Netherlands Borrower, at any
time, an amount equal to (a) the lesser of the Revolving Netherlands Sublimit and the Netherlands
Borrowing Base at such time minus (b) the aggregate amount of the Revolving Netherlands
Exposures of all Revolving Lenders at such time; provided that such Netherlands
Availability will at no time exceed the difference of (x) the sum of the total Revolving
Commitments minus (y) the Aggregate Credit Exposure at such time; and provided,
further, that such Netherlands Availability will at no time exceed the

19

 

difference of (i) the Libbey Europe Sublimit minus (ii) the aggregate amount of the
Credit Exposures of all Lenders at such time relating to the Netherlands Borrower.

          “Netherlands Banking Act” means the Netherlands Act on the Supervision of the Credit
System 1992 (Wet toezicht kredietwezen 1992).

          “Netherlands Borrower” means Libbey Europe B.V., a limited liability company
incorporated in The Netherlands.

          “Netherlands Borrowing Base” means, at any time, the sum of (a) 85% of the Netherlands
Loan Parties’ Eligible Accounts at such time, plus (b) the lesser of (i) 65% of the
Netherlands Loan Parties’ Eligible Inventory, valued at the lower of cost or market value,
determined on a first-in-first-out basis, at such time and (ii) the product of 85% multiplied by
the Netherlands Loan Parties’ Net Orderly Liquidation Value percentage identified in the most
recent inventory appraisal ordered by the Administrative Agent multiplied by the Netherlands Loan
Parties’ Eligible Inventory, valued at the lower of cost or market value, determined on a
first-in-first-out basis, at such time, minus (c) Reserves without duplication of the
Reserves with respect to the US Borrowing Base related to the Netherlands Loan Parties,
plus (d) the Netherlands Loan Parties’ PP&E Component. The maximum amount of the
Netherlands Borrowing Base which is attributable to Inventory is $12,500,000. The Administrative
Agent may, in its Permitted Discretion, reduce the advance rates set forth above, adjust Reserves
or reduce one or more of the other elements used in computing the Netherlands Borrowing Base.

          “Netherlands Borrowing Base Certificate” means a certificate, signed and certified as
accurate and complete by a Financial Officer of the Borrower Representative, in substantially the
form of Exhibit D or another form which is acceptable to the Administrative Agent in its
sole discretion.

          “Netherlands Central Bank” means the central bank of The Netherlands (De Nederlandsche
Bank).

          “Netherlands Collateral” means any and all property owned, leased or operated by a
Person covered by the Collateral Documents and any and all other property of any Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a security interest or
Lien in favor of the Administrative Agent, on behalf of itself and the Lenders, to secure any
Netherlands Secured Obligations.

          “Netherlands Collateral Documents” means, collectively, the Netherlands Security
Agreements, the Netherlands Mortgages and any other documents granting a Lien upon the Netherlands
Collateral as security for payment of the Netherlands Secured Obligations.

          “Netherlands Exemption Regulation” means the Exemption Regulation to the Netherlands
Banking Act of the Minister of Finance (Vrijstellingsregeling Wtk 1992), as amended from time to
time.

          “Netherlands Loan Guarantors” means the US Borrower’s Subsidiaries that are organized
under the laws of The Netherlands (other than the Netherlands Borrower).

          “Netherlands Loan Party” means the Netherlands Borrower, each Netherlands Loan
Guarantor party hereto and the Netherlands Security Agreement, and any other Person organized under
the laws of The Netherlands who becomes a party to this Agreement and the Netherlands Security
Agreement pursuant to a Joinder Agreement.

20

 

          “Netherlands Loans” means the loans and advances made by the Lenders to the
Netherlands Borrower pursuant to this Agreement, including Protective Advances made with respect to
the Netherlands Borrower.

          “Netherlands Mortgage” means each Mortgage in respect of owned real property located
in the Netherlands of a Netherlands Loan Party.

          “Netherlands Obligations” means all obligations in respect of unpaid principal of and
accrued and unpaid interest on the Netherlands Loans, all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of any Netherlands Loan Party to the Lenders or
to any Lender, the Administrative Agent or any indemnified party arising under any Loan Document.

          “Netherlands Secured Obligations” means all Netherlands Obligations, together with all
(i) Banking Services Obligations of the Netherlands Borrower or any Netherlands Loan Guarantor and
(ii) Swap Obligations of the Netherlands Borrower or any Netherlands Loan Guarantor owing to one or
more Lenders or their respective Affiliates; provided that at or prior to the time that any
transaction relating to such Swap Obligation is executed, the Lender party thereto (other than
Chase) shall have delivered written notice to the Administrative Agent that such a transaction has
been entered into and that it constitutes a Netherlands Secured Obligation entitled to the benefits
of the Collateral Documents.

          “Netherlands Security Agreement” means each of that certain Deed of Disclosed Pledges
of Receivables, Deed of Undisclosed Pledges of Receivables, Deed of Non-Possessory Pledges of
Receivables, Deed of Disclosed Pledges of Receivables, Deed of Undisclosed Pledges of Receivables,
Deed of Pledges of Intellectual Property Rights, Deed of Disclosed Pledges of Financial Rights,
those certain Deeds of Pledges of Shares and those certain Deeds of Mortgages, dated as of the date
hereof, between, as the case may be, the Netherlands Borrower, Netherlands Loan Guarantors and the
Administrative Agent, for the benefit of the Administrative Agent and the Lenders, and any other
pledge or security agreement entered into, after the date of this Agreement by the Netherlands
Borrower or any Netherlands Loan Guarantor (as required by this Agreement or any other Loan
Document) as the same may be amended, restated or otherwise modified from time to time.

          “Netherlands Swingline Rate” means the rate (adjusted for statutory reserve
requirements for Eurocurrency liabilities) for Eurocurrency deposits for a period of one day quoted
by JPMorgan Chase Bank, N.A., London Branch, plus the Applicable Rate for such Eurocurrency Loan
plus 1% .

          “Net Income” means, for any period, the consolidated net income (or loss) of Holdings
and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it
becomes a Subsidiary or is merged into or consolidated with Holdings or any of its Subsidiaries,
(b) the income (or deficit) of any Person (other than a Subsidiary) in which Holdings or any of its
Subsidiaries has an ownership interest, except to the extent that any such income is actually
received by Holdings or such Subsidiary in the form of dividends or similar distributions and (c)
the undistributed earnings of any Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of
any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to
such Subsidiary.

          “Net Orderly Liquidation Value” means, with respect to Inventory, Equipment or
intangibles of any Person, the orderly liquidation value thereof as determined in a manner
acceptable to the Administrative Agent by an appraiser acceptable to the Administrative Agent, net
of all costs of liquidation thereof.

21

 

          “Net Proceeds” means, with respect to any event, (a) the cash proceeds received
in respect of such event including (i) any cash received in respect of any non-cash proceeds
(including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise, but excluding any
interest payments), but only as and when received, (ii) in the case of a casualty, insurance
proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar
payments, net of (b) the sum of (i) all reasonable professional and consulting fees and
out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event,
(ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale
and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all
payments required to be made as a result of such event to repay Indebtedness (other than Loans)
secured by such asset or otherwise subject to mandatory prepayment as a result of such event and
(iii) the amount of all Taxes paid (or reasonably estimated to be payable) and the amount of any
reserves established to fund contingent liabilities reasonably estimated to be payable, in each
case during the year that such event occurred or the next succeeding year and that are directly
attributable to such event (as determined reasonably and in good faith by a Financial Officer).

          “New Lender” has the meaning assigned to such term in Section 2.01(c)(iii).

          “New Lender Supplement” means an agreement substantially in the form of Exhibit F
among one or more Borrowers and a New Lender, satisfactory to the Administrative Agent.

          “Non-Consenting Lender” has the meaning assigned to such term in Section 2.19(b).

          “Non-Mortgaged Property” has the meaning set forth in Section 3.05.

          “Non-Paying Guarantor” has the meaning assigned to such term in Section 10.11.

          “Non-Restricted Deposit Accounts” means payroll and fiduciary accounts, accounts of
Subsidiaries that are not Loan Parties, employee benefits, withholding tax, escrow and customs
accounts and accounts for retail stores and other purposes (with an aggregate amount on deposit in
all such accounts not to exceed $1,000,000; provided that if at any time any such account
shall have on deposit $500,000 or more, such account shall cease to be a “Non-Restricted Deposit
Account” and shall be subject to a control agreement pursuant to Section 7.1(a) of the Security
Agreement).

          “Obligated Party” has the meaning assigned to such term in Section 10.02.

          “Obligations” means, with respect to the US Borrower and the Netherlands Borrower, US
Obligations and Netherlands Obligations, respectively. Unless otherwise specified, “Obligations”
shall refer to the Obligations with respect to the Borrowers.

          “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any
indebtedness, liability or obligation under any so-called “synthetic lease” transaction entered
into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any
other transaction which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the balance sheets of such Person (other than operating leases).
For purposes of this Agreement, the outstanding principal amount of Off-Balance Sheet Liabilities
shall be deemed equal to the amount of those liabilities that would be outstanding if the
transaction was structured as an on balance sheet secured financing.

22

 

          “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

          “Participant” has the meaning set forth in Section 9.04.

          “Participating Member States” means a member of the European Union that adopts or has
adopted the Euro as its currency in accordance with EMU Legislation.

          “Paying Guarantor” has the meaning assigned to such term in Section 10.11.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Acquisition” means the acquisition by the US Borrower, directly or through
a Subsidiary, of an interest (whether of stock or of assets) in any other Person, provided that all
of the following conditions shall have been satisfied: (a) such other Person shall operate a
similar business or reasonable extension thereof or reasonably related thereto to that of Holdings
and its Subsidiaries, (b) no Default or Event of Default shall have occurred and be continuing and
none shall exist as a result of and after giving effect thereto, (c) if the US Borrower shall merge
or amalgamate with such other Person, the US Borrower shall be the surviving party of such merger
or amalgamation, (d) if such Person shall become a Subsidiary of the US Borrower, such new
Subsidiary shall, if required by Section 5.14 hereof become a US Loan Party or a Netherlands Loan
Party as applicable and take such further actions required by Section 5.14, (e) the Borrower shall
have delivered to the Administrative Agent a certificate demonstrating that, both immediately prior
to and immediately after giving effect to such acquisition, Aggregate Availability exceeds
$35,000,000 and (f) the aggregate amount expended (whether in cash, assumed indebtedness, deferred
payments or other consideration) by the US Borrower and its Subsidiaries for all Permitted
Acquisitions shall not exceed $25,000,000.

          “Permitted Discretion” means a determination made in good faith and in the exercise of
commercially reasonable (from the perspective of a secured asset-based lender) business judgment.

          “Permitted Encumbrances” means:

          (a) Liens imposed by law for Taxes that are not yet due or are being contested in
compliance with Section 5.04;

          (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than 30 days or are being contested in compliance with Section
5.04;

           (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

           (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds, customs duties, and other
obligations of a like nature, in each case in the ordinary course of business;

23

 

           (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII;

           (f) survey exceptions, encumbrances, ground leases, easements or reservations of, or
rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other restrictions
(including minor defects or irregularities in title and similar encumbrances) as to the use
of real properties that do not in the aggregate materially adversely affect the value of
said properties or materially impair their use in the operation of the business of Holdings
or any of its Subsidiaries;

           (g) (1) non-exclusive licenses and sublicenses of Intellectual Property granted in the
ordinary course of business, provided, that no such license or sublicense may be
granted that would reasonably be expected to constitute an abandonment of any Loan Party’s
or any Subsidiary’s trade name or trade marks or other similar Intellectual Property if such
abandonment would materially interfere with the business of Holdings and its Subsidiaries;
or (2) leases or subleases not otherwise prohibited under this Agreement and the other Loan
Documents granted to others not interfering in any material respect in the business of
Holdings or any of its Subsidiaries;

           (h) Liens arising solely by virtue of any statutory or common law provisions relating
to banker’s Liens, rights of set-off or similar rights and remedies with respect to the
deposit accounts constituting Non-Restricted Accounts or set forth on Schedule 6.02;

           (i) Liens arising from precautionary Uniform Commercial Code financing statement
filings regarding operating leases permitted hereunder describing the leased property and
proceeds thereof as collateral; and

           (j) any interest or title of a lessor in the leased property under any Capital Lease
Obligation permitted pursuant to Section 6.01 or any operating lease entered into by or
binding upon a Loan Party or a Subsidiary in the ordinary course of its business and
covering only the asset so leased and the personal property thereon and proceeds thereof;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

          “Permitted Investments” means:

           (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition thereof;

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

           (c) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, a credit rating of A-2 or the
equivalent thereof from S&P or P-2 or the equivalent thereof from Moody’s;

24

 

           (d) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 270 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any domestic office of
any commercial bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not less than
$500,000,000;

           (e) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clauses (a), (b) and (d) above and entered into with a financial
institution satisfying the criteria described in clause (d) above;

           (f) money market funds that (i) comply with the criteria set forth in Securities and
Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA
by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and

           (g) in the case of any Foreign Subsidiary, (i) marketable direct obligations issued by,
or unconditionally guaranteed by, the sovereign nation in which such Foreign Subsidiary is
organized and is conducting business or issued by any agency of such sovereign nation and
backed by the full faith and credit of such sovereign nation, in each case maturing within
one year from the date of acquisition, so long as the indebtedness of such sovereign nation
is rated at least A by S&P or A2 by Moody’s or carries an equivalent rating from a
comparable foreign rating agency or (ii) investments of the type and maturity described in
clauses (b) through (f) above of foreign obligors, which investments or obligors have
ratings described in such clauses or equivalent ratings from comparable foreign rating
agencies.

          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which any Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Postclosing Mortgaged Property” means each Non-Mortgaged Property other than 1600
Justo Penn Road, Laredo, Texas and 101 Traex Plaza, Dane, Wisconsin; provided, that the
property located at 101 Traex Plaza, Dane, Wisconsin, shall not be deemed a Postclosing Mortgaged
Property unless a definitive letter of intent with respect to the sale of such property has not
been executed and delivered to the Administrative Agent on or before December 31, 2006.

          “PP&E Component” shall mean, at the time of any determination, with respect to all of
the applicable Loan Parties, an aggregate amount equal to the lesser of (i) 50% of the fair market
value of such Loan Parties’ Eligible Real Property plus 75% of the net orderly liquidation
value of such Loan Parties’ Eligible Equipment less Reserves and (ii) $25,000,000.

          “Prepayment Event” means, without duplication:

           (a) any sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property or asset of any Loan Party, other than dispositions described
in Section 6.05(a); or

25

 

           (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of any Loan Party.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by Chase as its prime rate; each change in the Prime Rate shall be effective from and including the
date such change is publicly announced as being effective.

          “Professional Market Party” means a professional market party (professionele
marktpartij) as defined in the Netherlands Exemption Regulation 1992 (Vrijstellingsregeling Wtk
1992), dated 26 June 2002 (as amended from time to time), which at the date of this Agreement
includes, without limitation: (i) individuals or entities who or which are subject to supervision
by a supervisory authority in any country to lawfully operate on the financial markets; (ii)
individuals or entities lawfully engaging in regulated activities on the financial markets without
being subject to supervision by a supervisory authority (e.g. exempt credit and financial
institutions, insurance companies, investment firms, collective investment schemes and their
management companies, pension funds and their management companies, commodity dealers and special
purpose vehicles); (iii) the Dutch government (de Staat der Nederlanden), De Nederlandsche Bank, a
foreign government body being part of a central government, a foreign central bank, Dutch or
foreign regional, local or other decentralized governmental institutions, international treaty
organizations and supranational organizations; (iv) entities meeting at least two of the following
criteria according to their most recent consolidated or non-consolidated annual accounts: (1) an
average of at least 250 employees during the financial year, (2) total assets of at least
€43,000,000 according to its balance sheet, and (3) annual net turnover of at least €50,000,000;
(v) entities with their registered office in The Netherlands which at their request to be
considered as qualified investors (within the meaning of Directive 2003/71/EC) have been entered in
the register of qualified investors maintained by the Netherlands Authority for the Financial
Markets (Autoriteit Financiële Markten); (vi) individuals who are resident in The Netherlands and
meeting at least two of the following criteria and who at their request to be considered as
qualified investors have been entered in the register of qualified investors: (1) they have
carried out at least 10 sizeable transactions on the financial markets in each of the preceding
four calendar quarters, (2) the size of their securities portfolio is at least €500,000, and (3)
they have worked for at least one year in the financial sector in a position which requires
knowledge of investment in securities; (vii) entities whose sole corporate purpose is to invest in
securities; (vii) special purpose vehicles in securitization transactions provided that they issued
securities; (viii) subsidiaries of a Professional Market Party referred to under (i) through (vii)
above provided such subsidiaries are subject to prudential supervision on a consolidated basis as a
result of the supervision exercised over such Professional Market Party; (ix) enterprises or
entities with total assets of at least €500,000,000 (or the dollar equivalent thereof) according to
their balance sheet at the end of the financial year immediately preceding the date they extend
credit hereunder to a Netherlands Borrower or the date they become a Lender of a Netherlands Loan;
(x) enterprises, entities or individuals with a net equity (eigen vermogen) of at least €10,000,000
(or the dollar equivalent thereof) who or which on average performed activities on the financial
markets twice a month during the two consecutive years immediately preceding the date that they
extend credit hereunder to a Netherlands Borrower or the date that they become a Lender of a
Netherlands Loan (xi) an entity which has a credit rating from a rating agency which in the opinion
of De Nederlandsche Bank is acceptable or which issues securities with a credit rating from a
rating agency which in the opinion of De Nederlandsche Bank is acceptable; and (xii) such other
individuals and entities designated as professional market party (professionele marktpartij) by the
competent Netherlands authorities after the date hereof by any amendment of the applicable
regulations.

          “Projections” has the meaning assigned to such term in Section 5.01(f).

          “Protective Advance” has the meaning assigned to such term in Section 2.04.

26

 

          “Real Estate Reserve” means a $5,000,000 Reserve, which Reserve may be adjusted in the
Administrative Agent’s Permitted Discretion after the Administrative Agent shall have received
satisfactory Phase II Environmental Reports with respect to the Specified Properties.

          “Register” has the meaning set forth in Section 9.04.

          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Report” means reports prepared by the Administrative Agent or another Person showing
the results of appraisals, field examinations or audits pertaining to the Borrowers’ assets from
information furnished by or on behalf of the Borrowers, after the Administrative Agent has
exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to
the Lenders by the Administrative Agent.

          “Required Lenders” means, at any time, Lenders having Credit Exposure (USD Equivalent)
and unused Commitments representing more than 50% of the sum of the total Credit Exposure (USD
Equivalent) and unused Commitments at such time and based on the Exchange Rate in effect at such
time.

          “Required Swap Agreements” has the meaning set forth in Section 5.15.

          “Requirement of Law”: as to any Person, the Certificate of Incorporation and By-Laws
or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each
case applicable to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

          “Reserves” means any and all reserves which the Administrative Agent deems necessary,
in its Permitted Discretion, to maintain (including, without limitation, an availability reserve,
reserves for accrued and unpaid interest on the Secured Obligations, Banking Services Reserves,
reserves for rent at locations leased by any Loan Party and for consignee’s, warehousemen’s and
bailee’s charges, reserves for dilution of Accounts, reserves for Inventory shrinkage, reserves for
customs charges and shipping charges related to any Inventory in transit, reserves for Swap
Obligations, reserves for contingent liabilities of any Loan Party, reserves for uninsured losses
of any Loan Party, reserves for uninsured, underinsured, un-indemnified or under-indemnified
liabilities or potential liabilities with respect to any litigation and reserves for Taxes, fees,
assessments, and other governmental charges) with respect to the Collateral or any Loan Party.

          “Reset Date” means the second Business Day following each Calculation Date,
provided that, in connection with any Calculation Date designated pursuant to clause (b) of
the definition thereof, the applicable Reset Date shall be such Calculation Date.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in any Loan Party or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the US Borrower or any option, warrant
or other right to acquire any such Equity Interests in the US Borrower.

27

 

          “Restriction Commencement Date” means a date on which a Restriction Trigger Event
shall have occurred.

          “Restriction Period” means the period commencing on a Restriction Commencement Date
and ending on a Restriction Release Date.

          “Restriction Period Grid” means the table set forth below setting forth the applicable
Restriction Trigger Amounts and Restriction Release Amounts with respect to each provision of the
Loan Documents wherein the term “Restriction Period” is used:

	 	 	 	 	 	 	 	 	 
	Relevant Provision	Restriction Trigger Amount	Restriction Release Amount
	Section 5.01 of the
Credit Agreement
	 	$	30,000,000	 	 	$	40,000,000	 
	Section 6.08 of the
Credit Agreement
	 	$	25,000,000	 	 	$	40,000,000	 
	Section 6.15 of the
Credit Agreement
	 	$	15,000,000	 	 	$	25,000,000	 
	Article VII of the
US Security Agreement
	 	$	25,000,000	 	 	$	35,000,000	 

          “Restriction Release Amount” means, with respect to each provision of the Loan
Documents wherein the term “Restriction Period” is used, the amount set forth in the Restriction
Period Grid opposite the reference to such provision.

          “Restriction Release Date” means a date on which a Restriction Release Event shall
have occurred.

          “Restriction Release Event” means that the sum of (i) the Aggregate Availability
plus (ii) the aggregate amount of cash or Permitted Investments subject to a first priority
perfected security interest in favor of the Administrative Agent pursuant to the Loan Documents is
greater than or equal to the applicable Restriction Release Amount as of any Reset Date and during
the period of thirty (30) consecutive days immediately succeeding such Reset Date.

          “Restriction Trigger Amount” means, with respect to each provision of the Loan
Documents wherein the term “Restriction Period” is used, the amount set forth in the Restriction
Period Grid opposite the reference to such provision.

          “Restriction Trigger Event” means that both (a) as of any Reset Date the sum of (i)
the Aggregate Availability plus (ii) the aggregate amount of cash or Permitted Investments
subject to a first priority perfected security interest in favor of the Administrative Agent
pursuant to the Loan Documents fails to be equal to or greater than the applicable Restriction
Trigger Amount and (b) such failure shall have continued unremedied for three (3) consecutive days
following notice of such failure from the Administrative Agent (provided, that no such
notice shall be required during the existence of an Event of Default of the type described in
paragraphs (h) or (i) in Article VIII).

          “Revolving Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make Revolving Loans and to acquire participations in Letters of Credit and
Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate
amount of such Lender’s Revolving Exposure hereunder, as such commitment may be (a) reduced from
time to time

28

 

pursuant to Section 2.09, (b) increased from time to time pursuant to Section 2.01(c) and (c)
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 9.04. The initial amount of each Lender’s Commitment is set forth on the Commitment
Schedule, or in the Assignment and Assumption pursuant to which such Lender shall have assumed
its Revolving Commitment, or in the New Lender Supplement, pursuant to which such Lender shall have
assumed its Commitment, as applicable. The initial aggregate amount of the Lenders’ Revolving
Commitments is $150,000,000.

          “Revolving Euro Exposure” means, with respect to any Lender as it relates to any
Borrower at any time, the Revolving Exposure of such Lender as it relates to such Borrower at such
time that is denominated in Euros.

          “Revolving Exposure” means, with respect to any Lender as it relates to any Borrower
at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans to such
Borrower, in each case, and its LC Exposure with respect to any Letter of Credit requested by such
Borrower and an amount equal to its Applicable Percentage of the aggregate principal amount of
Swingline Loans to such Borrower, in each case, at such time.

          “Revolving Lender” means, as of any date of determination, a Lender with a Revolving
Commitment or, if the Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.

          “Revolving Loan” means a Loan made pursuant to Section 2.01(a).

          “Revolving Netherlands Sublimit” means, with respect to each Lender, the obligation,
if any, of such Lender to make Revolving Loans hereunder to the Netherlands Borrower based on the
Netherlands Borrowing Base, expressed as an amount representing the maximum possible aggregate
amount of such Lender’s Revolving Exposure hereunder, as such obligation may be (a) reduced from
time to time pursuant to Section 2.09, (b) increased from time to time pursuant to Section 2.01(c)
and (c) reduced or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04. The initial amount of each Lender’s Revolving Netherlands Sublimit is
set forth on the Commitment Schedule, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Revolving Netherlands Sublimit, or in the New Lender Supplement,
pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of the Lenders’ Revolving Netherlands Sublimit is $25,000,000.

          “Revolving Netherlands Exposure” means, with respect to any Lender as it relates to
the Netherlands Borrower, at any time, the sum of the principal amount of such Lender’s Netherlands
Loans outstanding at such time made pursuant to the Revolving Netherlands Sublimit.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

          “Second Lien Registration Rights Agreement” means the Registration Rights Agreement
dated as of June 16, 2006 entered into by Holdings, the US Borrower, certain of the US Loan
Guarantors, JPMorgan Securities Inc., Bear Stearns & Co. Inc. and BNY Capital Markets, Inc. in
connection with the issuance of the Second Lien Senior Notes, together with all instruments and
other agreements entered into by the US Borrower or such US Loan Guarantors in connection
therewith.

          “Second Lien Senior Notes” means the Floating Rate Senior Secured Notes due 2011 of
the US Borrower issued on the Effective Date pursuant to the Second Lien Senior Notes Indenture.

29

 

          “Second Lien Senior Notes Indenture” means the Indenture dated as of June 16, 2006
entered into by the US Borrower, certain of the US Loan Guarantors and The Bank of New York Trust
Company, N.A., as trustee, in connection with the issuance of the Second Lien Senior Notes,
together with all instruments and other agreements entered into by the US Borrower or such US Loan
Guarantors in connection therewith.

          “Secured Obligations” means, collectively, the US Secured Obligations and Netherlands
Secured Obligations.

          “Security Agreement” means, with respect to the US Borrower and the Netherlands
Borrower, the US Security Agreement and the Netherlands Security Agreement, respectively. Unless
otherwise specified, “Security Agreement” shall refer to the US Security Agreement and the
Netherlands Security Agreement, collectively.

          “Senior Notes” means, collectively, the Second Lien Senior Notes and the Third Lien
Senior Notes.

          “Senior Notes Indentures” means, collectively, the Second Lien Senior Notes Indenture
and the Third Lien Senior Notes Indenture.

          “Settlement” has the meaning assigned to such term in Section 2.05(d).

          “Settlement Date” has the meaning assigned to such term in Section 2.05(d).

          “Solvent” mean, with respect to each Loan Party, at any time that (i) the fair value
of the assets of such Loan Party, at a fair valuation, at such time exceed its debts and
liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the
property of such Loan Party at such time are greater than the amount that will be required to pay
the probable liability of its debts and other liabilities, subordinated, contingent or otherwise,
as such debts and other liabilities become absolute and matured; (iii) such Loan Party at such time
is able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (iv) such Loan Party at such time does not have
unreasonably small capital with which to conduct the business in which it is engaged as such
business is then conducted and is proposed to be conducted thereafter.

          “Specified Change in Control” means a “Change of Control” (or any other defined term
having a similar purpose) as defined in the Senior Notes Indentures.

          “Specified Properties” means the owned real property of the US Borrower located in (i)
Toledo, Ohio, (ii) Shreveport, Louisiana, and (iii) Syracuse, New York.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurocurrency Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.

30

 

          “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the
payment of which is contractually subordinated to payment of the Secured Obligations to the
reasonable written satisfaction of the Administrative Agent; provided, that the Senior
Notes shall not be deemed to be Subordinated Indebtedness for purposes hereof.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
of which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held by the parent or one
or more subsidiaries of the parent.

          “Subsidiary” means with respect to any Loan Party any direct or indirect subsidiary of
such Loan Party.

          “Supermajority Lenders” means, at any time, Lenders having Revolving Exposure and
unused Revolving Commitments representing 66 2/3% or more of the sum of the total Revolving
Exposure and unused Revolving Commitment.

          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrowers or the Subsidiaries shall be
a Swap Agreement.

          “Swap Obligations” of a Person means any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Swap Agreement transaction.

          “Swingline Lender” means JPMorgan Chase Bank, N.A. in its capacity as lender of
Swingline Loans hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

          “Syndication Agent” has the meaning assigned to such term in the preamble.

          “Taxable Advance” has the meaning assigned to such term in Section 2.17(h).

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Third Lien Senior Notes” means the Senior Subordinated Secured Pay-in-Kind Notes due
2011 issued on the Effective Date pursuant to the Third Lien Senior Notes Indenture.

31

 

          “Third Lien Senior Notes Indenture” means the Indenture dated as of June 16, 2006
entered into by the US Borrower and certain of the US Loan Guarantors in connection with the
issuance of the Third Lien Senior Notes, together with all instruments and other agreements entered
into by the US Borrower or such US Loan Guarantors in connection therewith.

          “Transactions” means the execution, delivery and performance by the Loan Parties of
this Agreement, the borrowing of Loans and other credit extensions, the use of the proceeds thereof
and the issuance of Letters of Credit hereunder, the guarantees made hereunder by any Loan
Guarantor and, to the extent utilized by any Borrower, any increase of Commitments.

          “Traex Sale” means sales, transfers and dispositions of the business and related
assets currently conducted by the Traex Company.

          “Traex Sale Net Proceeds” means, for any period, the Net Proceeds received by any Loan
Party in connection with the Traex Sale minus any amount of such Net Proceeds deducted from
the calculation of Fixed Charges in any prior period.

          “Treaty” means the Treaty establishing the European Economic Community, being the
Treaty of Rome of March 25, 1957, as amended by the Single European Act 1987, the Maastricht Treaty
(which was signed at Maastricht on February 7, 1992 and came into force on November 1, 1993), the
Amsterdam Treaty (which was signed at Amsterdam on October 2, 1997 and came into force on May 1,
1999) and the Nice Treaty (which was signed at Nice on February 26, 2001), each as amended from
time to time and as referred to in legislative measures of the European Union for the introduction
of, changeover to or operating of the Euro in one or more member states.

          “2007 ERISA Reserve” means a Reserve in the amount of $5,000,000 on the date hereof,
increasing by $1,000,000 per month (commencing with the delivery of the Borrowing Base Certificate
for the month of June 2006) up to a total of $10,000,000, as may be reduced by the Administrative
Agent in its Permitted Discretion, which Reserve shall apply until the later of September 15, 2007
and the date on which the payment of the relevant Plan contribution occurs (which payment is
currently expected to occur on or about September 15, 2007); provided that any amount so
reserved shall be available to the Borrower to make such Plan contribution.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate, the Alternate Base Rate or another rate of interest reasonably determined by
the Administrative Agent, and whether such Loan or Borrowing is made in dollars or Euros.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York or any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests.

          “United States” and “U.S.” means the United States of America.

          “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion
thereof) that are contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (ii) any other obligation (including any guarantee or any indemnification
obligation) that is contingent in nature at such time; or (iii) an obligation to provide collateral
to secure any of the foregoing types of obligations.

32

 

          “US Borrower” means Libbey Glass Inc., a Delaware corporation.

          “US Borrowing Base” means, at any time, the sum of (a) 85% of the Eligible Accounts at
such time of all US Loan Parties other than Holdings, plus (b) the lesser of (i) 65% of
such Loan Parties’ Eligible Inventory, valued at the lower of cost or market value, determined on a
first-in-first-out basis, at such time and (ii) the product of 85% multiplied by such US Loan
Parties’ Net Orderly Liquidation Value percentage identified in the most recent inventory appraisal
ordered by the Administrative Agent multiplied by such US Loan Parties’ Eligible Inventory, valued
at the lower of cost or market value, determined on a first-in-first-out basis, at such time,
minus (c) Reserves without duplication of any Reserves with respect to the Netherlands
Borrowing Base (including, but not limited to, (i) the 2007 ERISA Reserve and (ii) the Real Estate
Reserve) related to such US Loan Parties, plus (d) such US Loan Parties’ PP&E Component.
The maximum amount of the US Borrowing Base attributable to Inventory, together with Inventory
attributable to the Netherlands Borrowing Base, is $75,000,000. The maximum amount of the US
Borrowing Base attributable to the PP&E Component, together with the PP&E Component attributable to
the Netherlands Borrowing Base, is $25,000,000. The Administrative Agent may, in its Permitted
Discretion, reduce the advance rates set forth above, adjust Reserves or reduce one or more of the
other elements used in computing the US Borrowing Base.

          “US Borrowing Base Certificate” means a certificate, signed and certified as accurate
and complete by a Financial Officer of the Borrower Representative, in substantially the form of
Exhibit C or another form which is acceptable to the Administrative Agent in its sole discretion.

          “US Collateral” means any and all property owned, leased or operated by a Person
covered by the US Collateral Documents and any and all other property of any US Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a security interest or
Lien in favor of the Administrative Agent, on behalf of itself and the Lenders, to secure any
Secured Obligations.

          “US Collateral Documents” means, collectively, the US Security Agreement, the US
Mortgages, the Grants of Security Interests in Intellectual Property and any other documents
granting a Lien upon the US Collateral as security for payment of the Secured Obligations.

          “US General Availability” means, at any time, an amount equal to the difference of (a)
the lesser of the total Revolving Commitments and the US Borrowing Base at such time minus
(b) the total Revolving Exposure (excluding Revolving Netherlands Exposures) at such time; provided
that such US General Availability will at no time exceed the difference of (x) the sum of the total
Revolving Commitments minus (y) the Aggregate Credit Exposure at such time.

          “US Loan Guarantors” means the US Borrower’s domestic Subsidiaries and Holdings.

          “US Loan Party” means the US Borrower, the US Loan Guarantors party hereto and the US
Security Agreement, and any other Person (other than a Netherlands Loan Party) who becomes a party
to this Agreement and the US Security Agreement pursuant to a Joinder Agreement and their
successors and assigns.

          “US Loans” means the loans and advances made by the Lenders to the US Borrower
pursuant to this Agreement, including Swingline Loans and Protective Advances.

          “US Mortgage” means each Mortgage in respect of real property of a US Loan Party.

          “US Non-Paying Guarantor” has the meaning assigned to such term in Section 10.11(a).

33

 

          “US Paying Guarantor” has the meaning assigned to such term in Section 10.11(a).

          “US Obligations” means all obligations in respect of unpaid principal of and accrued
and unpaid interest (including without limitation any Post-Petition Interest (as defined in the
Intercreditor Agreement)) on the US Loans, all LC Exposure, all accrued and unpaid fees and all
expenses, reimbursements, indemnities and other obligations (not constituting or arising in respect
of principal or interest or LC Disbursements) of any US Loan Party to the Lenders or to any Lender,
the Administrative Agent, the Issuing Bank or any indemnified party arising under any Loan
Document.

          “US Secured Obligations” means all US Obligations, together with all (i) Banking
Services Obligations of the US Borrower or any US Loan Guarantor and (ii) Swap Obligations of the
US Borrower or any US Loan Guarantor owing to one or more Lenders or their respective Affiliates;
provided that at or prior to the time that any transaction relating to such Swap Obligation
is executed, the Lender party thereto (other than Chase) shall have delivered written notice to the
Administrative Agent that such a transaction has been entered into and that it constitutes a US
Secured Obligation entitled to the benefits of the US Collateral Documents.

          “US Security Agreement” means that certain Pledge and Security Agreement, dated as of
the date hereof, between the US Borrower, the US Loan Guarantors and the Administrative Agent, for
the benefit of the Administrative Agent and the Lenders, and any other pledge or security agreement
entered into, after the date of this Agreement by any other US Loan Guarantor (as required by this
Agreement or any other Loan Document), or any other Person, as the same may be amended, restated or
otherwise modified from time to time.

          “USD Equivalent” means, with respect to any amount of Euros, on any date, the amount
of dollars that may be purchased with such amount of Euros at the Exchange Rate in effect on such
date.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type
(e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Revolving
Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type
(e.g., a “Eurocurrency Revolving Borrowing”).

          SECTION 1.03. Terms of Usage. (a) The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document or contractual obligation herein shall, unless otherwise
specified, be construed as referring to such agreement, instrument or other document or contractual
obligation as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein or any other Loan
Document), (b) any reference herein to any Person shall be construed to include such Person’s
successors
and permitted assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to, this

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Agreement and
(e) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

          (b) In this Agreement, where it relates to a Netherlands entity, reference to (i) a
winding-up, administration or dissolution includes a Netherlands entity being declared bankrupt
(failliet verklaard) or dissolved (ontbonden); (ii) a moratorium includes surséance van betaling
and granted a moratorium includes surséance verleend; (iii) any step or procedure taken in
connection with insolvency proceedings includes a Netherlands entity having filed a notice under
Section 36 of the Tax Collection Act of the Netherlands (Invorderingswet 1990) or Section 16d of
the Social Insurance Coordination Act of the Netherlands (Coördinatiewet Sociale Verzekeringen);
(iv) a trustee in bankruptcy includes a curator; (v) an administrator includes a bewindvoerder; and
(vi) an attachment includes a beslag.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect
from time to time; provided that, if the Borrower Representative notifies the
Administrative Agent that the Borrowers request an amendment to any provision hereof to eliminate
the effect of any change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the Borrower
Representative that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such change in GAAP or in
the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect
and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith.

ARTICLE II

THE CREDITS

          SECTION 2.01. Commitments.

          (a) (A) Subject to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to each Borrower from time to time during the Availability Period in dollars or
Euros, as requested by such Borrower, in an aggregate principal amount that will not result in (i)
the USD Equivalent of such Lender’s Revolving Exposure with respect to the Borrowers exceeding such
Lender’s Revolving Commitment, (ii) the USD Equivalent of the Aggregate Credit Exposures with
respect to the Borrowers exceeding the sum of the total Revolving Commitments, (iii) the USD
Equivalent of the total Revolving Exposures (excluding Revolving Netherlands Exposures) exceeding
the US Borrowing Base, (iv) the USD Equivalent of the total Revolving Euro Exposures with respect
to the Borrowers exceeding the Euro Sublimit, (v) the USD Equivalent of such Lender’s Revolving
Netherlands Exposure with respect to the Netherlands Borrower exceeding such Lender’s Revolving
Netherlands Sublimit, (vi) the USD Equivalent of the total Revolving Netherlands Exposures with
respect to the Netherlands Borrower exceeding the sum of the total Revolving Netherlands Sublimit,
(vii) the USD Equivalent of the total Revolving Netherlands Exposures exceeding the Netherlands
Borrowing Base or (viii) the USD Equivalent of the total Revolving Exposures relating to the
Netherlands Borrower exceeding the Libbey
Europe Sublimit, subject to the Administrative Agent’s authority, in its sole discretion, to
make Protective Advances pursuant to the terms of Section 2.04. Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow
Revolving Loans. Subject to Section 2.14, each Borrowing made in Euros shall be comprised entirely
of Eurocurrency Loans.

           (B) Not later than noon, Local Time, on the second Business Day preceding the Borrowing
Date with respect to each Borrowing (or, in the case of an ABR Borrowing at a

35

 

time when
Eurocurrency Loans made in Euros shall be outstanding, promptly on such Borrowing Date), the
Administrative Agent shall determine the Exchange Rate with respect to Euros as of such date
and give notice thereof to the relevant Borrower and the relevant Lenders. The Exchange
Rate so determined shall become effective on such Borrowing Date for the purposes of
determining availability under the Commitments with respect to such Borrowing (it being
understood that such availability shall be calculated and determined by applying such
Exchange Rate to the aggregate principal amount of Loans made in Euros which are outstanding
on such Borrowing Date).

          (b) Not later than 2:00 p.m., New York City time, on each Calculation Date (so long as any
Eurocurrency Loans made in Euros shall be outstanding), the Administrative Agent shall determine
the Exchange Rate with respect to Euros as of such Calculation Date and give notice thereof to the
relevant Borrowers and the relevant Lenders. The Exchange Rate so determined shall become
effective on the next succeeding Reset Date. If, on any Reset Date, (i) the USD Equivalent of the
total Revolving Euro Exposures relating to the Borrowers exceeds the Euro Sublimit, (ii) the USD
Equivalent of the total Revolving Netherlands Exposures relating to the Netherlands Borrower
exceeds the sum of the total Revolving Netherlands Sublimit, (iii) the USD Equivalent of the total
Revolving Exposures (excluding Revolving Netherlands Exposure) relating to the Borrowers exceeds
the US Borrowing Base, (iv) the USD Equivalent of the total Revolving Netherlands Exposure relating
to the Netherlands Borrower exceeds the Netherlands Borrowing Base or (v) the USD Equivalent of the
total Revolving Exposures relating to the Netherlands Borrower exceeds the Libbey Europe Sublimit,
then each such Borrower shall, within three Business Days after notice thereof from the
Administrative Agent, prepay its Revolving Loans in an aggregate USD Equivalent amount equal, when
taken together with any contemporaneous prepayment by the other Borrower, to any such excess (such
calculation to be made using the Exchange Rate that is effective on such Reset Date);
provided that any such prepayment shall be accompanied by accrued interest to the extent
required by Section 2.13 but shall be without premium or penalty of any kind (other than any
payments required under Section 2.16).

          (c) (A) Any Borrower and any one or more Lenders (including New Lenders (as defined herein))
may, with the consent of the Administrative Agent (such consent not to be unreasonably withheld or
delayed), at any time after the Effective Date, agree that such Lenders shall obtain or increase
the amount of their Commitments by executing and delivering to the Administrative Agent an
Increasing Lender Supplement specifying (a) the amount of such increase, (b) the sub-amount of such
increase, if any, constituting a Revolving Netherlands Sublimit and (c) the applicable Increased
Facility Closing Date. Notwithstanding the foregoing, without the consent of the Required Lenders,
(i) the aggregate amount of the Commitments may not be increased by an amount greater than
$30,000,000 (it being understood that the total amount of all increases shall not exceed
$30,000,000 in the aggregate without such consent of the Required Lenders), (ii) each increase
effected pursuant to this paragraph shall be in a minimum amount of at least $5,000,000 and (iii)
no more than two Increased Facility Closing Dates may be selected by the Borrowers during the term
of this Agreement. No increase in the Commitments (or in the Commitment of any Lender), shall
become effective under this paragraph unless, (A) on the proposed date of the effectiveness of such
increase, the conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied (or
waived in accordance with Section 9.02), (B) no Default or Event of Default shall have occurred and
be occurring and (C) the Administrative Agent shall have received an Increasing
Lender Supplement or New Lender Supplement with a certification to this effect. No Lender
shall have any obligation to participate in any increase described in this paragraph unless it
agrees in writing to do so in its sole discretion. The Administrative Agent shall promptly give
notice to all Lenders of any such increase.

          (B) Any additional bank, financial institution or other entity which, with the consent
of the relevant Borrower or Borrowers and the Administrative Agent, elects to become a

36

 

“Lender” under this Agreement in connection with any transaction described in Section
2.01(c)(i) shall execute a New Lender Supplement whereupon such bank, financial institution
or other entity (a “New Lender”) shall become a Lender for all purposes and to the
same extent as if originally a party hereto and shall be bound by and entitled to the
benefits of this Agreement.

           (C) On each Increased Facility Closing Date, (i) each New Lender and/or the Lender(s)
that have increased their Commitments shall make available to the Administrative Agent such
amounts in immediately available funds as the Administrative Agent shall determine, for the
benefit of the other relevant Lenders, as being required in order to cause, after giving
effect to such increase and the use of such amounts to make payments to such other relevant
Lenders, each Lender’s portion of the outstanding Loans of all the Lenders to equal its then
effective Applicable Percentage of such outstanding Loans, and (ii) the Borrower shall be
deemed to have repaid and reborrowed all outstanding Loans as of the date of any increase in
the Commitments (with such reborrowing to consist of the Types of Loans, with related
Interest Periods if applicable, specified in a notice delivered by the Borrower in
accordance with the requirements of Section 2.03). The deemed payments made pursuant to
clause (ii) of the immediately preceding sentence in respect of each Eurocurrency Loan shall
be subject to indemnification by the Borrower pursuant to the provisions of Section 2.16 if
the deemed payment occurs other than on the last day of any related Interest Period.

          SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a Swingline Loan)
shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the
Lenders ratably in accordance with their respective Commitments of the applicable Class. Any
Protective Advance and any Swingline Loan shall be made in accordance with the procedures set forth
in Section 2.04 and 2.05.

          (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans
or Eurocurrency Loans as the Borrower Representative may request in accordance herewith,
provided that all Eurocurrency Borrowings made on the Effective Date must be made in
accordance with Section 2.03(b). Each Swingline Loan to the US Borrower shall be an ABR Loan and
each Swingline Loan to the Netherlands Borrower shall bear interest at the Netherlands Swingline
Rate. Each Lender at its option may make any Eurocurrency Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of the applicable Borrowers to repay such Loan in accordance
with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurocurrency Borrowing, such Borrowing
shall be in an aggregate (USD Equivalent) amount that is an integral multiple of $500,000 and not
less than $2,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an
aggregate (USD Equivalent) amount that is an integral multiple of $500,000 and not less than
$1,000,000; provided that an ABR Borrowing may be in an aggregate (USD Equivalent) amount
that is equal to the entire unused balance of the total Revolving Commitments or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e). Each
Swingline Loan shall
be in an amount that is an integral multiple of $100,000 and not less than $500,000.
Borrowings of more than one Type and Class may be outstanding at the same time; provided
that there shall not at any time be more than a total of 10 Eurocurrency Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrower Representative shall
not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity Date.

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          SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower
Representative shall notify the Administrative Agent of such request either by submitting a
Borrowing Notice (delivered by hand or facsimile) signed by the Borrower Representative or by
telephone (a) in the case of a Eurocurrency Borrowing, not later than noon, Local Time, three
Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not
later than noon, Local Time, on the date of the proposed Borrowing; provided, that with
respect to any Eurocurrency Borrowing proposed to be made on the Effective Date, the Administrative
Agent shall not later than noon, Local Time, three Business Days prior to the Effective Date have
received a Borrowing Notice and a funding indemnity side letter by each Borrower requesting such
Borrowing for the benefit of the Administrative Agent and each Lender reasonably satisfactory to
the Administrative Agent, and in case such notice and side letter are not so received by such time,
the Borrower shall be deemed to have requested the USD Equivalent of ABR Loans denominated in
dollars in lieu of such Eurocurrency Loans; and provided, further, that any such
notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.06(e) may be given not later than 9:00 a.m., Chicago time, on the date of
the proposed Borrowing. Each such telephonic Borrowing Notice shall be irrevocable and shall be
confirmed promptly by hand delivery or facsimile to the Administrative Agent of a written Borrowing
Notice signed by the Borrower Representative. Each such telephonic and written Borrowing Notice
shall specify the following information in compliance with Section 2.01:

     (i) the name of the applicable Borrower;

     (ii) the aggregate amount of the requested Borrowing and a breakdown of the
separate wires comprising such Borrowing;

     (iii) the date of such Borrowing, which shall be a Business Day;

     (iv) whether such Borrowing is to be made in dollars or Euros;

     (v) whether such Borrowing is to be made pursuant to the Revolving Netherlands
Sublimit;

     (vi) whether such Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; and

     (vii) in the case of a Eurocurrency Borrowing, the initial Interest Period to
be applicable thereto, which shall be a period contemplated by the definition of the
term “Interest Period.”

If no election as to the Type of Borrowing is specified in such Borrowing Notice, then the
requested Borrowing shall be, in the case of a Borrowing requested to be made in dollars, an ABR
Borrowing and, in the case of a Borrowing requested to be made in Euros, a Eurocurrency Borrowing
with an Interest
Period of one month. If no Interest Period is specified with respect to any requested Eurocurrency
Revolving Borrowing, then the applicable Borrower(s) shall be deemed to have selected an Interest
Period of one month’s duration. Promptly following receipt of a Borrowing Notice in accordance
with this Section, the Administrative Agent shall advise each Lender of the details thereof and of
the amount of such Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Protective Advances. (a) Subject to the limitations set forth below,
the Administrative Agent is authorized by the Borrowers and the Lenders, from time to time in the
Administrative Agent’s sole discretion (but shall have absolutely no obligation to), to make Loans
to the Borrowers in dollars or Euros, on behalf of all Lenders, which the Administrative Agent, in
its Permitted

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Discretion, deems necessary or desirable (i) to preserve or protect the Collateral,
or any portion thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of
the Loans and other Obligations, or (iii) to pay any other amount chargeable to or required to be
paid by any Borrower pursuant to the terms of this Agreement, including payments of reimbursable
expenses (including costs, fees, and expenses as described in Section 9.03) and other sums payable
under the Loan Documents (any of such Loans are herein referred to as “Protective
Advances”); provided that, the aggregate USD Equivalent amount of Protective Advances
outstanding at any time shall not at any time exceed $10,000,000; provided further that,
the USD Equivalent amount of Aggregate Credit Exposure shall not exceed the sum of the total
Revolving Commitments; provided further that, the USD Equivalent of any Lender’s Revolving
Exposure shall not exceed such Lender’s Revolving Commitment. Protective Advances may be made even
if the conditions precedent set forth in Section 4.02 have not been satisfied. Protective Advances
with respect to the US Borrower shall be secured by liens in favor of the Administrative Agent for
the benefit of itself, the Issuing Lenders and the Lenders on and to the US Collateral and shall
constitute Obligations of the US Borrower. Protective Advances with respect to the Netherlands
Borrower shall be secured by the Liens in favor of the Administrative Agent for the benefit of
itself, the Issuing Lenders and the Lenders in and to the Collateral and shall constitute
Obligations of the Netherlands Borrower hereunder. All Protective Advances shall be, in the case
of a Borrowing made in dollars, ABR Borrowings and, in the case of a Borrowing made in Euros, bear
interest at an interest rate reasonably determined by the Administrative Agent to compensate the
applicable Lenders for such Borrowing in Euros for the applicable period. The Administrative
Agent’s authorization to make Protective Advances may be revoked at any time by the Required
Lenders. Any such revocation must be in writing and shall become effective prospectively upon the
Administrative Agent’s receipt thereof. At any time that there is sufficient Availability with
respect to the Borrower on whose behalf a Protective Advance was made and the conditions precedent
set forth in Section 4.02 have been satisfied, the Administrative Agent may request the Revolving
Lenders to make a Revolving Loan to such Borrower (including, with respect to the Netherlands
Borrower, pursuant to the Revolving Netherlands Sublimit) to repay such Protective Advance. At any
other time the Administrative Agent may require the Lenders to fund their risk participations
described in Section 2.04(b).

     (b) Upon the making of a Protective Advance by the Administrative Agent (whether before or
after the occurrence of a Default), each Lender shall be deemed, without further action by any
party hereto, to have unconditionally and irrevocably purchased from the Administrative Agent
without recourse or warranty, an undivided interest and participation in such Protective Advance in
proportion to its Applicable Percentage. From and after the date, if any, on which any Lender is
required to fund its participation in any Protective Advance purchased hereunder, the
Administrative Agent shall promptly distribute to such Lender, such Lender’s Applicable Percentage
of all payments of principal and interest and all proceeds of Collateral received by the
Administrative Agent in respect of such Protective Advance.

     SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender
agrees to make Swingline Loans to the Borrowers, from time to time during the Availability Period,
in dollars to the US Borrower or in Euros to the Netherlands Borrower, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate principal amount of
outstanding Swingline Loans exceeding the USD Equivalent of $15,000,000, (ii) the USD Equivalent of
the Aggregate Credit Exposures with respect to the Borrowers exceeding the sum of the total
Revolving Commitments, (iii) the USD Equivalent of the total Revolving Exposures with respect to
the US Borrower exceeding the US Borrowing Base, (iv) the USD Equivalent of the total Revolving
Netherlands Exposure with respect to the Netherlands Borrower exceeding the Netherlands Borrowing
Base, or (v) the USD Equivalent of the total Revolving Euro Exposures with respect to the Borrowers
exceeding the Euro Sublimit.; provided that (x) the Netherlands Borrower shall not be
permitted to borrow more than €7,500,000 in Swingline Loans, (y) the Swingline Lender shall not be
required to make

39

 

a Swingline Loan to refinance an outstanding Swingline Loan, and (z) no Swingline
Loans shall be made if any Lender or any Borrower has provided written notice to the Administrative
Agent of the occurrence of a Default, unless such Default is waived pursuant to Section 9.02.
Subject to Section 2.14, each Swingline Borrowing made in Euros shall be comprised entirely of
Swingline Loans bearing interest at the Netherlands Swingline Rate. Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and
reborrow Swingline Loans. To request a Swingline Loan, the Borrower Representative shall notify
the Administrative Agent of such request by telephone (confirmed by facsimile), in the case of
Swingline loans denominated in dollars, not later than noon, Chicago time, or in the case of
Swingline Loans denominated in Euros, no later than 11:00 a.m., London time, on the day of a
proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such notice received from the
Borrower Representative. The Swingline Lender shall make each Swingline Loan available to the
Borrowers by means of a credit to the applicable Funding Account(s) (provided, that such
credit shall instead be, in the case at the time of such Borrowing full cash dominion is in effect
pursuant to Article VII of the US Security Agreement, to the Collection Account) by 2:00 p.m.,
Chicago time in the case of the US Borrower, and 11:00 a.m., London time in the case of the
Netherlands Borrower, on the requested date of such Swingline Loan.

          (b) The Swingline Lender may (i) on same Business Day written notice given to the
Administrative Agent not later than 11:00 a.m., Chicago time, in the case of Swingline Loans
denominated in dollars, or (ii) on three Business Day’s written notice given to the Administrative
Agent not later than 11:00 a.m., London time, in the case of Swingline Loans denominated in Euros,
require the Revolving Lenders to acquire participations in all or a portion of the Swingline Loans
outstanding. Such notice shall specify the aggregate dollar and/or Euro amount of Swingline Loans
in which Revolving Lenders will participate. Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each Revolving Lender, specifying in such notice
such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage
of such Swingline Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation
to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or increase, reduction or termination of the Commitments, and that
each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
Each Revolving Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.07 with respect to Loans
made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline
Lender the amounts so received by it from the Revolving Lenders. The Administrative Agent shall
notify the Borrower Representative of any participations in any Swingline Loan acquired pursuant to
this paragraph,
and thereafter payments in respect of such Swingline Loan shall be made to the Administrative
Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the US
Borrower (or other party on behalf of such Borrower) in respect of a Swingline Loan made in dollars
after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving Lenders that shall
have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests
may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or
to the Administrative Agent, as applicable, if and to the extent such payment is required to be
refunded to the US Borrower for any reason. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the US Borrower of any default in the payment thereof.
Any amounts received by the Swingline Lender from the Netherlands

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Borrower (or other party on
behalf of such Borrower) in respect of a Swingline Loan made in Euros after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to
the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Revolving Lenders that shall have made their payments
pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative
Agent, as applicable, if and to the extent such payment is required to be refunded to the
Netherlands Borrower for any reason. The purchase of participations in a Swingline Loan pursuant
to this paragraph shall not relieve the Netherlands Borrower of any default in the payment thereof.

          (c) Upon the making of a Swingline Loan (whether before or after the occurrence of a Default
(which has been waived) and regardless of whether a Settlement has been requested with respect to
such Swingline Loan), each Revolving Lender shall be deemed, without further action by any party
hereto, to have unconditionally and irrevocably purchased from the Swingline Lender without
recourse or warranty, an undivided interest and participation in such Swingline Loan in proportion
to its Applicable Percentage of the Revolving Commitment. The Swingline Lender may, at any time,
require the Revolving Lenders to fund their participations. From and after the date, if any, on
which any Revolving Lender is required to fund its participation in any Swingline Loan purchased
hereunder, the Administrative Agent shall promptly distribute to such Lender, such Lender’s
Applicable Percentage of all payments of principal and interest and all proceeds of Collateral
received by the Administrative Agent in respect of such Loan.

          (d) The Administrative Agent, on behalf of the Swingline Lender, shall request settlement (a
“Settlement”) with the Revolving Lenders on at least a weekly basis or on any date that the
Administrative Agent elects, by notifying the Revolving Lenders of such requested Settlement by
facsimile, telephone, or e-mail no later than 12:00 noon Chicago time, in the case of Swingline
Loans denominated in dollars, or 12:00 p.m., London time, in the case of Swingline Loans
denominated in Euros, on the date of such requested Settlement (the “Settlement Date”).
Each Revolving Lender (other than the Swingline Lender, in the case of the Swingline Loans) shall
transfer the amount of such Revolving Lender’s Applicable Percentage of the outstanding principal
amount of the applicable Loan with respect to which Settlement is requested to the Administrative
Agent, to such account of the Administrative Agent as the Administrative Agent may designate, not
later than 2:00 p.m., Chicago time, in the case of Swingline Loans denominated in dollars, or 2:00
p.m., London time, in the case of Swingline Loans denominated in Euros, on such Settlement Date.
Settlements may occur during the existence of a Default and whether or not the applicable
conditions precedent set forth in Section 4.02 have then been satisfied. Such amounts transferred
to the Administrative Agent shall be applied against the amounts of the Swingline Lender’s
Swingline Loans with respect to the applicable Borrower and, together with Swingline Lender’s
Applicable Percentage of such Swingline Loan, shall constitute Revolving Loans of such Revolving
Lenders, respectively. If any such amount is not transferred to the Administrative Agent by any
Revolving Lender on such Settlement Date, the Swingline Lender shall be
entitled to recover such amount on demand from such Lender together with interest thereon as
specified in Section 2.07.

          SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower Representative may request the issuance of Letters of
Credit for its own account, in a form reasonably acceptable to the Administrative Agent and the
Issuing Bank, at any time and from time to time during the Availability Period. In the event of
any inconsistency between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by the US Borrower to, or
entered into by the US Borrower with, the Issuing Bank relating to any Letter of Credit, the terms
and conditions of this Agreement shall control.

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          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), The US Borrower shall hand deliver or facsimile (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Administrative Agent (prior to noon, Chicago time, at least three Business Days prior
to the requested date of issuance, amendment, renewal or extension or such shorter period as the
Issuing Bank may agree) a notice requesting the issuance of a Letter of Credit, or identifying the
Letter of Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such
Letter of Credit, the name and address of the beneficiary thereof and such other information as
shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the
Issuing Bank, the US Borrower also shall submit a letter of credit application on the Issuing
Bank’s standard form in connection with any request for a Letter of Credit. A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or
extension of each Letter of Credit the US Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not
exceed $30,000,000, (ii) the USD Equivalent of the Aggregate Credit Exposures with respect to the
Borrowers shall not exceed the sum of the total Revolving Commitments and (iii) the USD Equivalent
of the total Revolving Exposures (excluding Revolving Netherlands Exposures) shall not exceed the
US Borrowing Base. No Letter of Credit shall be issued if any Lender or any Borrower has provided
written notice to the Administrative Agent of the occurrence of a Default, unless such Default is
waived pursuant to Section 9.02

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit and (ii) the date that is five Business Days prior to the Maturity Date; provided,
that any Letter of Credit with a one-year term may provide for the renewal thereof for additional
one-year periods (which shall in no event extend beyond the date referred to in clause (ii) above).

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Revolving Lenders, the Issuing Bank hereby grants to each Revolving Lender, and
each Revolving Lender hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn
under such Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving
Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the
account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by
the Issuing Bank and not reimbursed by the US Borrower on the date due as provided in paragraph (e)
of this Section, or of any reimbursement
payment required to be refunded to the US Borrower for any reason. Each Revolving Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or
the occurrence and continuance of a Default or increase, reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the US Borrower shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than noon, Chicago time, on
the date that such LC Disbursement is made, if the US Borrower shall have received notice of such
LC Disbursement prior to 9:00 a.m., Chicago time, on such date, or, if such notice has not been
received by the US Borrower prior to such time on such date, then not later than noon, Chicago
time, on (i) the

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Business Day that the US Borrower receives such notice, if such notice is received
prior to 9:00 a.m., Chicago time, on the day of receipt, or (ii) the Business Day immediately
following the day that the US Borrower receives such notice, if such notice is not received prior
to such time on the day of receipt; provided that, the US Borrower may, subject to the
conditions to borrowing set forth herein, request in accordance with Section 2.03 that such payment
be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the
extent so financed, the US Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Borrowing. If the US Borrower fails to make such payment
when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC
Disbursement, the payment then due from the US Borrower in respect thereof and such Lender’s
Applicable Percentage thereof. Promptly following receipt of such notice, each Revolving Lender
shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the US
Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender
(and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the
Revolving Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Revolving Lenders. Promptly following receipt by the Administrative
Agent of any payment from the US Borrower pursuant to this paragraph, the Administrative Agent
shall distribute such payment to the Issuing Bank or, to the extent that Revolving Lenders have
made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and
the Issuing Bank as their interests may appear. Any payment made by a Revolving Lender pursuant to
this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR
Revolving Loans or Swingline Loan as contemplated above) shall not constitute a Loan and shall not
relieve the US Borrower of its obligation to reimburse such LC Disbursement.

          (f) Obligations Absolute. The US Borrower’s obligation to reimburse LC Disbursements
as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
the US Borrower’s obligations hereunder. Neither the Administrative Agent, the Revolving Lenders
nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility
by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery
of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the US Borrower to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the US Borrower to the extent permitted by
applicable law) suffered by the US Borrower that are caused by the Issuing Bank’s failure to
exercise care when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of
gross negligence or wilful misconduct on the part of the Issuing Bank (as finally determined by a
court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the generality thereof,
the parties agree that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole
discretion, either accept

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and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower by telephone (confirmed by facsimile) of such demand for payment and whether the Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not relieve the US Borrower of its obligation to reimburse the
Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the US Borrower shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that the US Borrower
reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that, if the US Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 2.13(d) shall apply. Interest accrued pursuant to
this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and
after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to
reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.

          (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the US Borrower, the Administrative Agent and the successor Issuing Bank.
The Administrative Agent shall notify the Revolving Lenders of any such replacement of the Issuing
Bank. At the time any such replacement shall become effective, the US Borrower shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From
and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all
the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue additional Letters of
Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the US Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the US Borrower shall deposit in an account with the Administrative
Agent, in the name of the Administrative Agent and for the benefit of the Revolving Lenders (the
“LC Collateral Account”), an amount in cash equal to 103% of the LC Exposure as of such
date plus accrued and unpaid interest thereon; provided that the obligation to deposit such
cash collateral shall become effective immediately, and such deposit shall become immediately due
and payable, without demand or other notice of any kind, upon the occurrence of any Event of
Default with respect to any Borrower described in clause (h) or (i) of Article VII. Such deposit
shall be held by the Administrative Agent as collateral for the payment and performance of the
Secured Obligations. The Administrative Agent shall have exclusive dominion and control, including
the exclusive right of withdrawal, over such account and the US Borrower hereby grants the
Administrative Agent a security interest in the LC Collateral Account. Other

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than any interest
earned on the investment of such deposits, which investments shall be made at the option and sole
discretion of the Administrative Agent and at the US Borrower’s risk and expense, such deposits
shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such
account. Moneys in such account shall be applied by the Administrative Agent to reimburse the
Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of the US Borrower for
the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to
the consent of Revolving Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other Secured Obligations. If the US Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of an Event of
Default, such amount (to the extent not applied as aforesaid) shall be returned to the US Borrower
within three Business Days after all such Defaults have been cured or waived.

          SECTION 2.07.    Funding of Borrowings. (a) Each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of immediately available funds
by 1:00 p.m., Local Time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable
Percentage; provided that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the applicable Borrower by promptly
crediting the amounts so received, in like funds, to the Funding Account(s); provided that
(A) Loans made to finance the reimbursement of (i) an LC Disbursement as provided in Section
2.06(e) shall be remitted by the Administrative Agent to the Issuing Bank and (ii) a Protective
Advance shall be retained by the Administrative Agent, and (B) in the case at the time of such
Borrowing full cash dominion is in effect pursuant to Article VII of the US Security Agreement, all
Loans to the US Borrower shall be credited to the Collection Account.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrower requesting such Borrowing
severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount
with interest thereon, for each day from and including the date such amount is made available to
the applicable Borrower to but excluding the date of payment to the Administrative Agent, at (i) in
the case of such
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in
the case such Borrower, with respect to a Borrowing made in dollars, the interest rate applicable
to ABR Loans and, with respect to a Borrowing made in Euros, at an interest rate applicable to
Eurocurrency Borrowings having an Interest Period of one month. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

          SECTION 2.08.    Interest Elections. (a) Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Notice in accordance with the terms hereof and, in the
case of a Eurocurrency Borrowing, shall have an initial Interest Period as specified in such
Borrowing Notice. Thereafter, the Borrower Representative may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurocurrency Borrowing, may
elect Interest Periods therefor, all as provided in this Section; provided that, subject to
Section 2.14, Borrowings made in Euros may not be converted to a different Type. The Borrower
Representative may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the
Loans comprising such Borrowing, and the Loans comprising each

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such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings or Protective Advances,
which may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower Representative shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Notice would be
required under Section 2.03 if the Borrowers were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or facsimile to the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by the Borrower Representative.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

                    (i) the Borrower and the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing
(in which case the information to be specified pursuant to clauses (iii) and (iv)
below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurocurrency Borrowing; and

     (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which shall be
a period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an
Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower Representative fails to deliver a timely Interest Election Request with
respect to a Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto,
then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall, in the case of a Borrowing made in dollars, be converted to an ABR Borrowing and,
in the case of a Borrowing made in Euros, converted to a Eurocurrency Borrowing with an Interest
Period of one month. Notwithstanding any contrary provision hereof, if a Default has occurred and
is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower Representative, then, so long as a Default is continuing (i) no outstanding Borrowing made
in dollars may be converted to or continued as a Eurocurrency Borrowing and (ii) unless repaid,
each Eurocurrency Borrowing shall, in the case of a Borrowing made in dollars, be converted to an
ABR Borrowing and, in the case of a Borrowing made in Euros, continued with an Interest Period of
one month, in each case, at the end of the Interest Period applicable thereto.

46

 

          SECTION 2.09.    Reduction or Termination of Commitments. (a) Unless previously
terminated, all Commitments shall terminate on the Maturity Date.

          (b) The Borrowers shall have the right, upon not less than three Business Days’ notice to the
Administrative Agent, from time to time, to reduce the amount of the Commitments; provided
that no such reduction of Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Loans made on the effective date thereof, the Availability with respect to
either Borrower would be less than zero. Any such reduction shall be in an amount equal to
$1,000,000, or a whole multiple thereof, and shall reduce permanently the Commitments then in
effect.

          (c) The Borrowers may at any time terminate the Commitments upon (i) the payment in full of
all outstanding Loans, together with accrued and unpaid interest thereon and on any Letters of
Credit, (ii) the cancellation and return of all outstanding Letters of Credit (or alternatively,
with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash
deposit (or at the discretion of the Administrative Agent a back up standby letter of credit
satisfactory to the Administrative Agent) equal to 103% of the LC Exposure as of such date), (iii)
the payment in full of the accrued and unpaid fees and (iv) the payment in full of all outstanding
reimbursable expenses and other Obligations together with accrued and unpaid interest thereon.

          (d) The Borrower Representative shall notify the Administrative Agent of any election to
terminate the Commitments under paragraph (c) of this Section at least three Business Days prior to
the effective date of such termination or such shorter period as may be agreed by the
Administrative Agent, specifying such election and the effective date thereof. Promptly following
receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.
Each notice delivered by the Borrower Representative pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Commitments delivered by the Borrower
Representative may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower Representative (by notice to
the Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination of the Commitments shall be permanent.

          SECTION 2.10.    Repayment and Amortization of Loans; Evidence of Debt (a) Each Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Revolving Loan made to such
Borrower on the Maturity Date, (b) the US Borrower unconditionally promises to pay to the
Administrative Agent the then unpaid amount of each Protective Advance on the earlier of the
Maturity Date and demand by the Administrative Agent, (c) the US Borrower hereby unconditionally
promises to pay to the Swingline Lender the then unpaid principal amount of each Swingline Loan in
dollars on the earlier of the Maturity Date and the first date after such Swingline Loan is made
that is the 15th or last day of a calendar month and is at least four Business Days after such
Swingline Loan is made and (d) the Netherlands Borrower hereby unconditionally promises to pay the
Swingline Lender the then unpaid principal amount of each Swingline Loan in Euros on the earlier of
the Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day
of a calendar month and is at least four Business Days after such Swingline Loan is made.

          (b) At all times that full cash dominion is in effect pursuant to Article VII of the US
Security Agreement, on each Business Day, the Administrative Agent shall apply all immediately
available funds credited to the Collection Account in respect of each applicable Borrower the
previous Business Day first with respect to the U.S. Borrower, to prepay any Protective
Advances that may be outstanding, second to prepay the Revolving Loans (including Swing
Line Loans) made to such Borrower and third to cash collateralize outstanding LC Exposure
in respect of such Borrower.

47

 

          (c) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from each
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (e) The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of any Borrower to repay the Loans in accordance with the terms of this Agreement.

          (f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower to which such Loan is made shall prepare, execute and deliver to such Lender a
promissory note payable to the order of such Lender (or, if requested by such Lender, to such
Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter,
the Loans evidenced by such promissory note and interest thereon shall at all times (including
after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such
form payable to the order of the payee named therein (or, if such promissory note is a registered
note, to such payee and its registered assigns) except to the extent that such Lender returns such
promissory note or notes for cancellation and requests that such Loans be evidenced as set forth in
Section 2.10(c) and (d).

          SECTION 2.11.    Prepayment of Loans. (a) Each Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in
accordance with paragraph (f) of this Section.

          (b) Notwithstanding Section 2.10(b), and without limitation thereof, except to the extent
resulting from changes of the Exchange Rate for Euros after the immediately preceding Reset Date,
in the event and on such occasion that (i) the USD Equivalent of the Aggregate Credit Exposure with
respect to the Borrowers exceeds the sum of the total Revolving Commitments, (ii) the USD
Equivalent of the Revolving Exposures (excluding Revolving Netherlands Exposure) exceeds the US
Borrowing Base, (iii) the USD Equivalent of the total Revolving Euro Exposures with respect to the
Borrowers exceeds the Euro Sublimit, (iv) the USD Equivalent of the total Revolving Netherlands
Exposure with respect to the Netherlands Borrower exceeds the sum of the total Revolving
Netherlands Sublimit, (v) the USD Equivalent of the total Revolving Netherlands Exposure relating
to the Netherlands Borrower exceeds the Netherlands Borrowing Base or (vi) the USD Equivalent of
the total Revolving Exposures relating to the Netherlands Borrower exceeds the Libbey Europe
Sublimit then each such Borrower shall prepay its Revolving Loans, LC Exposure and/or Swingline
Loans in an aggregate USD Equivalent amount equal, when taken together with any contemporaneous
prepayment by the other Borrower, to such excess.

          (c) In the event and on each occasion that any Net Proceeds are received by or on behalf of
any Loan Party in respect of any Prepayment Event, the Borrowers shall, immediately after such Net
Proceeds are received by any Loan Party, prepay the Obligations as set forth in Section 2.11(d)
below in an aggregate amount equal to 100% of such Net Proceeds; provided that any Net
Proceeds received in respect of a Prepayment Event arising with respect to assets of the
Netherlands Borrower or any of its

48

 

Subsidiaries organized under the laws of the Netherlands shall
only be applied to the mandatory prepayment of the Netherlands Loans.

          (d) All such amounts pursuant to Section 2.11(c) shall be applied, first to prepay any
Protective Advances with respect to the applicable Borrower that may be outstanding, pro rata, and
second to prepay the Revolving Loans (including Swing Line Loans) without any reduction in
Revolving Commitments.

          (e) The Borrower Representative shall notify the Administrative Agent (and, in the case of
prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile) of any
prepayment hereunder other than any prepayment pursuant to Section 2.10(b) or 2.11(b) (i) in the
case of prepayment of a Eurocurrency Borrowing, not later than noon, Local Time, three Business
Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing, not later
than noon, Local Time, one Business Day before the date of the prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than noon, Local Time, on the date of prepayment. Each
such notice shall be irrevocable and shall specify the prepayment date and the principal amount of
each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment
is given in connection with a conditional notice of termination of the Commitments as contemplated
by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.09. Promptly following receipt of any such notice relating to
a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an
advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a
Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.13.

          SECTION 2.12.    Fees. (a) The US Borrower agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the
average daily amount of such Lender’s Applicable Percentage of the Available Commitment during the
period from and including the
Effective Date to but excluding the date on which the Lenders’ Commitments terminate. Accrued
commitment fees shall be payable in arrears on the first day of each April, July, October and
January and on the date on which the Commitments terminate, commencing on the first such date to
occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360
days and shall be payable for the actual number of days elapsed.

          (b) The US Borrower agrees to pay (i) to the Administrative Agent for the account of each
Revolving Lender a participation fee with respect to its participations in Letters of Credit, which
shall accrue at the same Applicable Rate used to determine the interest rate applicable to
Eurocurrency Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the period from and
including the Effective Date to but excluding the later of the date on which such Lender’s
Revolving Commitment terminates and the date on which such Revolving Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per
annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and the date on which
there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including the last day of
each calendar month shall be payable on the third Business Day following such last day, commencing
on July 16, 2006; provided that all such fees shall be payable on the date on which the
Commitments terminate and any such fees accruing after the date on

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which the Commitments terminate
shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph
shall be payable within 10 Business Days after written demand. All participation fees and fronting
fees shall be computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed.

          (c) The Borrowers jointly and severally agree to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed upon between the Borrowers
and the Administrative Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

          SECTION 2.13.    Interest. (a) The Loans comprising each ABR Borrowing (including
each Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurocurrency Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c) Each Protective Advance shall bear interest at the Alternate Base Rate plus the Applicable
Rate for Revolving Loans plus 2%; provided that any Protective Advance made in Euros shall
bear interest at an interest rate reasonably determined by the Administrative Agent to compensate
the applicable Lenders for such Borrowing in Euros for the applicable period plus 2%.

          (d) Notwithstanding the foregoing, during the occurrence and continuance of (A) an Event of
Default, upon notice by the Required Lenders to the Borrower Representative (which notice may
be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02
requiring the consent of “each Lender affected thereby” for reductions in interest rates) or (B) a
Default of the type described in Section 8(a), (h) or (i), (X) all Loans shall bear interest at 2%
plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this
Section and (Y) any participation fee payable pursuant to Section 2.12 with respect to
participations in Letters of Credit shall accrue at 2% plus the Applicable Rate used to determine
the interest rate applicable to Eurocurrency Revolving Loans as provided hereunder.
Notwithstanding the foregoing, if any interest on any Loan or any fee or other amount (other than
in respect of principal of the Loans or any participation fee payable pursuant to Section 2.12 with
respect to participations in Letters of Credit) payable by the Borrowers hereunder is not paid when
due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

          (e) Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior
calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and upon
termination of the Commitments; provided that (i) interest accrued pursuant to the proviso
to paragraph (c) or paragraph (d) of this Section or otherwise at an interest rate reasonably
determined by the Administrative Agent shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the
end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall
be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of
any Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued interest on
such Loan shall be payable on the effective date of such conversion.

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          (f) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate or by reference to an interest rate reasonably determined by the
Administrative Agent shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed. The applicable
Alternate Base Rate, Adjusted LIBO Rate, LIBO Rate or any other interest rate applicable in
accordance with the terms hereof shall be determined by the Administrative Agent in accordance with
the terms hereof, and such determination shall be conclusive absent manifest error.

          SECTION 2.14.    Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing:

          (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

          (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or
its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower Representative and the
Lenders by telephone or facsimile as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower Representative and the Lenders that the circumstances
giving rise to such notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a
Eurocurrency Borrowing shall be ineffective, (ii) if
any Borrowing Notice requests a Eurocurrency Borrowing denominated in dollars, such Borrowing shall
be made as an ABR Borrowing and (iii) if any Borrowing Notice requests a Eurocurrency Borrowing
denominated in Euros, such Borrowing shall be made as a Borrowing bearing interest at an interest
rate reasonably determined by the Administrative Agent to compensate the applicable Lenders for
such Borrowing in Euros for the applicable period.

            SECTION 2.15.    Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the
Issuing Bank; or

     (ii) impose on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurocurrency Loans made by such Lender or any Letter
of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then such Borrower will
pay to such Lender or the Issuing Bank, as the case may be, the minimum additional amount or
amounts as will compensate such Lender or the Issuing Bank, as the case may be, for such additional
costs incurred or reduction suffered.

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          (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on a Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time such Borrower will pay to such Lender or
the Issuing Bank, as the case may be, the minimum additional amount or amounts as will compensate
such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower
Representative and shall be conclusive absent manifest error. Such Borrower shall pay such Lender
or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10
Business Days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that such Borrower shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as
the case may be, notifies the
Borrower Representative of the Change in Law giving rise to such increased costs or reductions
and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 270-day period referred to above shall be extended to include
the period of retroactive effect thereof.

          SECTION 2.16.    Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurocurrency Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Eurocurrency Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section 2.09(c) and is
revoked in accordance therewith), or (d) the assignment of any Eurocurrency Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by the Borrower
Representative pursuant to Section 2.19, then, in any such event, such Borrower shall compensate
each affected Lender for the loss, cost and expense actually incurred by such Lender and
attributable to such event. In the case of a Eurocurrency Loan, such loss, cost or expense to any
Lender shall not exceed an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period therefor (or, in
the case of a failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would bid were it to bid,
at the commencement of such period, for dollar deposits of a comparable amount and period from
other banks in the Eurocurrency market. A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the
Borrower Representative and shall be conclusive absent manifest error. Such Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 Business Days after receipt
thereof.

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          SECTION 2.17.    Taxes. (a) Any and all payments by or on account of any obligation
of the Borrowers hereunder shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided that if a Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the Administrative Agent, Lender or
Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) such Borrower shall make such deductions and (iii) such Borrower
shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

          (b) The Borrowers shall pay any Other Taxes applicable to such Borrower to the relevant
Governmental Authority in accordance with applicable law.

          (c) Each Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of such Borrower hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by
the relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower Representative by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Borrower
to a Governmental Authority, the Borrower Representative shall deliver to the Administrative Agent
the original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which a Borrower to which it makes a loan is organized or a
resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower Representative (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by
the Borrower Representative, such properly completed and executed documentation prescribed by
applicable law or reasonably requested by the Borrower Representative as will permit such payments
to be made without withholding or at a reduced rate of withholding.

          (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by a Borrower or
with respect to which such Borrower has paid additional amounts pursuant to this Section 2.17, it
shall pay over such refund to such Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by such Borrower under this Section 2.17 with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that such Borrower, upon the request
of the Administrative Agent or such Lender, agrees to repay the amount paid over to such Borrower
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to
the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental

53

 

Authority. This Section shall not be construed
to require the Administrative Agent or any Lender to make available its Tax returns (or any other
information relating to its Taxes which it deems confidential) to the Borrowers or any other
Person.

          (g) Each Lender that makes a Loan to the US Borrower that is not a Foreign Lender with respect
to the US Borrower shall deliver to the Borrower Representative (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower
Representative, a properly completed and executed IRS Form W-9 (or applicable successor form)
certifying that such Lender is not subject to backup withholding.

          (h) If, at the time any Lender is requested to make any Loan hereunder, the then outstanding
principal balance of all Loans and outstanding Letters of Credit is less than $4,000,000 (such
requested Loan, a “Taxable Advance”), Borrowers shall pay any applicable mortgage recording
tax, to the extent required by applicable law, on that portion of the Taxable Advance which equals
the difference between such then outstanding principal balance of all Loans and outstanding Letters
of Credit prior to the Taxable Advance and $4,000,000. As of the date such Taxable Advance is
requested, the Borrowers shall furnish Administrative Agent with such documentation and affidavits
as Administrative Agent shall reasonably request together with an affidavit, substantially in the
form of Exhibit M attached hereto, signed by a Financial Officer, stating that all
applicable mortgage recording tax, to the extent required by applicable law, due in connection with
such Taxable Advance has been paid. Any such Taxable Advance
shall thereafter be deemed to be the last amount repaid of the then principal balance of all
Loans outstanding.

          SECTION 2.18.    Payments Generally; Allocation of Proceeds; Sharing of Set-offs. (a)
Each Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16
or 2.17, or otherwise) prior to 2:00 p.m., Chicago time, in the case of Loans denominated in
dollars, or 2:00 p.m., London time, in the case of Loans denominated in Euros, on the date when
due, in immediately available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices at 120 South LaSalle Street,
Chicago, Illinois, except payments to be made directly to the Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03
shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute
any such payments received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars or Euros, as applicable. At all times
that full cash dominion is in effect pursuant to Article VII of the US Security Agreement, solely
for purposes of determining the amount of Loans available for borrowing purposes, checks (in
addition to immediately available funds applied pursuant to Section 2.10(b)) from collections of
items of payment and proceeds of any Collateral pledged to secure any Borrower’s Obligations shall
be applied in whole or in part against such Borrower’s Obligations, on the Business Day after
receipt, subject to actual collection.

          (b) Subject to Section 9.20 hereof, any proceeds of Collateral received by the Administrative
Agent on behalf of any Borrower or any Loan Party (shall, if received in its capacity as a
depositing bank be applied as set forth in the applicable Deposit Account Control Agreement) and
any other such proceeds (i) not constituting either (A) a specific payment of principal, interest,
fees or other sum payable under the Loan Documents (which shall be applied as specified by the
Borrower making

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such payment), (B) a mandatory prepayment (which shall be applied in accordance
with Section 2.11) or (C) amounts to be applied from the Collection Account when full cash dominion
is in effect (which shall be applied in accordance with Section 2.10(b)) or (ii) after an Event of
Default has occurred and is continuing, such funds shall be applied ratably first, to pay
any fees, indemnities, or expense reimbursements then due including amounts then due to the
Administrative Agent and the Issuing Bank from such Borrower (other than in connection with Banking
Services or Swap Obligations), second, to pay any fees or expense reimbursements then due
to the Lenders from such Borrower (other than in connection with Banking Services or Swap
Obligations), third, to pay interest due in respect of the Protective Advances made to or
on behalf of such Borrower, fourth, to pay the principal of such Protective Advances,
fifth, to pay interest then due and payable on the Loans (other than the Protective
Advances) ratably, sixth, to prepay principal on the Loans made to or on behalf of such
Borrower (other than the Protective Advances and unreimbursed LC Disbursements in respect of
Letters of Credit requested by such Borrower), seventh, to pay an amount to the
Administrative Agent equal to one hundred three percent (103%) of the aggregate undrawn face amount
of all outstanding Letters of Credit requested by such Borrower and the aggregate amount of any
unpaid LC Disbursements in respect of Letters of Credit requested by such Borrower, to be held as
cash collateral for such Obligations, eighth, to payment of any amounts owing with respect
to Banking Services Obligations and Swap Obligations of such Borrower, and ninth, to the
payment of any other Secured Obligation due to the Administrative Agent or any Lender by such
Borrower. Notwithstanding anything to the contrary contained in this
Agreement, unless so directed by the Borrower Representative and except as set forth in
Section 2.01(c), Section 2.10 and Section 2.11, or unless an Event of Default is in existence,
neither the Administrative Agent nor any Lender shall apply any payment which it receives to any
Eurocurrency Loan of a Class made to any Borrower, except (a) on the expiration date of the
Interest Period applicable to any such Eurocurrency Loan or (b) in the event, and only to the
extent, that there are no outstanding ABR Loans of the same Class and, in any such event, such
Borrower shall pay the break funding payment required in accordance with Section 2.16. The
Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and
reverse and reapply any and all such proceeds and payments to any portion of the Secured
Obligations of such Borrower.

          (c) At the election of the Administrative Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the
Loan Documents by any Borrower, may be paid from the proceeds of Borrowings made hereunder by such
Borrower whether made following a request by the Borrower Representative pursuant to Section 2.03
or a deemed request as provided in this Section or may be deducted from any deposit account of such
Borrower maintained with the Administrative Agent. Each Borrower hereby irrevocably authorizes (i)
the Administrative Agent to make a Borrowing by such Borrower for the purpose of paying each
payment of principal, interest and fees as it becomes due hereunder or any other amount due under
the Loan Documents (after the expiration of any grace or cure periods with respect to such other
amounts) by such Borrower and agrees that all such amounts charged shall constitute Loans
(including Swingline Loans, but such a Borrowing may only constitute a Protective Advance if it is
to reimburse costs, fees and expenses as described in Section 9.03) and that all such Borrowings
shall be deemed to have been requested by such Borrower pursuant to Sections 2.03, 2.04 or 2.05, as
applicable and (ii) the Administrative Agent to charge any deposit account of such Borrower
maintained with the Administrative Agent for each payment of principal, interest and fees as it
becomes due hereunder or any other amount due under the Loan Documents by such Borrower.

          (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or participations in
LC Disbursements resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon
than the

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proportion received by any other Lender, then the Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Loans and participations in LC
Disbursements of other Lenders to the extent necessary so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and participations in LC Disbursements; provided
that (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by any Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations in LC Disbursements
to any assignee or participant, other than to such Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). Subject to Section 9.20 hereof, each
Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against such Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Borrower in the amount of
such participation.

     (e) Unless the Administrative Agent shall have received notice from the Borrower
Representative prior to the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank hereunder that any Borrower will not make such payment,
the Administrative Agent may assume that such Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the
Issuing Bank, as the case may be, the amount due. In such event, if such Borrower has not in fact
made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including the date such amount
is distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

     (f) If any Lender shall fail to make any payment required to be made by it hereunder, then the
Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply
any amounts thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations hereunder until all such unsatisfied obligations are fully paid;
provided that as between the Loan Parties, the Administrative Agent and such Lender, such
amounts received by the Administrative Agent and paid by the Loan Parties for the account of such
Lender shall be considered applied to the obligations intended to be paid by the Loan Parties.

      SECTION 2.19.    Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then:

     (i) such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (x) would eliminate or
reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the
future and (y) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender (and such Borrower hereby
agree to pay all reasonable

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costs and expenses incurred by any Lender in connection
with any such designation or assignment);

     (ii) such Borrower may, at their sole expense and effort, require such Lender
or any Lender that defaults in its obligation to fund Loans hereunder (herein, a
“Departing Lender”), upon notice to the Departing Lender and the
Administrative Agent, to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in Section 9.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) such Borrower shall have received the prior
written consent of the Administrative Agent (and if a Revolving Commitment is being
assigned, the Issuing Bank), which consent shall not unreasonably be withheld, (y)
the Departing Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and participations in LC Disbursements and
Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or such Borrower (in the case of all other
amounts) and (z) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section
2.17, such assignment will result in a reduction in such compensation or payments.
A Departing Lender shall not be required to make any such assignment and delegation
if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling a Borrower to require such assignment and delegation cease
to apply.

                (b) If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a
proposed amendment or waiver which pursuant to the terms of Section 9.02 requires the consent of
all Lenders or of all Lenders directly affected thereby and with respect to which the Required
Lenders shall have granted their consent, then the US Borrower shall be permitted to replace such
Non-Consenting Lender (unless such Non-Consenting Lender grants such consent); provided
that (i) such replacement does not conflict with any Requirement of Law, (ii) the replacement
financial institution shall purchase, at par, all Loans and other amounts owing to such replaced
Lender on or prior to the date of replacement, (iii) the Borrower shall be liable to such replaced
Lender under Section 2.16 if any Eurocurrency Loan owing to such replaced Lender shall be purchased
other than on the last day of the Interest Period relating thereto, (iv) the replacement financial
institution shall be reasonably satisfactory to the Administrative Agent, (v) the replaced Lender
shall be obligated to make such replacement in accordance with the provisions of Section 9.04
(provided that the Borrower shall be obligated to pay the registration and processing fee referred
to therein), and (vi) any such replacement shall not be deemed to be a waiver of any rights that
the US Borrower, the Administrative Agent or any other Lender shall have against the replaced
Lender.

                SECTION 2.20.    Returned Payments. If after receipt of any payment which is applied
to the payment of all or any part of the Obligations of any Borrower, the Administrative Agent or
any Lender is for any reason compelled to surrender such payment or proceeds to any Person because
such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined
to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for
any other reason, then the Obligations or part thereof intended to be satisfied shall be revived
and continued and this Agreement shall continue in full force as if such payment or proceeds had
not been received by the Administrative Agent or such Lender. The provisions of this Section 2.20
shall be and remain effective notwithstanding any contrary action which may have been taken by the
Administrative Agent or any Lender in reliance

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upon such payment or application of proceeds. The
provisions of this Section 2.20 shall survive the termination of this Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each Loan Party represents and warrants to the Lenders that after giving effect to the
transactions on the Effective Date, including the Acquisition:

          SECTION 3.01.    Organization; Powers. Each of the Loan Parties and each of its
Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization (to the extent the concept of “good standing” is recognized
thereunder), (b) except where the failure to have such power and authority could not, individually
or in the aggregate, reasonably be expected to result in a Material
Adverse Effect, has all requisite power and authority to carry on its business as now
conducted and is qualified to do business in, and (c) is in good standing in, every jurisdiction
where such qualification is required except where the failure to be in good standing could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.02.    Authorization; Enforceability. The Transactions are within each Loan
Party’s corporate or organizational powers and have been duly authorized by all necessary
organizational and, if required, stockholder action. The Loan Documents to which each Loan Party
is a party have been duly executed and delivered by such Loan Party and constitute a legal, valid
and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

          SECTION 3.03.    Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect
and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will
not violate any Requirement of Law applicable to any Loan Party or any of its Subsidiaries, (c)
will not violate or result in a default under any indenture, agreement or other instrument binding
upon any Loan Party or any of its Subsidiaries or its assets, or give rise to a right thereunder to
require any payment to be made by any Loan Party or any of its Subsidiaries, and (d) will not
result in the creation or imposition of any Lien on any asset of any Loan Party or any of its
Subsidiaries, except Liens created pursuant to the Loan Documents except, in each case, as could
not reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect.

          SECTION 3.04.    Financial Condition; No Material Adverse Change. (a) Holdings has
heretofore furnished to the Lenders its consolidated balance sheet and statements of income,
stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2005,
reported on by Ernst & Young, independent public accountants, and (ii) as of and for the fiscal
quarter and the portion of the fiscal year ended March 31, 2006, certified by its chief financial
officer. Such financial statements present fairly, in all material respects, the financial
position and results of operations and cash flows of Holdings and its consolidated Subsidiaries as
of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments
and the absence of footnotes in the case of the statements referred to in clause (ii) above.

          (b) No event, change or condition has occurred that has had, or could reasonably be expected
to have, a Material Adverse Effect, since December 31, 2005.

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          SECTION 3.05. Properties. (a) As of the date of this Agreement, Schedule 3.05
(i) sets forth the address of each parcel of real property that is owned or leased by any Loan
Party (other than Holdings) and (ii) identifies any such parcel of owned real property with respect
to which the Loan Documents will not, as of the Effective Date, create legal and valid Liens on
such parcel of real property and all of the buildings, improvements, structures and fixtures
located on such parcel of real property in accordance with the terms and conditions of the Loan
Documents (each, a “Non-Mortgaged Property”). Except as could not reasonably be expected
to have a Material Adverse Effect, each of such leases and subleases is valid and enforceable in
accordance with its terms and is in full force and effect, and, to the knowledge of the applicable
Loan Party, no default by any party to any such lease or sublease exists. Each of the Loan Parties
and its Subsidiaries has good and marketable title to, or valid leasehold interests in, all its
real and personal property, free of all Liens other than those permitted by Section 6.02.

          (b) Except as could not reasonably be expected, individually or in the aggregate, to result in
a Material Adverse Effect, each Loan Party and its Subsidiaries owns, or is licensed to use, all
Intellectual Property used in its business as currently conducted, a correct and complete list of
which, as of the date of this Agreement, is set forth on Schedule 3.05, and the use thereof by the
Loan Parties and its Subsidiaries does not infringe in any material respect upon the rights of any
other Person, and the Loan Parties’ rights thereto are not subject to any licensing agreement or
similar arrangement.

          SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits
or proceedings by or before any arbitrator or Governmental Authority pending against or, to the
knowledge of any Loan Party, threatened against or affecting the Loan Parties or any of their
Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that directly
involve this Agreement or the Transactions.

          (b) Except for the Disclosed Matters and except as could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, (i) no Loan Party nor any
of its Subsidiaries has received notice of any claim with respect to any Environmental Liability or
knows of any basis for any Environmental Liability and (ii) no Loan Party nor any of its
Subsidiaries (1) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law or (2) has become
subject to any Environmental Liability.

          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

          SECTION 3.07. Compliance with Laws and Agreements. (a) Each Loan Party and its
Subsidiaries is in compliance with all Requirements of Law applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. No Default has occurred and is continuing.

          (b) If the Netherlands Borrower or any Netherlands Loan Guarantor is a credit institution
(kredietinstelling) under the Netherlands Banking Act, such party is in compliance with the
applicable provisions of the Netherlands Banking Act and any implementing regulation,
including the Netherlands Exemption Regulation.

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          SECTION 3.08. Investment Company Status. No Loan Party nor any of its Subsidiaries
is an “investment company” as defined in, or subject to regulation under, the Investment Company
Act of 1940.

          SECTION 3.09. Taxes. Except as could not reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect, each Loan Party and its Subsidiaries has
timely filed or caused to be filed all federal and other material Tax returns and reports required
to have been filed and has paid or caused to be paid all Taxes shown thereon, except Taxes that are
being contested in good faith by appropriate proceedings and for which such Loan Party or such
Subsidiary, as applicable, has established adequate reserves determined in accordance with GAAP.
There are no proposed Tax deficiencies or assessments that, in the aggregate, are material to each
Loan Party and its Subsidiaries, taken as a whole. There are no liens for any material Taxes on
any assets of each Loan Party and its Subsidiaries.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. Except as
could not reasonably be expected to have a Material Adverse Effect, the present value of all
accumulated benefit obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, either individually or together with
one or more such Plans, as of the date of the most recent financial statements reflecting such
amounts, exceed the fair market value of the assets of such Plan or Plans.

          SECTION 3.11. Disclosure. Neither the information contained in the Information
Memorandum nor in any of the other reports, the financial statements, certificates or other
information (including public filings of Holdings) furnished by or on behalf of the any Loan Party
to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or
any other Loan Document (as modified or supplemented by other information so furnished) taken as a
whole contains any untrue statement of a material of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which such
statements were made not misleading; provided that, with respect to pro forma and projected
financial information, the Borrowers and Holdings represent only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time delivered in light of
the circumstances when made and, if such pro forma and projected financial information was
delivered prior to the Effective Date, as of the Effective Date.

          SECTION 3.12. Reserved

          SECTION 3.13. Solvency. (a) Immediately after the consummation of the Transactions to occur on the Effective Date,
each Loan Party will be Solvent, (i) the fair value of the assets of such Loan Party, at a fair
valuation, at such time exceed its debts and liabilities, subordinated, contingent or otherwise;
(ii) the present fair saleable value of the property of such Loan Party at such time are greater
than the amount that will be required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (iii) such Loan Party at such time is able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured;
and (iv) such Loan Party at such time does not have unreasonably small capital with which to
conduct the business in which it is engaged as such business is then conducted and is proposed to
be conducted thereafter.

          (b) No Loan Party intends to, or will permit any of its Subsidiaries to, and no Loan Party
believes that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts
as they

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mature, taking into account the timing of and amounts of cash to be received by it or any
such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such Subsidiary.

          SECTION 3.14. Insurance. Schedule 3.14 sets forth a description of all
insurance maintained by or on behalf of the Loan Parties and the Subsidiaries as of the Effective
Date. As of the Effective Date, all premiums in respect of such insurance have been paid. The
Borrowers and Holdings believe that the insurance maintained by or on behalf of the US Borrower and
its Subsidiaries is adequate.

          SECTION 3.15. Capitalization and Subsidiaries. As of the Effective Date,
Schedule 3.15 sets forth (a) a correct and complete list of the name and relationship to
Holdings of each and all of Holdings’ Subsidiaries, (b) a true and complete listing of each class
of each of the Loan Parties’ authorized Equity Interests, of which all of such issued shares are
validly issued, outstanding, fully paid and non-assessable, and owned beneficially and of record by
the Persons identified on Schedule 3.15, and (c) the type of entity of Holdings and each of
its Subsidiaries. All of the issued and outstanding Equity Interests owned by any Loan Party has
been (to the extent such concepts are relevant with respect to such ownership interests) duly
authorized and issued and is fully paid and non-assessable.

          SECTION 3.16. Security Interest in Collateral. The provisions of this Agreement and
the other Loan Documents create legal and valid Liens on all the Collateral in favor of the
Administrative Agent, for the benefit of the Administrative Agent and the Lenders, and such Liens
constitute perfected and continuing Liens on the Collateral, securing, in the case of the Liens
created under the US Collateral Documents, the Secured Obligations and, in the case of the Liens
created under the Netherlands Collateral Documents, the Netherlands Secured Obligations,
enforceable against the applicable Loan Party and all third parties, and having priority over all
other Liens on the Collateral except in the case of (a) liens permitted by Section 6.02, to the
extent any such liens would have priority over the Liens in favor of the Administrative Agent
pursuant to any applicable law or agreement and (b) Liens perfected only by possession (including
possession of any certificate of title) to the extent the Administrative Agent has not obtained or
does not maintain possession of such Collateral, and provided that, with respect to the Netherlands
Collateral Documents, any required notification (mededeling), registration (registratie of
inschrijving) or waiver (afstand van recht), as contemplated by the Netherlands Collateral
Documents for purposes of the perfection of the
security interests purported to be created by such documents, has been duly and timely made,
completed or obtained.

          SECTION 3.17. Employment Matters. As of the Effective Date, except as could not
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect,
there are no strikes, lockouts or slowdowns against any Loan Party or any Subsidiary pending or, to
the knowledge of the Borrowers, threatened. The hours worked by and payments made to employees of
the Loan Parties and the Subsidiaries have not been in violation of the Fair Labor Standards Act or
any other applicable Federal, state, local or foreign law dealing with such matters except as could
not reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect. Except as could not reasonably be expected, individually or in the aggregate, to result in
a Material Adverse Effect, all payments due from any Loan Party or any Subsidiary, or for which any
claim may be made against any Loan Party or any Subsidiary, on account of wages and employee health
and welfare insurance and other benefits, have been paid or accrued as a liability on the books of
the Loan Party or such Subsidiary.

          SECTION 3.18. Common Enterprise. The successful operation and condition of each of
the Loan Parties is dependent on the continued successful performance of the functions of the group
of the Loan Parties as a whole and the successful operation of each of the Loan Parties is
dependent on the successful performance and operation of each other Loan Party. Each Loan Party
expects to derive benefit (and its board of directors or other governing body has determined that
it may reasonably be

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expected to derive benefit), directly and indirectly, from (i) successful
operations of each of the other Loan Parties and (ii) the credit extended by the Lenders to the
Borrowers hereunder, both in their separate capacities and as members of the group of companies.
Each Loan Party has determined that execution, delivery, and performance of this Agreement and any
other Loan Documents to be executed by such Loan Party and each of the other Transactions is within
its purpose, will be of direct and indirect benefit to such Loan Party, and is in its best
interest.

          SECTION 3.19. Intellectual Property. Except as could not reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect, each Loan Party and its
Subsidiaries owns, or is licensed to use, all Intellectual Property necessary for the conduct of
its business as currently conducted. No material claim has been asserted and is pending by any
Person challenging or questioning the use of any Intellectual Property or the validity or
effectiveness of any Intellectual Property in any respect that could reasonably be expected to have
a Material Adverse Effect, nor does any Loan Party or its Subsidiaries know of any valid basis for
any such claim. Except as could not reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect, the use of Intellectual Property by each Loan Party and its
Subsidiaries does not infringe on the rights of any Person in any material respect.

          SECTION 3.20. Federal Regulations. No part of the proceeds of any Loans, and no
other extensions of credit hereunder, will be used for “buying” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under Regulation U as now and from time
to time hereafter in effect or for any purpose that violates the provisions of the Regulations of
the Board. If requested by any Lender or the Administrative Agent, the relevant Borrower will
furnish to the Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in
Regulation U.

          SECTION 3.21. Senior Indebtedness. The Obligations of the US Loan Parties
constitute permitted secured “Indebtedness” qualifying as “Pari Passu Indebtedness” or “Guarantor
Pari Passu Indebtedness”, as applicable, under the Second Lien Senior Notes Indenture (as each such
term is defined thereunder) and permitted secured “Indebtedness” qualifying as “Senior
Indebtedness” or “Guarantor Senior Indebtedness”, as applicable, under the Third Lien Senior Notes
Indenture (as each such term is defined thereunder).

ARTICLE IV

CONDITIONS

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of
the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

     (a) Credit Agreement and Loan Documents; Legal Opinions. The Administrative
Agent (or its counsel) shall have received (i) from each party hereto either (A) a
counterpart of this Agreement signed on behalf of such party or (B) written evidence
satisfactory to the Administrative Agent (which may include facsimile transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement and (ii) duly executed copies of the other Loan Documents (other than Loan
Documents including Mortgages in respect of the Non-Mortgaged Properties that pursuant to
the express terms thereof are not contemplated to be executed and delivered on the Effective
Date) and such other certificates, documents, instruments and agreements as the
Administrative Agent shall reasonably request in connection with the transactions
contemplated by this Agreement and such other Loan Documents, including

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any promissory notes
requested by a Lender pursuant to Section 2.10 payable to the order of each such requesting
Lender and (iii) written opinion(s) of (A) the Loan Parties’ special New York and Dutch
counsels and (B) the Administrative Agent’s special Dutch counsel, in each case, addressed
to the Administrative Agent, the Issuing Bank and the Lenders.

     (b) Financial Statements and Projections. The Lenders shall have received (i)
audited consolidated financial statements of Holdings for the December 31, 2004 and December
31, 2005 fiscal years, (ii) unaudited interim consolidated financial statements of Holdings
for each fiscal quarter ended after the date of the latest applicable financial statements
delivered pursuant to clause (i) of this paragraph as to which such financial statements are
available, and (iii) satisfactory projections through 2010.

     (c) Closing Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) a certificate of each
Loan Party, dated the Effective Date and executed by its Secretary or Assistant Secretary
or, as the case may be, its managing directors, which shall (A) certify the resolutions of
its Board of Directors, members or other body authorizing the execution, delivery and
performance of the Loan Documents to which it is a party, (B) identify by name and title and
bear the signatures of the Financial Officers and any other officers of such Loan Party, or
such other Persons authorized to sign on behalf of such Loan Party, authorized to sign the
Loan Documents to which it is a party, and (C) contain appropriate attachments, including,
if applicable, the certificate or articles of incorporation or organization of each Loan
Party certified, if applicable, by the relevant authority of the jurisdiction of
organization of such Loan Party and a true and correct copy of its by-laws or
operating, management or partnership agreement or, as the case may be, its articles of
association, and (ii) to the extent available in such jurisdiction, a long form good
standing certificate for each Loan Party from its jurisdiction of organization.

     (d) No Default Certificate. The Administrative Agent shall have received a
certificate, signed by a financial officer of Holdings, on the initial Borrowing date (i)
stating that no Default has occurred and is continuing, and (ii) stating that the
representations and warranties contained in Article III are true and correct as of such
date.

     (e) Fees. The Lenders and the Administrative Agent shall have received all
fees required to be paid, and all reasonable out-of-pocket expenses for which invoices have
been presented (including the reasonable fees and expenses of legal counsel), on or before
the Effective Date. All such amounts will be paid with proceeds of Loans made on the
Effective Date and will be reflected in the funding instructions given by the Borrower
Representative to the Administrative Agent on or before the Effective Date.

     (f) Lien Searches. Other than with regard to the Netherlands jurisdiction, the
Administrative Agent shall have received the results of a recent lien search in each of the
jurisdictions where assets of the Loan Parties are located, and such search shall reveal no
liens on any of the assets of the Loan Parties except for liens permitted by Section 6.02 or
discharged on or prior to the Effective Date pursuant to a pay-off letter or other
documentation satisfactory to the Administrative Agent.

     (g) Pay-Off Letter. The Administrative Agent shall have received satisfactory
pay-off letters for all existing Indebtedness to be repaid from the proceeds the initial
Borrowing, confirming that all Liens upon any of the property of the Loan Parties
constituting Collateral will be terminated concurrently with such payment and all letters of
credit issued or guaranteed as part of such Indebtedness shall have been cash collateralized
or supported by a Letter of Credit.

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     (h) Funding Accounts. The Administrative Agent shall have received a notice
setting forth the deposit account(s) of each Borrower (with respect to such Borrower, a
“Funding Account”) to which the Administrative Agent and the Lenders are authorized
by the Borrowers to transfer the proceeds of any Borrowings by such Borrower requested or
authorized pursuant to this Agreement.

     (i) Customer List. The Administrative Agent shall have received a true and
complete Customer List.

     (j) Control Agreements. The Administrative Agent shall have received each
Deposit Account Control Agreement with respect to Accounts held with the Administrative
Agent required to be provided pursuant to Section 4.14 of the US Security Agreement.

     (k) Solvency. The Administrative Agent shall have received a solvency
certificate with respect to all Loan Parties (other than Holdings) from a Financial Officer
of the US Borrower and, with respect to Holdings, from a Financial Officer of Holdings to
the effect that the Loan Parties are, and after giving effect to the Acquisition and the
incurrence of all indebtedness and obligations being incurred in connection herewith and
therewith (including the Senior Notes) will be and will continue to be Solvent.

     (l) Borrowing Base Certificate. The Administrative Agent shall have received
an Aggregate Borrowing Base Certificate which calculates the Aggregate Borrowing Base and
Borrowing Base Certificates which calculate the respective Borrowing Bases of the
Borrowers, in each case as of the end of the most recent month which has ended at least 10
days prior to the Effective Date with customary supporting documentation and supplemental
reporting reasonably satisfactory to the Administrative Agent.

     (m) Closing Availability. After giving effect to all Borrowings to be made on
the Effective Date and the issuance of any Letters of Credit on the Effective Date and
payment of all fees and expenses due hereunder, the Aggregate Availability (including, for
purposes of this clause (m), the Specified Properties in the determination of the US
Borrowing Base) plus cash and cash equivalents subject to a Deposit Account Control
Agreement shall not be less than $40,000,000.

     (n) Senior Notes. The Borrowers shall have received gross proceeds of at least
(i) $299,880,000 in consideration of the issuance of the new Second Lien Senior Notes and
(ii) $99,960,000 in consideration of the issuance of the new Third Lien Senior Notes, both
upon terms and conditions satisfactory to the Administrative Agent and the Lenders, and the
Administrative Agent and the Lenders shall have received true copies of the executed Senior
Notes Indentures and the Second Lien Registration Rights Agreement.

     (o) Pledged Stock; Stock Powers; Pledged Notes. The Administrative Agent shall
have received (i) the certificates representing the shares of Capital Stock pledged pursuant
to the US Security Agreement, together with an undated stock power for each such certificate
executed in blank by a duly authorized officer of the pledgor thereof and (ii) each
promissory note (if any) pledged to the Administrative Agent pursuant to the US Security
Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form
in blank) by the pledgor thereof.

     (p) Filings, Registrations and Recordings. Each document (including any
Uniform Commercial Code financing statement) required by the Collateral Documents or under
law or reasonably requested by the Administrative Agent to be filed, registered or recorded
in order to

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create in favor of the Administrative Agent, for the benefit of the Lenders, a
perfected Lien on the Collateral described therein, prior and superior in right to any other
Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in
proper form for filing, registration or recordation.

     (q) Environmental Reports. The Administrative Agent shall have received an
environmental review reports requested with respect to the real properties of each Loan
Party specified by the Administrative Agent from firm(s) selected and engaged by the
Administrative Agent, which review reports shall be acceptable to the Administrative Agent.
Any environmental hazards or liabilities identified in any such environmental review reports
shall indicate the Loan Parties’ plans with respect thereto.

     (r) Appraisals. The Administrative Agent shall have received appraisals of the
Inventory, Equipment, Eligible Real Property and Post-closing Mortgaged Property of each
Loan Party from an appraiser selected and engaged by the Administrative Agent, and prepared
on a basis satisfactory to the Administrative Agent, such appraisals to include, without
limitation, information required by applicable law and regulations, which appraisals shall
be acceptable to the Administrative Agent.

     (s) Mortgages, etc. The Administrative Agent shall have received, with respect
to each parcel of real property (other than any Non-Mortgaged Property) owned by a Loan
Party
(other than Holdings) in favor of the Administrative Agent, each of the following, in
form and substance reasonably satisfactory to the Administrative Agent:

     (i) a Mortgage on such property which mortgage shall, upon recordation in the
applicable filing office, create a valid and enforceable first priority Lien,
subject to Liens permitted by Section 6.02, in favor of the Administrative Agent for
the benefit of itself and the Lenders;

     (ii) except with respect to any parcel of real property located outside of the
United States, ALTA or other mortgagee’s title policy;

     (iii) except with respect to any parcel of real property located outside of the
United States, either (a) an ALTA survey prepared and certified to the
Administrative Agent by a surveyor reasonably acceptable to the Administrative Agent
or (b) a title insurance policy of the type referred to in clause (ii) above not
containing an exception for any matter shown by a survey (except to the extent an
existing survey has been provided and specifically incorporated into such title
insurance policy);

     (iv) an opinion of counsel in the state in which such parcel of real property
is located in form and substance and from counsel reasonably satisfactory to the
Administrative Agent; and

     (v) such other information, documentation, and certifications as may be
reasonably required by the Administrative Agent.

     (t) Insurance. The Administrative Agent shall have received evidence of
insurance coverage in form, scope, and substance reasonably satisfactory to the
Administrative Agent and otherwise in compliance with the terms of Section 4.12 of the
Security Agreements.

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     (u) Letter of Credit Application. The Administrative Agent shall have received
a properly completed letter of credit application if the issuance of a Letter of Credit will
be required on the Effective Date.

     (v) Approvals. All governmental and third party approvals necessary in
connection with the execution of the Loan Documents, the Transactions, the Acquisition and
the continuing operations of each Borrower and its Subsidiaries shall have been obtained on
terms reasonably satisfactory to the Administrative Agent, and shall be in full force and
effect.

     (w) Due Diligence. The Administrative Agent shall have completed, and shall be
satisfied with the results of, all business, legal, tax and regulatory due diligence, and
the corporate structure, capital structure, other debt instruments, material accounts and
governing documents of Holdings, each Borrower and its Subsidiaries (both before and after
giving effect to the Acquisition) shall be acceptable to the Administrative Agent.

     (x) The Acquisition. The Acquisition shall have been consummated in accordance
with the terms of the Acquisition Agreement (and no material terms shall have been waived or
otherwise modified without the consent of the Administrative Agent, which consent shall not
be unreasonably withheld) and there shall not be any pending or threatened legal or
governmental proceedings with respect to the Acquisition. The Administrative Agent shall
have received true copies of the executed Acquisition Agreement, all modifications thereof
and all other material documentation related thereto.

     (y) The Administrative Agent shall have received all information and/or documentation
that the Administrative Agent, in its reasonable discretion, considers necessary or
desirable in connection with the Netherlands Collateral.

     (z) Other Documents. The Administrative Agent shall have received such other
documents as the Administrative Agent, the Issuing Bank or their counsel may have reasonably
requested, all in form and substance reasonably acceptable to the Administrative Agent, the
Issuing Bank and their counsel.

The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02)
at or prior to 4:00 p.m., Chicago time, on June 16, 2006 (and, in the event such conditions are not
so satisfied or waived, the Commitments shall terminate at such time).

          SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on
the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter
of Credit, is subject to the satisfaction of the following conditions:

     (a) The representations and warranties of the Borrowers set forth in this Agreement
that are qualified by materiality shall be true and correct and the representations and
warranties that are not qualified by materiality shall be true and correct in all material
respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal
or extension of such Letter of Credit, as applicable except to the extent that such
representation or warranty expressly relates to an earlier date, in which case it shall be
true and correct as of such date.

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     (b) At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing.

     (c) After giving effect to any Borrowing or the issuance of any Letter of Credit, (i)
the USD Equivalent of the Aggregate Credit Exposure does not exceed the sum of the total
Revolving Commitments, (ii) the USD Equivalent of the total Revolving Exposures (excluding
Revolving Netherlands Exposures) does not exceed the US Borrowing Base, (iii) the USD
Equivalent of the total Revolving Euro Exposures with respect to the Borrowers does not
exceed the Euro Sublimit, (iv) the USD Equivalent of the total Revolving Netherlands
Exposures does not exceed the sum of the total Revolving Netherlands Sublimit, (v) the USD
Equivalent of the total Revolving Netherlands Exposure does not exceed the Netherlands
Borrowing Base and (vi) the USD Equivalent of the total Revolving Exposures relating to the
Netherlands Borrower does not exceed the Libbey Europe Sublimit.

Except with respect to Protective Advances and the Settlement of Swingline Loans, each Borrowing
and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to
constitute a representation and warranty by the Borrowers on the date thereof as to the matters
specified in paragraphs (a), (b) and (c) of this Section.

ARTICLE V

AFFIRMATIVE COVENANTS

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired, terminated, cash collateralized or backstopped and all LC Disbursements shall
have been reimbursed, each Loan Party executing this Agreement covenants and agrees, with the
Lenders that:

          SECTION 5.01. Financial Statements; Borrowing Base and Other Information. The
Borrowers will furnish to the Administrative Agent and each Lender:

     (a) within 90 days after the end of each fiscal year of Holdings, its audited
consolidated balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by independent public
accountants of recognized national standing (without a “going concern” or like qualification
or exception and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of Holdings and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,
accompanied by any management letter prepared by said accountants. Notwithstanding the
foregoing, in the event that the US Borrower delivers an annual report on Form 10-K of
Holdings for such fiscal year the Borrowers will be deemed to have delivered the financial
statements required by this Section 5.01(a) on the date of such filing;

     (b) within 55 days after the end of each of the first three fiscal quarters of
Holdings, its consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal quarter and the then elapsed
portion of the fiscal year, setting forth in each case in comparative form the figures for
the corresponding period or periods of (or, in the case of the balance sheet, as of the end
of) the previous fiscal year, all certified by one of the Financial Officers of the Borrower
Representative as presenting fairly in all material

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respects the financial condition and
results of operations of Holdings and its consolidated Subsidiaries on a consolidated basis
in accordance with GAAP consistently applied, subject to normal year-end audit adjustments
and the absence of footnotes. Notwithstanding the foregoing, in the event that the US
Borrower delivers a quarterly report on Form 10-Q of Holdings for such fiscal quarter, the
Borrowers will be deemed to have delivered the financial statements required by this Section
5.01(b) on the date of such filing;

     (c) within 30 days after the end of each fiscal month of Holdings, its consolidated
balance sheet, statements of cash flows and income statement as of the end of and for such
fiscal month and the then elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year;

     (d) concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of the Borrower Representative in substantially
the form of Exhibit G (i) certifying, in the case of the financial statements
delivered under clause (b), as presenting fairly in all material respects the financial
condition and results of operations of Holdings and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes,
(ii) certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken with respect
thereto, (iii) setting forth reasonably detailed calculations demonstrating compliance (if
applicable) with Section 6.15 and (iv) stating whether any change in GAAP or in the
application thereof has occurred since the date of the audited financial statements referred
to in Section 3.04 that would affect the financial statements accompanying such certificate
and specifying the effect of such change on the financial statements accompanying such
certificate;

     (e) concurrently with any delivery of financial statements under clause (a) above, a
certificate of the accounting firm that reported on such financial statements stating
whether they obtained knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent required by
accounting rules or guidelines);

     (f) as soon as available, but in any event not more than 60 days after the end of each
fiscal year of Holdings, a copy of the plan and forecast (including a projected consolidated
balance sheet, income statement and funds flow statement) of Holdings for each quarter of
the upcoming fiscal year (the “Projections”) in form reasonably satisfactory to the
Administrative Agent;

     (g) as soon as available but in any event within 20 days of the end of each calendar
month (and, during any Restriction Period, each calendar week), and at such other times as
may be reasonably requested by the Administrative Agent, as of the period then ended, an
Aggregate Borrowing Base Certificate, together with a Borrowing Base Certificate for each
Borrower which calculates such Borrower’s Borrowing Base, and supporting information in
connection therewith, together with any additional reports with respect to the Borrowing
Base of any Borrower as the Administrative Agent may reasonably request; and the PP&E
Component of the Borrowing Base shall be updated (i) from time to time upon receipt of
periodic valuation updates received from the Administrative Agent’s asset valuation experts,
(ii) concurrent with the sale of or entry into a binding commitment to sell (other than to
another Loan Party) any assets constituting part of the PP&E Component, or (iii) in the
event any material assets are idled for any reason other than routine maintenance or repairs
for a period in excess of ten (10) consecutive days;

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     (h) as soon as available but in any event within 20 days of the end of each calendar
month (and, during any Restriction Period, each calendar week) and at such other times as
may be reasonably requested by the Administrative Agent, as of the period then ended, all
delivered in a manner reasonably acceptable to the Administrative Agent:

     (i) a detailed aging of the Accounts of each Loan Party (other than Holdings)
(1) including lists of all invoices aged by invoice date and due date (with an
explanation of the terms offered) and (2) reconciled to the Borrowing Base
Certificate of each Borrower delivered as of such date prepared in a manner
reasonably acceptable to the Administrative Agent, together with a summary
specifying the balance due for each Account Debtor;

     (ii) a schedule detailing the Inventory of each Loan Party (other than
Holdings), in form reasonably satisfactory to the Administrative Agent, (1) by
location (showing Inventory in transit, any Inventory located with a third party
under any consignment, bailee arrangement, or warehouse agreement), by class (raw
material, work-in-process and finished goods), by product type, and by volume on
hand, which Inventory shall be valued at the lower of cost (determined on a
first-in, first-out basis) or
market and adjusted for Reserves as the Administrative Agent has previously
indicated to the Borrower Representative are deemed by the Administrative Agent to
be appropriate, (2) including a report of any variances or other results of
Inventory counts performed by each Loan Party (other than Holdings) since the last
Inventory schedule (including information regarding sales or other reductions,
additions, returns, credits issued by each Loan Party (other than Holdings) and
complaints and claims made against the Borrowers), and (3) reconciled to the
Borrowing Base Certificate of each Borrower delivered as of such date;

     (iii) a worksheet of calculations prepared by each Loan Party (other than
Holdings) to determine Eligible Accounts and Eligible Inventory, such worksheets
detailing the Accounts and Inventory excluded from Eligible Accounts and Eligible
Inventory and the reason for such exclusion;

     (iv) a reconciliation of the Accounts and Inventory of each Loan Party (other
than Holdings) between the amounts shown in the Borrowers’ general ledger and
financial statements and the reports delivered pursuant to clauses (i) and (ii)
above; and

     (v) a reconciliation of the loan balance per each Borrower’s general ledger to
the loan balances under this Agreement;

     (i) as soon as available but in any event within 20 days of the end of each calendar
month and at such other times as may be reasonably requested by the Administrative Agent, as
of the month then ended, a schedule and aging of the Borrowers’ and the other Loan Parties’
accounts payable, delivered in a manner reasonably acceptable to the Administrative Agent;

     (j) promptly upon the Administrative Agent’s request:

     (i) copies of invoices in connection with the invoices issued by any Loan Party
in connection with any Accounts, credit memos, shipping and delivery documents, and
other information related thereto;

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     (ii) copies of purchase orders, invoices, and shipping and delivery documents
in connection with any Inventory or Equipment purchased by any Loan Party; and

     (iii) a schedule detailing the balance of all intercompany accounts of the Loan
Parties;

     (k) as soon as available but in any event within 20 days of the end of each calendar
month (and during any Restriction Period, each calendar week) and at such other times as may
be reasonably requested by the Administrative Agent, as of the period then ended, each Loan
Party’s sales journal, cash receipts journal (identifying trade and non-trade cash receipts)
and debit memo/credit memo journal;

     (l) within 20 days of each March 31 and September 30, an updated customer list for each
Borrower and its Subsidiaries, which list shall state the customer’s name, mailing address
and phone number, delivered in a manner reasonably acceptable to the Administrative Agent,
and shall be certified as true and correct by a Financial Officer of the Borrower
Representative;

     (m) within 20 days of the first Business Day of each March, a certificate of good
standing for each Loan Party from the appropriate governmental officer in its jurisdiction
of incorporation, formation, or organization (to the extent available in such jurisdiction);

     (n) no later than 5 Business Days prior to the effectiveness thereof, copies of
substantially final drafts of any proposed amendment, waiver or other modification other
than a supplement to add additional guarantors with respect to the Senior Notes or the
Second Lien Registration Rights Agreement;

     (o) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by Holdings, any Borrower or any
Subsidiary with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national
securities exchange, as the case may be; and

     (p) promptly following any request therefor, such other reasonably available
information regarding the operations, business affairs and financial condition of Holdings
or any Subsidiary, as the Administrative Agent or any Lender may reasonably request.

          SECTION 5.02. Notices of Material Events. The Borrowers and Holdings will furnish
to the Administrative Agent and each Lender prompt written notice of the following:

     (a) the occurrence of any Default;

     (b) receipt of any written notice of any governmental investigation or any litigation
or proceeding commenced or threatened against any Loan Party that (i) seeks damages in
excess of $5,000,000, (ii) seeks injunctive relief, (iii) is asserted or instituted against
any Plan, its fiduciaries or its assets, (iv) alleges criminal misconduct by any Loan Party,
(v) alleges the violation of any law regarding, or seeks remedies in connection with, any
Environmental Laws involving liability in excess of $5,000,000, (vi) contests any tax, fee,
assessment, or other governmental charge in excess of $5,000,000, or (vii) involves any
product recall;

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     (c) any Lien (other than Liens permitted by Section 6.02) or asserted against any of
the Collateral;

     (d) any loss, damage, or destruction to the Collateral in the amount of $2,500,000 or
more, whether or not covered by insurance;

     (e) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrowers and their Subsidiaries in an aggregate amount exceeding $2,500,000; and

     (f) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower Representative setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

          SECTION 5.03. Existence; Conduct of Business. Each Loan Party will, and will cause
each Subsidiary to, (a) do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, qualifications, licenses, permits,
franchises, governmental authorizations, Intellectual Property rights, licenses and permits
material to the conduct of its business, and maintain all requisite authority to conduct its
business in each jurisdiction in which its business is conducted, in each case, except as could not
be reasonably expected, individually or in the aggregate, to result in a Material Adverse Effect;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (b) carry on and conduct its business in substantially
the same fields of enterprise as it is presently conducted or enterprises reasonably related
thereto or reasonable extensions thereof.

          SECTION 5.04. Payment of Obligations. Each Loan Party will, and will cause each
Subsidiary to, pay or discharge all Material Indebtedness and all other material liabilities and
obligations, including Taxes, before the same shall become delinquent or in default, except (a)
where the validity or amount thereof is being contested in good faith by appropriate proceedings,
(b) where such Loan Party or such Subsidiary has set aside on its books adequate reserves with
respect thereto if and to the extent required by GAAP or (c) as could not be reasonably expected,
individually or in the aggregate, to result in a Material Adverse Effect.

          SECTION 5.05. Maintenance of Properties. Except as could not be reasonably
expected, individually or in the aggregate, to result in a Material Adverse Effect, each Loan Party
will, and will cause each Subsidiary to, keep and maintain all property material to the conduct of
its business in good working order and condition, ordinary wear and tear excepted.

          SECTION 5.06. Books and Records; Inspection Rights. Each Loan Party will, and will
cause each Subsidiary to, (i) keep proper books of record and account in which full, true and
correct entries in all material respects in conformity with GAAP, are made of all dealings and
transactions in relation to its business and activities and (ii) permit any representatives
designated by the Administrative Agent or any Lender (including employees of the Administrative
Agent, any Lender or any consultants, accountants, lawyers and appraisers retained by the
Administrative Agent), upon reasonable prior notice during normal business hours, to visit and
inspect its properties, to conduct field examinations, to examine and make extracts from its books
and records, including environmental assessment reports and Phase I or Phase II studies, and to
discuss its affairs, finances and condition with its officers and independent accountants, all at
such reasonable times and as often as reasonably requested; provided,

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however that Financial
Officers of the Borrowers shall be entitled to participate in any discussion or meeting with the
accountants and absent the continuance of an Event of Default, not more than two visits shall occur
in any fiscal year (it being understood without limitation of the foregoing that there shall be no
limitation on the frequency of such visits and inspections (x) if an Event of Default shall have
occurred and be continuing or (y) such visit and/or inspection is paid for by the relevant Lender).
After the occurrence and during the continuance of any Event of Default, each Loan Party shall
provide the Administrative Agent and each Lender with contact information relating to its
suppliers. The Loan Parties acknowledge that the Administrative Agent, after exercising its rights
of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Loan
Parties’ assets for internal use by the Administrative Agent and the Lenders.

          SECTION 5.07. Compliance with Laws. Except as could not be reasonably expected, individually or in the aggregate, to result in
a Material Adverse Effect, each Loan Party will, and will cause each Subsidiary to, comply with all
Requirements of Law applicable to it or its property.

          SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used only to
finance the Acquisition, the refinancing of existing indebtedness, fees and expenses relating to
the foregoing and for other general corporate purposes. No part of the proceeds of any Loan and no
Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations T, U and X.

          SECTION 5.09. Insurance. Each Loan Party will, and will cause each Subsidiary to,
maintain with financially sound and reputable carriers having a financial strength rating of at
least A+ by A.M. Best Company (a) insurance in such amounts (with no greater risk retention) and
against such risks (including loss or damage by fire and loss in transit; theft, burglary,
pilferage, larceny, embezzlement, and other criminal activities; business interruption; and general
liability) and such other hazards, as is customarily maintained by companies of established repute
engaged in the same or similar businesses operating in the same or similar locations and (b) all
insurance required pursuant to the Collateral Documents. The Borrowers will furnish to the
Lenders, upon reasonable request of the Administrative Agent, a certificate evidencing the
insurance so maintained.

          SECTION 5.10. [Reserved].

          SECTION 5.11. Appraisals. At any time that the Administrative Agent requests, each
of the Borrowers will, and will cause each Subsidiary to, provide the Administrative Agent with
appraisals or updates thereof of their Inventory, Equipment and Eligible Real Property from an
appraiser selected and engaged by the Administrative Agent, and prepared on a basis satisfactory to
the Administrative Agent, such appraisals and updates to include, without limitation, information
required by applicable law and regulations; provided, however, that if no Event of Default has
occurred and is continuing, one such appraisal per calendar year shall be at the sole expense of
the Loan Parties.

          SECTION 5.12. Depository Banks. Each of the Borrowers will, and will cause each
Subsidiary to, maintain the Administrative Agent, one of the Lenders or a bank reasonably
acceptable to the Administrative Agent as its principal depository bank (it being understood that
each Borrower may have a different principal depository bank), including for the maintenance of
operating, administrative, cash management, collection activity, and other deposit accounts for the
conduct of its business.

          SECTION 5.13. Environmental Laws. Except as could not be reasonably expected,
individually or in the aggregate, to result in a Material Adverse Effect, each of the Borrowers
will, and will cause each Subsidiary to:

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     (a) comply with, all applicable Environmental Laws, and obtain and comply with and
maintain, any and all licenses, approvals, notifications, registrations or permits required
by applicable Environmental Laws; and

     (b) conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply
with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

          SECTION 5.14. Additional Collateral; Further Assurances. (a) Subject to applicable
law, (i) the US Borrower and each Subsidiary that is a US Loan Party shall cause each of its
domestic Subsidiaries formed or acquired after the date of this Agreement in accordance with the
terms of this Agreement to become a US Loan Party and (ii) the Netherlands Borrower and each
Subsidiary that is a Netherlands Loan Party shall cause each of its Subsidiaries that is organized
under the laws of The Netherlands and is formed or acquired after the date of this Agreement in
accordance with the terms of this Agreement to become a Netherlands Loan Party, in each case by
executing the Joinder Agreement set forth as Exhibit H hereto (the “Joinder
Agreement”) by the earlier of (I) the date that any such Subsidiary guarantees any obligations
under the Senior Notes and (II) the date that is ten (10) days after the formation or acquisition
of such Subsidiary. Upon execution and delivery thereof, each such Person (i) that is organized
under the laws of the United States (A) shall automatically become a US Loan Guarantor hereunder
and thereupon shall have all of the rights, benefits, duties, and obligations in each such capacity
under the Loan Documents and (B) will grant Liens to the Administrative Agent, for the benefit of
the Administrative Agent and the Lenders, in any property of such Loan Party which constitutes
Collateral, including any parcel of real property located in the United States owned by such Loan
Party with a fair market value in excess of $1,000,000 and (ii) that is organized under the laws of
The Netherlands (A) shall automatically become a Netherlands Loan Guarantor hereunder thereupon
shall have all of the rights, benefits, duties, and obligations in each such capacity under the
Loan Documents and (B) will grant Liens to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, in any property of such Loan Party which constitutes
Netherlands Collateral, including any parcel of real property owned by such Netherlands Loan Party
with a fair market value in excess of $1,000,000.

          (b) Each US Loan Party will cause (i) 100% of the issued and outstanding Equity Interests of
each of its domestic Subsidiaries and (ii) 65% of the issued and outstanding Equity Interests
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued
and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) in each Foreign Subsidiary directly owned by the US Borrower or any domestic
Subsidiary, to be subject at all times to a first priority, perfected Lien in favor of the
Administrative Agent pursuant to the terms and conditions of the US Collateral Documents as the
Administrative Agent shall reasonably request.

          (c) Each Netherlands Loan Party will cause 100% of the issued and outstanding Equity Interests
of (i) each of its Subsidiaries that is organized under the laws of the Netherlands and (ii) each
of its direct Subsidiaries that is not organized under the laws of the Netherlands to be subject at
all times to a first priority, perfected Lien in favor of the Administrative Agent pursuant to the
terms and conditions of the Netherlands Collateral Documents (or in the case of (ii) above, similar
terms and conditions) as the Administrative Agent shall reasonably request.

          (d) Without limiting the foregoing, each Loan Party will execute and deliver, or cause to be
executed and delivered, to the Administrative Agent such documents, agreements and instruments, and
will take or cause to be taken such further actions (including the filing and recording of
financing statements, fixture filings, mortgages, deeds of trust and other documents and such
other actions or deliveries of the type required by Section 4.01, as applicable), which may be
required by law or which

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the Administrative Agent may, from time to time, reasonably request to
carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure
perfection and priority of the Liens created or intended to be created by the Collateral Documents
to the extent required by the Collateral Documents, all at the expense of the applicable Loan
Party.

          (e) If any material assets (including any real property or improvements thereto or any
interest therein) are acquired by any Borrower or any Subsidiary that is a Loan Party after the
Effective Date (other than assets constituting Collateral under any Security Agreement that become
subject to the Lien in favor of the applicable Administrative Agent upon acquisition thereof), the
Borrower Representative will notify the Administrative Agent and the Lenders thereof, and, if
requested by the Administrative Agent or the Required Lenders, the US Borrower or Netherlands
Borrower, as applicable, will cause such assets to be subjected to a Lien securing the Secured
Obligations or the Netherlands Secured Obligations, respectively, in accordance with and subject to
the terms of the US Collateral Documents or the Netherlands Collateral Documents, as applicable,
and will take, and cause its Subsidiary Loan Parties to take, such actions as shall be necessary or
reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions
described in paragraph (d) of this Section, all at the expense of the applicable Loan Party.

          SECTION 5.15. Postclosing Mortgaged Properties. Each Loan Party will, and will
cause each Subsidiary to, cause to be delivered to the Administrative Agent with respect to each
Postclosing Mortgaged Property within thirty (30) days following the Effective Date (or, if
applicable, in the case of the property located at 101 Traex Plaza, Dane, Wisconsin, by February
28, 2007); provided however that the Administrative Agent may extend such time in its
discretion without obtaining the consent of the Lenders, each of the following:

          (a) a Mortgage executed by the Loan Party owning such Postclosing Mortgaged Property
substantially in the form of, with respect to a US Mortgage, Exhibit J and, with respect to
a Netherlands Mortgage, Exhibit K, which Mortgage shall, upon recordation in the applicable
filing office, create a valid and enforceable first priority Lien in favor of the Administrative
Agent for the benefit of itself and the Lenders;

          (b) with respect to any parcel of real property located in the United States, ALTA or other
mortgagee’s title policy;

          (c) with respect to any parcel of real property located in the United States, either (a) an
ALTA survey prepared and certified to the Administrative Agent by a surveyor reasonably acceptable
to the Administrative Agent or (b) a title insurance policy of the type referred to in clause (c)
above not containing an exception for any matter shown by a survey (except to the extent an
existing survey has been provided and specifically incorporated into such title insurance policy);

          (d) a certificate, signed by the chief financial officer of Holdings, dated as of the date of
delivery of the Mortgage provided for in this Section 5.15 and addressed to the
Administrative Agent and the Lenders, in form and substance reasonably acceptable to the
Administrative Agent, (i) stating that no Default has occurred and is continuing, (ii) stating that
the representations and warranties contained in Article III are true and correct as of such date,
and (iii) certifying any other factual matters as may be reasonably requested by the Administrative
Agent;

          (e) a solvency certificate with respect to Holdings from a Financial Officer of Holdings to
the effect that the Loan Parties are and will continue to be Solvent;

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          (f) an opinion of special counsel to such Loan Party dated as of the date of delivery of the
Mortgage provided for in this Section 5.15 and addressed to the Administrative Agent and
the Lenders, in form and substance reasonably acceptable to the Administrative Agent (which opinion
shall include opinions regarding such Loan Party and Mortgage substantially similar to the opinions
of special counsel delivered pursuant to Section 4.1(a));

          (g) to the extent not previously delivered to the satisfaction of the Administrative Agent,
current copies of the organizational documents (such as, if applicable, a certificate or articles
of incorporation) and operating documents (such as, if applicable, by-laws or an operating,
management or partnership agreement) of such Subsidiary, minutes of duly called and conducted
meetings (or duly effected consent actions) of the Board of Directors, partners, or appropriate
committees thereof (and, if required by such organizational documents, operating documents or
applicable law, of the shareholders, members or partners) of such Loan Party authorizing the
actions and the execution and delivery of documents described in this Section 5.15; and

          (h) such other information, documentation, and certifications as may be reasonably required by
the Administrative Agent.

          SECTION 5.16. Interest Rate Protection. No later than 60 days after the Effective
Date (or such longer period as the Administrative Agent may agree), the U.S. Borrower will enter
into Swap Agreements to the extent necessary to provide that at least 50% of the aggregate
principal (USD Equivalent) amount of the sum of (a) the Senior Notes and (b) $47,000,000 is subject
to either a fixed interest rate or interest rate protection for a period of not less than three
years (collectively, the “Required Swap Agreements”), which Swap Agreements shall have terms and
conditions reasonably satisfactory to the Administrative Agent.

          SECTION 5.17. Post-Closing Matters. The Borrowers will, or will cause the Loan
Parties to, furnish to the Administrative Agent the items set forth on Schedule 5.17 by the
relevant date specified on Schedule 5.17.

          SECTION 5.18. USA PATRIOT Act. The Borrowers shall and shall cause the other
Guarantors to promptly, following a request by the Administrative Agent or any Lender, provide all
documentation and other information that the Administrative Agent or such Lender reasonably
requests in order to comply with its ongoing obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the USA Patriot Act, (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”).

ARTICLE VI

NEGATIVE COVENANTS

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in
full and all Letters of Credit have expired or terminated or have been cash-collateralized or
backstopped and all LC Disbursements shall have been reimbursed, the Loan Parties covenant and
agree, jointly and severally, with the Lenders that:

          SECTION 6.01. Indebtedness. No Loan Party will, nor will it permit any Subsidiary
to, create, incur or suffer to exist any Indebtedness, except:

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     (a) the Secured Obligations;

     (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and
extensions, renewals and replacements of any such Indebtedness in accordance with clause (f)
hereof;

     (c) Indebtedness of any Borrower to any Subsidiary and of any Subsidiary to any
Borrower or any other Subsidiary, provided that (i) Indebtedness of any Subsidiary
that is not a Loan Party to any Borrower or any Subsidiary that is a Loan Party shall be
subject to Section 6.04 and (ii) Indebtedness of any Borrower to any Subsidiary and
Indebtedness of any Subsidiary that is a Loan Party to any Subsidiary that is not a Loan
Party shall be subordinated to the Secured Obligations on terms reasonably satisfactory to
the Administrative Agent;

     (d) Guarantees in the ordinary course of business by Holdings or any Borrower of
Indebtedness or other obligations of any Subsidiary and by any Subsidiary of Indebtedness or
other obligations of Holdings, any Borrower or any other Subsidiary, provided that
(i) any Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees by
Holdings, any Borrower or any Subsidiary that is a Loan Party of Indebtedness or other
obligations of any Subsidiary that is not a Loan Party shall be subject to Section 6.04 and
(iii) Guarantees of Indebtedness permitted under this clause (d) shall be subordinated to
the Secured Obligations of the applicable Subsidiary on the same terms as the Indebtedness
so Guaranteed is subordinated to the Secured Obligations;

     (e) Indebtedness of any Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets (whether or not constituting
purchase money Indebtedness), including Capital Lease Obligations and any Indebtedness
assumed in connection with the acquisition of any such assets or secured by a Lien on any
such assets prior to the acquisition thereof, and extensions, renewals and replacements of
any such Indebtedness in accordance with clause (f) hereof; provided that (i) such
Indebtedness is incurred prior to or within 90 days after such acquisition or the completion
of such construction or improvement and (ii) the aggregate principal amount of Indebtedness
permitted by this clause (e) shall not exceed $5,000,000 at any time outstanding;

     (f) Indebtedness which represents an extension, refinancing, or renewal of any of the
Indebtedness described in clauses (b), (e), (p) and (q) hereof; provided
that, (i) the principal amount (other than by an amount equal to accrued interest, premium
and fees and expenses paid in connection with such refinancing) or interest rate of such
Indebtedness is not increased, (ii) any Liens securing such Indebtedness are not extended to
any additional property of any Loan Party, (iii) no Loan Party that is not originally
obligated with respect to repayment of such Indebtedness is required to become obligated
with respect thereto, (iv) such extension, refinancing or renewal does not result in a
shortening of the average weighted maturity of the Indebtedness so extended, refinanced or
renewed, (v) the terms of any such extension, refinancing, or renewal are not less favorable
to the obligor taken as a whole thereunder than the original terms of such Indebtedness and
(iv) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right
of payment to the Secured Obligations, then the terms and conditions of the refinancing,
renewal, or extension Indebtedness must include subordination terms and conditions that are
at least as favorable to the Administrative Agent and the Lenders as those that were
applicable to the refinanced, renewed, or extended Indebtedness;

     (g) Indebtedness owed to any person providing workers’ compensation, health, disability
or other employee benefits or property, casualty or liability insurance, pursuant to

76

 

reimbursement or indemnification obligations to such person, in each case incurred in the
ordinary course of business;

     (h) Indebtedness of any Borrower or any Subsidiary in respect of performance bonds, bid
bonds, appeal bonds, surety bonds, completion guarantees, warranties, indemnities and
similar obligations, in each case provided in the ordinary course of business;

     (i) Indebtedness of any Person that becomes a Subsidiary after the date hereof;
provided that (i) such Indebtedness exists at the time such Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person becoming
a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this
clause (i) shall not exceed $2,500,000 at any time outstanding;

     (j) other unsecured Indebtedness in an aggregate principal amount not exceeding
$5,000,000 at any time outstanding; provided that the aggregate principal amount of
Indebtedness of the Borrowers’ Subsidiaries permitted by this clause (j) shall not exceed
$5,000,000 at any time outstanding;

     (k) Indebtedness in respect of (i) the Second Lien Senior Notes (and any related
exchange notes issued pursuant to the Second Lien Registration Rights Agreement and any
related Guarantees of either of them) in an aggregate principal amount not exceeding
$306,000,000 at any one time outstanding and (ii) the Third Lien Senior Notes (and any
related Guarantees) in an aggregate principal amount not exceeding $102,000,000 plus
increases in such principal amount through the issuance of payment-in-kind notes pursuant to
the terms thereof at any one time outstanding;

     (l) the Required Swap Agreements and any Swap Agreements permitted under Section 6.07;

     (m) Indebtedness arising from agreements providing for customary indemnification,
adjustment of purchase price or similar obligations incurred or assumed in connection with
any dispositions permitted hereunder;

     (n) Indebtedness represented by earnout provisions in acquisition agreements in
connection with any acquisitions permitted hereunder;

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

     (p) Indebtedness incurred by any Subsidiaries that are not Subsidiary Guarantors (and
any related Guarantees by Holdings or the Borrowers of such Indebtedness) in an aggregate
principal amount not to exceed $25,000,000 at any time outstanding;

     (q) Indebtedness of Libbey Glassware (China) Co., Ltd. or another Subsidiary organized
under the laws of the People’s Republic of China in an aggregate principal amount not to
exceed the U.S. dollar equivalent of $40,000,000 at any time outstanding and any Guarantees
of such Indebtedness by Holdings and/or the US Borrower; and

     (r) Indebtedness of Holdings permitted by Section 6.04(q).

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          SECTION 6.02.    Liens. No Loan Party will, nor will it permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

     (a) Liens created pursuant to any Loan Document;

     (b) Permitted Encumbrances;

     (c) any Lien on any property or asset of any Borrower or any Subsidiary existing on the
date hereof and set forth in Schedule 6.02; provided that (i) such Lien
shall not apply to any other property or asset of such Borrower or Subsidiary and (ii) such
Lien shall secure only those obligations which it secures on the date hereof and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount
thereof;

     (d) Liens on fixed or capital assets and proceeds thereof acquired, constructed or
improved by any Borrower or any Subsidiary; provided that (i) such security
interests secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such security
interests and the Indebtedness secured thereby are incurred prior to or within 90 days after
such acquisition or the completion of such construction or improvement, and such security
interests shall not apply to any other property or assets of such Borrower or Subsidiary or
any other Borrower or Subsidiary;

     (e) any Lien existing on any property or asset prior to the acquisition thereof by any
Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a
Loan Party after the date hereof prior to the time such Person becomes a Loan Party;
provided that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Loan Party, as the case may be, (ii) such Lien
shall not apply to any other property or assets of the Loan Party and (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition or the date
such Person becomes a Loan Party, as the case may be and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof;

     (f) Liens of a collecting bank arising in the ordinary course of business under Section
4-208 of the Uniform Commercial Code in effect in the relevant jurisdiction covering only
the items being collected upon;

     (g) Liens arising out of sale and leaseback transactions permitted by Section 6.06;

     (h) Liens granted by a Subsidiary that is not a Loan Party in favor of any Borrower or
another Loan Party in respect of Indebtedness owed by such Subsidiary;

     (i) Liens securing Indebtedness permitted by Section 6.01(p) and 6.01(q) hereof;

     (j) Liens on assets of Holdings, the US Borrower and its Subsidiaries securing
Indebtedness permitted by Section 6.01(k) and other obligations pursuant to the Senior Notes
Indentures and documents entered into in connection therewith; provided that the
Administrative Agent has a first priority Lien on such assets pursuant to the Collateral
Documents (subject to the Intercreditor Agreement); and

     (k) Liens securing other obligations in an aggregate principal amount outstanding at
any one time not to exceed $2,500,000.

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          SECTION 6.03.    Fundamental Changes. (a) No Loan Party will, nor will it permit any
Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and
immediately after giving effect thereto no Event of Default shall have occurred and be continuing
(i) any Subsidiary of any Borrower may merge, consolidate, liquidate or dissolve into a Borrower in
a transaction in which the Borrower is the surviving corporation, (ii) any Loan Party (other than a
Borrower) may merge, consolidate, liquidate or dissolve into any Loan Party in a transaction in
which the surviving entity is a Loan Party and (iii) any Subsidiary that is not a Loan Party may
merge, consolidate, liquidate or dissolve into a Loan Party or another Subsidiary which is not a
Loan Party or liquidate or dissolve if the Borrower which owns such Subsidiary determines in good
faith that such liquidation or dissolution is in the best interests of such Borrower and is not
materially disadvantageous to the Lenders; provided that any such merger involving a Person
that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted
unless also permitted by Section 6.04.

          (b) No Loan Party will, nor will it permit any of its Subsidiaries to, engage to any material
extent in any business other than businesses of the type conducted by the Borrowers and their
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto
and reasonable extensions thereof.

          (c) Holdings will not engage in any business or activity other than the ownership of all the
outstanding shares of capital stock of the Borrowers, Subsidiaries of the Borrowers and activities
incidental thereto, including, without limitation, employee stock options and responsibilities of a
public company. Holdings will not own or acquire any assets (other than Equity Interests of the
Borrowers and the cash proceeds of any Restricted Payments permitted by Section 6.08 or loans
permitted by Section 6.04) or incur any liabilities (other than liabilities under the Loan
Documents and liabilities reasonably incurred in connection with its maintenance of its existence
and Guarantees and other Indebtedness permitted under Section 6.01, including, without limitation,
liabilities and liens granted with respect to the Senior Notes Indentures and liabilities with
respect to debt of Libbey Glassware (China) Co. Ltd).

          SECTION 6.04.    Investments, Loans, Advances, Guarantees and Acquisitions. No Loan
Party will, nor will it permit any Subsidiary to, purchase, hold or acquire (including pursuant to
any merger with any Person that was not a Loan Party and a wholly owned Subsidiary prior to such
merger) any capital stock, evidences of indebtedness or other securities (including any option,
warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any investment or any other
interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit (whether through purchase
of assets, merger or otherwise), except:

     (a) Permitted Investments which, unless held in Non-Restricted Accounts, are subject to
control agreements in favor of the Administrative Agent for the benefit of the Lenders or
otherwise subject to a perfected security interest in favor of the Administrative Agent for
the benefit of the Lenders;

     (b) investments in existence on the date of this Agreement and described in
Schedule 6.04;

     (c) investments by Holdings in the Borrowers and by the Borrowers and the Subsidiaries
in Equity Interests in their respective Subsidiaries, provided that (A) any such
Equity Interests held by a Loan Party shall be pledged pursuant to the respective Security
Agreement (subject to the limitations applicable to common stock of a Foreign Subsidiary
referred to in Section 5.14) and (B) the aggregate amount of investments by Loan Parties in
Subsidiaries that

79

 

are not Loan Parties (together with outstanding intercompany loans
permitted under clause (B) to the proviso to Section 6.04(d), outstanding Guarantees
permitted under the proviso to Section 6.04(e)(i) and the Fair Market Differential arising
from transactions permitted by the proviso to clause (b) of Section 6.05) shall not exceed
$10,000,000 at any time outstanding (in each case determined without regard to any
write-downs or write-offs);

     (d) loans or advances made by any Borrower to any Subsidiary and made by any Subsidiary
to any other Borrower or any other Subsidiary, provided that (A) any such loans and
advances made by a Loan Party shall be evidenced by a promissory note pledged pursuant to
the US Security Agreement or, in the case of a Netherlands Loan Party, any such loans and
advances made are pledged pursuant to the relevant Netherlands Security Agreement and (B)
the amount of such loans and advances made by Loan Parties to Subsidiaries that are not Loan
Parties (together with outstanding investments permitted under clause (B) to the proviso to
Section 6.04(c), outstanding Guarantees permitted under the proviso to Section 6.04(e)(i)
and the Fair Market Differential arising from transactions permitted by the proviso of
clause (b) of Section 6.05) shall not exceed $10,000,000 at any time outstanding (in each
case determined without regard to any write-downs or write-offs);

     (e) (i) Guarantees constituting Indebtedness permitted by Section 6.01,
provided that the aggregate principal amount of Indebtedness of Subsidiaries that
are not Loan Parties that is Guaranteed by any Loan Party (together with outstanding
investments permitted under clause (B) to the proviso to Section 6.04(c), outstanding
intercompany loans permitted under clause (B) to the proviso to Section 6.04(d) and the Fair
Market Differential arising from transactions permitted by the proviso of clause (b) of
Section 6.05) shall not exceed $10,000,000 at any time outstanding (in each case determined
without regard to any write-downs or write-offs) and (ii) Guarantees permitted by Sections
6.01(p) and (q);

     (f) loans or advances made by a Loan Party to its employees on an arms-length basis in
the ordinary course of business consistent with past practices for travel and entertainment
expenses, relocation costs and similar purposes up to a maximum of $2,000,000 in the
aggregate at any one time outstanding;

     (g) subject to Sections 4.2(a) and 4.4 of the Security Agreement, notes payable, or
stock or other securities issued by Account Debtors to a Loan Party pursuant to negotiated
agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary
course of business, consistent with past practices;

     (h) investments in the form of Swap Agreements permitted by Section 6.07;

     (i) investments of any Person existing at the time such Person becomes a Subsidiary of
a Borrower or consolidates or merges with a Borrower or any of the Subsidiaries (including
in connection with a permitted acquisition) so long as such investments were not made in
contemplation of such Person becoming a Subsidiary or of such merger;

     (j) investments received in connection with the dispositions of assets permitted by
Section 6.05;

     (k) investments constituting deposits described in clauses (c) and (d) of the
definition of the term “Permitted Encumbrances;”

     (l) the Acquisition;

80

 

     (m) Investments incurred in order to complete the acquisition of Crisal-Cristalaria
Automatica, S.A.;

     (n) loans or advances to employees of Holdings and its Subsidiaries the proceeds of
which are used to purchase Capital Stock of Holdings;

     (o) other Investments in an aggregate amount not to exceed $2,500,000 during any fiscal
year of Holdings net of any return on such Investments;

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

     (q) loans to Holdings for the purpose of (i) funding any Restricted Payment permitted
by Section 6.08, (ii) paying any federal, state or local income Taxes to the extent that
such income Taxes are directly attributable to the income of the US Borrower and its
Subsidiaries, (iii) paying franchise Taxes and other fees to maintain its legal existence,
or (iv) paying corporate overhead expenses of Holdings including financing transactions that
benefit the US Borrower and its Subsidiaries and to pay salaries or other compensation of
employees who perform services for both Holdings and the US Borrower; and

     (r) Permitted Acquisitions.

          SECTION 6.05.    Asset Sales. No Loan Party will, nor will it permit any Subsidiary
to, sell, transfer, lease or otherwise dispose of any asset, including any Equity Interest owned by
it, nor will any Borrower permit any Subsidiary to issue any additional Equity Interest in such Subsidiary (other than to
another Borrower or another Subsidiary in compliance with Section 6.04), except:

     (a) sales, transfers and dispositions of (i) inventory in the ordinary course of
business and (ii) used, obsolete, worn out or surplus equipment or property in the ordinary
course of business;

     (b) sales, transfers and dispositions to any Borrower or any Subsidiary,
provided that the aggregate amount of any such sales, transfers or dispositions
involving a Subsidiary that is not a Loan Party (together with outstanding investments
permitted under clause (B) to the proviso to Section 6.04(c), outstanding intercompany loans
permitted under clause (B) to the proviso to Section 6.04(d) and outstanding Guarantees
permitted under the proviso to Section 6.04(e)(i)) shall not exceed $10,000,000;

     (c) sales, transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof;

     (d) sales, transfers and dispositions of investments permitted by (A) clauses (i) or
(B) clause (k), in each case, of Section 6.04;

     (e) sale and leaseback transactions permitted by Section 6.06;

     (f) dispositions resulting from any casualty or other insured damage to, or any taking
under power of eminent domain or by condemnation or similar proceeding of, any property or
asset of any Borrower or any Subsidiary;

81

 

     (g) sales, transfers and other dispositions of assets (other than Equity Interests in a
Subsidiary unless all Equity Interests in such Subsidiary are sold) that are not permitted
by any other paragraph of this Section, provided that the aggregate fair market
value of all assets sold, transferred or otherwise disposed of in reliance upon this
paragraph (g) shall not exceed $2,500,000 during any fiscal year of Holdings;

     (h) sales, transfers and dispositions of the business and related assets currently
conducted by Traex Company;

     (i) Restricted Payment permitted by Section 6.08 hereof;

     (j) non-exclusive licensing or sublicensing of Intellectual Property in the ordinary
course of business, provided, that no such license or sublicense may be granted that
would reasonably be expected to constitute an abandonment of any Loan Party’s or any
Subsidiary’s trade name or trade marks or other similar Intellectual Property if such
abandonment would materially interfere with the business of Holdings and its Subsidiaries;

     (k) leases or subleases of property in the ordinary course of business that does not
materially interfere with the conduct of the business of Holdings or its Subsidiaries; and

     (l) the sale, transfer or other disposition of approximately 40 acres of vacant land
owned by Syracuse China Company in Syracuse, New York.

provided that all sales, transfers, leases and other dispositions permitted by clauses (d),
(g), (h), (j), (k) and (l) shall be made for fair value and for at least 75% cash consideration.

          SECTION 6.06.    Sale and Leaseback Transactions. No Loan Party will, nor will it
permit any Subsidiary to, enter into any arrangement, directly or indirectly, whereby it shall sell
or transfer any property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property that it intends to
use for substantially the same purpose or purposes as the property sold or transferred, except for
any such sale of any fixed or capital assets by any Borrower or any Subsidiary that is made for
cash consideration in an amount not less than the fair value of such fixed or capital asset and is
consummated either within 90 days after such Borrower or such Subsidiary acquires or completes the
construction of such fixed or capital asset or in connection with a disposition permitted
hereunder.

          SECTION 6.07.    Swap Agreements. No Loan Party will, nor will it permit any
Subsidiary to, enter into any Swap Agreement, except (a) Swap Agreements entered into in the
ordinary course of business to hedge or mitigate risks to which any Borrower or any Subsidiary has
actual exposure (other than those in respect of Equity Interests of any Borrower or any of its
Subsidiaries), (b) Swap Agreements entered into in the ordinary course of business in order to
effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating
rate to another floating rate or otherwise) with respect to any interest-bearing liability or
investment of any Borrower or any Subsidiary, (c) Swap Agreements entered into in the ordinary
course of business in order to effectively cap, collar or exchange Exchange Rates with respect to
the Obligations and (d) the Required Swap Agreements.

          SECTION 6.08.    Restricted Payments; Certain Payments of Indebtedness. (a) No Loan
Party will, nor will it permit any Subsidiary to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise)
to do so, except, individually and cumulatively, (i) each of Holdings and each Borrower may declare
and pay dividends with respect to its common stock payable solely in additional shares of its
common stock, and, with

82

 

respect to its preferred stock, payable solely in additional shares of such
preferred stock or in shares of its common stock, (ii) each Subsidiary of Holdings (including the
Netherlands Borrower) may declare and pay dividends ratably with respect to their Equity Interests,
(iii) each Loan Party may make Restricted Payments, not exceeding $2,000,000 in the aggregate with
regard to all such Loan Parties during any fiscal year of Holdings, pursuant to and in accordance
with stock option plans or other benefit plans for management or employees of such Loan Party and
its Subsidiaries, (iv) the Borrowers may make Restricted Payments to Holdings for purposes of
paying any federal, state or local income Taxes to the extent that such income Taxes are directly
attributable to the income of the US Borrower and its Subsidiaries, paying franchise Taxes and
other fees to maintain its legal existence, and paying corporate overhead expenses of Holdings
including financing transactions that benefit the US Borrower and its Subsidiaries and to pay
salaries or other compensation of employees who perform services for both Holdings and the US
Borrower, (v) unless a Restriction Period is in existence, the Borrowers and Holdings may make
Restricted Payments from time to time in an aggregate amount not to exceed $5,000,000 during any
fiscal year of Holdings; and (vi) Borrower and Holdings may make Restricted Payments from time to
time in an aggregate amount not to exceed $0.10 per outstanding share of Holdings in each fiscal
year.

          (b) No Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or make,
directly or indirectly, any payment or other distribution (whether in cash, securities or other
property) of or in respect of principal of or interest on any Subordinated Indebtedness, or any
payment or other distribution (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Subordinated Indebtedness, except:

     (i) payment of regularly scheduled interest and principal payments as and when
due in respect of any Subordinated Indebtedness, other than payments in respect of
the Subordinated Indebtedness prohibited by the subordination provisions thereof;
and

     (ii) refinancings of Subordinated Indebtedness to the extent permitted by
Section 6.01.

          SECTION 6.09.    Transactions with Affiliates. No Loan Party will, nor will it permit
any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease
or otherwise acquire any property or assets from, or otherwise engage in any other transactions
with, any of its Affiliates, except (a) transactions that (i) are in the ordinary course of
business and (ii) are at prices and on terms and conditions not less favorable to such Borrower or
such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
transactions between or among any Borrower and any Subsidiary that is a Loan Party not involving
any other Affiliate, (c) any investment permitted by Section 6.04(b), (c), (d), (e), (i), (l), (m)
or (q), (d) any Indebtedness permitted under Section 6.01(b), (c) or (d), (e) any Restricted
Payment permitted by Section 6.08, (f) loans or advances to employees permitted under Section 6.04,
(g) the payment of reasonable fees to directors of any Borrower or any Subsidiary who are not
employees of such Borrower or Subsidiary, and compensation and employee benefit arrangements paid
to, and indemnities provided for the benefit of, directors, officers or employees of the Borrowers
or their Subsidiaries in the ordinary course of business, (h) any issuances of securities or other
payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of,
employment agreements, stock options and stock ownership plans approved by a Borrower’s board of
directors, (i) transactions between or among Subsidiaries that are not Loan Parties and (j) sales,
transfers and dispositions permitted by Section 6.05(b).

          SECTION 6.10.    Restrictive Agreements. No Loan Party will, nor will it permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other

83

 

arrangement that prohibits, restricts or imposes any condition upon (a) the ability of such Loan
Party or any of its Subsidiaries to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or advances to any
Borrower or any other Subsidiary or to Guarantee Indebtedness of any Borrower or any other
Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions
imposed by law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.10 (but shall apply to any
extension or renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided
such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such Indebtedness, (v)
clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts
restricting the assignment thereof and (vi) the foregoing shall not apply to any restrictions or
conditions imposed by any agreement relating to Indebtedness permitted by Section 6.01(k), or, to
the extent such restrictions relate only to Subsidiaries that are not Loan Parties, Section 6.01(p)
or (q) hereof.

          SECTION 6.11.    Amendment of Material Documents. No Loan Party will, nor will it
permit any Subsidiary to, amend, modify or waive (a) any of its rights under any agreement relating
to any Subordinated Indebtedness, or (b) its certificate of incorporation, by-laws, operating,
management or partnership agreement or other organizational documents to the extent any such
amendment, modification or waiver would be materially adverse to the Lenders

          SECTION 6.12.    Optional Payments and Modifications of Certain Debt Instruments.
Notwithstanding Sections 6.08(b) and 6.11, no Loan Party will (a) make any optional or voluntary
payment, prepayment, repurchase or redemption of or otherwise optionally or voluntarily defease or
segregate funds with respect to the Senior Notes or take any action to effect any of the foregoing;
provided, however, that (i) the US Borrower shall be permitted to redeem or prepay
the Senior Notes from the proceeds of a public offering of the US Borrower’s or Holdings’ common
stock to the extent permitted under the “equity clawback” provision set forth in (a) Section 5 of
the Second Lien Senior Notes Indenture or (b) Section 5 of the Third Lien Senior Notes Indenture
and (ii) the US Borrower shall be permitted to redeem or prepay the Senior Notes so long as, both
before and after giving effect to any such redemption or prepayment, the Aggregate Availability
exceeds $50,000,000; or (b) amend, modify, waive or otherwise change, or consent or agree to any
amendment, modification, waiver or other change to, any of the terms of the Senior Notes, the
Senior Notes Indentures, the Second Lien Registration Rights Agreement or any other material
agreement relating to any thereof (other than any such amendment, modification, waiver or other
change that (A) (i) would extend the maturity or reduce the amount of any payment of principal of
the Senior Notes or reduce the rate or extend any date for payment of interest thereon, (ii) would
add additional guarantors as contemplated therein as of the Effective Date, or (iii) would have the
sole purpose of making a covenant contained in the Senior Notes Indentures less restrictive than
the corresponding covenant contained herein and (B) in each such case, does not involve the payment
of a consent fee).

          SECTION 6.13.    Capital Expenditures. (a) Neither Holdings nor any other Loan
Party will, nor will it permit any Subsidiary to, incur or make any Capital Expenditures during any
period set forth below in an amount exceeding the amount set forth opposite such period:

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	 	 	Maximum
	Period	 	Capital Expenditures
	2006
	 	$	82,000,000	 
	 
	 	 	 	 
	2007
	 	$	50,000,000	 
	 
	 	 	 	 
	2008
	 	$	60,000,000	 
	 
	 	 	 	 
	2009
	 	$	47,000,000	 
	 
	 	 	 	 
	2010
	 	$	57,000,000	 

          (b) The amount of any Capital Expenditures permitted to be made in respect of any fiscal year
shall be increased by the lesser of (i) $15,000,000 and (ii) the unused amount of Capital
Expenditures that were permitted to be made during the immediately preceding fiscal year pursuant
to Section 6.15(a), without giving effect to any carryover amount. Capital Expenditures in any
fiscal year shall be deemed to use first, the amount for such fiscal year set forth in Section 6.13(a)
and, second, any amount carried forward to such fiscal year pursuant to this Section 6.13(b).

          SECTION 6.14.    Changes in Fiscal Periods. Neither Holdings nor any other Loan Party
will, nor will it permit any Subsidiary to, permit its fiscal year to end on a day other than the
last calendar day of each December or change its method of determining fiscal quarters. 

          SECTION 6.15.    Financial Covenants.

          (a) Fixed Charge Coverage Ratio. At any time during an applicable Restriction Period,
neither Holdings nor any other Loan Party will, nor will it permit any Subsidiary to, permit the
Fixed Charge Coverage Ratio, determined for any period of four consecutive fiscal quarters ending
on any date during any fiscal year set forth below, to be less than the ratio set forth below
opposite such fiscal year:

	 	 	 	 	 
	Fiscal Year	 	Ratio
	2006
	 	 	1.00 : 1.00	 
	thereafter
	 	 	1.10 : 1.00	 

ARTICLE VII

EVENTS OF DEFAULT

     If any of the following events (“Events of Default”) shall occur:

     (a) any Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

     (b) any Borrower shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article) payable under this
Agreement, when and as the same shall become due and payable, and such failure shall
continue unremedied for a period of three Business Days;

     (c) any representation or warranty made or deemed made by or on behalf of any Loan
Party or any Subsidiary in or in connection with this Agreement or any Loan Document or any
amendment or modification thereof or waiver thereunder, or in any report, certificate,

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financial statement or other document furnished pursuant to or in connection with this
Agreement or any Loan Document or any amendment or modification thereof or waiver
thereunder, shall prove to have been materially incorrect when made or deemed made;

     (d) any Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in (i) Section 5.02(a), 5.03 (with respect to a Loan Party’s existence)
or 5.08 or in Article VI of this Agreement or (ii) Section 4.1(d), (e), 4.6(b) or 4.15 of
the US Security Agreement;

     (e) any Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement or any other Loan Document (other than those which
constitute a default under another Section of this Article), and such failure shall continue
unremedied for a period of (i) 10 days after the earlier of any Loan Party’s knowledge of
such breach or notice thereof from the Administrative Agent (which notice will be given at
the request of any Lender) if such breach relates to terms or provisions of (A) Section
5.01, 5.02 (other than Section 5.02(a)), 5.06, 5.09, 5.12, 5.15 or 5.17 of this Agreement or
(B) Section 4.1(a) or 4.12 of the US Security Agreement or (ii) 30 days after the earlier of
any Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent
(which notice will be given at the request of any Lender) if such breach relates to terms or
provisions of any other Section of this Agreement or any other Loan Document;

     (f) any Loan Party or any Subsidiary shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable and such failure shall continue beyond the
applicable period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created;

     (g) any payment default or other breach of an agreement that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or permits (but
only after the giving of any requisite notice, the lapse of time or both) the holder or
holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause
any Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided that
this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the
voluntary sale, transfer or disposition of the property or assets securing such
Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or
any Subsidiary of any Loan Party of its debts, or of a substantial part of its assets, under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Loan Party or any Subsidiary of any Loan Party or
for a substantial part of its assets, and, in any such case, such proceeding or petition
shall continue undismissed for 60 days or an order or decree approving or ordering any of
the foregoing shall be entered;

     (i) any Loan Party or any Subsidiary of any Loan Party shall (i) voluntarily commence
any proceeding or file any petition seeking liquidation, reorganization or other relief
under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now
or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely
and appropriate manner, any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar

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official for such Loan Party or Subsidiary of any Loan
Party or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any action for the purpose of effecting
any of the foregoing;

     (j) any Loan Party or any Subsidiary of any Loan Party shall admit in writing its
inability to pay its debts as they become due;

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$5,000,000 shall be rendered against any Loan Party, any Subsidiary of any Loan Party or any
combination thereof to the extent not covered by insurance or indemnity for which the
insurance company or indemnitor has not disputed coverage and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor to attach or
levy upon any assets of any Loan Party or any Subsidiary of any Loan Party with a value in
excess of $5,000,000 to enforce any such judgment or any Loan Party or any Subsidiary of any
Loan Party shall fail within 30 days to discharge one or more non-monetary judgments or
orders which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, which judgments or orders, in any such case, are not stayed on
appeal or otherwise being appropriately contested in good faith by proper proceedings
diligently pursued;

     (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could reasonably be
expected to result in a Material Adverse Effect;

     (m) a Change in Control shall occur;

     (n) the Loan Guaranty shall fail to remain in full force or effect or any action shall
be taken by a Loan Party to discontinue or to assert the invalidity or unenforceability of
the Loan Guaranty, or any Loan Guarantor shall deny in writing that it has any further
liability under the Loan Guaranty to which it is a party, or shall give written notice to
such effect (provided, that any merger, sale, consolidation or liquidation permitted
hereunder shall not constitute an Event of Default under this paragraph (n));

     (o) any Collateral Document shall for any reason fail to create a valid and perfected
first priority security interest in any Collateral purported to be covered thereby, except
as permitted by the terms of any Collateral Document, or any Collateral Document shall fail
to remain in full force or effect or any action shall be taken by a Loan Party to
discontinue or to assert the invalidity or unenforceability of any Collateral Document; or

     (p) any material provision of any Loan Document for any reason ceases to be valid,
binding and enforceable in accordance with its terms (or any Loan Party shall challenge the
enforceability of any Loan Document or shall assert in writing, or engage in any action or
inaction based on any such assertion, that any provision of any of the Loan Documents has
ceased to be or otherwise is not valid, binding and enforceable in accordance with its
terms);

then, and in every such event (other than an event with respect to any Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower Representative, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
and (ii) declare the Loans

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then outstanding to be due and payable in whole (or in part, in which
case any principal not so declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to
any Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued
hereunder, shall automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrowers. Upon the occurrence and
the continuance of an Event of Default, the Administrative Agent may, and at the request of the
Required Lenders shall, exercise any rights and remedies provided to the Administrative Agent under
the Loan Documents or at law or equity, including all remedies provided under the UCC.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

          Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
as its agent and authorizes the Administrative Agent to take such actions on its behalf, including
execution of the other Loan Documents, and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such actions and powers as
are reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Loan Parties or any Subsidiary of a Loan Party or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall
not have any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to any Loan Party or any of its Subsidiaries that is communicated to or obtained by the
bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative
Agent shall not be liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross
negligence or wilful misconduct. The Administrative Agent shall be deemed not to have knowledge of
any Default unless and until written notice thereof is given to the Administrative Agent by the
Borrower Representative or a Lender, and the Administrative Agent shall not be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or
in connection with any Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or in connection with any Loan Document, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability,

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effectiveness or genuineness of any Loan Document or
any other agreement, instrument or document, (v) the creation, perfection or priority of Liens on
the Collateral or the existence of the Collateral, or (vi) the satisfaction of any condition set
forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time effective upon the appointment of
and the acceptance of such appointment by a successor Administrative Agent by notifying the
Lenders, the Issuing Bank and the Borrower Representative. Upon any such resignation, the Required
Lenders shall have the right, with the prior written consent of the Borrowers Representative, to
appoint a successor. If no successor shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, with the written consent of
the Borrower Representative on behalf of the Lenders and the Issuing Bank, appoint a successor
Administrative Agent which shall be a commercial bank or an Affiliate of any such commercial bank.
Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from
its duties and obligations hereunder. The fees payable by the Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrowers and such successor. After the Administrative Agent’s resignation hereunder,
the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such
retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of
any actions taken or omitted to be taken by any of them while it was acting as Administrative
Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or related agreement or any document furnished
hereunder or thereunder.

          Each Lender hereby agrees that (a) it has requested a copy of each Report prepared by or on
behalf of the Administrative Agent; (b) the Administrative Agent (i) makes no representation or

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warranty, express or implied, as to the completeness or accuracy of any Report or any of the
information contained therein or any inaccuracy or omission contained in or relating to a Report
and (ii) shall not be liable for any information contained in any Report; (c) the Reports are not
comprehensive audits or examinations, and that any Person performing any field examination will
inspect only specific information regarding the Loan Parties and will rely significantly upon the
Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel and
that the Administrative Agent undertakes no obligation to update, correct or supplement the
Reports; (d) it will keep all Reports confidential and strictly for its internal use, not share the
Report with any other Person except as otherwise permitted pursuant to this Agreement; and (e) without limiting the generality of any
other indemnification provision contained in this Agreement, it will pay and protect, and
indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report
harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other
amounts (including reasonable attorney fees) incurred by as the direct or indirect result of any
third parties who might obtain all or part of any Report through the indemnifying Lender.

          The Co-Documentation Agents and the Syndication Agent shall not have any right, power,
obligation, liability, responsibility or duty under this Agreement other than those applicable to
all Lenders as such.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01.    Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by facsimile, as follows:

     (i) if to any Loan Party, to the Borrower Representative at:

Libbey Glass Inc.

300 Madison Avenue

Toledo, OH 43604

Attention: Kenneth A. Boerger

Facsimile No: 419-325-2117

     (ii) (a) in the case of the US Borrower, if to the Administrative Agent, the
Issuing Bank or the Swingline Lender, to JPMorgan Chase Bank, N.A. at:

Chase Business Credit

8044 Montgomery Rd., Ste. 350

Mail Code OH3-4103

Cincinnati, OH 45236-2919

Attention: Jeffrey W. Swartz

Facsimile No: 513 985-5030

          (b) in the case of the Netherlands Borrower, if to the Administrative Agent,
the Issuing Bank or the Swingline Lender, to JPMorgan Chase Bank, N.A. at:

J.P. Morgan Europe Limited

90

 

125 London Wall

London

EC2Y 5 AJ

Attention: Steve Clarke

Facsimile No: 011 44 20 7777 2360

     (iii) if to any other Lender, to it at its address or facsimile number set
forth in its Administrative Questionnaire.

All such notices and other communications (i) sent by hand or overnight courier service, or mailed
by certified or registered mail, shall be deemed to have been given when received or (ii) sent by
facsimile shall be deemed to have been given when sent, provided that if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications (including e-mail and internet or intranet websites) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II or to compliance and no Event of Default certificates
delivered pursuant to Section 5.01(d) unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower Representative (on behalf of the Loan
Parties) may, in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications. All such notices and
other communications (i) sent to an e-mail address shall be deemed received upon the sender’s
receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement),
provided that if not given during the normal business hours of the recipient, such notice
or communication shall be deemed to have been given at the opening of business on the next Business
Day for the recipient, and (ii) posted to an Internet or intranet website shall be deemed received
upon the deemed receipt by the intended recipient at its e-mail address as described in the
foregoing clause (b)(i) of notification that such notice or communication is available and
identifying the website address therefor.

          (c) Any party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

          SECTION 9.02.    Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and
under any other Loan Document are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of any Loan Document or consent to any
departure by any Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time.

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          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by the Borrowers and the Required Lenders or, (ii) in the
case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by
the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the
consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, increase the Euro Sublimit without the
written consent of each Lender or increase the Revolving Netherlands Sublimit without the written
consent of the Supermajority Lenders (provided that the Administrative Agent may make Protective
Advances as set forth in Section 2.04), (ii) reduce or forgive the principal amount of any Loan or
LC Disbursement or subject to Section 2.13(d) reduce the rate of interest thereon, or reduce or
forgive any interest or fees payable hereunder, without the written consent of each Lender directly
affected thereby, (iii) postpone any scheduled date of payment of the principal amount of any Loan
or LC Disbursement, or any date for the payment of any interest, fees or other Obligations payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of expiration of any Commitment, without the written consent of each Lender directly affected
thereby, (iv) change Section 2.18(b) or (d) in a manner that would alter the manner in which
payments are shared, without the written consent of each Lender, (v) change any of the provisions
of this Section or the definition of “Required Lenders” or any other provision of any Loan Document
specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend
or modify any rights thereunder or make any determination or grant any consent thereunder, without
the written consent of each Lender, (vi) release any Loan Guarantor from its obligation under its
Loan Guaranty (except as otherwise permitted, including pursuant to a merger, consolidation,
disposition, liquidation or dissolution permitted herein or in the other Loan Documents), without
the written consent of each Lender, (vii) except as provided in clause (c) of this Section or in
any Collateral Document, release all or substantially all of the Collateral or subordinate any
Liens on any Collateral, without the written consent of each Lender or (viii) increase the advance
rates set forth in the definitions of US Borrowing Base and Netherlands Borrowing Base without the
written consent of each Lender or add new categories of eligible assets without the written consent
of the Supermajority Lenders; provided further that no such agreement shall amend, modify
or otherwise affect the rights or duties of the Administrative Agent, the Issuing Bank or the
Swingline Lender hereunder without the prior written consent of the Administrative Agent, the
Issuing Bank or the Swingline Lender, as the case may be. The Administrative Agent may also amend
the Commitment Schedule to reflect Commitment increases effected in accordance with Section
2.01(c) commitment reductions effected in accordance herewith and assignments entered into pursuant
to Section 9.04. Notwithstanding the foregoing, any amendment, modification or waiver (i) to
Section 2.11, (ii) to the definitions of Aggregate Availability or the definitions used in the
calculation thereof, (iii) that increases the commitments hereunder in accordance with Section
2.01(c) and permits holders of such increased commitment amounts to be included in the definition
of Required Lenders, any other voting provisions or any payment sharing provision, in each case,
shall only require the consent of Required Lenders, the Administrative Agent and the Borrowers.

          (c) The Lenders and any other holders of Secured Obligations hereby irrevocably authorize the
Administrative Agent, at its option and in its sole discretion, to release any Liens granted to the
Administrative Agent by the Loan Parties on any Collateral (i) upon the termination of all
Commitments, payment and satisfaction in full in cash of all Secured Obligations (other than
Unliquidated Obligations), and the cash collateralization of all Unliquidated Obligations for which
a definite claim has been submitted to the Administrative Agent in a manner satisfactory to each
affected Lender, (ii) constituting property being sold or disposed of if the Loan Party disposing
of such property certifies to the Administrative Agent that the sale or disposition is made in
compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on
any such certificate, without further inquiry), (iii) constituting property leased to a Loan Party
under a lease which has expired or been terminated or (iv) as required to effect any sale or other
disposition of such Collateral in connection with

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any exercise of remedies of the Administrative
Agent and the Lenders pursuant to Article VII. Except as provided in the preceding sentence, the
Administrative Agent will not release any Liens on Collateral without the prior written
authorization of the Required Lenders; provided that, the Administrative Agent may in its
discretion, (i) release its Liens on Collateral valued in the aggregate not in excess of
$10,000,000 during any calendar year without the prior written authorization of the Required
Lenders and (ii) release any of its Liens in connection with, or subordinate any of its Liens to,
Liens permitted by Sections 6.02(d) and (e). Any such release shall not in any manner discharge,
affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or
obligations of the Loan Parties in respect of) all interests retained by the Loan Parties,
including the proceeds of any sale, all of which shall continue to constitute part of the
Collateral.

          SECTION 9.03.    Expenses; Indemnity; Damage Waiver. (a) Subject to Section 9.20 the
Borrowers shall pay (i) all reasonable documented out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable documented fees, charges and
disbursements of one counsel per jurisdiction for the Administrative Agent, in connection with the
syndication and distribution (including, without limitation, via the internet or through a service
such as Intralinks) of the credit facilities provided for herein, the preparation and
administration of the Loan Documents or any amendments, modifications or waivers of the provisions
of the Loan Documents (whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all reasonable, documented out-of-pocket expenses incurred by the
Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements
of one counsel per jurisdiction for the Administrative Agent, the Issuing Bank and the Lenders, in
connection with the enforcement, collection or protection of its rights in connection with the Loan
Documents, including its rights under this Section, or in connection with the Loans made or Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or similar
negotiations in respect of such Loans or Letters of Credit. Expenses being reimbursed by the
Borrowers under this Section include, without limiting the generality of the foregoing, costs and
expenses incurred in connection with:

     (i) subject to Section 5.11, appraisals and insurance reviews;

     (ii) subject to Section 5.06, field examinations and the preparation of Reports
based on the fees charged by a third party retained by the Administrative Agent or
the internally allocated fees for each Person employed by the Administrative Agent
with respect to each field examination;

     (iii) Taxes, fees and other charges for (A) lien and title searches and title
insurance and (B) recording the Mortgages, filing financing statements and
continuations, and other actions to perfect, protect, and continue the
Administrative Agent’s Liens; and

     (iv) forwarding loan proceeds, collecting checks and other items of payment,
and establishing and maintaining the accounts and lock boxes, and costs and expenses
of preserving and protecting the Collateral.

All of the foregoing costs and expenses may be charged to the Borrowers as Revolving Loans or to
another deposit account, all as described in Section 2.18(c).

          (b) The Borrowers shall, jointly and severally, indemnify the Administrative Agent, the
Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all

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losses, claims, damages, penalties, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of
the Loan Documents or any agreement or instrument contemplated thereby, the performance by the
parties hereto of their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of their
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of their
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages, penalties,
liabilities or related expenses are determined by a court of competent jurisdiction by final
judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee or any
Related Party of such Indemnitee or such Related Party shall admit such gross negligence or willful
misconduct in writing in a judicial proceeding of a court of competent jurisdiction.

          (c) To the extent that the Borrowers fail to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage, penalty,
liability or related
expense, as the case may be, was incurred by or asserted against the Administrative Agent, the
Issuing Bank or the Swingline Lender in its capacity as such.

          (d) To the extent permitted by applicable law, no Loan Party shall assert, and each hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable within 10 Business Days after written
demand therefor.

          SECTION 9.04.    Successors and Assigns. (a) The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of
Credit), except that (i) the Borrowers may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrowers without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

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          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitments (it being understood that a Lender may only assign
its Revolving Commitment or any portion thereof together with such Lender’s Revolving Netherlands
Sublimit or a corresponding portion thereof, and vice versa) and the Loans at the time owing to it)
with the prior written consent (such consent not to be unreasonably withheld) of:

          (A) the Borrower Representative, provided that no consent of the Borrower
Representative shall be required for an assignment to a Lender, an Affiliate of a Lender, an
Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee;

          (B) the Administrative Agent; and

          (C) the Issuing Bank.

          (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of
any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000
unless each of the Borrower Representative and the Administrative Agent otherwise consent,
provided that no such consent of the Borrower Representative shall be required
if an Event of Default has occurred and is continuing;

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement; 

          (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; and

          (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or more Credit
Contacts to whom all syndicate-level information (which may contain material non-public
information about the Loan Parties and their Related Parties or their respective securities)
will be made available and who may receive such information in accordance with the
assignee’s compliance procedures and applicable laws, including Federal and state securities
laws.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

               (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment

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and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption,
be released from its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of
Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.04 shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

               (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrowers, the Administrative Agent, the Issuing Bank and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrowers, the Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

               (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in
paragraph (b) of this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and
record the information contained therein in the Register; provided that if either the
assigning Lender or the assignee shall have failed to make any payment required to be made by it
pursuant to Section 2.05, 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c), the Administrative Agent
shall have no obligation to accept such Assignment and Assumption and record the information
therein in the Register unless and until such payment shall have been made in full, together with
all accrued interest thereon. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrowers, the Administrative Agent, the
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that directly affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrowers agree that each Participant shall be
entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c) as
though it were a Lender.

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               (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15,
2.16 or 2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower Representative’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the
Borrower Representative is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrowers, to comply with Section 2.17(e) as though it
were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05.    Survival. All covenants, agreements, representations and warranties
made by the Loan Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, the Issuing Bank or any Lender may
have had notice or knowledge of any Default or incorrect representation or warranty at the
time any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof.

          SECTION 9.06.    Counterparts; Integration; Effectiveness. This Agreement and any
other Loan Document may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Agreement, the other Loan Documents and any separate
letter agreements with respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. This
Agreement shall become effective when it shall have been executed by the Administrative Agent and
when the Administrative Agent shall have received counterparts hereof which, when taken together,
bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns. Delivery
of an executed counterpart of a signature page of any Loan Document by facsimile shall be effective
as delivery of a manually executed counterpart of such Loan Document.

          SECTION 9.07.    Severability. Any provision of any Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

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          SECTION 9.08.    Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, but excluding deposits held in trust accounts) at
any time held and other obligations at any time owing by such Lender or Affiliate to or for the
credit or the account of any Borrower or any Loan Guarantor pledging Collateral as security for the
Secured Obligations of such Borrower against any of and all the Secured Obligations arising in
respect of such Borrower held by such Lender, irrespective of whether or not such Lender shall have
made any demand under the Loan Documents and although such obligations may be unmatured. The
applicable Lender shall notify the Borrower Representative and the Administrative Agent of such
set-off or application, provided that any failure to give or any delay in giving such
notice shall not affect the validity of any such set-off or application under this Section. The
rights of each Lender under this Section are in addition to other rights and remedies (including
other rights of setoff) which such Lender may have.

          SECTION 9.09.    Governing Law; Jurisdiction; Consent to Service of Process. (a) The Loan Documents (other than those containing a contrary express choice of law
provision) shall be governed by and construed in accordance with the laws of the State of New York,
but giving effect to federal laws applicable to national banks.

          (b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in
New York, New York in any action or proceeding arising out of or relating to any Loan Documents, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document against any Loan Party
or its properties in the courts of any jurisdiction.

          (c) Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or any
other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents, to the fullest extent it may legally
and effectively do so, to service of process in the manner provided for notices in Section 9.01.
Nothing in this Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

          SECTION 9.10.    WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED,

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EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11.    Headings. Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12.    Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory authority, (c) to the
extent required by Requirement of Laws or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) to the extent necessary in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to the Loan Parties and their obligations, (g) with the consent
of the Borrower Representative or (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to the Administrative
Agent, the Issuing Bank or any Lender on a non-confidential basis other than through a breach of
this Section from a source other than the Borrowers. For the purposes of this Section,
“Information” means all information received from the Borrowers relating to the Borrowers
or their business, other than any such information that is available to the Administrative Agent,
the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrowers.
Any Person required to maintain the confidentiality of Information as provided in this Section
shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord
to its own confidential information.

          EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12 FURNISHED TO IT PURSUANT
TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE COMPANY AND ITS
AFFILIATES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS
DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT
WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE
LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

          ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWERS OR
THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE COMPANY,
THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH
LENDER

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REPRESENTS TO THE BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING
FEDERAL AND STATE SECURITIES LAWS.

          SECTION 9.13.    Several Obligations; Nonreliance; Violation of Law. The respective
obligations of the Lenders hereunder are several and not joint and the failure of any Lender to
make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. Each Lender hereby represents that it is not relying on
or looking to any margin stock for the repayment of the Borrowings provided for herein.
Anything contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor
any Lender shall be obligated to extend credit to the Borrowers in violation of any Requirement of
Law.

          SECTION 9.14.    USA PATRIOT Act. Each Lender that is subject to the requirements of
the Act hereby notifies the Borrowers that pursuant to the requirements of the Act, it is required
to obtain, verify and record information that identifies the Borrowers, which information includes
the names and addresses of the Borrowers and other information that will allow such Lender to
identify the Borrowers in accordance with the Act.

          SECTION 9.15.    Disclosure. Each Loan Party and each Lender hereby acknowledges and
agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments
in, make other loans to or have other relationships with any of the Loan Parties and their
respective Affiliates.

          SECTION 9.16.    Appointment for Perfection. Each Lender hereby appoints the
Administrative Agent and each other Lender as its agent for the purpose of perfecting Liens, for
the benefit of the Administrative Agent and the Lenders, in assets which, in accordance with
Article 9 of the UCC or any other applicable law can be perfected only by possession. Should any
Lender (other than the Administrative Agent) obtain possession of any such Collateral, such Lender
shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s
request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with
such Collateral in accordance with the Administrative Agent’s instructions.

          SECTION 9.17.    Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

          SECTION 9.18.    Judgment Currency. (a) If for the purpose of obtaining judgment in
any court it is necessary to convert a sum due hereunder in one currency into another currency, the
parties hereto agree, to the fullest extent that they may effectively do so, that the rate of
exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the

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first currency with such other currency in the city in
which it normally conducts its foreign exchange operation for the first currency on the Business
Day preceding the day on which final judgment is given.

          (a) The obligation of each Borrower in respect of any sum due from it to any Lender, the
Administrative Agent or the Issuing Bank hereunder shall, notwithstanding any judgment in a
currency (the “Judgment Currency”) other than that in which such sum is denominated in
accordance with the applicable provisions of this Agreement (the “Agreement Currency”), be
discharged only to the extent that on the Business Day following receipt by such Lender,
Administrative Agent or Issuing Bank of any sum adjudged to be so due in the Judgment Currency such
Lender, Administrative Agent or Issuing Bank may in accordance with normal banking procedures
purchase the Agreement Currency with the Judgment Currency; if the amount of Agreement Currency so
purchased is less than the sum originally due to such Lender, Administrative Agent or Issuing Bank
in the Agreement Currency, such Borrower agrees notwithstanding any such judgment to indemnify such
Lender, Administrative Agent or Issuing Bank against such loss, and if the amount of the Agreement
Currency so purchased exceeds the sum originally due to any Lender, Administrative Agent or Issuing
Bank, such Lender, Administrative Agent or Issuing Bank agrees to remit to such Borrower such
excess.

          SECTION 9.19.    Netherlands Loans. (a) Each Lender of a Netherlands Loan makes the
following declarations and representations to the Netherlands Borrower:

     (i) It is a Professional Market Party;

     (ii) It acknowledges that as a consequence it has no benefit from the
(creditor) protection under the Netherlands Banking Act for non-Professional Market
Parties; and

     (iii) It has made its own credit approval of the Netherlands Borrower.

          (b) Each declaration and representation set out in paragraph (a) above is made by each
aforementioned Lender on the date of this Agreement and by any future Lender to a Netherlands Loan
on the date of becoming a Lender of a Netherlands Loan.

          (c) If on the date on which a borrower incorporated in the Netherlands accedes to this
Agreement, it is a requirement under Netherlands law that each Lender needs to be qualified as a
Professional Market Party, each declaration and representation set out in paragraph (a) above is
made to such borrower incorporated in the Netherlands on such date by each of the then current
Lenders to a Netherlands Loan.

          (d) Each of the parties hereto agrees to and acknowledges the provisions set forth in clause 4
(Parallel Debt) of the Netherlands Security Agreements.

          SECTION 9.20.    Several Liability of Netherlands Loan Parties. Notwithstanding
anything herein or in the other Loan Documents to the contrary, the parties hereto acknowledge and
agree that the Netherlands Loan Parties shall not be liable for any Obligations other than those
arising out of or relating to Loans made to the Netherlands Borrower.

          SECTION 9.21.    Euro Loans. If by reason of internal policies, legal requirements and
limitations or lack of ready access to certain currencies, certain Lenders may not be able to make
and maintain Commitments to or make Loans to certain of the Borrowers or make Loans in Euros to
certain of the Borrowers, Chase may
agree to assume such Commitments or make such Loans in place of such Lenders. If Chase agrees
to make such Commitments, it shall agree with each such Lender that it will

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make or maintain one or
more Commitments in the place of such Lender and shall record its agreement with respect thereto in
the Register and such Lender shall thereby be released from such Commitment or shall not be
required to make or maintain such Loans and such Commitment shall thereafter be included within
Chase’s Commitment for all purposes hereunder.

ARTICLE X

LOAN GUARANTY

          SECTION 10.01.    Guaranty.

          (a) Each US Loan Guarantor hereby agrees that it is jointly and severally liable for, and, as
primary obligor and not merely as surety, absolutely and unconditionally guarantees to the Lenders
the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all
times thereafter, of the US Secured Obligations and all reasonable, documented out-of-pocket costs
and expenses including, without limitation, all court costs and attorneys’ and paralegals’ fees
(including allocated costs of in-house counsel and paralegals) and expenses paid or incurred by the
Administrative Agent, the Issuing Bank and the Lenders in endeavoring to collect all or any part of
the US Secured Obligations from, or in prosecuting any action against, the US Borrower, any US Loan
Guarantor or any other guarantor of all or any part of the US Secured Obligations (such costs and
expenses, together with the US Secured Obligations, collectively the “US Guaranteed
Obligations”). Each US Loan Guarantor further agrees that the US Guaranteed Obligations may be
extended or renewed in whole or in part without notice to or further assent from it, and that it
remains bound upon its guarantee notwithstanding any such extension or renewal. All terms of this
Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or
Affiliate of any Lender that extended any portion of the US Guaranteed Obligations.

          (b) Each Loan Guarantor hereby agrees that it is jointly and severally liable for, and, as
primary obligor and not merely as surety, absolutely and unconditionally guarantees to the Lenders
the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all
times thereafter, of the Netherlands Secured Obligations and all reasonable, documented
out-of-pocket costs and expenses including, without limitation, all court costs and attorneys’ and
paralegals’ fees (including allocated costs of in-house counsel and paralegals) and expenses paid
or incurred by the Administrative Agent and the Lenders in endeavoring to collect all or any part
of the Netherlands Secured Obligations from, or in prosecuting any action against, any Borrower,
any Loan Guarantor or any other guarantor of all or any part of the Netherlands Secured Obligations
(such costs and expenses, together with the Netherlands Secured Obligations, collectively the
“Netherlands Guaranteed Obligations” and together with the US Guaranteed Obligations, the
“Guaranteed Obligations”). Each Loan Guarantor further agrees that the Netherlands
Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further
assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or
renewal. All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any
domestic or foreign branch or Affiliate of any Lender that extended any portion of the Netherlands
Guaranteed Obligations.

          SECTION 10.02.    Guaranty of Payment. This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Guarantor
waives any right to require the Administrative Agent, the Issuing Bank or any Lender to sue any
Borrower, any Loan Guarantor, any other guarantor, or any other person obligated for all or any
part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce
its payment against any collateral securing all or any part of the Guaranteed Obligations.

102

 

          SECTION 10.03.    No Discharge or Diminishment of Loan Guaranty. (a) Except as
otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional
and absolute and not subject to any reduction, limitation, impairment or termination for any reason
(other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:
(i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or
compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change
in the corporate existence, structure or ownership of any Borrower or any other guarantor of or
other person liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any Obligated Party, or their assets or any
resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of
any claim, setoff or other rights which any Loan Guarantor may have at any time against any
Obligated Party, the Administrative Agent, the Issuing Bank, any Lender, or any other person,
whether in connection herewith or in any unrelated transactions.

          (b) The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff,
counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or
unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

          (c) Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or
otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender
to assert any claim or demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any
agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity
of any indirect or direct security for the obligations of any Borrower for all or any part of the
Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any
of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, the
Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed
Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or
performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay
that might in any manner or to any extent vary the risk of such Loan Guarantor or that would
otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of the Guaranteed Obligations).

          SECTION 10.04.    Defenses Waived. To the fullest extent permitted by applicable law,
each Loan Guarantor hereby waives any defense based on or arising out of any defense of any
Borrower or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed
Obligations from any cause, or the cessation from any cause of the liability of any Borrower or any
Loan Guarantor, other than the payment in full in cash of the Guaranteed Obligations other than any
Unliquidated Obligations for which no definite claim has been submitted. Without limiting the
generality of the foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment,
demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as
well as any requirement that at any time any action be taken by any person against any
Obligated Party, or any other person. The Administrative Agent may, at its election,
foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an
assignment of any such Collateral in lieu of foreclosure or otherwise act or fail to act with
respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or
adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated
Party or exercise any other right or remedy available to it against any Obligated Party, without
affecting or impairing in any way the liability of such Loan Guarantor under this Loan Guaranty
except to the extent the Guaranteed Obligations have been fully and indefeasibly paid in cash. To
the fullest extent permitted by applicable law, each Loan Guarantor waives any defense arising out
of any such election even though that election

103

 

may operate, pursuant to applicable law, to impair
or extinguish any right of reimbursement or subrogation or other right or remedy of any Loan
Guarantor against any Obligated Party or any security.

          SECTION 10.05.    Rights of Subrogation. No Loan Guarantor will assert any right,
claim or cause of action, including, without limitation, a claim of subrogation, contribution or
indemnification that it has against any Obligated Party, or any collateral, until the Loan Parties
and the Loan Guarantors have fully performed all their obligations to the Administrative Agent, the
Issuing Bank and the Lenders.

          SECTION 10.06.    Reinstatement; Stay of Acceleration. If at any time any payment of
any portion of the Guaranteed Obligations is rescinded or must otherwise be restored or returned
upon the insolvency, bankruptcy, or reorganization of any Borrower or otherwise, each Loan
Guarantor’s obligations under this Loan Guaranty (if any) with respect to that payment shall be
reinstated at such time as though the payment had not been made and whether or not the
Administrative Agent, the Issuing Bank and the Lenders are in possession of this Loan Guaranty. If
acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the
insolvency, bankruptcy or reorganization of any Borrower, all such amounts otherwise subject to
acceleration under the terms of any agreement relating to the Guaranteed Obligations shall
nonetheless be payable by the Loan Guarantors to the extent such Loan Guarantor has guaranteed such
Guaranteed Obligation forthwith on demand by the Lender.

          SECTION 10.07.    Information. Each Loan Guarantor assumes all responsibility for
being and keeping itself informed of the Borrowers’ financial condition and assets, and of all
other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks that each Loan Guarantor assumes and incurs under this Loan
Guaranty, and agrees that neither the Administrative Agent, the Issuing Bank nor any Lender shall
have any duty to advise any Loan Guarantor of information known to it regarding those circumstances
or risks.

          SECTION 10.08.    Termination. The Lenders may continue to make loans or extend
credit to the Borrowers based on this Loan Guaranty until five days after it receives written
notice of termination from any Loan Guarantor. Notwithstanding receipt of any such notice, each
Loan Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations which such
Loan Guarantor has guaranteed, created, assumed or committed to prior to the fifth day after
receipt of the notice, and all subsequent renewals, extensions, modifications and amendments with
respect to, or substitutions for, all or any part of that Guaranteed Obligations which such Loan
Guarantor has guaranteed.

          SECTION 10.09.    Taxes. All payments of the Guaranteed Obligations will be made by
each Loan Guarantor free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if any Loan Guarantor shall be required to deduct any Indemnified
Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary
so that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be)
receives an amount equal to the sum it would have received had such payment been made by the
applicable Borrower in accordance with the terms of this Agreement, (ii) such Loan Guarantor shall
make such deductions and (iii) such Loan Guarantor shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

          SECTION 10.10.    Maximum Liability. The provisions of this Loan Guaranty are
severable, and in any action or proceeding involving any state corporate law, or any state, federal
or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors
generally, if the obligations of any Loan Guarantor under this Loan Guaranty would otherwise be
held or determined to be avoidable, invalid or unenforceable on account of the amount of such Loan
Guarantor’s liability

104

 

under this Loan Guaranty, then, notwithstanding any other provision of this
Loan Guaranty to the contrary, the amount of such liability shall, without any further action by
the Loan Guarantors or the Lenders, be automatically limited and reduced to the highest amount that
is valid and enforceable as determined in such action or proceeding (such highest amount determined
hereunder being the relevant Loan Guarantor’s “Maximum Liability”. This Section with
respect to the Maximum Liability of each Loan Guarantor is intended solely to preserve the rights
of the Lenders to the maximum extent not subject to avoidance under applicable law, and no Loan
Guarantor nor any other person or entity shall have any right or claim under this Section with
respect to such Maximum Liability, except to the extent necessary so that the obligations of any
Loan Guarantor hereunder shall not be rendered voidable under applicable law. Each Loan Guarantor
agrees that the Guaranteed Obligations guaranteed by such Loan Guarantor may at any time and from
time to time exceed the Maximum Liability of each Loan Guarantor without impairing this Loan
Guaranty or affecting the rights and remedies of the Lenders hereunder, provided that,
nothing in this sentence shall be construed to increase any Loan Guarantor’s obligations hereunder
beyond its Maximum Liability.

          SECTION 10.11.    Contribution. (a) In the event any US Loan Guarantor (a “US
Paying Guarantor”) shall make any payment or payments under this Loan Guaranty in respect of
the US Guaranteed Obligations or shall suffer any loss as a result of any realization upon any
collateral granted by it to secure its obligations under this Loan Guaranty in respect of the US
Guaranteed Obligations, each other US Loan Guarantor (each a “US Non-Paying Guarantor”)
shall contribute to such US Paying Guarantor an amount equal to such US Non-Paying Guarantor’s “US
Applicable Percentage” of such payment or payments made, or losses suffered, by such US Paying
Guarantor. For purposes of this Article X, each US Non-Paying Guarantor’s “US Applicable
Percentage” with respect to any such payment or loss by a US Paying Guarantor shall be
determined as of the date on which such payment or loss was made by reference to the ratio of (i)
such US Non-Paying Guarantor’s Maximum Liability as of such date in respect of the US Guaranteed
Obligations (without giving effect to any right to receive, or obligation to make, any contribution
hereunder) or, if such US Non-Paying Guarantor’s Maximum Liability in respect of the US Guaranteed
Obligations has not been determined, the aggregate amount of all monies received by such US
Non-Paying Guarantor from the US Borrower after the date hereof (whether by loan, capital infusion
or by other means) to (ii) the aggregate Maximum Liability of all US Loan Guarantors hereunder in
respect of the US Guaranteed Obligations (including such US Paying Guarantor) as of such date
(without
giving effect to any right to receive, or obligation to make, any contribution hereunder), or
to the extent that a Maximum Liability has not been determined for any US Loan Guarantor in respect
of the US Guaranteed Obligations, the aggregate amount of all monies received by such US Loan
Guarantors from the US Borrower after the date hereof (whether by loan, capital infusion or by
other means). Nothing in this provision shall affect any US Loan Guarantor’s several liability for
the entire amount of the US Guaranteed Obligations (up to such Loan Guarantor’s Maximum Liability
in respect of the US Guaranteed Obligations).

          (b) In the event any Loan Guarantor (a “Paying Guarantor”) shall make any payment or
payments under this Loan Guaranty in respect of the Netherlands Guaranteed Obligations or shall
suffer any loss as a result of any realization upon any collateral granted by it to secure its
obligations under this Loan Guaranty in respect of the Netherlands Guaranteed Obligations, each
other Loan Guarantor (each a “Non-Paying Guarantor”) shall contribute to such Paying
Guarantor an amount equal to such Non-Paying Guarantor’s “Applicable Percentage” of such payment or
payments made, or losses suffered, by such Paying Guarantor. For purposes of this Article X, each
Non-Paying Guarantor’s “Applicable Percentage” with respect to any such payment or loss by
a Paying Guarantor shall be determined as of the date on which such payment or loss was made by
reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as of such date in
respect of the Netherlands Guaranteed Obligations (without giving effect to any right to receive,
or obligation to make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum
Liability in respect of the Netherlands

105

 

Guaranteed Obligations has not been determined, the
aggregate amount of all monies received by such Non-Paying Guarantor from the Borrowers after the
date hereof (whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum
Liability of all Loan Guarantors hereunder in respect of the Netherlands Guaranteed Obligations
(including such Paying Guarantor) as of such date (without giving effect to any right to receive,
or obligation to make, any contribution hereunder), or to the extent that a Maximum Liability in
respect of the Netherlands Guaranteed Obligations has not been determined for any Loan Guarantor,
the aggregate amount of all monies received by such Loan Guarantors from the Borrowers after the
date hereof (whether by loan, capital infusion or by other means). Nothing in this provision shall
affect any Loan Guarantor’s several liability for the entire amount of the Netherlands Guaranteed
Obligations (up to such Loan Guarantor’s Maximum Liability in respect of the Netherlands Guaranteed
Obligations).

          (c) Each of the Loan Guarantors covenants and agrees that its right to receive any
contribution under this Loan Guaranty from a US Paying Guarantor or Non-Paying Guarantor shall be
subordinate and junior in right of payment to the payment in full in cash of the Guaranteed
Obligations. This provision is for the benefit of both the Administrative Agent, the Issuing Bank,
the Lenders and the Loan Guarantors and may be enforced by any one, or more, or all of them in
accordance with the terms hereof.

          SECTION 10.12.    Liability Cumulative. The liability of each Loan Party as a Loan
Guarantor under this Article X is in addition to and shall be cumulative with all liabilities of
each Loan Party to the Administrative Agent, the Issuing Bank and the Lenders under this Agreement
and the other Loan Documents to which such Loan Party is a party without any limitation as to
amount, unless the instrument or agreement evidencing or creating such other liability specifically
provides to the contrary.

          SECTION 10.13.    Effect of Netherlands Civil Code. Notwithstanding the foregoing
provisions of this Section 10, no Loan Party residing or incorporated in The Netherlands shall, or
shall be deemed to, guarantee any Obligations or otherwise bind
itself (whether by indemnification or otherwise) to the extent that if included, such act
would constitute unlawful financial assistance within the meaning of Article 98c or 207c of Book 2
of the Netherlands Civil Code.

ARTICLE XI

THE BORROWER REPRESENTATIVE

          SECTION 11.01.    Appointment; Nature of Relationship. Libbey Glass Inc. is hereby
appointed by each of the Borrowers as its contractual representative (herein referred to as the
“Borrower Representative”) hereunder and under each other Loan Document, and each of the
Borrowers irrevocably authorizes the Borrower Representative to act as the contractual
representative of such Borrower with the rights and duties expressly set forth herein and in the
other Loan Documents. The Borrower Representative agrees to act as such contractual representative
upon the express conditions contained in this Article XI. The Administrative Agent and the
Lenders, and their respective officers, directors, agents or employees, shall not be liable to the
Borrower Representative or any Borrower for any action taken or omitted to be taken by the Borrower
Representative or the Borrowers pursuant to this Section 11.01.

          SECTION 11.02.    Powers. The Borrower Representative shall have and may exercise
such powers under the Loan Documents as are specifically delegated to the Borrower Representative
by the terms of each thereof, together with such powers as are reasonably incidental thereto. The
Borrower Representative shall have no implied duties to the Borrowers, or any obligation to the
Lenders to take any action thereunder except any action specifically provided by the Loan Documents
to be taken by the Borrower Representative.

106

 

          SECTION 11.03.    Employment of Agents. The Borrower Representative may execute any
of its duties as the Borrower Representative hereunder and under any other Loan Document by or
through authorized officers.

          SECTION 11.04.    Notices. Each Borrower shall immediately notify the Borrower
Representative of the occurrence of any Default or Unmatured Default hereunder referring to this
Agreement describing such Default or Unmatured Default and stating that such notice is a “notice of
default.” In the event that the Borrower Representative receives such a notice, the Borrower
Representative shall give prompt notice thereof to the Administrative Agent and the Lenders. Any
notice provided to the Borrower Representative hereunder shall constitute notice to each Borrower
on the date received by the Borrower Representative.

          SECTION 11.05.    Successor Borrower Representative. Upon the prior written consent
of the Administrative Agent, the Borrower Representative may resign at any time, such resignation
to be effective upon the appointment of a successor Borrower Representative. The Administrative
Agent shall give prompt written notice of such resignation to the Lenders.

          SECTION 11.06.    Execution of Loan Documents; Borrowing Base Certificate. The Borrowers hereby empower and authorize the Borrower Representative, on behalf of the
Borrowers, to execute and deliver to the Administrative Agent and the Lenders the Loan Documents
and all related agreements, certificates, documents, or instruments as shall be necessary or
appropriate to effect the purposes of the Loan Documents, including without limitation, the
Aggregate Borrowing Base Certificate and the Borrowing Base Certificate of each Borrower and the
Compliance Certificates. Each Borrower agrees that any action taken by the Borrower Representative
or the Borrowers in accordance with the terms of this Agreement or the other Loan Documents, and
the exercise by the Borrower Representative of its powers set forth therein or herein, together
with such other powers that are reasonably incidental thereto, shall be binding upon all of the
Borrowers.

          SECTION 11.07.    Reporting. Each Borrower hereby agrees that such Borrower shall
furnish promptly after each fiscal month to the Borrower Representative a copy of its Borrowing
Base Certificate and any other certificate or report required hereunder or requested by the
Borrower Representative on which the Borrower Representative shall rely to prepare the Aggregate
Borrowing Base Certificate and the Borrowing Base Certificate of each Borrower and Compliance
Certificates required pursuant to the provisions of this Agreement.

107

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	BORROWERS:

LIBBEY GLASS INC.

 	 
	 	By:  	/s/ Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach 	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	LIBBEY EUROPE B.V.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Proxyholder	 
	 
	 	OTHER LOAN PARTIES:

LIBBEY INC.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	LGA3 CORP.

 	 
	 	By:  	/s/ Susan A. Kovach
 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	THE DRUMMOND GLASS COMPANY

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

Signature Page to the Credit Agreement

 

 

	 	 	 	 	 
	 	LGA4 CORP.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	SYRACUSE CHINA COMPANY

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	LGFS INC.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	WORLD TABLEWARE INC.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	TRAEX COMPANY

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	Susan A. Kovach	 
	 	 	  Title:  	Vice President, General Counsel, and
Secretary	 
	 
	 	LGC CORP.

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

Signature Page to the Credit Agreement

 

 

	 	 	 	 	 
	 	LGAC LLC

 	 
	 	By:  	/s/ Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Vice President, General Counsel, and Secretary	 
	 
	 	LIBBEY.COM LLC

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Vice President, General Counsel, and
Secretary	 
	 
	 	CRISA INDUSTRIAL, L.L.C.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Vice President, General Counsel, and
Secretary	 
	 
	 	LIBBEY INTERNATIONAL C.V.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Vice President, General Counsel, and
Secretary	 
	 
	 	B.V. LEERDAM CRYSTAL

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Proxyholder	 
	 
	 	B.V. KONINKLIJKE NEDERLANDSE 

GLASFABRIEK LEERDAM

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Proxyholder	 
	 

Signature Page to the Credit Agreement

 

 

	 	 	 	 	 
	 	LIBBEY EUROPE FINANCE CO. B.V.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Proxyholder	 
	 
	 	LIBBEY MEXICO HOLDINGS B.V.

 	 
	 	By:  	/s/
Susan A. Kovach 	 
	 	 	  Name:  	 Susan A. Kovach	 
	 	 	  Title:  	 Proxyholder	 
	 

Signature Page to the Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., individually, as

Administrative Agent, Issuing Bank and Swingline

Lender with respect to the US Loans

 	 
	 	By:  	/s/
John Psellas 	 
	 	 	  Name:  	 John Psellas	 
	 	 	  Title:  	 Vice President	 
	 
	 	J.P. MORGAN EUROPE LIMITED., individually, as

Administrative Agent, Issuing Bank and Swingline

Lender with respect to the Netherlands Loans

 	 
	 	By:  	/s/
Tim Jacob 	 
	 	 	  Name:  	 Tim Jacob	 
	 	 	  Title:  	 Senior Vice President	 
	 

 Signature Page to the Credit Agreement

 

 

	 	 	 	 	 
	 	
 	 
	 	
(Name of Lender)

 	 
	 	By:  	 	 
	 	 	  Name:  	 	 
	 	 	  Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	  Name:  	 	 
	 	 	  Title:  	 	 
	 

 Signature Page to the Credit Agreementexv4w2

 

EXHIBIT
4.2

EXECUTION VERSION

 

LIBBEY GLASS INC.

AND

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

AS TRUSTEE

Floating Rate Senior Secured Notes due 2011

 

INDENTURE

Dated as of June 16, 2006

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 1.1. 	 	Definitions
	 	 	1	 
	SECTION 1.2. 	 	Other Definitions
	 	 	33	 
	SECTION 1.3. 	 	Incorporation by Reference of Trust Indenture Act
	 	 	34	 
	SECTION 1.4. 	 	Rules of Construction
	 	 	35	 
	 	 	 
	 	 	 	 
	ARTICLE II	 	 	 	 
	THE SECURITIES	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 2.1. 	 	Form, Dating and Terms
	 	 	35	 
	SECTION 2.2. 	 	Execution and Authentication
	 	 	43	 
	SECTION 2.3. 	 	Registrar and Paying Agent
	 	 	44	 
	SECTION 2.4. 	 	Paying Agent to Hold Money in Trust
	 	 	45	 
	SECTION 2.5. 	 	Holder Lists
	 	 	45	 
	SECTION 2.6. 	 	Transfer and Exchange
	 	 	46	 
	SECTION 2.7. 	 	Form of Certificate to be Delivered in Connection with Transfers to IAIs
	 	 	49	 
	SECTION 2.8. 	 	Form of Certificate to be Delivered in Connection with Transfers Pursuant
to Regulation S
	 	 	51	 
	SECTION 2.9. 	 	Mutilated, Destroyed, Lost or Stolen Securities
	 	 	52	 
	SECTION
2.10. 	 	Outstanding Securities
	 	 	53	 
	SECTION
2.11. 	 	Temporary Securities
	 	 	53	 
	SECTION
2.12. 	 	Cancellation
	 	 	54	 
	SECTION
2.13. 	 	Payment of Interest; Defaulted Interest
	 	 	54	 
	SECTION
2.14. 	 	Computation of Interest
	 	 	55	 
	SECTION 2.15. 	 	CUSIP, Common Code and ISIN Numbers
	 	 	55	 
	 	 	 
	 	 	 	 
	ARTICLE III	 	 	 	 
	COVENANTS	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 3.1. 	 	Payment of Securities
	 	 	55	 
	SECTION 3.2. 	 	Limitation on Indebtedness
	 	 	56	 
	SECTION 3.3. 	 	Limitation on Restricted Payments
	 	 	62	 
	SECTION 3.4. 	 	Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	68	 
	SECTION 3.5. 	 	Limitation on Sales of Assets and Subsidiary Stock
	 	 	70	 
	SECTION 3.6. 	 	Limitation on Liens
	 	 	73	 
	SECTION 3.7. 	 	Limitation on Sale/Leaseback Transaction
	 	 	74	 
	SECTION 3.8. 	 	Limitation on Affiliate Transactions
	 	 	74	 
	SECTION 3.9. 	 	Limitation on Sale of Capital Stock of Restricted Subsidiaries
	 	 	76	 
	SECTION
3.10. 	 	Limitation on Lines of Business
	 	 	76	 

 i

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 3.11. 	 	Change of Control
	 	 	76	 
	SECTION 3.12. 	 	SEC Reports
	 	 	78	 
	SECTION 3.13. 	 	Future Subsidiary Guarantors
	 	 	79	 
	SECTION 3.14. 	 	Maintenance of Office or Agency
	 	 	79	 
	SECTION 3.15. 	 	Corporate Existence
	 	 	80	 
	SECTION 3.16. 	 	Payment of Taxes and Other Claims
	 	 	80	 
	SECTION 3.17. 	 	Payments for Consent
	 	 	81	 
	SECTION 3.18. 	 	Compliance Certificate
	 	 	81	 
	SECTION 3.19. 	 	Further Instruments and Acts
	 	 	81	 
	SECTION 3.20. 	 	Statement by Officers as to Default
	 	 	81	 
	 	 	 
	 	 	 	 
	ARTICLE IV	 	 	 	 
	SUCCESSOR COMPANY	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 4.1. 	 	Merger and Consolidation
	 	 	81	 
	 	 	 
	 	 	 	 
	ARTICLE V	 	 	 	 
	REDEMPTION OF SECURITIES	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 5.1. 	 	Redemption
	 	 	85	 
	SECTION 5.2. 	 	Applicability of Article
	 	 	85	 
	SECTION 5.3. 	 	Election to Redeem; Notice to Trustee
	 	 	85	 
	SECTION 5.4. 	 	Selection by Trustee of Securities to Be Redeemed
	 	 	85	 
	SECTION 5.5. 	 	Notice of Redemption
	 	 	86	 
	SECTION 5.6. 	 	Deposit of Redemption Price
	 	 	87	 
	SECTION 5.7. 	 	Securities Payable on Redemption Date
	 	 	87	 
	SECTION 5.8. 	 	Securities Redeemed in Part
	 	 	87	 
	 	 	 
	 	 	 	 
	ARTICLE VI	 	 	 	 
	DEFAULTS AND REMEDIES	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 6.1. 	 	Events of Default
	 	 	87	 
	SECTION 6.2. 	 	Acceleration
	 	 	90	 
	SECTION 6.3. 	 	Other Remedies
	 	 	91	 
	SECTION 6.4. 	 	Waiver of Past Defaults
	 	 	91	 
	SECTION 6.5. 	 	Control by Majority
	 	 	91	 
	SECTION 6.6. 	 	Limitation on Suits
	 	 	92	 
	SECTION 6.7. 	 	Rights of Holders to Receive Payment
	 	 	92	 
	SECTION 6.8. 	 	Collection Suit by Trustee
	 	 	92	 
	SECTION 6.9. 	 	Trustee May File Proofs of Claim
	 	 	93	 
	SECTION 6.10. 	 	Priorities
	 	 	93	 
	SECTION
6.11. 	 	Undertaking for Costs
	 	 	93	 
	 	 	 
	 	 	 	 
	ARTICLE VII	 	 	 	 
	TRUSTEE	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 7.1. 	 	Duties of Trustee
	 	 	93	 
	SECTION 7.2. 	 	Rights of Trustee
	 	 	95	 

 ii

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 7.3. 	 	Individual Rights of Trustee
	 	 	96	 
	SECTION 7.4. 	 	Trustee’s Disclaimer
	 	 	96	 
	SECTION 7.5. 	 	Notice of Defaults
	 	 	96	 
	SECTION 7.6. 	 	Reports by Trustee to Holders
	 	 	97	 
	SECTION 7.7. 	 	Compensation and Indemnity
	 	 	97	 
	SECTION 7.8. 	 	Replacement of Trustee
	 	 	98	 
	SECTION 7.9. 	 	Successor Trustee by Merger
	 	 	99	 
	SECTION 7.10. 	 	Eligibility; Disqualification
	 	 	99	 
	SECTION 7.11. 	 	Preferential Collection of Claims Against the Company
	 	 	99	 
	SECTION 7.12. 	 	Trustee’s Application for Instruction from the Company
	 	 	99	 
	SECTION 7.13. 	 	Paying Agents
	 	 	100	 
	 	 	 
	 	 	 	 
	ARTICLE VIII	 	 	 	 
	DISCHARGE OF INDENTURE; DEFEASANCE	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 8.1. 	 	Discharge of Liability on Securities; Defeasance
	 	 	100	 
	SECTION 8.2. 	 	Conditions to Defeasance
	 	 	102	 
	SECTION 8.3. 	 	Application of Trust Money
	 	 	103	 
	SECTION 8.4. 	 	Repayment to the Company
	 	 	103	 
	SECTION 8.5. 	 	Indemnity for U.S. Government Obligations
	 	 	103	 
	SECTION 8.6. 	 	Reinstatement
	 	 	104	 
	 	 	 
	 	 	 	 
	ARTICLE IX	 	 	 	 
	AMENDMENTS	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 9.1. 	 	Without Consent of Holders
	 	 	104	 
	SECTION 9.2. 	 	With Consent of Holders
	 	 	105	 
	SECTION 9.3. 	 	Compliance with Trust Indenture Act
	 	 	107	 
	SECTION 9.4. 	 	Revocation and Effect of Consents and Waivers
	 	 	107	 
	SECTION 9.5. 	 	Notation on or Exchange of Securities
	 	 	107	 
	SECTION 9.6. 	 	Trustee To Sign Amendments
	 	 	107	 
	 	 	 
	 	 	 	 
	ARTICLE X	 	 	 	 
	NOTE GUARANTEES	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 10.1. 	 	Note Guarantees
	 	 	108	 
	SECTION 10.2. 	 	Limitation on Liability; Termination, Release and Discharge
	 	 	109	 
	SECTION 10.3. 	 	Right of Contribution
	 	 	110	 
	SECTION 10.4. 	 	No Subrogation
	 	 	110	 
	 	 	 
	 	 	 	 
	ARTICLE XI	 	 	 	 
	COLLATERAL	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 11.1. 	 	The Collateral
	 	 	111	 
	SECTION 11.2. 	 	Maintenance of Collateral
	 	 	112	 
	SECTION 11.3. 	 	Further Assurances
	 	 	112	 
	SECTION 11.4. 	 	After Acquired Property
	 	 	112	 
	SECTION 11.5. 	 	Agreements Requiring Application of Proceeds of Collateral
	 	 	113	 

 iii

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 11.6. 	 	Real Estate Mortgages and Filings and Leasehold Interests
	 	 	113	 
	SECTION 11.7. 	 	Release of Liens on the Collateral
	 	 	114	 
	SECTION 11.8. 	 	Authorization of Actions to be Taken by the Trustee or the Collateral Agent
Under the Collateral Documents
	 	 	115	 
	SECTION 11.9. 	 	Acknowledgment by Holders
	 	 	117	 
	 	 	 
	 	 	 	 
	ARTICLE XII	 	 	 	 
	MISCELLANEOUS	 	 	 	 
	 	 	 
	 	 	 	 
	SECTION 12.1. 	 	Trust Indenture Act Controls
	 	 	117	 
	SECTION 12.2. 	 	Notices
	 	 	117	 
	SECTION 12.3. 	 	Communication by Holders with other Holders
	 	 	118	 
	SECTION 12.4. 	 	Certificate and Opinion as to Conditions Precedent
	 	 	118	 
	SECTION 12.5. 	 	Statements Required in Certificate or Opinion
	 	 	119	 
	SECTION 12.6. 	 	When Securities Disregarded
	 	 	119	 
	SECTION 12.7. 	 	Rules by Trustee, Paying Agent and Registrar
	 	 	119	 
	SECTION 12.8. 	 	Legal Holidays
	 	 	119	 
	SECTION 12.9. 	 	GOVERNING LAW
	 	 	119	 
	SECTION 12.10. 	 	No Recourse Against Others
	 	 	120	 
	SECTION 12.11. 	 	Successors
	 	 	120	 
	SECTION 12.12. 	 	Multiple Originals
	 	 	120	 
	SECTION 12.13. 	 	Qualification of Indenture
	 	 	120	 
	SECTION 12.14. 	 	Table of Contents; Headings
	 	 	120	 
	SECTION 12.15. 	 	Designated Senior Indebtedness
	 	 	120	 
	SECTION 12.16. 	 	Force Majeure
	 	 	120	 
	SECTION 12.17. 	 	Waiver of Jury Trial
	 	 	121	 
	SECTION 12.18. 	 	Severability
	 	 	121	 
	 
	SCHEDULE
3.8	 	Existing Affiliate Transactions	 	 	 	 
	SCHEDULE 11.5	 	Premises and Leased Premises	 	 	 	 
	 
	EXHIBIT
A	 	Form of the Series A Note	 	 	 	 
	EXHIBIT
B	 	Form of the Series B Note	 	 	 	 
	EXHIBIT
C	 	Form of Indenture Supplement to Add Subsidiary Guarantors	 	 	 	 

 iv

 

 

CROSS-REFERENCE TABLE

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

     N.A. means Not Applicable.

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

 v

 

 

          INDENTURE dated as of June 16, 2006, among LIBBEY GLASS INC., a Delaware corporation (the
“Company” or “Libbey Glass”), LIBBEY, INC. (“Parent”) and certain
subsidiaries of the Company (the “Subsidiary Guarantors” and together with Libbey Inc., the
“Note Guarantors”) from time to time parties hereto and THE BANK OF NEW YORK TRUST
COMPANY, N.A., a national banking association, as Trustee (the “Trustee”).

          For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, each party hereto covenants and agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of all Holders of (i) the Company’s Floating Rate Senior Secured
Notes due 2011 issued on the date hereof (the “Initial Securities”), (ii) if and when
issued, an unlimited principal amount of additional Floating Rate Senior Secured Notes, Series A,
due 2011 in a non-registered offering or Floating Rate Senior Secured Notes, Series B, due 2011 in
a registered offering of the Company, that may be offered from time to time subsequent to the Issue
Date (the “Additional Securities”), (iii) if and when issued, the Company’s Floating Rate
Senior Secured Notes, Series B, due 2011, that may be issued from time to time in exchange for
Initial Securities or any Additional Securities in an offer registered under the Securities Act as
provided in a Registration Rights Agreement (as hereinafter defined) (the “Exchange
Securities,” together with the Initial Securities and Additional Securities, the
“Securities”).

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1. Definitions.

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

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

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

 

 

     “Additional Assets” means:

	 	(1)	 	any property, plant or equipment or other asset (excluding working capital for
the avoidance of doubt) to be used by the Company or a Restricted Subsidiary in a
Related Business;
	 
	 	(2)	 	the Capital Stock of a Person that becomes a Restricted Subsidiary as a result
of the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; or
	 
	 	(3)	 	Capital Stock constituting a minority interest in any Person that at such time
is a Restricted Subsidiary;

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

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

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

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

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

	 	(1)	 	a disposition of assets by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Restricted Subsidiary; provided that in the
case of a transfer of Collateral, the transferee shall cause such amendments,
supplements or other instruments to be executed, filed and recorded in such
jurisdictions as may be required by applicable law to preserve and protect the Lien on
the Collateral pledged by or transferred to the transferee, together with such
financing statements or comparable documents as may be required to perfect any security
interests in such Collateral which may be perfected by the filing of a

2

 

	 	 	 	financing statement or a similar document under the Uniform Commercial Code or other
similar statute or regulation of the relevant states or jurisdictions;
	 
	 	(2)	 	the sale of Cash Equivalents in the ordinary course of business;
	 
	 	(3)	 	a disposition of inventory or products or a sale of services in the ordinary
course of business;
	 
	 	(4)	 	a disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of the Company and its Restricted Subsidiaries
and that is disposed of in each case in the ordinary course of business;
	 
	 	(5)	 	transactions permitted under Section 4.1;
	 
	 	(6)	 	an issuance of Capital Stock by a Restricted Subsidiary to the Company or by a
Restricted Subsidiary to a Restricted Subsidiary (other than a Receivables Entity);
	 
	 	(7)	 	for purposes of Section 3.5 only, the making of a Permitted Investment
(other than a Permitted Investment to the extent such transaction results in the
receipt of cash or Cash Equivalents by the Company or its Restricted Subsidiaries) or a
disposition subject to Section 3.3;
	 
	 	(8)	 	sales of accounts receivable and related assets or an interest therein to a
Receivables Entity;
	 
	 	(9)	 	dispositions of assets or issuance or sale of Capital Stock of any Restricted
Subsidiary in any transaction or series of related transactions with an aggregate fair
market value of less than $2.0 million;
	 
	 	(10)	 	the creation of a Permitted Lien and dispositions in connection with Permitted
Liens;
	 
	 	(11)	 	dispositions of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring or similar arrangements;
	 
	 	(12)	 	the issuance by a Restricted Subsidiary of Preferred Stock that is permitted by
Section 3.2;
	 
	 	(13)	 	the licensing or sublicensing of intellectual property or other general
intangibles and licenses, leases or subleases of other property in the ordinary course
of business which do not materially interfere with the business of the Company and its
Restricted Subsidiaries;
	 
	 	(14)	 	any sale of Capital Stock, Indebtedness or other securities of, an Unrestricted
Subsidiary (with the exception of Investments in Unrestricted Subsidiaries

3

 

	 	 	 	acquired pursuant to clauses (11) or (16) of the definition of “Permitted
Investments” or clause (14) of the second paragraph of Section 3.3);
	 
	 	(15)	 	the sale of any property built or acquired by the Company or any Restricted
Subsidiary after the Issue Date in a Sale/Leaseback Transaction within three months of
the construction or acquisition of such property; and
	 
	 	(16)	 	foreclosure on assets.

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

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

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

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

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

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

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

4

 

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests
in (however designated) equity of such Person, including any Preferred Stock and limited liability or partnership
interests (whether general or limited),
but excluding any debt securities convertible into such equity.

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

     “Cash Equivalents” means:

	 	(1)	 	U.S. dollars, or in the case of the Company or any Foreign Subsidiary, such
local currencies held by it from time to time in the ordinary course of business;
	 
	 	(2)	 	securities issued or directly and fully guaranteed or insured by the U.S.
Government or any agency or instrumentality of the United States (provided that the
full faith and credit of the U.S. Government is pledged in support thereof), having
maturities of not more than one year from the date of acquisition;
	 
	 	(3)	 	marketable general obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality
thereof maturing within one year from the date of acquisition of the United States
(provided that the full faith and credit of the United States is pledged in support
thereof) and, at the time of acquisition, having a credit rating of “A” or better from
either Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc.;
	 
	 	(4)	 	certificates of deposit, time deposits, eurodollar time deposits, overnight
bank deposits or bankers’ acceptances having maturities of not more than one year from
the date of acquisition thereof issued by any commercial bank having combined capital
and surplus in excess of $500 million;
	 
	 	(5)	 	repurchase obligations with a term of not more than thirty days for underlying
securities of the types described in clauses (2), (3) and (4), entered into with any
bank meeting the qualifications specified in clause (4) above;
	 
	 	(6)	 	commercial paper rated at the time of acquisition thereof at least “A-2” or the
equivalent thereof by Standard & Poor’s Ratings Services or “P-2” or the equivalent
thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies cease
publishing ratings of investments, and in any case maturing within one year after the
date of acquisition thereof; and

5

 

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

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

	 	(1)	 	the consummation of any transaction (including, without limitation, any merger
or consolidation), the result of which is that any “person” or “group” of related
persons (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that such person or group shall be deemed to have “beneficial ownership” of
all shares that any such person or group has the right to acquire, whether such right
is exercisable immediately or only after the passage of time), directly or indirectly,
of more than 35% of the total voting power of the Voting Stock of the Company or the
Parent (or its successor by merger, consolidation or purchase of all or substantially
all of its assets) (for the purposes of this clause, such person or group shall be
deemed to beneficially own any Voting Stock of the Company or the Parent held by a
parent entity, if such person or group “beneficially owns” (as defined above), directly
or indirectly, more than 35% of the voting power of the Voting Stock of such parent
entity); or
	 
	 	(2)	 	the first day on which a majority of the members of the Board of Directors of
the Company or the Parent are not Continuing Directors; or
	 
	 	(3)	 	the sale, lease, transfer, conveyance or other disposition (other than by way
of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Parent or the Company and its Restricted
Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d)
and 14(d) of the Exchange Act); or
	 
	 	(4)	 	the adoption by the stockholders of the Company or the Parent of a plan or
proposal for the liquidation or dissolution of the Company or the Parent.

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

     “Collateral” means all property and tangible and intangible assets, whether now owned or
hereafter acquired, in which Liens are, from time to time, granted to secure the Securities and the
Note Guarantees pursuant to the Collateral Documents.

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

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

6

 

Trustee and the holders of any Pari Passu Secured Indebtedness or notice of such pledge,
assignment or grant is given.

     “Commodity Agreement” means any commodity futures contract, commodity option or other similar
agreement or arrangement entered into by the Company or any Restricted Subsidiary designed to
protect the Company or any of its Restricted Subsidiaries against fluctuations in the price of
commodities actually used in the ordinary course of business of the Company and its Restricted
Subsidiaries.

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

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

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

	 	(1)	 	if the Company or any Restricted Subsidiary:

	 	(a)	 	has Incurred any Indebtedness since the beginning of such
period that remains outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated
Interest Expense for such period will be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period (except that in making such computation, the
amount of Indebtedness under any revolving credit facility outstanding on the
date of such calculation will be deemed to be (i) the average daily balance of
such Indebtedness during such four fiscal quarters or such shorter period for
which such facility was outstanding or (ii) if such facility was created after
the end of such four fiscal quarters, the average daily balance of such
Indebtedness during the period from the date of creation of such facility to
the date of such calculation) and the discharge of any other Indebtedness
repaid, repurchased, defeased or otherwise discharged with the proceeds of such
new Indebtedness as if such discharge had occurred on the first day of such
period; or
	 
	 	(b)	 	has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of the period that is no longer outstanding on
such date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio involves a discharge of Indebtedness
(in each case other than Indebtedness Incurred

7

 

	 	 	 	under any revolving credit facility unless such Indebtedness has been
permanently repaid and the related commitment terminated), Consolidated
EBITDA and Consolidated Interest Expense for such period will be calculated
after giving effect on a pro forma basis to such discharge of such
Indebtedness, including with the proceeds of such new Indebtedness, as if
such discharge had occurred on the first day of such period;

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

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

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

8

 

	 	 	 	pursuant to clause (1), (2) or (3) above if made by the Company or a Restricted
Subsidiary during such period, Consolidated EBITDA and Consolidated Interest Expense
for such period will be calculated after giving pro forma effect thereto as if such
transaction occurred on the first day of such period; and

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

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

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

	 	(1)	 	Consolidated Interest Expense; plus
	 
	 	(2)	 	Consolidated Income Taxes; plus
	 
	 	(3)	 	consolidated depreciation expense; plus
	 
	 	(4)	 	impairment charges or asset write-offs recorded in connection with the
application of Financial Accounting Standard No. 142 “Goodwill and Other Intangibles”,
Financial Accounting Standard No. 144 “Accounting for the Impairment or Disposal of
Long Lived Assets” and amortization of intangibles pursuant to Financial Accounting
Standard No. 141 “Business Combinations”; plus
	 
	 	(5)	 	any expenses or charges related to any Equity Offering, Permitted Investment,
acquisition, recapitalization or Indebtedness permitted to be incurred under this
Indenture (in each case whether or not consummated), deducted in such period in
computing Consolidated Net Income; plus or minus
	 
	 	(6)	 	net after-tax gains or losses (less all fees and expenses or charges relating
thereto) attributable to the early extinguishment of Indebtedness; plus or minus

9

 

	 	(7)	 	unrealized gains or losses relating to hedging transactions and mark-to-market
Indebtedness denominated in foreign currencies resulting from the application of
Financial Accounting Standard No. 52 “Foreign Currency Translation”; plus
	 
	 	(8)	 	non-cash compensation charges, including any such noncash charges arising from
stock options, restricted stock grants or other equity incentive programs; plus
	 
	 	(9)	 	the Added Historical Amount; plus
	 
	 	(10)	 	other non-cash charges reducing Consolidated Net Income (excluding any such
non-cash charge to the extent it represents an accrual of or reserve for cash charges
in any future period or amortization of a prepaid cash expense that was paid in a prior
period not included in the calculation); less
	 
	 	(11)	 	noncash items increasing Consolidated Net Income of such Person for such period
(excluding any items which represent the reversal of any accrual of, or reserve for,
anticipated cash charges made in any prior period and excluding the accrual of revenue
in the ordinary course of business).

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

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

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

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

10

 

	 	 	 	lease in accordance with GAAP and the interest component of any deferred payment
obligations;

	 	(2)	 	amortization of debt discount, debt issuance cost or deferred financing costs
(provided that any amortization of bond premium will be credited to reduce Consolidated
Interest Expense unless, pursuant to GAAP, such amortization of bond premium has
otherwise reduced Consolidated Interest Expense);
	 
	 	(3)	 	non-cash interest expense;
	 
	 	(4)	 	commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing;
	 
	 	(5)	 	the interest expense on Indebtedness of another Person that is Guaranteed by
such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries;
	 
	 	(6)	 	costs associated with Hedging Obligations (including amortization of fees)
provided, however, that if Hedging Obligations result in net benefits rather than
costs, such benefits shall be credited to reduce Consolidated Interest Expense unless,
pursuant to GAAP, such net benefits are otherwise reflected in Consolidated Net Income;
	 
	 	(7)	 	the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period;
	 
	 	(8)	 	the product of (a) all dividends paid or payable, in cash, Cash Equivalents or
Indebtedness or accrued during such period on any series of Disqualified Stock of such
Person or on Preferred Stock of its Restricted Subsidiaries that are not Subsidiary
Guarantors payable to a party other than the Company or a Restricted Subsidiary, times
(b) a fraction, the numerator of which is one and the denominator of which is one minus
the then current combined federal, state, provincial and local statutory tax rate of
such Person, expressed as a decimal, in each case, on a consolidated basis and in
accordance with GAAP;
	 
	 	(9)	 	Receivables Fees; and
	 
	 	(10)	 	the cash contributions to any employee stock ownership plan or similar trust to
the extent such contributions are used by such plan or trust to pay interest or fees to
any Person (other than the Company and its Restricted Subsidiaries) in connection with
Indebtedness Incurred by such plan or trust.

     For the purpose of calculating the Consolidated Coverage Ratio, the calculation of
Consolidated Interest Expense shall include all interest expense (including any amounts described
in clauses (1) through (10) above) relating to any Indebtedness of the Company or any Restricted
Subsidiary described in the final paragraph of the definition of “Indebtedness.”

11

 

     For purposes of the foregoing, total interest expense will be determined (i) after giving
effect to any net payments made or received by the Company and its Subsidiaries with respect to
Interest Rate Agreements and (ii) exclusive of amounts classified as other comprehensive income in
the balance sheet of the Company. Notwithstanding anything to the contrary contained herein,
commissions, discounts, yield and other fees and charges Incurred in connection with any
transaction pursuant to which the Company or its Restricted Subsidiaries may sell, convey or
otherwise transfer or grant a security interest in any accounts receivable or related assets shall
be included in Consolidated Interest Expense.

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

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

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

	 	(2)	 	any net income (but not loss) of any Restricted Subsidiary if such Subsidiary
is subject to restrictions, directly or indirectly, on the payment of dividends or the
making of distributions by such Restricted Subsidiary, directly or indirectly, to the
Company, except that:

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

12

 

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

	 	(3)	 	any gain (loss) realized upon the sale or other disposition of any property,
plant or equipment of the Company or its consolidated Restricted Subsidiaries
(including pursuant to any Sale/Leaseback Transaction) that is not sold or otherwise
disposed of in the ordinary course of business and any gain (loss) realized upon the
sale or other disposition of any Capital Stock of any Person;
	 
	 	(4)	 	effects of adjustments in any line item in any Person’s consolidated financial
statements pursuant to GAAP resulting from the application of purchase accounting in
relation to the Acquisition or any other consummated acquisition;
	 
	 	(5)	 	after-tax effect of nonrecurring restructuring, closure, plant consolidation or
similar charges relating to property, plant and equipment acquired in the Acquisition
or in future acquisitions that are contemplated at the time of and incurred within 12
months of the closing of such transaction;
	 
	 	(6)	 	any extraordinary gain or loss; and
	 
	 	(7)	 	the cumulative effect of a change in accounting principles.

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

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

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

     “Credit Facility” means, with respect to the Company or any Subsidiary Guarantor or any
Restricted Subsidiary that is a Foreign Subsidiary, one or more debt facilities (including, without
limitation, the Senior Secured Credit Agreement) or commercial paper facilities with banks or other
institutional lenders providing for revolving credit loans, term loans, receivables financing
(including through the sale of receivables to such lenders or to special purpose entities formed to
borrow from such lenders against such receivables) or letters of credit, in each case, as amended,
restated, modified, renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional investors) in whole

13

 

or in part from time to time (and whether or not with the original administrative agent and
lenders or another administrative agent or agents or other lenders and whether provided under the
original Senior Secured Credit Agreement or any other credit or other agreement or indenture).

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

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

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

     “Definitive Securities” means certificated Securities.

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

	 	(1)	 	matures or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;
	 
	 	(2)	 	is convertible or exchangeable for Indebtedness or Disqualified Stock
(excluding Capital Stock that is convertible or exchangeable solely at the option of
the Company or a Restricted Subsidiary); or
	 
	 	(3)	 	is redeemable at the option of the holder of the Capital Stock in whole or in
part,

in each case on or prior to the date that is 91 days after the earlier of the date (a) of the
Stated Maturity of the Securities or (b) on which there are no Securities outstanding, provided
that only the portion of Capital Stock that so matures or is mandatorily redeemable, is so
convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such
date will be deemed to be Disqualified Stock; provided, further that any Capital Stock that would
constitute Disqualified Stock solely because the holders thereof have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a change of control or asset sale
(each defined in a substantially similar manner to the corresponding definitions in this Indenture)
shall not constitute Disqualified Stock if the terms of such Capital Stock (and all such securities
into which it is convertible or for which it is ratable or exchangeable) provide that the Company
may not repurchase or redeem any such Capital Stock (and all such securities into which it is
convertible or for which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with Section 3.5 and Section 3.11 of this Indenture and
such repurchase or redemption complies with Section 3.3.

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

14

 

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

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

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

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

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

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

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, including those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as approved by a significant segment of the accounting profession.
All ratios and computations based on GAAP contained in this Indenture will be computed in
conformity with GAAP, except that in the event the Company is acquired in a transaction in which
purchase accounting is applied to the Company’s financial statements, the effects of the
application of purchase accounting in such instance shall be disregarded in the calculation of such
ratios and other computations.

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

	 	(1)	 	to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of partnership
arrangements, or by agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement conditions or otherwise);
or
	 
	 	(2)	 	entered into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided, however, that the term “Guarantee”

15

 

	 	 	 	will not include endorsements for collection or deposit in the ordinary course of
business. The term “Guarantee” used as a verb has a corresponding meaning.

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

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

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

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

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

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

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

	 	(1)	 	the principal of and premium (if any) in respect of indebtedness of such Person
for borrowed money;
	 
	 	(2)	 	the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;
	 
	 	(3)	 	the principal component of all obligations of such Person in respect of letters
of credit, bankers’ acceptances or other similar instruments (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation
relates to a trade payable or similar obligation to a trade creditor in each case
incurred in the ordinary course of business);
	 
	 	(4)	 	the principal component of all obligations of such Person to pay the deferred
and unpaid purchase price of property (except trade payables), which purchase price is
due more than six months after the date of placing such property in service or taking
delivery and title thereto;

16

 

	 	(5)	 	Capitalized Lease Obligations and all Attributable Indebtedness of such Person;
	 
	 	(6)	 	the principal component or liquidation preference of all obligations of such
Person with respect to the redemption, repayment or other repurchase of any
Disqualified Stock of the Company or a Restricted Subsidiary or Preferred Stock of a
Subsidiary that is not a Subsidiary Guarantor (but excluding, in each case, any accrued
dividends);
	 
	 	(7)	 	the principal component of all Indebtedness of other Persons secured by a Lien
on any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided, however, that the amount of such Indebtedness will be the lesser of
(a) the fair market value of such asset at such date of determination and (b) the
amount of such Indebtedness of such other Persons;
	 
	 	(8)	 	the principal component of Indebtedness of other Persons to the extent
Guaranteed by such Person;
	 
	 	(9)	 	to the extent not otherwise included in this definition, net obligations of
such Person under Hedging Obligations (the amount of any such obligations to be equal
at any time to the termination value of such agreement or arrangement giving rise to
such obligation that would be payable by such Person at such time); and
	 
	 	(10)	 	to the extent not otherwise included in this definition, the principal amount
of any Indebtedness outstanding in connection with a securitization transaction is the
amount of obligations outstanding under the legal documents entered into as part of
such securitization that would be characterized as principal on any date of
determination if such securitization transaction were structured as a secured lending
transaction.

     The amount of Indebtedness of any Person at any date will be the outstanding balance at such
date of all unconditional obligations as described above and the maximum liability, upon the
occurrence of the contingency giving rise to the obligation, of any contingent obligations at such
date; provided that contingent obligations arising in the ordinary course of business and not with
respect of borrowed money shall be deemed not to constitute Indebtedness.

     Notwithstanding the foregoing, money borrowed and set aside at the time of the Incurrence of
any Indebtedness in order to pre-fund the payment of interest on such Indebtedness shall not be
deemed to be “Indebtedness” provided that such money is held to secure the payment of such
interest.

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

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

17

 

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

	 	(a)	 	the lesser of (i) the net assets of the General Partner and
(ii) the amount of such obligations to the extent that there is recourse, by
contract or operation of law, to the property or assets of such Person or a
Restricted Subsidiary of such Person; or
	 
	 	(b)	 	if less than the amount determined pursuant to clause (a)
immediately above, the actual amount of such Indebtedness that is recourse to
such Person or a Restricted Subsidiary of such Person, if the Indebtedness is
evidenced by a writing and is for a determinable amount.

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

     “Independent Financial Advisor” means an accounting, appraisal or investment banking firm or
consultant to Persons engaged in a Permitted Business of nationally recognized standing that is, in
the good faith judgment of the Company, qualified to perform the task for which it has been
engaged.

     “Initial Purchasers” means, together, J.P. Morgan Securities Inc., Bear, Stearns & Co. Inc.
and BNY Capital Markets, Inc.

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

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

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

     “Investment” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect advance, loan (other than
advances or extensions of credit to customers in the ordinary course of business) or other
extensions of credit (including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit) or capital

18

 

contribution to (by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or acquisition of
Capital Stock, Indebtedness or other similar instruments issued by, such Person and all other items
that are or would be classified as investments on a balance sheet prepared in accordance with GAAP;
provided that none of the following will be deemed to be an Investment:

	 	(1)	 	Hedging Obligations entered into in the ordinary course of business and in
compliance with this Indenture;
	 
	 	(2)	 	endorsements of negotiable instruments and documents in the ordinary course of
business; and
	 
	 	(3)	 	an acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of Common Stock
of the Company or the Parent.

     For purposes of Section 3.3,

	 	(1)	 	“Investment” will include the portion (proportionate to the Company’s equity
interest in a Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of
the fair market value of the net assets of such Restricted Subsidiary at the time that
such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however,
that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company
will be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to (a) the Company’s “Investment” in such
Subsidiary at the time of such redesignation less (b) the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of the net
assets (as conclusively determined by the Board of Directors of the Company in good
faith) of such Subsidiary at the time that such Subsidiary is so re-designated a
Restricted Subsidiary;
	 
	 	(2)	 	any property transferred to or from an Unrestricted Subsidiary will be valued
at its fair market value at the time of such transfer, in each case as determined in
good faith by the Board of Directors of the Company; and
	 
	 	(3)	 	if the Company or any Restricted Subsidiary sells or otherwise disposes of any
Voting Stock of any Restricted Subsidiary such that, after giving effect to any such
sale or disposition, such entity is no longer a Subsidiary of the Company, the Company
shall be deemed to have made an Investment on the date of any such sale or disposition
equal to the fair market value (as conclusively determined by the Board of Directors of
the Company in good faith) of the Capital Stock of such Subsidiary not sold or disposed
of.

     “Issue Date” means June 16, 2006.

     “Joint Venture” means any Person, other than an individual or a Subsidiary of the Company, (i)
in which the Company or a Restricted Subsidiary holds or acquires a security

19

 

interest (whether by way of Capital Stock or otherwise) and (ii) which is engaged in a Related
Business.

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

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

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

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

	 	(1)	 	all legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all Federal, state, provincial,
foreign and local taxes required to be paid or accrued as a liability under GAAP (after
taking into account any available tax credits or deductions and any tax sharing
agreements), as a consequence of such Asset Disposition;
	 
	 	(2)	 	all payments made on any Indebtedness that is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon or any other
security agreement of any kind with respect to such assets, or that must by its terms,
or in order to obtain a necessary consent to such Asset Disposition, or by applicable
law be repaid out of the proceeds from such Asset Disposition;
	 
	 	(3)	 	all distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and
	 
	 	(4)	 	the deduction of appropriate amounts to be provided by the seller as a reserve,
in accordance with GAAP, against any liabilities associated with the property or other
assets disposed of in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition.

     “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the cash
proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other
fees and charges actually Incurred in connection with such issuance or sale and net of taxes paid
or payable as a result of such issuance or sale (after taking into account any available tax credit
or deductions and any tax sharing arrangements); provided that the cash proceeds of an

20

 

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

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

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

	 	(1)	 	as to which neither the Company nor any Restricted Subsidiary (a) provides any
Guarantee or credit support of any kind (including any undertaking, guarantee,
indemnity, agreement or instrument that would constitute Indebtedness) or (b) is
directly or indirectly liable (as a guarantor or otherwise);
	 
	 	(2)	 	no default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would permit
(upon notice, lapse of time or both) any holder of any other Indebtedness of the
Company or any Restricted Subsidiary to declare a default under such other Indebtedness
or cause the payment thereof to be accelerated or payable prior to its Stated Maturity;
and
	 
	 	(3)	 	the explicit terms of which provide there is no recourse against any of the
assets of the Company or its Restricted Subsidiaries, except that Standard
Securitization Undertakings shall not be considered recourse.

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

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

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

     “Offering Memorandum” means the Offering Memorandum dated as of June 9, 2006 relating to the
offering of the Securities.

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

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

21

 

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

     “Parent” means Libbey Inc., a Delaware corporation.

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

     “Pari Passu Indebtedness” means Indebtedness that ranks equally in right of payment to the
Securities (without giving effect to collateral arrangements). Indebtedness in respect of the
Private Placement Notes shall not be considered Pari Passu Indebtedness.

     “Pari Passu Secured Indebtedness” means any Indebtedness of the Company or any Note Guarantor
that ranks pari passu in right of payment with the Securities or the relevant Note Guarantee and is
secured by a Lien on the Collateral that has the same priority as the Lien securing the Securities
and that is designated in writing as such by the Company to the Trustee and the holders of which
enter into an appropriate agency agreement with the Collateral Agent. Indebtedness in respect of
the Private Placement Notes shall not be considered Pari Passu Secured Indebtedness.

     “Permitted Asset Swap” means any transfer of property or assets by the Company or any of its
Restricted Subsidiaries in which at least 90% of the consideration received by the transferor
consists of properties or assets (other than cash and Investments) that will be used in a Related
Business; provided that the aggregate fair market value of the property or assets being transferred
by the Company or such Restricted Subsidiary is not greater than the aggregate fair market value of
the property or assets received by the Company or such Restricted Subsidiary in such exchange
(provided, however, that in the event such aggregate fair market value of the property or assets
being transferred or received by the Company is (x) less than $20.0 million, such determination
shall be made in good faith by the Board of Directors of the Company and (y) greater than or equal
to $20.0 million, such determination shall be made by an Independent Financial Advisor). Neither
the Company nor any of its Restricted Subsidiaries may effect a Permitted Asset Swap during the PIK
Period.

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

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

22

 

	 	(4)	 	receivables owing to the Company or any Restricted Subsidiary created or
acquired in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms; provided, however, that such trade terms may include such
concessionary trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
	 
	 	(5)	 	payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business;
	 
	 	(6)	 	loans or advances to employees of the Company and its Restricted Subsidiaries,
(i) the proceeds of which are used to purchase Capital Stock of the Company or the
Parent, or (ii) made in the ordinary course of business consistent with past practices
of the Company or such Restricted Subsidiary in an aggregate amount at any one time
outstanding not to exceed $3.5 million (loans or advances that are forgiven shall
continue to be deemed outstanding);
	 
	 	(7)	 	Capital Stock, obligations or securities received in settlement of debts
created in the ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments or pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of a debtor;
	 
	 	(8)	 	Investments made as a result of the receipt of non-cash consideration from an
Asset Disposition that was made pursuant to and in compliance with Section 3.5;
	 
	 	(9)	 	Investments in existence on the Issue Date and any modification, replacement,
renewal, or extension thereof; provided, however, that the amount of such Investment
may be increased (x) as required by the terms of such Investment as in existence on the
Issue Date or (y) as otherwise permitted under this Indenture;
	 
	 	(10)	 	Currency Agreements, Interest Rate Agreements, Commodity Agreements and related
Hedging Obligations, which transactions or obligations are Incurred in compliance with
Section 3.2;
	 
	 	(11)	 	following the expiration of the PIK Period, Investments by the Company or any
of its Restricted Subsidiaries, together with all other Investments pursuant to this
clause (11), in an aggregate amount at the time of such Investment not to exceed the
greater of (a) $7.5 million or (b) 1% of Total Assets outstanding at any one time (with
the fair market value of such Investment being measured at the time made and without
giving effect to subsequent changes in value);
	 
	 	(12)	 	Guarantees issued in accordance with Section 3.2;
	 
	 	(13)	 	Investments by the Company or a Restricted Subsidiary in a Receivables Entity
or any Investment by a Receivables Entity in any other Person, in each case, in
connection with a Receivables securitization transaction, provided, however, that any
Investment in any such Person is in the form of a purchase money note, or

23

 

	 	 	 	any equity interest or interests in Receivables and related assets generated by the
Company or a Restricted Subsidiary and transferred to any Person in connection with
a Receivables securitization transaction or any such Person owning such Receivables;

	 	(14)	 	Investments consisting of licensing of intellectual property pursuant to joint
marketing arrangements with other Persons;
	 
	 	(15)	 	Investments of a Restricted Subsidiary of the Company acquired after the Issue
Date or of an entity merged into or consolidated with the Company or a Restricted
Subsidiary of the Company in a transaction that is not prohibited by Section
4.1 after the Issue Date, to the extent that such Investments were not made in
contemplation of such acquisition, merger, or consolidation and were in existence on
the date of such acquisition, merger, or consolidation; and
	 
	 	(16)	 	following the expiration of the PIK Period, Investments in Joint Ventures of
the Company or any of its Restricted Subsidiaries not to exceed $15.0 million at any
time outstanding (with the fair market value of such Investment being measured at the
time made and without giving effect to subsequent changes in value).

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

	 	(1)	 	Liens securing Indebtedness and other obligations under the Senior Secured
Credit Agreement and related Hedging Obligations and related banking services or cash
management obligations and Liens on assets of Restricted Subsidiaries securing
Guarantees of Indebtedness and other obligations of the Company and/or Libbey Europe
B.V. under the Senior Secured Credit Agreement permitted to be Incurred under this
Indenture, provided that any such Liens of the Company or the Note Guarantors secure
the Securities and the Note Guarantees on at least a second-priority basis;
	 
	 	(2)	 	pledges or deposits by such Person under workers’ compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of Indebtedness)
or leases to which such Person is a party, or deposits to secure public or statutory
obligations of such Person or deposits of cash or U.S. government bonds to secure
surety or appeal bonds to which such Person is a party, or deposits as security for
contested taxes or import or customs duties or for the payment of rent, in each case
Incurred in the ordinary course of business;
	 
	 	(3)	 	Liens imposed by law, including carriers’, warehousemen’s, mechanics’,
materialmen’s and repairmen’s Liens, Incurred in the ordinary course of business;
	 
	 	(4)	 	Liens for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or that are being contested in good faith by appropriate
proceedings provided appropriate reserves required pursuant to GAAP have been made in
respect thereof;

24

 

	 	(5)	 	Liens in favor of issuers of surety or performance bonds or letters of credit
or bankers’ acceptances issued pursuant to the request of and for the account of such
Person in the ordinary course of its business;
	 
	 	(6)	 	survey exceptions encumbrances, ground leases, easements or reservations of, or
rights of others for, licenses, rights of way, sewers, electric lines, telegraph and
telephone lines and other similar purposes, or zoning, building codes or other
restrictions (including, without limitation, minor defects or irregularities in title
and similar encumbrances) as to the use of real properties or liens incidental to the
conduct of the business of such Person or to the ownership of its properties that do
not in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person provided
that the Person complies with the applicable provisions of the Collateral Documents
relating to such Liens;
	 
	 	(7)	 	Liens securing Hedging Obligations so long as the related Indebtedness is, and
is permitted to be under this Indenture, secured by a Lien on the same property
securing such Hedging Obligation;
	 
	 	(8)	 	leases, licenses, subleases and sublicenses of assets (including, without
limitation, real property and intellectual property rights) that do not materially
interfere with the ordinary conduct of the business of the Company or any of its
Restricted Subsidiaries;
	 
	 	(9)	 	judgment Liens not giving rise to an Event of Default so long as such Lien is
adequately bonded and any appropriate legal proceedings that may have been duly
initiated for the review of such judgment have not been finally terminated or the
period within which such proceedings may be initiated has not expired;
	 
	 	(10)	 	Liens for the purpose of securing the payment of all or a part of the purchase
price of, or Capitalized Lease Obligations, purchase money obligations or other
payments Incurred to finance the acquisition, lease, improvement or construction of,
assets or property acquired or constructed in the ordinary course of business provided
that:

	 	(a)	 	the Incurrence of the aggregate principal amount of
Indebtedness secured by such Liens is otherwise permitted to be Incurred under
this Indenture and does not exceed the cost of the assets or property so
acquired or constructed; and
	 
	 	(b)	 	such Liens are created within 180 days of construction or
acquisition of such assets or property and do not encumber any other assets or
property of the Company or any Restricted Subsidiary other than such assets or
property and assets affixed or appurtenant thereto;

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

25

 

	 	(12)	 	Liens arising from Uniform Commercial Code financing statement filings
regarding operating leases entered into by the Company and its Restricted Subsidiaries
in the ordinary course of business;
	 
	 	(13)	 	Liens existing on the Issue Date (other than Liens permitted under clause (1));
	 
	 	(14)	 	Liens on property or shares of stock of a Person at the time such Person
becomes a Restricted Subsidiary; provided, however, that such Liens are not created,
Incurred or assumed in connection with, or in contemplation of, such other Person
becoming a Restricted Subsidiary; provided further, however, that any such Lien may not
extend to any other property owned by the Company or any Restricted Subsidiary;
	 
	 	(15)	 	Liens on property at the time the Company or a Restricted Subsidiary acquired
the property, including any acquisition by means of a merger or consolidation with or
into the Company or any Restricted Subsidiary; provided, however, that such Liens are
not created, Incurred or assumed in connection with, or in contemplation of, such
acquisition; provided further, however, that such Liens may not extend to any other
property owned by the Company or any Restricted Subsidiary;
	 
	 	(16)	 	Liens in favor of the Company or any Restricted Subsidiary;
	 
	 	(17)	 	Liens securing the Securities and Subsidiary Guarantees;
	 
	 	(18)	 	Liens securing Refinancing Indebtedness Incurred to refinance, refund, replace,
amend, extend or modify, as a whole or in part, Indebtedness that was previously so
secured pursuant to clauses (10), (13), (14), (15), (17) and (18), provided that any
such Lien is limited to all or part of the same property or assets (plus improvements,
accessions, proceeds or dividends or distributions in respect thereof) that secured
(or, under the written arrangements under which the original Lien arose, could secure)
the Indebtedness being refinanced or is in respect of property that is the security for
a Permitted Lien hereunder; provided further that Liens securing Refinancing
Indebtedness in respect of the Private Placement Notes shall have the same priority and
ranking in relation to the Securities and Note Guarantees as the Private Placement
Notes and related Guarantees;
	 
	 	(19)	 	any interest or title of a lessor under any Capitalized Lease Obligation or
operating lease;
	 
	 	(20)	 	Liens under industrial revenue, municipal or similar bonds;
	 
	 	(21)	 	following the expiration of the PIK Period, Liens securing Indebtedness (other
than Subordinated Obligations and Guarantor Subordinated Obligations) in an aggregate
principal amount outstanding at any one time not to exceed $20.0 million; and

26

 

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

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

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

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

     “Private Placement Notes” means $102.0 million of senior subordinated secured pay-in-kind
notes due 2011 issued by the Company in a private placement.

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

     “Rating Agencies” means Standard & Poor’s Ratings Group, Inc. and Moody’s Investors Service,
Inc. or if Standard & Poor’s Ratings Group, Inc. or Moody’s Investors Service, Inc. or both shall
not make a rating on the Securities publicly available, a nationally recognized statistical rating
agency or agencies, as the case may be, selected by the Company (as certified by a resolution of
the Board of Directors) which shall be substituted for Standard & Poor’s Ratings Group, Inc. or
Moody’s Investors Service, Inc. or both, as the case may be.

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

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

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

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

27

 

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

	 	(2)	 	with which neither the Company nor any Restricted Subsidiary has any material
contract, agreement, arrangement or understanding other than on terms no less favorable
to the Company or such Restricted Subsidiary than those that might be obtained at the
time from Persons that are not Affiliates of the Company, other than fees payable in
the ordinary course of business in connection with servicing Receivables; and
	 
	 	(3)	 	to which neither the Company nor any Restricted Subsidiary has any obligation
to maintain or preserve such entity’s financial condition or cause such entity to
achieve certain levels of operating results.

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

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

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

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

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

28

 

	 	 	 	Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated
Maturity at least 91 days later than the Stated Maturity of the Securities;

	 	(2)	 	the Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the
Indebtedness being refinanced;
	 
	 	(3)	 	such Refinancing Indebtedness is Incurred in an aggregate principal amount (or
if issued with original issue discount, an aggregate issue price) that is equal to or
less than the sum of the aggregate principal amount (or if issued with original issue
discount, the aggregate accreted value) then outstanding of the Indebtedness being
refinanced (plus, without duplication, any additional Indebtedness Incurred to pay
interest or premiums required by the instruments governing such existing Indebtedness
and fees Incurred in connection therewith); and
	 
	 	(4)	 	if the Indebtedness being refinanced is subordinated in right of payment to the
Securities or the Subsidiary Guarantee, such Refinancing Indebtedness is subordinated
in right of payment to the Securities or the Subsidiary Guarantee on terms at least as
favorable to the Holders as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded.

     “Registration Rights Agreement” means that certain registration rights agreement dated as of
the Issue Date by and among the Company, the Note Guarantors and the Initial Purchasers set forth
therein and, with respect to any Additional Securities, one or more substantially similar
registration rights agreements among the Company and the other parties thereto, as such agreements
may be amended from time to time.

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

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

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

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

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

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

29

 

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

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

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

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

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

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

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

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

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

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

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

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

30

 

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

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

     “Subsidiary” of any Person means (a) any corporation, association or other business entity
(other than a partnership, joint venture, limited liability company or similar entity) of which
more than 50% of the total ordinary voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof (or persons performing similar functions) or (b) any partnership, joint venture
limited liability company or similar entity of which more than 50% of the capital accounts,
distribution rights, total equity and voting interests or general or limited partnership interests,
as applicable, is, in the case of clauses (a) and (b), at the time owned or controlled, directly or
indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3)
one or more Subsidiaries of such Person. Unless otherwise specified herein, each reference to a
Subsidiary will refer to a Subsidiary of the Company.

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

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

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

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

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

31

 

whom any corporate trust matter is referred because of such person’s knowledge of and
familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

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

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

     “Unrestricted Subsidiary” means:

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

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

	 	(1)	 	such Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any property of,
any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary;
	 
	 	(2)	 	all the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date
of designation, and will at all times thereafter, consist of Non-Recourse Debt;
	 
	 	(3)	 	such designation and the Investment of the Company in such Subsidiary complies
with Section 3.3;
	 
	 	(4)	 	such Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially all of the
business of the Company and its Subsidiaries;
	 
	 	(5)	 	such Subsidiary is a Person with respect to which neither the Company nor any
of its Restricted Subsidiaries has any direct or indirect obligation:

	 	(a)	 	to subscribe for additional Capital Stock of such Person; or
	 
	 	(b)	 	to maintain or preserve such Person’s financial condition or to
cause such Person to achieve any specified levels of operating results; and

	 	(6)	 	on the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or understanding with
the Company or any Restricted Subsidiary with terms

32

 

	 	 	 	substantially less favorable to the Company than those that might have been obtained
from Persons who are not Affiliates of the Company.

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

     The Board of Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence
thereof and the Company could Incur at least $1.00 of additional Indebtedness pursuant to the first
paragraph of Section 3.2 on a pro forma basis taking into account such designation.

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

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

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

          SECTION 1.2. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section	 	 
	“Additional Restricted Securities”
	 		 	2.1(b)
	“Affiliate Transaction”
	 	 	 	3.8

33

 

	 	 	 	 	 
	Term	 	Defined in Section	 	 
	“Agent”
	 	 	 	3.14
	“Agent Members”
	 	 	 	2.1(e)
	“Asset Disposition Offer”
	 	 	 	3.5
	“Asset Disposition Offer Amount”
	 	 	 	3.5
	“Asset Disposition Offer Period”
	 	 	 	3.5
	“Asset Disposition Purchase Date”
	 	 	 	3.5
	“Authenticating Agent”
	 	 	 	2.2
	“Calculation Agent”
	 	 	 	2.3
	“Change of Control Offer”
	 	 	 	3.11
	“Change of Control Payment”
	 	 	 	3.11
	“Change of Control Payment Date”
	 	 	 	3.11
	“Company Order”
	 	 	 	2.2
	“covenant defeasance option”
	 	 	 	8.1(b)
	“cross acceleration provision”
	 	 	 	6.1(6)(b)
	“Defaulted Interest”
	 	 	 	2.13
	“Event of Default”
	 	 	 	6.1
	“Excess Proceeds”
	 	 	 	3.5
	“Exchange Global Note”
	 	 	 	2.1(b)
	“Global Securities”
	 	 	 	2.1(b)
	“Guarantor Obligations”
	 	 	 	10.1
	“Institutional Accredited Investor Global Note”
	 	 	 	2.1(b)
	“Institutional Accredited Investor Notes”
	 	 	 	2.1(b)
	“legal defeasance option”
	 	 	 	8.1(b)
	“Pari Passu Notes”
	 	 	 	3.5
	“payment default”
	 	 	 	6.1(6)(a)
	“Paying Agent”
	 	 	 	2.3
	“Private Placement Legend”
	 	 	 	2.1(d)
	“protected purchaser”
	 	 	 	2.9
	“Registrar”
	 	 	 	2.3
	“Regulation S Global Note”
	 	 	 	2.1(b)
	“Regulation S Legend”
	 	 	 	2.1(d)
	“Regulation S Notes”
	 	 	 	2.1(b)
	“Resale Restriction Termination Date”
	 	 	 	2.6(a)
	“Restricted Payment”
	 	 	 	3.3
	“Restricted Securities”
	 	 	 	2.1(a)
	“Rule 144A Global Note”
	 	 	 	2.1(b)
	“Rule 144A Notes”
	 	 	 	2.1(b)
	“Special Interest Payment Date”
	 	 	 	2.13(a)
	“Special Record Date”
	 	 	 	2.13(a)
	“Successor Company”
	 	 	 	4.1

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

34

 

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Holder.

          “indenture to be qualified” means this Indenture.

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

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

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

          SECTION 1.4. Rules of Construction. Unless the context otherwise requires:

	 	(1)	 	a term has the meaning assigned to it;
	 
	 	(2)	 	an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;
	 
	 	(3)	 	“including” means including without limitation;
	 
	 	(4)	 	words in the singular include the plural and words in the plural include the
singular;
	 
	 	(5)	 	the principal amount of any non-interest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP;
	 
	 	(6)	 	the principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater;
	 
	 	(7)	 	all amounts expressed in this Indenture or in any of the Securities in terms of
money refer to the lawful currency of the United States of America; and
	 
	 	(8)	 	the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

ARTICLE II

THE SECURITIES

          SECTION 2.1. Form, Dating and Terms. (a) The aggregate principal amount of
Securities that may be authenticated and delivered under this Indenture is unlimited. The

35

 

Initial
Securities issued on the date hereof will be in an aggregate principal amount of $306,000,000. In
addition, the Company may issue, from time to time in accordance with the provisions of this
Indenture, Additional Securities and Exchange Securities. Furthermore, Securities may be
authenticated and delivered upon registration or transfer, or in lieu of, other Securities pursuant
to Section 2.6, 2.9, 2.11, 5.8 or 9.5 or in connection with
a Change of Control Offer pursuant to Section 3.11 or an Asset Disposition Offer under
Section 3.5.

          The Initial Securities shall be known and designated as “Floating Rate Senior Secured Notes,
Series A, due 2011” of the Company. Additional Securities issued as securities bearing one of the
restrictive legends described under Section 2.1(d) (“Restricted Securities”) shall
be known and designated as “Floating Rate Senior Secured Notes, Series A, due 2011” of the Company.
Additional Securities issued other than as Restricted Securities shall be known and designated as
“Floating Rate Senior Secured Notes, Series B, due 2011” of the Company, and Exchange Securities
shall be known and designated as “Floating Rate Senior Secured Notes, Series B, due 2011” of the
Company.

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

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

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

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

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

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

          (b) The Initial Securities are being offered and sold by the Company pursuant to a Purchase
Agreement, dated June 9, 2006, among the Company and the Initial Purchasers. The Initial
Securities and any Additional Securities (if issued as Restricted Securities) (the “Additional
Restricted Securities”) will be resold initially only to (A) QIBs in reliance on

36

 

Rule 144A and
(B) Non-U.S. Persons in reliance on Regulation S. Such Initial Securities and Additional
Restricted Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance
on Regulation S and IAIs in accordance with Rule 501 of the Securities Act, in each case, in
accordance with the procedures described herein. Additional Securities offered after the date
hereof may be offered and sold by the Company from time to time pursuant to one or more purchase
agreements in accordance with applicable law.

          Initial Securities and Additional Restricted Securities offered and sold to QIBs in the United
States of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the
form of a permanent global Security, without interest coupons, substantially in the form of
Exhibit A, which is hereby incorporated by reference and made a part of this Indenture,
including appropriate legends as set forth under Section 2.1(d) (the “Rule 144A Global
Note”), deposited with the Trustee, as custodian for DTC, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Rule 144A Global Note may be represented
by more than one certificate, if so required by DTC’s rules regarding the maximum principal amount
to be represented by a single certificate. The aggregate principal amount of the Rule 144A Global
Note may from time to time be increased or decreased by adjustments made on the Rule 144A Global
Note and on the records of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.

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

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

37

 

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

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

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

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

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

          (d) Restrictive Legends. Unless and until (i) an Initial Security is sold under an
effective registration statement or (ii) an Initial Security is exchanged for an Exchange

38

 

Security in connection with an effective registration statement, in each case pursuant to
the Registration Rights Agreement or a similar agreement,

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

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS
SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN
A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND WILL BE

39

 

REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

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

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION
TERMINATION DATE”) THAT IS 40 DAYS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY
(OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
“ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN
A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE

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RESTRICTION TERMINATION DATE. BY ITS ACQUISITION HEREOF, THE HOLDER HEREOF REPRESENTS THAT
IT IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS
ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT.

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

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

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

          (e) Book-Entry Provisions.

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

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

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

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

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

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

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

          (f) Definitive Securities. (i) Except as provided below, owners of beneficial
interests in Global Securities will not be entitled to receive Definitive Securities. If required
to do so pursuant to any applicable law or regulation, beneficial owners may obtain Definitive
Securities in exchange for their beneficial interests in a Global Security upon written request in
accordance with DTC’s and the Registrar’s procedures. In addition, Definitive Securities shall be
transferred to all beneficial owners in exchange for their beneficial interests in a Global
Security if (A) DTC notifies the Company at any time that it is unwilling or unable to continue as
depositary for such Global Security or DTC ceases to be a clearing agency registered under the
Exchange Act, at a time when DTC is required to be so registered in order to act as depositary, and
in each case a successor depositary is not appointed by the Company within 90 days of such notice
or (B) the Company in its sole discretion executes and delivers to the Trustee and Registrar an
Officers’ Certificate stating that such Global Security shall be so exchangeable or (C) an Event of
Default has occurred and is continuing and the Registrar has received a request from DTC. In the
event of the occurrence of any of the events specified in clause (A), (B) or (C) of the preceding
sentence, the Company shall promptly make available to the Trustee a reasonable supply of
Definitive Securities in fully registered form without interest coupons.

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

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

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

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

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

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

          At any time and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery: (1) Initial Securities for original
issue on the Issue Date in an aggregate principal amount of $306,000,000, (2) subject to the terms
of this Indenture, Additional Securities for original issue in an unlimited principal amount and
(3) Exchange Securities for issue only in an Exchange Offer or upon resale under an effective Shelf
Registration Statement, and only in exchange for Initial Securities or Additional Securities of an
equal principal amount, in each case upon a written order of the Company signed by one Officer of
the Company (the “Company Order”). Such Company Order shall specify whether the Securities
will be in the form of Definitive Securities or Global Securities, the amount of the Securities to
be authenticated and the date on which the original issue of Securities is to be authenticated and
whether the Securities are to be Initial Securities, Additional Securities or Exchange Securities.

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

43

 

Authenticating Agent has the same rights as any Registrar, Paying Agent or agent for service of
notices and demands.

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

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

          The Company shall advise the Calculation Agent in writing prior to any interest payment date
of any additional interest payable pursuant to the Registration Rights Agreement.

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

          The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.
The Company may remove any Registrar or Paying Agent without notice to any

44

 

Holder upon written notice to such Registrar or Paying Agent and to the Trustee; provided, however, that no such
removal shall become effective until (i) acceptance of any appointment by a successor as evidenced
by an appropriate agreement entered into by the Company and such successor Registrar or Paying
Agent, as the case may be, and delivered to the Trustee or (ii) notification to the Trustee that
the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in
accordance with clause (i) above. The Registrar or Paying Agent may resign at any time upon
written notice to the Company and the Trustee.

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

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

          SECTION 2.6. Transfer and Exchange. (a) The following provisions shall apply with
respect to any proposed transfer of a Rule 144A Note or an Institutional Accredited Investor Note
prior to the date which is two years after the later of the date of its original issue and the last
date on which the Company or any Affiliate of the Company was the owner of such Securities (or any predecessor thereto)
(the “Resale Restriction Termination Date”):

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

45

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (iv) Prior to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent or the Registrar may deem and treat the

47

 

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

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

          (f) No Obligation of the Trustee.

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

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

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

[Date]

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

2 North LaSalle Street

Chicago, IL 60602

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	Libbey Glass Inc.
	 

	 	Floating Rate Senior Secured Notes, Series A, due 2011

Ladies and Gentlemen:

          This certificate is delivered to request a transfer of $                                         principal amount of the
Floating Rate Senior Secured Notes, Series A, due 2011 (the “Securities”) of Libbey Glass
Inc. (the “Company”).

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

          Name:                                                            
                            

          Address:                                                          
                           

          Taxpayer ID Number:                                                        
        

          The undersigned represents and warrants to you that:

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

          2. We understand that the Securities have not been registered under the Securities Act and,
unless so registered, may not be sold except as permitted in the following sentence. We agree on
our own behalf and on behalf of any investor account for which we are purchasing Securities to
offer, sell or otherwise transfer such Securities prior to the date that is two years after the
later of the date of original issue and the last date on which the Company or any affiliate of the
Company was the owner of such Securities (or any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to the Company, (b) pursuant to a
registration statement that has been declared effective under the Securities Act, (c) in a
transaction

49

 

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

          The Trustee and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered hereby.

TRANSFEREE:                                                            

BY:                                                                    
                 

cc: Libbey Glass Inc.

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

[Date]

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

2 North LaSalle Street

Chicago, IL 60602

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	Libbey Glass Inc.
	 

	 	Floating Rate Senior Secured Notes, Series A, due 2011

Ladies and Gentlemen:

          In connection with our proposed sale of $                                         aggregate principal amount of the
Floating Rate Senior Secured Notes, Series A, due 2011 (the “Securities”) of Libbey Glass
Inc. (the “Company”), we confirm that such sale has been effected pursuant to and in
accordance with Regulation S under the United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, we represent that:

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

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

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

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

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

          The Bank of New York Trust Company, N.A., as Trustee, and the Company are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

51

 

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[Name of Transferor]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Authorized Signature

cc: Libbey Glass Inc.

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

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

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

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

52

 

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

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

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

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

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

53

 

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

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

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

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

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

54

 

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

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

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

          SECTION 2.14. Computation of Interest. Interest on the Securities will be computed on
the basis of the actual number of days in an interest period and a 360-day year.

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

ARTICLE III

COVENANTS

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

55

 

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

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

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

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

          SECTION 3.2. Limitation on Indebtedness. The Company will not, and will not permit any of its Restricted Subsidiaries to,
Incur any Indebtedness (including Acquired Indebtedness); provided, however, that the Company and
the Subsidiary Guarantors may Incur Indebtedness if on the date thereof the Consolidated Coverage
Ratio for the Company and its Restricted Subsidiaries is at least 2.00 to 1.00; provided, further,
that if the Company and the Subsidiary Guarantors Incur Indebtedness during the PIK Period pursuant
to this paragraph, such Indebtedness is expressly subordinated in right of payment to the Senior
Secured Notes during the PIK Period and interest on such Indebtedness is payable solely by
increasing the principal amount of such Indebtedness during the PIK Period.

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

	 	(1)	 	Indebtedness of the Company, any Subsidiary Guarantor or any
Restricted Subsidiary that is a Foreign Subsidiary Incurred pursuant to a
Credit Facility in an aggregate amount up to the greater of (a) $150.0 million,
less the aggregate principal amount of all principal repayments with the
proceeds from Asset Dispositions utilized in accordance with clause 3(a) 

56

 

	 	 	 	of Section 3.5 that permanently reduce the commitments thereunder, and (b)
the Borrowing Base;
	 
	 	(2)	 	Guarantees by (x) the Company or its Subsidiary Guarantors of
Indebtedness Incurred by the Company or a Restricted Subsidiary in accordance
with the provisions of this Indenture, provided that in the event such
Indebtedness that is being Guaranteed is a Subordinated Obligation or a
Guarantor Subordinated Obligation, then the related Guarantee shall be
subordinated in right of payment to the Securities or the Subsidiary Guarantee,
as the case may be, and (y) Non-Guarantor Restricted Subsidiaries of
Indebtedness Incurred by Non-Guarantor Restricted Subsidiaries in accordance
with the provisions of this Indenture;
	 
	 	(3)	 	Indebtedness of the Company owing to and held by any Restricted
Subsidiary or Indebtedness of a Restricted Subsidiary owing to and held by the
Company or any other Restricted Subsidiary; provided, however,

	 	(a)	 	if the Company is the obligor on such
Indebtedness and a Subsidiary Guarantor is not the obligee, such
Indebtedness is expressly subordinated to the prior payment in full in
cash of all obligations with respect to the Securities;
	 
	 	(b)	 	if a Subsidiary Guarantor is the obligor on
such Indebtedness and the Company or a Subsidiary Guarantor is not the
obligee, such Indebtedness is subordinated in right of payment to the
Subsidiary Guarantees of such Subsidiary Guarantor; and
	 
	 	(c)	 	(i) any subsequent issuance or transfer of
Capital Stock or any other event that results in any such Indebtedness
being beneficially held by a Person other than the Company or a
Restricted Subsidiary of the Company; and
	 
	 	 	 	(ii) any sale or other transfer of any such Indebtedness to a Person
other than the Company or a Restricted Subsidiary of the Company

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

	 	(4)	 	Indebtedness represented by (a) the Securities issued on the
Issue Date, the Subsidiary Guarantees and the related Exchange Securities and
exchange guarantees issued pursuant to the Registration Rights Agreement, (b)
any Indebtedness (other than the Indebtedness described in clauses (1), (2),
(3), (6), (8), (9), (10) and (11)) outstanding on the Issue Date and (c) any
Refinancing Indebtedness Incurred in respect of any Indebtedness described in
this clause (4) or clause (5) or Incurred pursuant to the first paragraph of
this Section 3.2;

57

 

	 	(5)	 	following the expiration of the PIK Period, Indebtedness of a
Restricted Subsidiary Incurred and outstanding on the date on which such
Restricted Subsidiary was acquired by, or merged into, the Company or any
Restricted Subsidiary (other than Indebtedness Incurred (a) to provide all or
any portion of the funds utilized to consummate the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was otherwise acquired by the Company or (b) otherwise
in connection with, or in contemplation of, such acquisition); provided,
however, that at the time such Restricted Subsidiary is acquired by the
Company, the Company would have been able to Incur $1.00 of additional
Indebtedness pursuant to the first paragraph of this Section 3.2 after
giving effect to the Incurrence of such Indebtedness pursuant to this clause
(5);
	 
	 	(6)	 	Indebtedness under Hedging Obligations that are Incurred in the
ordinary course of business (and not for speculative purposes);
	 
	 	(7)	 	the Incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness represented by Capitalized Lease Obligations,
mortgage financings or purchase money obligations Incurred pursuant to this
clause (7), and Attributable Indebtedness, in an aggregate principal amount
(including all Refinancing Indebtedness Incurred to refund, defease, renew,
extend, refinance or replace any Indebtedness Incurred pursuant to this clause
(7)) not to exceed during the PIK Period, $5.0 million and, thereafter, $15.0
million, in each case at any time outstanding;
	 
	 	(8)	 	Indebtedness Incurred in respect of workers’ compensation
claims, self-insurance obligations, performance, surety and similar bonds,
warranties, indemnities and completion guarantees provided by the Company or a
Restricted Subsidiary in the ordinary course of business;
	 
	 	(9)	 	Indebtedness arising from agreements of the Company or a
Restricted Subsidiary providing for customary guarantees, indemnification,
adjustment of purchase price or similar obligations, in each case, Incurred or
assumed in connection with the disposition of any business, assets or Capital
Stock of a Restricted Subsidiary, provided that the maximum aggregate liability
in respect of all such Indebtedness shall at no time exceed the gross proceeds
actually received by the Company and its Restricted Subsidiaries in connection
with such disposition;
	 
	 	(10)	 	Indebtedness represented by earnout provisions, contingent
payments in respect of purchase price or adjustment of purchase price or
similar obligations in acquisition agreements; provided that this clause (10)
shall not extend to Indebtedness Incurred to finance an earnout or any other
component of such Investment;

58

 

	 	(11)	 	Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument (except in the
case of daylight overdrafts) drawn against insufficient funds in the ordinary
course of business, provided, however, that such Indebtedness is extinguished
within five business days of Incurrence;
	 
	 	(12)	 	Indebtedness Incurred by Foreign Subsidiaries that are not
Subsidiary Guarantors in an aggregate principal amount, together with all other
Indebtedness (including Refinancing Indebtedness) Incurred pursuant to this
clause (12), not to exceed, during the PIK Period, $45.0 million and,
thereafter, the greater of (x) $25.0 million and (y) 6% of Foreign Assets, in
each case at any time outstanding; provided, however, that such Indebtedness
Incurred pursuant to this clause (12) during the PIK Period shall only consist
of (i) Incurrences to fund working capital related to the Company’s Foreign
Subsidiaries organized in Mexico in an aggregate amount not to exceed $15.0
million, (ii) Incurrences to fund capital expenditures related to the Company’s
Foreign Subsidiaries organized in Mexico in an aggregate amount not to exceed
$15.0 million and (iii) Incurrences to fund working capital and capital
expenditures related to the Company’s Foreign Subsidiaries organized in
Portugal in an aggregate amount not to exceed $15.0 million;
	 
	 	(13)	 	Indebtedness of Libbey Glassware (China) Co., Ltd. or a
Restricted Subsidiary that is a Foreign Subsidiary organized under the laws of
the People’s Republic of China Incurred pursuant to a Credit Facility in an
aggregate principal amount, together with all other Indebtedness (including
Refinancing Indebtedness) Incurred pursuant to this clause (13), not to exceed
$30.0 million at any time outstanding and any Guarantee of such Indebtedness
issued by the Company; and
	 
	 	(14)	 	following the expiration of the PIK Period, in addition to the
items referred to in clauses (1) through (13) above, Indebtedness of the Company and its Restricted Subsidiaries in an aggregate outstanding
principal amount which, when taken together with the principal amount of all
other Indebtedness (including (i) any outstanding Indebtedness in excess of
the greater of (x) $25.0 million and (y) 6% of Foreign Assets Incurred
pursuant to clause (12) above as determined on the date of the expiration of
the PIK Period and not classified by Libbey Glass in any other manner that
complies with this covenant, which excess not so otherwise classified shall
be deemed classified as Indebtedness Incurred under this clause (14) and
(ii) Refinancing Indebtedness) Incurred pursuant to this clause (14) and
then outstanding, will not exceed $20.0 million at any time outstanding.

          The Company will not Incur any Indebtedness under the preceding paragraph if the proceeds
thereof are used, directly or indirectly, to refinance any Subordinated Obligations of the Company
unless such Indebtedness will be subordinated to the Securities to at least the same

59

 

extent as such Subordinated Obligations. No Subsidiary Guarantor will Incur any Indebtedness if the proceeds
thereof are used, directly or indirectly, to refinance any Guarantor Subordinated Obligations of
such Subsidiary Guarantor unless such Indebtedness will be subordinated to the obligations of such
Subsidiary Guarantor under its Subsidiary Guarantee to at least the same extent as such Guarantor
Subordinated Obligations. No Restricted Subsidiary (other than a Subsidiary Guarantor) may Incur
any Indebtedness if the proceeds are used to refinance Indebtedness of the Company or a Subsidiary
Guarantor.

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

	 	(1)	 	subject to clause (2) below, in the event that Indebtedness
meets the criteria of more than one of the types of Indebtedness described in
the first and second paragraphs of this Section 3.2, the Company, in
its sole discretion, will classify such item of Indebtedness on the date of
Incurrence and, may later classify such item of Indebtedness in any manner that
complies with this Section 3.2 and only be required to include the
amount and type of such Indebtedness in one of such clauses;
	 
	 	(2)	 	all Indebtedness outstanding on the Issue Date under the Senior
Secured Credit Agreement shall be deemed Incurred on the Issue Date under
clause (1) of the second paragraph of this Section 3.2 and not the
first paragraph or clause (4) of the second paragraph of this Section
3.2;
	 
	 	(3)	 	Guarantees of, or obligations in respect of letters of credit
relating to, Indebtedness that is otherwise included in the determination of a
particular amount of Indebtedness shall not be included;
	 
	 	(4)	 	if obligations in respect of letters of credit are Incurred
pursuant to a Credit Facility and are being treated as Incurred pursuant to
clause (1) of the second paragraph above and the letters of credit relate to other
Indebtedness, then such other Indebtedness shall not be included;
	 
	 	(5)	 	the principal amount of any Disqualified Stock of the Company
or a Restricted Subsidiary, or Preferred Stock of a Restricted Subsidiary that
is not a Subsidiary Guarantor, will be equal to the greater of the maximum
mandatory redemption or repurchase price (not including, in either case, any
redemption or repurchase premium) or the liquidation preference thereof;
	 
	 	(6)	 	Indebtedness permitted by this Section 3.2 need not be
permitted solely by reference to one provision permitting such Indebtedness but
may be permitted in part by one such provision and in part by one or more other
provisions of this Section 3.2 permitting such Indebtedness;
	 
	 	(7)	 	the principal amount of any Indebtedness outstanding in
connection with a securitization transaction is the amount of obligations
outstanding under

60

 

	 	 	 	the legal documents entered into as part of such securitization that would be characterized as principal on any date of
determination if such securitization transaction were structured as a secured
lending transaction; and
	 
	 	(8)	 	the amount of Indebtedness issued at a price that is less than
the principal amount thereof will be equal to the amount of the liability in
respect thereof determined in accordance with GAAP.

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

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

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

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

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

	 	(a)	 	dividends or distributions payable in Capital
Stock of the Company (other than Disqualified Stock) or in options,
warrants or other rights to purchase such Capital Stock of the Company;
and
	 
	 	(b)	 	dividends or distributions payable to the
Company or another Restricted Subsidiary (and if such Restricted
Subsidiary is not a Wholly-Owned Subsidiary, to its other holders of
common Capital Stock on a pro rata basis);

	 	(2)	 	purchase, redeem, retire or otherwise acquire for value any
Capital Stock of the Company or any direct or indirect parent of the Company
held by Persons other than the Company or a Restricted Subsidiary (other than
in exchange for Capital Stock of the Company (other than Disqualified Stock));
	 
	 	(3)	 	purchase, repurchase, redeem, defease or otherwise acquire or
retire for value, prior to scheduled maturity, scheduled repayment or scheduled
sinking fund payment, any Subordinated Obligations or Guarantor Subordinated
Obligations (other than (x) Indebtedness of the Company owing to and held by
any Subsidiary Guarantor or Indebtedness of a Subsidiary Guarantor owing to and
held by the Company or any other Subsidiary Guarantor permitted under clause
(3) of the second paragraph of Section 3.2 or (y) the purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations or Guarantor Subordinated Obligations purchased in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of purchase,
repurchase, redemption, defeasance or other acquisition or retirement); or
	 
	 	(4)	 	make any Restricted Investment in any Person;

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

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

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	 	(b)	 	the Company is not able to Incur $1.00 of
additional Indebtedness pursuant to the first paragraph of Section
3.2 after giving effect, on a pro forma basis, to such Restricted
Payment; or
	 
	 	(c)	 	the aggregate amount of such Restricted Payment
and all other Restricted Payments declared or made subsequent to the
Issue Date (excluding Restricted Payments permitted by clauses (1),
(2), (3), (4), (7), (8), (9), (11), (13) and (14) of the next
succeeding paragraph) would exceed the sum of:

	 	(i)	 	50% of Consolidated Net
Income for the period (treated as one accounting period) from
the beginning of the first fiscal quarter commencing after
the Issue Date to the end of the most recent fiscal quarter
ending prior to the date of such Restricted Payment for which
financial statements are in existence (or, in case such
Consolidated Net Income is a deficit, minus 100% of such
deficit); plus
	 
	 	(ii)	 	100% of the aggregate Net
Cash Proceeds received by the Company, plus the fair market
value of property other than cash or of marketable securities
(such fair market value to be determined on the date of
contractually agreeing to such sale as determined in good
faith by the Board of Directors) received by the Company from
the issue or sale of its Capital Stock (other than
Disqualified Stock) or other capital contributions subsequent
to the Issue Date (other than Net Cash Proceeds received from
an issuance or sale of such Capital Stock to a Subsidiary of
the Company or an employee stock ownership plan, option plan
or similar trust to the extent such sale to an employee stock
ownership plan or similar trust is financed by loans from or
Guaranteed by the Company or any Restricted Subsidiary unless
such loans have been repaid with cash on or prior to the date
of determination) excluding in any event Net Cash Proceeds
received by the Company from the issue and sale of its
Capital Stock or capital contributions to the extent applied
to redeem Securities in compliance with the provisions of
Article V as it relates to the second paragraph of
Section 5 of the Securities; plus
	 
	 	(iii)	 	the amount by which
Indebtedness of the Company or its Restricted Subsidiaries is
reduced on the Company’s balance sheet upon the conversion or
exchange (other than by a Subsidiary of the Company)
subsequent to the Issue Date of any Indebtedness of the
Company or its Restricted Subsidiaries convertible or
exchangeable for Capital Stock (other than Disqualified
Stock) of the Company (less the

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	 	 	 	amount of any cash, or the
fair market value of any other property, distributed by the
Company upon such conversion or exchange);
	 
	 	(iv)	 	100% of the Net Cash
Proceeds and the fair market value of property other than
cash and marketable securities (such fair market value to be
determined in good faith by the Board of Directors) from the
sale or other disposition (other than to the Company or a
Note Guarantor or to an employee stock ownership plan or
trust established by the Company or any Restricted
Subsidiary) of Restricted Investments made after the Issue
Date and redemptions and repurchases of such Restricted
Investments from the Company or its Restricted Subsidiaries
and repayment of loans or advances from the Company and its
Restricted Subsidiaries (other than in each case to the
extent the Restricted Investment was made pursuant to clause
(14) of the next succeeding paragraph);
	 
	 	(v)	 	to the extent that any
Unrestricted Subsidiary of the Company designated as such
after the Issue Date is redesignated as a Restricted
Subsidiary or any Unrestricted Subsidiary of the Company
merges into or consolidates with the Company or any of its
Restricted Subsidiaries, in each case after the Issue Date,
the fair market value of such Subsidiary as of the date of
such redesignation or such merger or consolidation, or in the
case of the transfer of assets of an Unrestricted Subsidiary
to the Company or a Restricted Subsidiary, the fair market
value of the Investment in such Unrestricted Subsidiary, as
determined by the Board of Directors of the Company in good
faith at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary or at the time of such
merger, consolidation or transfer of assets (other than an
Unrestricted Subsidiary to the extent the Investment in such
Unrestricted Subsidiary was made by a Restricted Subsidiary
pursuant to clause (14) of the next succeeding paragraph or
to the extent such Investment constituted a Permitted
Investment); and
	 
	 	(vi)	 	50% of any dividends
received by the Company or a Restricted Subsidiary of the
Company after the Issue Date from an Unrestricted Subsidiary
of the Company, to the extent that such dividends were not
otherwise included in the Consolidated Net Income of the
Company.

          The provisions of the preceding paragraph will not prohibit:

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	 	(1)	 	any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Capital Stock, Disqualified Stock or Subordinated
Obligations of the Company or Guarantor Subordinated Obligations of any
Subsidiary Guarantor made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Company (other than
Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary
or an employee stock ownership plan or similar trust to the extent such sale to
an employee stock ownership plan or similar trust is financed by loans from or
Guaranteed by the Company or any Restricted Subsidiary unless such loans have
been repaid with cash on or prior to the date of determination); provided,
however, that the Net Cash Proceeds from such sale of Capital Stock will be
excluded from clause (c)(ii) of the preceding paragraph;
	 
	 	(2)	 	any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Subordinated Obligations of the Company or
Guarantor Subordinated Obligations of any Subsidiary Guarantor made by exchange
for, or out of the proceeds of the substantially concurrent sale of,
Subordinated Obligations of the Company or any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Guarantor
Subordinated Obligations made by exchange for or out of the proceeds of the
substantially concurrent sale of Guarantor Subordinated Obligations that, in
each case, is permitted to be Incurred pursuant to Section 3.2 and that
in each case constitutes Refinancing Indebtedness;
	 
	 	(3)	 	any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Disqualified Stock of the Company or a Restricted
Subsidiary made by exchange for or out of the proceeds of the sale within 30
days of Disqualified Stock of the Company or such Restricted Subsidiary, as the
case may be, that, in each case, is permitted to be Incurred pursuant to
Section 3.2 and that in each case constitutes Refinancing Indebtedness;
	 
	 	(4)	 	any purchase or redemption of Subordinated Obligations or
Guarantor Subordinated Obligations of a Subsidiary Guarantor from Net Available
Cash to the extent permitted under Section 3.5 below;
	 
	 	(5)	 	dividends paid within 60 days after the date of declaration if
at such date of declaration such dividend would have complied with this
provision;
	 
	 	(6)	 	Restricted Payments, cash dividends or loans to the Parent, for
the purchase, redemption or other acquisition, cancellation or retirement for
value of Capital Stock, or options, warrants, equity appreciation rights or
other rights to purchase or acquire Capital Stock, of the Company or any
Restricted Subsidiary or any direct or indirect parent of the Company held by
any existing or former directors, officers, employees or consultants of the
Company or the Parent or any Subsidiary of the Company or their

65

 

	 	 	 	assigns,
estates or heirs, in each case in connection with the repurchase provisions
under stock option or stock purchase agreements or other agreements to
compensate such Persons; provided, that such redemptions, repurchases or
payments pursuant to this clause shall not be permitted with respect to the
compensation or issuance of securities for any services that were not related
to, or for the benefit of, the Company and its Restricted Subsidiaries;
provided, further, that such redemptions or repurchases pursuant to this clause
will not exceed $3.0 million in the aggregate during any calendar year;
provided, further, that (x) the Company may carry over and make in subsequent
calendar years, in addition to the $3.0 million amount permitted for such
calendar year, the amount of such purchases, redemptions or other acquisitions
or retirements for value permitted to be made, but not made, in any preceding
calendar year, up to a maximum amount of $8.0 million in any calendar year and
(y) the maximum amount in any calendar year may be increased by the amount of
any capital contributions to the Company as a result of sales of such shares of
Capital Stock of the Company or any direct or indirect parent of the Company to
such persons (provided that the Net Cash Proceeds from such sale of Capital
Stock will be excluded from clause (c)(ii) of the preceding paragraph of this
Section 3.3) to the extent not so previously applied, plus the amount
of any “key man” insurance proceeds, received by the Company or any Restricted
Subsidiary to the extent not so previously applied;
	 
	 	(7)	 	following the expiration of the PIK Period, so long as no
Default or Event of Default has occurred and is continuing, the declaration and
payment of dividends to holders of any class or series of Disqualified Stock of
the Company issued in accordance with the terms of this Indenture to the extent
such dividends are included in the definition of “Consolidated Interest
Expense”;
	 
	 	(8)	 	repurchases of Capital Stock deemed to occur upon (x) the
exercise of stock options, warrants or other convertible securities if such
Capital Stock represents a portion of the exercise price thereof or (y) cash
dividends or loans to the Parent in amounts sufficient to pay taxes of
directors, officers, employees or consultants relating to the withholding of a
portion of the Capital Stock granted or awarded to a director, officer,
employee or consultant in exchange for the payment of taxes payable by such
Person upon such grant or award;
	 
	 	(9)	 	cash dividends or loans to the Parent in amounts equal to:

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

66

 

	 	 	 	the extent attributable to the income of the Unrestricted
Subsidiaries;
	 
	 	(b)	 	the amounts required for the Parent to pay
franchise taxes and other fees required to maintain its legal
existence;
	 
	 	(c)	 	amounts to pay corporate overhead expenses of
the Parent Incurred in the ordinary course of business (including
financing transactions that benefit the Company and its Restricted
Subsidiaries), and to pay salaries, benefits or other compensation of
directors, officers, employees and consultants who perform services for
both the Parent and the Company;

	 	(10)	 	the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of any Subordinated Obligation (i) at a
purchase price not greater than 101% of the principal amount of such
Subordinated Obligation in the event of a Change of Control in accordance with
provisions similar to Section 3.11 or (ii) at a purchase price not
greater than 100% of the principal amount thereof in accordance with provisions
similar to Section 3.5; provided that, prior to or simultaneously with
such purchase, repurchase, redemption, defeasance or other acquisition or
retirement, the Company has made the Change of Control Offer or Asset
Disposition Offer, as applicable, as provided in such covenant with respect to
the Securities and has completed the repurchase or redemption of all Securities
validly tendered for payment in connection with such Change of Control Offer or
Asset Disposition Offer;
	 
	 	(11)	 	the repurchase or redemption of the Company’s or the Parent’s
preferred stock purchase rights, or any substitute therefor, in an aggregate
amount not to exceed the product of (x) the number of outstanding shares of
Common Stock of the Parent and (y) $0.01 per share, as such amount may be
adjusted in accordance with the rights agreement relating to the Parent Common
Stock;
	 
	 	(12)	 	cash dividends or loans to the Parent in amounts required for
the Parent to declare and pay cash dividends on Parent Common Stock in an
amount not to exceed $0.10 per share in any fiscal year, which amount will be
reduced to reflect any subdivision of the Parent Common Stock by means of a
stock split, stock dividend or otherwise; provided that at the time of
declaration of such dividend permitted, (x) no Event of Default (and, following
the expiration of the PIK Period, no Default) has occurred and is continuing
and (y) to the extent such cash dividends or loans are made following the
expiration of the PIK Period, the Company is able to Incur at least an
additional $1.00 of Indebtedness pursuant to the first paragraph of Section
3.2;

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	 	(13)	 	the repurchase, redemption or other acquisition for value of
Capital Stock of the Company or any direct or indirect parent of the Company
representing fractional shares of such Capital Stock in connection with a
merger, consolidation, amalgamation or other combination involving the Company
or any direct or indirect parent of the Company; and
	 
	 	(14)	 	following the expiration of the PIK Period, Restricted Payments
in an amount not to exceed $10.0 million.

          The amount of all Restricted Payments (other than cash) shall be the fair market value on the
date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or
issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The fair market value of any cash Restricted Payment shall be its face amount
and any non-cash Restricted Payment shall be determined conclusively by the Board of Directors of
the Company acting in good faith whose resolution with respect thereto shall be delivered to the
Trustee, such determination to be based upon an opinion or appraisal issued by an accounting,
appraisal or investment banking firm of national standing if such fair market value is estimated in
good faith by the Board of Directors of the Company to exceed $20.0 million. Not later than the
date of making any Restricted Payment, the Company shall deliver to the Trustee an Officers’
Certificate stating that such Restricted Payment is permitted and setting forth the basis upon
which the calculations required by this Section 3.3 were computed, together with a copy of
any fairness opinion or appraisal required by this Indenture.

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

	 	(1)	 	pay dividends or make any other distributions on its Capital
Stock or pay any Indebtedness or other obligations owed to the Company or any
Restricted Subsidiary (it being understood that the priority of any Preferred
Stock in receiving dividends or liquidating distributions prior to dividends or
liquidating distributions being paid on Common Stock shall not be deemed a
restriction on the ability to make distributions on Capital Stock);
	 
	 	(2)	 	make any loans or advances to the Company or any Restricted
Subsidiary (it being understood that the subordination of loans or advances
made to the Company or any Restricted Subsidiary to other Indebtedness Incurred
by the Company or any Restricted Subsidiary shall not be deemed a restriction
on the ability to make loans or advances); or
	 
	 	(3)	 	transfer any of its property or assets to the Company or any
Restricted Subsidiary (it being understood that such transfers shall not
include any type of transfer described in clause (1) or (2) above).

          The provisions of the preceding paragraph will not prohibit:

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	 	(i)	 	any encumbrance or restriction pursuant to an agreement in
effect at or entered into on the Issue Date, including, without limitation,
this Indenture, the Securities, the Exchange Securities, the Subsidiary
Guarantees, the Collateral Documents, the Intercreditor Agreement, the Private
Placement Notes and the Senior Secured Credit Agreement (and related
documentation) in effect on such date;
	 
	 	(ii)	 	any encumbrance or restriction with respect to a Person
pursuant to an agreement relating to any Capital Stock or Indebtedness Incurred
by such Person on or before the date on which such Person became a Restricted
Subsidiary or was acquired by, merged into or consolidated with the Company or
a Restricted Subsidiary (other than Capital Stock or Indebtedness Incurred as
consideration in, or to provide all or any portion of the funds utilized to
consummate, the transaction or series of related transactions pursuant to which
such Person became a Restricted Subsidiary or was acquired by, merged into or
consolidated with the Company or in contemplation of the transaction) and
outstanding on such date, provided, that any such encumbrance or restriction
shall not extend to any assets or property of the Company or any other
Restricted Subsidiary other than the assets and property so acquired and that,
in the case of Indebtedness, was permitted to be Incurred pursuant to this
Indenture;
	 
	 	(iii)	 	any encumbrance or restriction pursuant to an agreement
effecting a refunding, replacement or refinancing of Indebtedness Incurred
pursuant to an agreement referred to in clause (i) or (ii) of this paragraph or
this clause (iii) or contained in any amendment, restatement, modification,
renewal, supplement, refunding, replacement or refinancing of an agreement
referred to in clause (i) or (ii) of this paragraph or this clause (iii);
provided, however, that the encumbrances and restrictions with respect to such
Restricted Subsidiary contained in any such agreement are no less favorable in
any material respect, taken as a whole, to the Holders of the Securities than
the encumbrances and restrictions contained in such agreements referred to in
clauses (i) or (ii) of this paragraph on the Issue Date or the date such
Restricted Subsidiary became a Restricted Subsidiary or was merged into a
Restricted Subsidiary, whichever is applicable;
	 
	 	(iv)	 	in the case of clause (3) of the first paragraph of this
Section 3.4, Liens permitted to be incurred under the provisions of
Section 3.6;
	 
	 	(v)	 	(a) purchase money obligations for property acquired in the
ordinary course of business and (b) Capitalized Lease Obligations permitted
under this Indenture, in each case, that impose encumbrances or restrictions of
the nature described in clause (3) of the first paragraph of this Section
3.4 on the property so acquired;

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	 	(vi)	 	any restriction with respect to a Restricted Subsidiary (or any
of its property or assets) imposed pursuant to an agreement entered into for
the direct or indirect sale or disposition of the Capital Stock or assets of
such Restricted Subsidiary (or the property or assets that are subject to such
restriction) pending the closing of such sale or disposition;
	 
	 	(vii)	 	any customary provisions in joint venture agreements relating
to joint ventures and other similar agreements entered into in the ordinary
course of business, provided that if such joint venture is a Restricted
Subsidiary, such provisions will not materially affect the Company’s ability to
make anticipated principal or interest payments on the Securities (as
determined by the Board of Directors of the Company);
	 
	 	(viii)	 	net worth provisions in leases and other agreements entered into by the
Company or any Restricted Subsidiary in the ordinary course of business;
	 
	 	(ix)	 	encumbrances or restrictions arising or existing by reason of
applicable law or any applicable rule, regulation or order;
	 
	 	(x)	 	encumbrances or restrictions contained in indentures or debt
instruments or other debt arrangements Incurred or Preferred Stock issued by
Subsidiary Guarantors in accordance with Section 3.2, that are not more
restrictive, taken as a whole, than those applicable to the Company in either
this Indenture or the Senior Secured Credit Agreement on the Issue Date (which
results in encumbrances or restrictions comparable to those applicable to the
Company at a Restricted Subsidiary level); and
	 
	 	(xi)	 	encumbrances or restrictions contained in indentures or other
debt instruments or debt arrangements Incurred or Preferred Stock issued by
Restricted Subsidiaries that are not Subsidiary Guarantors subsequent to the
Issue Date pursuant to clauses (5), (12), (13) and (14) of the second paragraph
of Section 3.2, by Restricted Subsidiaries, provided that such
encumbrances and restrictions contained in any agreement or instrument will not
materially affect the Company’s ability to make anticipated principal or
interest payments on the Securities (as determined by the Board of Directors of
the Company).

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

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

70

 

	 	(2)	 	except for any Permitted Asset Swap, at least 75% of the
consideration from such Asset Disposition received by the Company or such
Restricted Subsidiary, as the case may be, is in the form of cash or Cash
Equivalents; and
	 
	 	(3)	 	an amount equal to 100% of the Net Available Cash from such
Asset Disposition is applied by the Company or such Restricted Subsidiary, as
the case may be:
	 
	 	 	 	(a) to prepay, repay or purchase secured Indebtedness of the Company (other
than any Disqualified Stock or Subordinated Obligations) or secured
Indebtedness of a Restricted Subsidiary (other than any Disqualified Stock
or Guarantor Subordinated Obligations of a Restricted Subsidiary that is a
Subsidiary Guarantor) (in each case other than Indebtedness owed to the
Company or an Affiliate of the Company) within 365 days from the later of
the date of such Asset Disposition or the receipt of such Net Available
Cash; provided, however, that, in connection with any prepayment, repayment
or purchase of Indebtedness pursuant to this clause (a), the Company or such
Restricted Subsidiary will retire such Indebtedness and will cause the
related commitment (if any) to be permanently reduced in an amount equal to
the principal amount so prepaid, repaid or purchased; or
	 
	 	 	 	(b) to invest in Additional Assets within 365 days from the later of the
date of such Asset Disposition or the receipt of such Net Available Cash;
provided, however, that with respect to Asset Dispositions of Collateral,
such Additional Assets are added to the Collateral with the exception of Net
Available Cash not to exceed $15.0 million that is invested in Additional
Assets of Non-Guarantor Restricted Subsidiaries;

provided that pending the final application of any such Net Available Cash in
accordance with clause (a) or clause (b) above, the Company and its Restricted
Subsidiaries may temporarily reduce Indebtedness or otherwise invest such Net
Available Cash in any manner not prohibited by this Indenture; provided, further
that in the case of an Asset Disposition of Collateral, any cash will be deposited
in accordance with the Intercreditor Agreement.

          Any Net Available Cash from Asset Dispositions that are not applied or invested as provided in
the preceding paragraph will be deemed to constitute “Excess Proceeds.” To the extent that
the aggregate amount of Excess Proceeds exceeds $10.0 million on the 366th day after an
Asset Disposition, the Company will be required to make an offer (“Asset Disposition
Offer”) to all Holders of Securities and to the extent required by the terms of other Pari
Passu Secured Indebtedness, to all holders of other Pari Passu Secured Indebtedness outstanding
with similar provisions requiring the Company to make an offer to purchase such Pari Passu Secured
Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Notes”), to purchase
the maximum principal amount of Securities and any such Pari Passu Notes to which the Asset
Disposition Offer applies that may be purchased out of the Excess Proceeds, at an offer price in

71

 

cash in an amount equal to 100% of the principal amount of the Securities and Pari Passu Notes plus
accrued and unpaid interest to the date of purchase, in accordance with the procedures set forth in
this Indenture or the agreements governing the Pari Passu Notes, as applicable, and in compliance
with the Intercreditor Agreement in each case in integral multiples of $1,000. To the extent that
the aggregate amount of Securities and Pari Passu Notes so validly tendered and not properly
withdrawn pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the Company may
use any remaining Excess Proceeds for general corporate purposes, subject to other covenants
contained in this Indenture. If the aggregate principal amount of Securities surrendered by
Holders thereof and other Pari Passu Notes surrendered by holders or lenders, collectively, exceeds
the amount of Excess Proceeds, the Trustee shall select the Securities and Pari Passu Notes to be
purchased on a pro rata basis on the basis of the aggregate principal amount of tendered Securities
and Pari Passu Notes. Upon completion of such Asset Disposition Offer, the amount of Excess
Proceeds shall be reset at zero.

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

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

          On or before the Asset Disposition Purchase Date, the Company will, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Asset Disposition Offer Amount
of Securities and Pari Passu Notes or portions of Securities and Pari Passu Notes so validly
tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly withdrawn, all Securities
and Pari Passu Notes so validly tendered and not properly withdrawn, in each case in integral
multiples of $1,000. The Company will deliver to the Trustee an Officers’ Certificate stating that
such Securities or portions thereof were accepted for payment by the Company in accordance with the
terms of this Section 3.5 and, in addition, the Company will deliver all certificates and
securities required, if any, by the agreements governing the Pari Passu Notes. The Company or the
Paying Agent, as the case may be, will promptly (but in any case not later than five Business Days
after the Asset Disposition Purchase Date) mail or

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deliver to each tendering Holder of Securities
or holder or lender of Pari Passu Notes, as the case may be, an amount equal to the purchase price
of the Securities or Pari Passu Notes so validly tendered and not properly withdrawn by such holder
or lender, as the case may be, and accepted by the Company for purchase, and the Company will
promptly issue a new Security, and the Trustee, upon delivery of an Officers’ Certificate from the
Company, will authenticate and mail or deliver such new Security to such Holder, in a principal
amount equal to any unpurchased portion of the Security surrendered; provided that each such new
Security will be in a principal amount of $1,000 or an integral multiple of $1,000. In addition,
the Company will take any and all other actions required by the agreements governing the Pari Passu
Notes. Any Security not so accepted will be promptly mailed or delivered by the Company to the
Holder thereof. The Company will publicly announce the results of the Asset Disposition Offer on
the Asset Disposition Purchase Date.

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

	 	(1)	 	any liabilities as shown on the most recent consolidated
balance sheet of the Company or any Restricted Subsidiary (other than
contingent liabilities and liabilities that are by their terms subordinated to
the Securities) that are assumed by the transferee of any such assets pursuant
to a customary novation agreement that releases the Company or such Restricted
Subsidiary from further liability; and
	 
	 	(2)	 	any securities, notes or other obligations received by the
Company or any such Restricted Subsidiary from such transferee that are
converted by the Company or such Restricted Subsidiary into cash, to the extent
of the cash received in that conversion, with 90 days following the closing of
such Asset Disposition.

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

          SECTION 3.6. Limitation on Liens. The Company will not, and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, create, Incur or suffer to exist any Lien
(other than Permitted Liens) upon any of its property or assets (including Capital Stock of
Restricted Subsidiaries), whether owned on the Issue Date or acquired after that date, which Lien
is securing any Indebtedness, unless contemporaneously with the Incurrence of such Liens effective
provision is made to secure the Indebtedness due under this Indenture and the Securities or, in
respect of Liens on any Restricted Subsidiary’s property or assets, any Subsidiary Guarantee of
such Restricted Subsidiary, equally and ratably with (or senior in priority to in the case of Liens
with respect to Subordinated Obligations or Guarantor Subordinated Obligations, as the case may be)
the Indebtedness secured by such Lien for so long as such Indebtedness is so secured. In addition,
if the Company or any Subsidiary Guarantor, directly or indirectly, shall

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create, Incur or suffer
to exist any Lien (other than Permitted Liens) securing any Credit Agreement Obligations, the
Company or such Subsidiary Guarantor, as the case may be, must concurrently grant at least a
second-priority Lien upon such property as security for the Securities.

          SECTION 3.7. Limitation on Sale/Leaseback Transaction. The Company will not, and will
not permit any of its Restricted Subsidiaries to, enter into any Sale/Leaseback Transaction unless:

	 	(1)	 	the Company or such Restricted Subsidiary, as the case may be,
receives consideration at the time of such Sale/Leaseback Transaction at least
equal to the fair market value (as evidenced by a resolution of the Board of
Directors of the Company) of the property subject to such transaction;
	 
	 	(2)	 	the Company or such Restricted Subsidiary could have Incurred
Indebtedness in an amount equal to the Attributable Indebtedness in respect of
such Sale/Leaseback Transaction pursuant to Section 3.2;
	 
	 	(3)	 	the Company or such Restricted Subsidiary would be permitted to
create a Lien on the property subject to such Sale/Leaseback Transaction
without securing the Securities under Section 3.6; and
	 
	 	(4)	 	the Sale/Leaseback Transaction is treated as an Asset
Disposition and all of the conditions of this Indenture described under
Section 3.5 (including the provisions concerning the application of Net
Available Cash) are satisfied with respect to such Sale/Leaseback Transaction,
treating all of the consideration received in such Sale/Leaseback Transaction
as Net Available Cash for purposes of such covenant.

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

	 	(1)	 	the terms of such Affiliate Transaction are no less favorable
to the Company or such Restricted Subsidiary, as the case may be, than those
that could be obtained in a comparable transaction at the time of such
transaction in arm’s-length dealings with a Person who is not such an
Affiliate;
	 
	 	(2)	 	in the event such Affiliate Transaction involves an aggregate
consideration in excess of $5.0 million, the terms of such transaction have
been approved by a majority of the members of the Board of Directors of the
Company and by a majority of the members of such Board having no personal stake
in such transaction, if any (and such majority or majorities, as the case may
be, determines that such Affiliate Transaction satisfies the criteria in clause
(1) above); and

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	 	(3)	 	in the event such Affiliate Transaction involves an aggregate
consideration in excess of $10.0 million, the Company has received a written
opinion from an independent investment banking, accounting or appraisal firm of
nationally recognized standing that such Affiliate Transaction is not
materially less favorable than those that might reasonably have been obtained
in a comparable transaction at such time on an arm’s-length basis from a Person
that is not an Affiliate.

The preceding paragraph will not apply to:

	 	(1)	 	any Restricted Payment (other than a Restricted Investment)
permitted to be made pursuant to Section 3.3;
	 
	 	(2)	 	any issuance of securities, or other payments, awards or grants
in cash, securities or otherwise pursuant to, or the funding of, employment
agreements and other compensation arrangements, options to purchase Capital
Stock of the Company restricted stock plans, long-term incentive plans, stock
appreciation rights plans, participation plans or similar employee benefits
plans, pension plans or similar plans and/or indemnity provided on behalf of
directors, officers and employees approved by the Board of Directors of the
Company;
	 
	 	(3)	 	loans or advances to employees, officers or directors of the
Company or any Restricted Subsidiary of the Company in the ordinary course of
business consistent with past practices, in an aggregate amount outstanding at
any time not in excess of $2.5 million (without giving effect to the
forgiveness of any such loan);
	 
	 	(4)	 	any transaction between the Company and a Restricted Subsidiary
or between Restricted Subsidiaries and any Guarantees issued by the Company or
a Restricted Subsidiary for the benefit of the Company or a Restricted
Subsidiary, as the case may be, in accordance with Section 3.2;
	 
	 	(5)	 	the payment of reasonable and customary fees paid to, and
indemnity provided on behalf of, directors of the Company or any Restricted
Subsidiary;
	 
	 	(6)	 	the existence of, and the performance of obligations of the
Company or any of its Restricted Subsidiaries under the terms of any agreement
to which the Company or any of its Restricted Subsidiaries is a party as of or
on the Issue Date, as these agreements may be amended, modified, supplemented,
extended or renewed from time to time; provided, however, that any future
amendment, modification, supplement, extension or renewal entered into after
the Issue Date will be permitted to the extent that its terms are not more
disadvantageous to the Holders of the Securities than the terms of the
agreements in effect on the Issue Date;

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	 	(7)	 	transactions with customers, clients, suppliers or purchasers
or sellers of goods or services, in each case in the ordinary course of the
business of the Company and its Restricted Subsidiaries and otherwise in
compliance with the terms of this Indenture; provided that in the reasonable
determination of the members of the Board of Directors or senior management of
the Company, such transactions are on terms that are no less favorable to the
Company or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person; and
	 
	 	(8)	 	any issuance or sale of Capital Stock (other than Disqualified
Stock) to Affiliates of the Company and the granting of registration and other
customary rights in connection therewith.

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

	 	(1)	 	to the Company or a Wholly-Owned Subsidiary; or
	 
	 	(2)	 	in compliance with Section 3.5 and immediately after
giving effect to such issuance or sale, such Restricted Subsidiary either
continues to be a Restricted Subsidiary or if such Restricted Subsidiary would
no longer be a Restricted Subsidiary, then the Investment of the Company in
such Person (after giving effect to such issuance or sale) would have been
permitted to be made under Section 3.3 as if made on the date of such
issuance or sale.

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

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

          SECTION 3.11. Change of Control. If a Change of Control occurs, each Holder shall
have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of such Holder’s Securities at a purchase price in cash equal to 101% of the
principal amount of the Securities plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date).

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

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	 	(1)	 	that a Change of Control has occurred and that such Holder has
the right to require the Company to purchase such Holder’s Securities at a
purchase price in cash equal to 101% of the principal amount of such Securities
plus accrued and unpaid interest, if any, to the date of purchase (subject to
the right of Holders of record on a record date to receive interest on the
relevant interest payment date) (the “Change of Control Payment”);
	 
	 	(2)	 	the repurchase date (which shall be no earlier than 30 days nor
later than 60 days from the date such notice is mailed) (the “Change of
Control Payment Date”); and
	 
	 	(3)	 	the procedures determined by the Company, consistent with this
Indenture, that a Holder must follow in order to have its Securities
repurchased.

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

	 	(1)	 	accept for payment all Securities or portions of Securities (in
integral multiples of $1,000) properly tendered pursuant to the Change of
Control Offer;
	 
	 	(2)	 	deposit with the Paying Agent an amount equal to the Change of
Control Payment in respect of all Securities or portions of Securities so
tendered; and
	 
	 	(3)	 	deliver or cause to be delivered to the Trustee the Securities
so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Securities or portions of Securities being purchased by the
Company.

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

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

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

          The Company will not be required to make a Change of Control Offer upon a Change of Control if
(i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to

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a Change of Control
Offer made by the Company and purchases all Securities validly tendered and not withdrawn under
such Change of Control Offer or (ii) a notice of redemption has been given pursuant to Article
V of this Indenture, unless and until there is a default in payment of the applicable
redemption price.

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

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

	 	(1)	 	all quarterly and annual financial information that would be
required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the
Company were required to file such Forms, including a “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and, with
respect to the annual information only, a report on the annual financial
statements by the Company’s certified independent accountants; and
	 
	 	(2)	 	all current reports that would be required to be filed with the
SEC on Form 8-K if the Company were required to file such reports.

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

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

          In addition, the Company and the Guarantors have agreed that they will make available to the
Holders and to prospective investors, upon the request of such Holders, the information required to
be delivered pursuant to Rule 144A(d)(4) under the Securities Act so

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long as the Securities are not
freely transferable under the Securities Act. For purposes of this Section 3.12, the
Company and the Note Guarantors will be deemed to have furnished the reports to the Trustee and the
Holders of Securities as required by this Section 3.12 if it has filed such reports with
the SEC via the EDGAR filing system and such reports are publicly available.

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

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

          SECTION 3.13. Future Subsidiary Guarantors. The Company will cause each Restricted
Subsidiary that Guarantees, on the Issue Date or any time thereafter, any Indebtedness of the
Company or any Subsidiary Guarantor to execute and deliver to the Trustee a supplemental indenture
pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint and several
basis, the full and prompt payment of the principal of, premium, if any, and interest (including
Additional Interest, if any) in respect of the Securities on a senior secured basis and all other
obligations under this Indenture. Each Restricted Subsidiary that becomes a Subsidiary Guarantor
after the Issue Date will also become a party to the Collateral Documents and the Intercreditor
Agreement and will take such actions as are necessary or advisable to grant to the Collateral Agent
for the benefit of the Trustee, the Collateral Agent and the holders of the Securities a perfected
and at least second-priority security interest in any Collateral held by such Restricted
Subsidiary, subject to Permitted Liens. Notwithstanding the foregoing, in the event (a) a
Subsidiary Guarantor is released and discharged in full from all of its obligations under its
Guarantee of (1) Indebtedness under the Senior Secured Credit Agreement and (2) all other
Indebtedness of the Company and its Restricted Subsidiaries, including a Guarantee under the
indenture governing the Private Placement Notes, and (b) such Subsidiary Guarantor has not Incurred
any Indebtedness in reliance on its status as a Subsidiary Guarantor under Section 3.2 or
such Subsidiary Guarantor’s obligations under such Indebtedness are satisfied in full and
discharged or are otherwise permitted to be Incurred by a Restricted Subsidiary (other than a
Subsidiary Guarantor) under the second paragraph of Section 3.2, then the Subsidiary
Guarantee and the obligations of such Subsidiary Guarantor under the Collateral Documents and
Intercreditor Agreement of such Subsidiary Guarantor shall be automatically and unconditionally
released or discharged.

          SECTION 3.14. Maintenance of Office or Agency. The Company shall maintain an office
or agency where the Securities may be presented or surrendered for payment, where, if applicable,
the Securities may be surrendered for registration of transfer or exchange

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

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

          SECTION 3.15. Corporate Existence. Except as otherwise provided in Article
III, Article IV and Section 10.2(b), the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate existence and the
corporate, partnership, limited liability company or other existence of each Subsidiary Guarantor,
if any, in accordance with their respective organizational documents (as the same may be amended
from time to time) and the rights (charter and statutory) licenses and franchises of the Company
and each such Subsidiary Guarantor; provided, however, that the Company shall not be required to
preserve any such right, license or franchise or the corporate, partnership, limited liability
company or other existence of any Subsidiary Guarantor if the Board of Directors of the Company
shall determine that the preservation thereof is no longer desirable in the conduct of the business
of the Company and each of its Restricted Subsidiaries, taken as a whole, and that the loss thereof
is not, and will not be, disadvantageous in any material respect to the Holders; provided, further,
that the foregoing shall not prohibit a sale, transfer, or conveyance of a Restricted Subsidiary or
any of its assets in compliance with the terms of this Indenture.

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

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          SECTION 3.17. Payments for Consent. Neither the Company nor any of its Restricted
Subsidiaries will, directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fees or otherwise, to any Holder of any Securities for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or is paid to all Holders of the Securities that
consent, waive or agree to amend in the time frame set forth in the solicitation documents relating
to such consent, waiver or amendment.

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

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

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

ARTICLE IV

SUCCESSOR COMPANY

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

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

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	 	 	 	recorded in such jurisdictions as may be
required by applicable law to preserve and protect the Lien on the Collateral
pledged by or transferred to such Person, together with such financing
statements or comparable documents as may be required to perfect any security
interests in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the Uniform Commercial Code or
other similar statute or regulation of the relevant states or jurisdictions, in
each case in a form reasonably satisfactory to the Trustee;
	 
	 	(2)	 	immediately after giving effect to such transaction (and
treating any Indebtedness that becomes an obligation of the Successor Company
or any Subsidiary of the Successor Company as a result of such transaction as
having been Incurred by the Successor Company or such Subsidiary at the time of
such transaction), no Default or Event of Default shall have occurred and be
continuing;
	 
	 	(3)	 	immediately after giving effect to such transaction, the
Successor Company would (i) be able to Incur at least $1.00 of additional
Indebtedness pursuant to the first paragraph of Section 3.2 or (ii)
have a Consolidated Coverage Ratio of not less than the Consolidated Coverage
Ratio of the Company immediately prior to such transaction;
	 
	 	(4)	 	each Note Guarantor (unless it is the other party to the
transactions above, in which case clause (1) shall apply) shall have by
supplemental indenture confirmed that its Note Guarantee shall apply to such
Person’s obligations in respect of this Indenture and the Securities and shall
have by written agreement confirmed that its obligations under the Registration
Rights Agreement, the Collateral Documents and the Intercreditor Agreement
shall continue to be in effect and shall cause such amendments, supplements or
other instruments to be executed, filed, and recorded in such jurisdictions as
may be required by applicable law to preserve and protect the Lien on the
Collateral pledged by such Note Guarantor, together with such financing
statements or comparable documents as may be required to perfect any security
interests in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the Uniform Commercial Code or
other similar statute or regulation of the relevant states or jurisdictions, in
each case in a form reasonably satisfactory to the Trustee; and
	 
	 	(5)	 	the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer and such supplemental indenture (if any) comply with this
Indenture, the Collateral Documents and the Intercreditor Agreement.

Notwithstanding the preceding clause (3), (x) any Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to the Company and (y) the Company may
merge with an Affiliate incorporated solely for the purpose of reincorporating the Company

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in another jurisdiction; provided that, in the case of a Restricted Subsidiary that merges into the
Company, the Company will not be required to comply with the preceding clause (5).

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

	 	(1)	 	the resulting, surviving or transferee Person (the
“Successor Parent”) will be a corporation organized and existing under
the laws of the United States of America, any State of the United States or the
District of Columbia, the Successor Parent (if not the Parent) will expressly
assume, by supplemental indenture (and other applicable documents), executed
and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of the Parent under its Note Guarantee, this Indenture, the
Collateral Documents, the Intercreditor Agreement and the Registration Rights
Agreement and the Successor Parent shall cause such amendments, supplements or
other instruments to be executed, filed, and recorded in such jurisdictions as
may be required by applicable law to preserve and protect the Lien on the
Collateral pledged by or transferred to such Person, together with such
financing statements or comparable documents as may be required to perfect any
security interests in such Collateral which may be perfected by the filing of a
financing statement or a similar document under the Uniform Commercial Code or
other similar statute or regulation of the relevant states or jurisdictions, in
each case in a form reasonably satisfactory to the Trustee;
	 
	 	(2)	 	immediately after giving effect to such transaction (and
treating any Indebtedness that becomes an obligation of the Successor Parent or
any Subsidiary of the Successor Parent as a result of such transaction as
having been Incurred by the Successor Parent or such Subsidiary at the time of
such transaction), no Default or Event of Default shall have occurred and be
continuing; and
	 
	 	(3)	 	the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or transfer and such supplemental indenture (if any) comply with this
Indenture, the Collateral Documents and the Intercreditor Agreement.

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

          The predecessor Company will be released from its obligations under this Indenture and the
Successor Company will succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture, the Collateral Documents and the

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Intercreditor Agreement,
but, in the case of a lease of all or substantially all its assets, the predecessor Company will
not be released from the obligation to pay the principal of and interest on the Securities or any
obligation under the Collateral Documents and the Intercreditor Agreement.

          In addition, the Company will not permit any Subsidiary Guarantor to consolidate with, merge
with or into any Person (other than another Subsidiary Guarantor) and will not permit the
conveyance, transfer or lease of all or substantially all of the assets of any Subsidiary Guarantor
(other than to another Subsidiary Guarantor) unless:

	 	(1)	 	(a) if such entity remains a Subsidiary Guarantor, the
resulting, surviving or transferee Person will be a corporation, partnership,
trust or limited liability company organized and existing under the laws of the
United States of America, any State of the United States or the District of
Columbia; (b) immediately after giving effect to such transaction (and treating
any Indebtedness that becomes an obligation of the resulting, surviving or
transferee Person or any Restricted Subsidiary as a result of such transaction
as having been Incurred by such Person or such Restricted Subsidiary at the
time of such transaction), no Default or Event of Default shall have occurred
and be continuing; (c) the resulting, surviving or transferee Person assumes
all the obligations of such Subsidiary Guarantor pursuant to a supplemental
indenture in form and substance reasonably satisfactory to the Trustee under
the Securities, this Indenture, the Collateral Documents, the Intercreditor
Agreement and the Registration Rights Agreement and shall cause such
amendments, supplements or other instruments to be executed, filed and recorded
in such jurisdictions as may be required by applicable law to preserve and
protect the Lien on the Collateral pledged by or transferred to the surviving
entity, together with such financing statements or comparable documents as may
be required to perfect any security interest in such Collateral which may be
perfected by the filing of a financing statement or a similar document under
the Uniform Commercial Code or other similar statute or regulation of the
relevant states or jurisdictions in each case in a form reasonably satisfactory
to the Trustee; and (d) the Company will have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture; and
	 
	 	(2)	 	the transaction is made in compliance with Section 3.5
(it being understood that only such portion of the Net Available Cash as is
required to be applied on the date of such transaction in accordance with the
terms of this Indenture needs to be applied in accordance therewith at such
time), Section 3.9 and this Section 4.1.

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ARTICLE V

REDEMPTION OF SECURITIES

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

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

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

          SECTION 5.4. Selection by Trustee of Securities to Be Redeemed. If less than all the
Securities are to be redeemed at any time pursuant to an optional redemption, the particular
Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee, from the outstanding Securities not previously called for redemption, in compliance
with the requirements of the principal national securities exchange, if any, on which such
Securities are listed, or, if such Securities are not so listed, on a pro rata basis, by lot or by
such other method as the Trustee in its sole discretion shall deem fair and appropriate (and in
such manner as complies with applicable legal requirements) and which may provide for the selection
for redemption of portions of the principal of the Securities; provided, however, that no such
partial redemption shall reduce the portion of the principal amount of a Security not redeemed to
less than $1,000.

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

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Securities shall relate, in the case of any Security redeemed or to be
redeemed only in part, to the portion of the principal amount of such Security which has been or is
to be redeemed.

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

          All notices of redemption shall state:

     (1) the Redemption Date,

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE VI

DEFAULTS AND REMEDIES

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

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

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	 	(2)	 	default in the payment of principal of or premium, if any, on
any Security when due at its Stated Maturity, upon optional redemption, upon
required repurchase, upon declaration or otherwise;
	 
	 	(3)	 	failure by the Company or any Note Guarantor to comply with its
obligations under Section 4.1;
	 
	 	(4)	 	failure by the Company or any Note Guarantor to comply for 30
days after notice as provided below with (a) any of its obligations under
Article III (in each case, other than a failure to purchase Securities
that will constitute an Event of Default under clause (2) above and other than
a failure to comply with Section 4.1, which will constitute an Event of
Default under clause 3 of this section) or (b) any of its agreements contained
in the Collateral Documents or Intercreditor Agreement;
	 
	 	(5)	 	failure by the Company or any Note Guarantor to comply for 60
days after notice as provided below with its other agreements contained in this
Indenture;
	 
	 	(6)	 	default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries), other than Indebtedness owed to the Company or a
Restricted Subsidiary, whether such Indebtedness or guarantee now exists, or is
created after the Issue Date, which default:

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

	 	 	 	and, in each case, the principal amount of any such Indebtedness, together
with the principal amount of any other such Indebtedness under which there
has been a payment default or the maturity of which has been so accelerated,
aggregates $15.0 million or more;
	 
	 	(7)	 	(a) the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary, pursuant to or within
the meaning of any Bankruptcy Law:

	 	(i)	 	commences a voluntary case or
proceeding;

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	 	(ii)	 	consents to the entry of
judgment, decree or order for relief against it in an
involuntary case or proceeding;
	 
	 	(iii)	 	consents to the appointment of a
Custodian of it or for any substantial part of its property;
	 
	 	(iv)	 	makes a general assignment for
the benefit of its creditors;
	 
	 	(v)	 	consents to or acquiesces in the
institution of a bankruptcy or an insolvency proceeding against
it;
	 
	 	(vi)	 	takes any corporate action to
authorize or effect any of the foregoing;
	 
	 	(vii)	 	takes any comparable action
under any foreign laws relating to insolvency; or

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

	 	(i)	 	is for relief in an involuntary
case against the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest
audited consolidated financial statements for the Company and
its Restricted Subsidiaries), would constitute a Significant
Subsidiary, pursuant to or within the meaning of any Bankruptcy
Law;
	 
	 	(ii)	 	appoints a Custodian for all or
substantially all of the property of the Company or a
Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries),
would constitute a Significant Subsidiary, pursuant to or within
the meaning of any Bankruptcy Law; or
	 
	 	(iii)	 	orders the winding up or
liquidation of the Company or a Significant Subsidiary or group
of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company
and its Restricted Subsidiaries), would constitute a Significant
Subsidiary, pursuant to or within the meaning of any Bankruptcy
Law; and
	 
	 	(iv)	 	in each case the order, decree or
relief remains unstayed and in effect for 60 days;

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

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	 	 	 	consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of $15.0 million (net of any amounts that a reputable and
creditworthy insurance company has acknowledged liability for in writing),
which judgments are not paid, discharged or stayed for a period of 60 days (the
“judgment default provision”);
	 
	 	(9)	 	any Subsidiary Guarantee, Collateral Document or obligation
under the Intercreditor Agreement of a Significant Subsidiary or group of
Restricted Subsidiaries that taken together as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries would constitute a Significant Subsidiary ceases to be in full
force and effect (except as contemplated by the terms of this Indenture) or is
declared null and void in a judicial proceeding or any Subsidiary Guarantor
that is a Significant Subsidiary or group of Subsidiary Guarantors that taken
together as of the latest audited consolidated financial statements of the
Company and its Restricted Subsidiaries would constitute a Significant
Subsidiary denies or disaffirms its obligations under this Indenture, its
Subsidiary Guarantee, any Collateral Document or the Intercreditor Agreement;
or
	 
	 	(10)	 	with respect to any Collateral having a fair market value in
excess of $15.0 million, individually or in the aggregate, (A) the security
interest under the Collateral Documents, at any time, ceases to be in full
force and effect for any reason other than in accordance with their terms and
the terms of this Indenture and other than the satisfaction in full of all
obligations under this Indenture and discharge of this Indenture, (B) any
security interest created thereunder or under this Indenture is declared
invalid or unenforceable or (C) the Company or any Note Guarantor asserts, in
any pleading in any court of competent jurisdiction, that any such security
interest is invalid or unenforceable.

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

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

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

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Securities to be due and payable. Upon such a declaration, such principal, premium and accrued and
unpaid interest will be due and payable immediately.

          In the event of a declaration of acceleration of the Securities because an Event of Default
described in clause (6) of Section 6.1 has occurred and is continuing, the declaration of
acceleration of the Securities shall be automatically annulled if the default triggering such Event
of Default pursuant to clause (6) of Section 6.1 shall be remedied or cured by the Company
or a Restricted Subsidiary or waived by the Holders of the relevant Indebtedness within 20 days
after the declaration of acceleration with respect thereto and if (1) the annulment of the
acceleration of the Securities would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, except nonpayment of principal,
premium or interest on the Securities that became due solely because of the acceleration of the
Securities, have been cured or waived.

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

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

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

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

          SECTION 6.5. Control by Majority. The Holders of a majority in principal amount of
the outstanding Securities may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or the Collateral Agent or of exercising any trust or power
conferred on the Trustee or the Collateral Agent. However, the Trustee may

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refuse to follow any
direction that conflicts with law or this Indenture, the Collateral Documents or the Intercreditor
Agreement or, subject to Sections 7.1 and 7.2, that the Trustee determines is
unduly prejudicial to the rights of any other Holder or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all
losses and expenses caused by taking or not taking such action.

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

	 	(1)	 	such Holder has previously given the Trustee written notice
that an Event of Default is continuing;
	 
	 	(2)	 	Holders of at least 25% in principal amount of the outstanding
Securities have made a written request to the Trustee to pursue the remedy;
	 
	 	(3)	 	such Holders have offered the Trustee reasonable security or
indemnity against any loss, liability or expense;
	 
	 	(4)	 	the Trustee has not complied with such request within 60 days
after the receipt of the request and the offer of security or indemnity; and
	 
	 	(5)	 	the Holders of a majority in principal amount of the
outstanding Securities have not given the Trustee a direction that, in the
opinion of the Trustee, is inconsistent with such request within such 60-day
period.

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

          SECTION 6.7. Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture (including Section 6.6), the right of any Holder to receive
payment of principal of, premium, if any, or interest on the Securities held by such Holder, on or
after the respective due dates expressed in the Securities, or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

          SECTION 6.8. Collection Suit by Trustee. If an Event of Default specified in clauses
(1) or (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company for the whole amount then due and
owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided
for under Section 7.7.

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          SECTION 6.9. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company, its Subsidiaries or its or their respective creditors or
properties and, unless prohibited by law or applicable regulations, may be entitled and empowered
to participate as a member of any official committee of creditors appointed in such matter and may
vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing
similar functions, and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its
counsel, and any other amounts due the Trustee under Section 7.7.

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

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

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

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

          The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 6.10.

          SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in
the suit, having due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in outstanding
principal amount of the Securities.

ARTICLE VII

TRUSTEE

          SECTION 7.1. Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee will exercise the rights and powers vested in it by this Indenture and

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use
the same degree of care and skill in their exercise as a prudent Person would exercise or use under
the circumstances in the conduct of such Person’s own affairs.

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

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates, opinions or orders furnished to the Trustee and conforming to the requirements
of this Indenture. However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee
shall examine such certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

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

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

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

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

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

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

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

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

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

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

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

          (a) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) reasonably believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document. The Trustee
shall receive and retain financial reports and statements of the Company as provided herein, but
shall have no duty to review or analyze such reports or statements to determine compliance under
covenants or other obligations of the Company.

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

          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

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

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

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

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

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

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

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

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

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

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

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

          SECTION 7.5. Notice of Defaults. If a Default occurs and is continuing and is known
to the Trustee, the Trustee must mail to each Holder notice of the Default within 90 days after it
occurs. Except in the case of a Default in the payment of principal of, premium, if any, or
interest on any Security, the Trustee may withhold notice if and so long as a committee of Trust

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Officers of the Trustee in good faith determines that withholding notice is in the interests of the
Holders.

          SECTION 7.6. Reports by Trustee to Holders. As promptly as practicable after each
June 1 following the date of this Indenture beginning June 1, 2006, and in any event prior to July
1 in each year, the Trustee shall mail to each Holder a brief report dated as of such mail date
that complies with TIA § 313(a) if and to the extent required thereby. The Trustee also shall
comply with TIA § 313(b) and TIA § 313(c).

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

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

          The Company and each Subsidiary Guarantor (if any), jointly and severally, shall indemnify the
Trustee against any and all loss, liability, damages, claims or expense (including reasonable
attorneys’ fees and expenses) incurred by it without negligence, bad faith or willful misconduct on
its part in connection with the administration of this trust and the performance of its duties
hereunder, including the costs and expenses of enforcing this Indenture (including this Section
7.7) and of defending itself against any claims (whether asserted by any Holder, the Company or
otherwise) or liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company or any
Subsidiary Guarantor of its obligations hereunder, except to the extent that they were prejudiced
by such failure to notify. The Company shall defend the claim and the Trustee shall provide
reasonable cooperation at the Company’s expense in the defense. The Trustee may have separate
counsel and the Company and the Subsidiary Guarantors, if any, shall pay the fees and expenses of
such counsel; provided that the Company shall not be required to pay such fees and expenses if they
assume the Trustee’s defense, and, in the reasonable judgment of outside counsel to the Trustee,
there is no conflict of interest between the Company and the Trustee in connection with such
defense. Notwithstanding the foregoing, the Company and the

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Subsidiary Guarantors, if any, need
not reimburse any expense or indemnify against any loss, liability or expense which is finally
determined by a court of competent jurisdiction to have been caused by the Trustee’s own willful
misconduct, negligence or bad faith.

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

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

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

	 	(1)	 	the Trustee fails to comply with Section 7.10;
	 
	 	(2)	 	the Trustee is adjudged bankrupt or insolvent;
	 
	 	(3)	 	a receiver or other public officer takes charge of the Trustee
or its property; or
	 
	 	(4)	 	the Trustee otherwise becomes incapable of acting as trustee
hereunder.

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

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

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

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

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

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

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

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

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

          SECTION 7.12. Trustee’s Application for Instruction from the Company. Any application
by the Trustee for written instructions from the Company may, at the option of the Trustee, set
forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and
the date on and/or after which such action shall be taken or such omission shall be

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effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee in accordance with
a proposal included in such application on or after the date specified in such application (which
date shall not be less than three Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in writing to any earlier
date) unless prior to taking any such action (or the effective date in the case of an omission),
the Trustee shall have received written instructions in response to such application specifying the
action to be taken or omitted.

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

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

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

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

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

          SECTION 8.1. Discharge of Liability on Securities; Defeasance. (a) Subject to
Section 8.1(c), when (i)(x) the Company delivers to the Trustee all outstanding Securities
(other than Securities replaced pursuant to Section 2.9) for cancellation or (y) all
outstanding Securities not theretofore delivered for cancellation have become due and payable,
whether at maturity or upon redemption, or will become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption pursuant to Article V hereof and the Company or any Subsidiary
Guarantor irrevocably deposits or causes to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders money in U.S. dollars, U.S. Government Obligations, or a
combination thereof, in such amounts as will be sufficient without consideration of any
reinvestment of interest to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation for principal, premium, if any, and accrued
interest to the date of maturity or redemption; (ii) no Default or Event of Default shall have
occurred and be continuing on the date of such deposit or shall occur as a result of such deposit
(other than a default resulting from borrowing of funds to be applied to such deposit and the grant
of any Lien securing such borrowing) and such deposit will not result in a breach or violation of,
or constitute a default under, the Senior Secured Credit Agreement or any other material instrument
to which the Company or any Significant Subsidiary is a party or by which the Company or any

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Significant Subsidiary is bound; (iii) the Company or any Subsidiary Guarantor has paid or caused
to be paid all sums payable to the Trustee under this Indenture and the Securities; and (iv) the
Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of such Securities at maturity or the Redemption Date, as the
case may be, then upon demand of the Company (accompanied by an Officers’ Certificate and an
Opinion of Counsel stating that all conditions precedent specified herein relating to the
satisfaction and discharge of this Indenture have been complied with) this Indenture shall cease to
be of further effect with respect to the Securities and the Trustee shall acknowledge satisfaction
and discharge of this Indenture, at the cost and expense of the Company.

          (b) Subject to Sections 8.1(c) and 8.2, the Company and the Subsidiary
Guarantors at any time may terminate (i) all their obligations under the Securities, this
Indenture, the Collateral Documents and the Intercreditor Agreement, and cause the release of all
Collateral under the Collateral Documents (“legal defeasance option”), and after giving
effect to such legal defeasance, any omission to comply with such obligations shall no longer
constitute a Default or Event of Default or (ii) their obligations under Sections 3.2,
3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9,
3.10, 3.11, 3.12, 3.13, 3.17 and 4.1(3), and the
Company may omit to comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to comply with such
covenants shall no longer constitute a Default or an Event of Default under Sections 6.1(3)
(only with respect to Section 4.1(3)), 6.1(4) (only with respect to such
covenants), 6.1(5) (only with respect to such covenants), 6.1(6), 6.1(7)
(with respect only to Significant Subsidiaries), 6.1(8) or 6.1(10) and the events
specified in such Sections shall no longer constitute an Event of Default (clause (ii) being
referred to as the “covenant defeasance option”), but except as specified above, the
remainder of this Indenture and the Securities shall be unaffected thereby. The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance
option.

          If the Company exercises its legal defeasance option, payment of the Securities may not be
accelerated because of an Event of Default and the Subsidiary Guarantees in effect at such time
shall terminate. If the Company exercises its covenant defeasance option, payment of the
Securities may not be accelerated because of an Event of Default specified under Sections
6.1(3) (only with respect to Section 4.1(3)), 6.1(4) (only with respect to such
covenants), 6.1(5) (only with respect to such covenants), 6.1(6), 6.1(7)
(with respect only to Significant Subsidiaries) 6.1(8) or 6.1(10).

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

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

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

	 	(1)	 	the Company irrevocably deposits in trust with the Trustee for
the benefit of the Holders money in U.S. dollars or U.S. Government Obligations
or a combination thereof, the principal of and interest (without reinvestment)
on which will be sufficient, or a combination thereof sufficient, for the
payment of principal of, premium, if any, and interest on the Securities to
maturity or redemption, as the case may be;
	 
	 	(2)	 	the Company delivers to the Trustee an Officers’ Certificate
stating that the payments of principal and interest when due and without
reinvestment of the deposited U.S. Government Obligations plus any deposited
money without investment will provide cash at such times and in such amounts as
will be sufficient to pay principal and interest when due on all the Securities
to maturity or redemption, as the case may be;
	 
	 	(3)	 	no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit and
the grant of any Lien securing such borrowings) or insofar as Events of Default
specified in Section 6.1(7) are concerned, at any time in the period
ending on the 91st day after such date of deposit;
	 
	 	(4)	 	such legal defeasance or covenant defeasance shall not result
in a breach or violation of, or constitute a Default under, this Indenture or
any other material agreement or instrument to which the Company or any of its
Significant Subsidiaries is a party or by which the Company or any of its
Significant Subsidiaries is bound;
	 
	 	(5)	 	the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that (A) the Securities and (B) assuming no intervening
bankruptcy of the Company between the date of deposit and the 91st day
following the deposit and that no Holder of the Securities is an insider of the
Company, after the 91st day following the deposit, the trust funds will not be
subject to the effect of any applicable bankruptcy, insolvency, reorganization
or similar laws affecting creditors’ rights generally;
	 
	 	(6)	 	the Company delivers to the Trustee an Opinion of Counsel to
the effect that the trust resulting from the deposit does not constitute, and
does not qualify as, a regulated investment company under the Investment
Company Act of 1940;
	 
	 	(7)	 	in the case of the legal defeasance option, the Company shall
have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) in the United States stating that (i) the Company
has received from, or there has been published by, the Internal

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	 	 	 	Revenue Service
a ruling, or (ii) since the date of this Indenture there has been a change in
the applicable federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders will not
recognize income, gain or loss for federal income tax purposes as a result of
such deposit and legal defeasance and will be subject to federal income tax on
the same amount, in the same manner and at the same times as would have been
the case if such deposit and legal defeasance had not occurred;
	 
	 	(8)	 	in the case of the covenant defeasance option, the Company
shall have delivered to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) in the United States to the effect that the Holders
will not recognize income, gain or loss for federal income tax purposes as a
result of such deposit and covenant defeasance and will be subject to federal
income tax on the same amount, in the same manner and at the same times as
would have been the case if such deposit and covenant defeasance had not
occurred; and
	 
	 	(9)	 	the Company delivers to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent to either
the legal defeasance or covenant defeasance, as the case may be, as
contemplated by this Article VIII have been complied with.

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

          SECTION 8.4. Repayment to the Company. The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money, U.S. Government Obligations or
securities held by them upon payment of all the obligations under this Indenture.

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

          SECTION 8.5. Indemnity for U.S. Government Obligations. The Company shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against
deposited U.S. Government Obligations or the principal and interest received on such U.S.
Government Obligations other than any such tax, fee or other charge that is for the account of the
Holder of the Securities.

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          SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article VIII by reason of any
legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the obligations of the Company
and each Subsidiary Guarantor, if any, under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until such time
as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with this Article VIII; provided, however, that, if the Company or the
Subsidiary Guarantors have made any payment of principal, premium, if any, interest on or principal
of any Securities because of the reinstatement of its obligations, the Company or Subsidiary
Guarantors, as the case may be, shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

          The Trustee’s rights under this Article VIII shall survive termination of this
Indenture.

ARTICLE IX

AMENDMENTS

          SECTION 9.1. Without Consent of Holders. The Company, the Note Guarantors and the
Trustee may amend or supplement this Indenture, the Securities, the Collateral Documents, the
Intercreditor Agreement, or any Note Guarantees without the consent of any Holder to:

	 	(1)	 	cure any ambiguity, omission, defect or inconsistency;
	 
	 	(2)	 	provide for the assumption by a successor corporation of the
obligations of the Company or any Note Guarantor under this Indenture;
	 
	 	(3)	 	provide for uncertificated Securities in addition to or in
place of certificated Securities (provided that the uncertificated Securities
are issued in registered form for purposes of Section 163(f) of the Code, or in
a manner such that the uncertificated Securities are described in Section
163(f) (2) (B) of the Code);
	 
	 	(4)	 	add Guarantees with respect to the Securities or release a
Subsidiary Guarantor upon its designation as an Unrestricted Subsidiary;
provided, however, that the designation is in accordance with the applicable
provisions of this Indenture;
	 
	 	(5)	 	expand the collateral securing the Securities;
	 
	 	(6)	 	add to the covenants of the Company and the Restricted
Subsidiaries for the benefit of the Holders or surrender any right or power
conferred upon the Company or any Restricted Subsidiary;
	 
	 	(7)	 	make any change that does not adversely affect the rights of
any Holder;

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	 	(8)	 	comply with any requirement of the SEC in connection with the
qualification of this Indenture under the TIA;
	 
	 	(9)	 	release a Note Guarantor from its obligations under its Note
Guarantee or this Indenture in accordance with the applicable provisions of
this Indenture;
	 
	 	(10)	 	release Liens in favor of the Collateral Agent in the
Collateral as provided under Section 11.7 or otherwise in accordance with the
terms of this Indenture, Collateral Documents or the Intercreditor Agreement;
	 
	 	(11)	 	provide for the appointment of a successor trustee; provided
that the successor trustee is otherwise qualified and eligible to act as such
under the terms of this Indenture;
	 
	 	(12)	 	provide for the issuance of Exchange Securities that shall have
terms substantially identical in all respects to the Securities (except that
the transfer restrictions contained in the Securities shall be modified or
eliminated as appropriate) and that shall be treated, together with any
outstanding Securities, as a single class of securities; or
	 
	 	(13)	 	conform the text of this Indenture, the Securities or the Note
Guarantees to any provision of the “Description of senior secured notes”
section of the Offering Memorandum to the extent that such provision in the
“Description of senior secured notes” was intended to be a verbatim recitation
of a provision of this Indenture, the Securities or the Note Guarantees.

          After an amendment or supplement under this Section, the Collateral Documents, or the
Intercreditor Agreement becomes effective, the Company shall mail to Holders a notice briefly
describing such amendment or supplement. The failure to give such notice to all Holders, or any
defect therein, shall not impair or affect the validity of an amendment or supplement under this
Section 9.1.

          SECTION 9.2. With Consent of Holders. The Company, the Subsidiary Guarantors and the
Trustee may amend or supplement this Indenture, the Securities or any Subsidiary Guarantee with the
consent of the Holders of at least a majority in principal amount of the Securities then
outstanding (including consents obtained in connection with a purchase of, or tender offer or
exchange offer for, Securities). Any past default or compliance with any provision of this
Indenture, the Securities or any Subsidiary Guarantee (other than a Default or an Event of Default
in the payment of the principal of, or premium, if any, or interest on a Security (except in
accordance with Section 6.4)) may be waived with the consent of the Holders of a majority
in principal amount of the Securities then outstanding (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities). However, without the
consent of each Holder affected, an amendment, supplement or waiver may not (with respect to any
Securities held by a non-consenting Holder of Securities):

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     (1) reduce the amount of Securities whose Holders must consent to an amendment;

     (2) change the method of calculating the rate of interest or extend the stated time for
payment of interest on any Security;

     (3) reduce the principal of or extend the Stated Maturity of any Security;

     (4) reduce the premium payable upon the redemption or repurchase of any Security or
change the time at which any Security may be redeemed or repurchased pursuant to Article
V or Section 3.11, whether through an amendment or waiver of provisions in the
covenants or otherwise; provided that amendments to the definition of Change of Control
shall not require the consent of each Holder affected;

     (5) make any Security payable in money other than that stated in the Security;

     (6) impair the right of any Holder to receive payment of principal, premium, if any,
and interest on such Holder’s Securities on or after the due dates therefor or to institute
suit for the enforcement of any payment on or with respect to such Holder’s Securities;

     (7) make any change to the amendment provisions that require each Holder’s consent or
to the waiver provisions;

     (8) modify the Note Guarantees in any manner adverse to the Holders of the Securities;
or

     (9) modify the provisions of the Collateral Documents or the Intercreditor Agreement in
any manner materially adverse to the holders of the Securities or release all or
substantially all of the Collateral from the Lien under the Intercreditor Agreement other
than in accordance with this Indenture, the Collateral Documents or the Intercreditor
Agreement.

          In addition, without the consent of holders of sixty-six and two-thirds percent (66 2/3%) in
aggregate principal amount of the Securities outstanding, an amendment or waiver may not (with
respect to any Securities held by a non-consenting holder) release Collateral other than in
accordance with this Indenture, the Collateral Documents and the Intercreditor Agreement.

          It shall not be necessary for the consent of the Holders under this Section 9.2 to
approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof. A consent to any amendment, supplement
or waiver under this Indenture by any Holder of the Securities given in connection with a tender or
exchange of such Holder’s Securities will not be rendered invalid by such tender or exchange.

          After an amendment or supplement under this Section becomes effective, the Company shall mail
to Holders a notice briefly describing such amendment or supplement. The

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failure to give such notice to all Holders, or any defect therein, shall not impair or affect
the validity of an amendment or supplement under this Section 9.2.

          SECTION 9.3. Compliance with Trust Indenture Act. Every amendment or supplement to
this Indenture or the Securities shall comply with the TIA as then in effect.

          SECTION 9.4. Revocation and Effect of Consents and Waivers. A consent to an
amendment, supplement or a waiver by a Holder of a Security shall bind the Holder and every
subsequent Holder of that Security or portion of the Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent or waiver is not made on the
Security. Any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation
before the date the amendment, supplement or waiver becomes effective or otherwise in accordance
with any related solicitation documents. After an amendment, supplement or waiver becomes
effective, it shall bind every Holder unless it makes a change described in any of clauses (1)
through (9) of Section 9.2, in which case the amendment, supplement, waiver or other action
shall bind each Holder who has consented to it and every subsequent Holder that evidences the same
debt as the consenting Holder’s Securities. An amendment, supplement or waiver shall become
effective upon receipt by the Trustee of the requisite number of written consents under Section
9.1 or 9.2 as applicable.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to give their consent or take any other action described above or
required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be entitled to give such
consent or to revoke any consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall become valid or
effective more than 120 days after such record date.

          SECTION 9.5. Notation on or Exchange of Securities. If an amendment, supplement or
waiver changes the terms of a Security, the Trustee may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determine, the Company in exchange for the Security shall issue and the Trustee shall authenticate
a new Security that reflects the changed terms. Failure to make the appropriate notation or to
issue a new Security shall not affect the validity of such amendment.

          SECTION 9.6. Trustee To Sign Amendments. The Trustee shall sign any amendment,
supplement or waiver authorized pursuant to this Article IX if the amendment, supplement or
waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If
it does, the Trustee may but need not
sign it. In signing such amendment, supplement or waiver the Trustee shall be entitled to
receive indemnity reasonably satisfactory to it and shall be provided with, and (subject to
Sections 7.1 and 7.2) shall be fully protected in relying upon an Officers’
Certificate and an Opinion of Counsel stating that such amendment, supplement or waiver is
authorized or permitted by this Indenture and that such amendment, supplement or waiver is the
legal, valid and binding obligation of the Company and any

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Subsidiary Guarantors, enforceable
against them in accordance with its terms, subject to customary exceptions, and complies with the
provisions hereof (including Section 9.3).

ARTICLE X

NOTE GUARANTEES

          SECTION 10.1. Note Guarantees. Each Note Guarantor hereby fully, unconditionally and
irrevocably guarantees, as primary obligor and not merely as surety, jointly and severally with
each other Note Guarantor, to each Holder of the Securities and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the
principal of, premium, if any, and interest on the Securities and all other monetary obligations of
the Company under this Indenture (including interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Company or any Note Guarantor whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) (all the foregoing being hereinafter collectively called the
“Guarantor Obligations”). Each Note Guarantor further agrees (to the extent permitted by
law) that the Guarantor Obligations may be extended or renewed, in whole or in part, without notice
or further assent from it, and that it will remain bound under this Article X
notwithstanding any extension or renewal of any Guarantor Obligation.

          Each Note Guarantor waives presentation to, demand of payment from and protest to the Company
of any of the Guarantor Obligations and also waives notice of protest for nonpayment. Each Note
Guarantor waives notice of any default under the Securities or the Guarantor Obligations.

          Each Note Guarantor further agrees that its Note Guarantee herein constitutes a Guarantee of
payment when due (and not a Guarantee of collection) and waives any right to require that any
resort be had by any Holder to any security held for payment of the Guarantor Obligations.

          Except as set forth under Section 10.2, the obligations of each Note Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Guarantor Obligations in full), including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantor Obligations or otherwise. Without limiting the generality of the
foregoing, the Guarantor Obligations of each Note Guarantor herein shall not be discharged or
impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to
enforce any right or remedy against the Company or any other person under this Indenture,
the Securities, the other Securities Documents or any other agreement or otherwise; (b) any
extension or renewal of any thereof; (c) any rescission, waiver, amendment or modification of any
of the terms or provisions of this Indenture, the Securities, the other Securities Documents or any
other agreement; (d) the release of any security held by any Holder or the Trustee for the
Guarantor Obligations or any of them; (e) the failure of any Holder to exercise any right or remedy
against any other Note Guarantor, or (f) any change in the ownership of the Company; (g) by any
default, failure or delay, willful or otherwise, in the performance of the Guarantor Obligations,
or (h) by any other act or thing or omission or delay to do any other act or thing

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which may or
might in any manner or to any extent vary the risk of any Note Guarantor or would otherwise operate
as a discharge of such Note Guarantor as a matter of law or equity.

          Subject to the provisions of Section 3.13, each Note Guarantor agrees that its Note
Guarantee herein shall remain in full force and effect until payment in full of all the Guarantor
Obligations or such Note Guarantor is released from its Note Guarantee upon the merger or the sale
of all the Capital Stock or assets of the Note Guarantor in compliance with Section 10.2.
Each Note Guarantor further agrees that its Note Guarantee herein shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of,
premium, if any, or interest on any of the Guarantor Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which any Holder has
at law or in equity against any Note Guarantor by virtue hereof, upon the failure of the Company to
pay any of the Guarantor Obligations when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, each Note Guarantor hereby promises to and will, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders an amount equal to the sum of (i) the unpaid amount of such Guarantor Obligations then due
and owing and (ii) accrued and unpaid interest on such Guarantor Obligations then due and owing
(but only to the extent not prohibited by law) (including interest accruing after the filing of any
petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding
relating to the Company or any Note Guarantor whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding).

          Each Note Guarantor further agrees that, as between such Note Guarantor, on the one hand, and
the Holders, on the other hand, (x) the maturity of the Guarantor Obligations guaranteed hereby may
be accelerated as provided in this Indenture for the purposes of its Note Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Guarantor Obligations guaranteed hereby and (y) in the event of any such declaration of
acceleration of such Guarantor Obligations, such Guarantor Obligations (whether or not due and
payable) shall forthwith become due and payable by the Note Guarantor for the purposes of this Note
Guarantee.

          Each Note Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by the Trustee or the Holders in enforcing any rights under
this Section.

          SECTION 10.2. Limitation on Liability; Termination, Release and Discharge. (a) Any
term or provision of this Indenture to the contrary notwithstanding, the obligations of each Note
Guarantor hereunder will be limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Note Guarantor (including any guarantees under the Senior
Secured Credit Agreement) and after giving effect to any collections from or payments made by or on
behalf of any other Note Guarantor in respect of the obligations of such other Note Guarantor under
its Note Guarantee or pursuant to its contribution obligations under this Indenture, result in the
obligations of such Note Guarantor under its Note Guarantee

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not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law and not otherwise being void or
voidable under any similar laws affecting the rights of creditors generally.

          (b) Upon the sale or disposition of a Note Guarantor (by merger, consolidation, the sale of
its Capital Stock or the sale of all or substantially all of its assets (other than by lease)), and
whether or not the Note Guarantor is the surviving corporation in such transaction, to a Person
which is not the Company or a Restricted Subsidiary of the Company (other than a Receivables
Entity), such Note Guarantor will be automatically released from all its obligations under this
Indenture and its Note Guarantee and the Registration Rights Agreement and such Note Guarantee will
terminate; provided, however, that (x) the sale or other disposition is in compliance with this
Indenture, including Sections 3.5, 3.9 and 4.1 and (y) all the obligations
of such Note Guarantor under all Credit Facilities and related documentation and any other
agreements relating to any other Indebtedness of the Company or its Restricted Subsidiaries
terminate upon consummation of such transaction.

          (c) Each Note Guarantor shall be deemed released from all its obligations under this Indenture
and the Registration Rights Agreement and such Note Guarantee shall terminate (x) upon the legal
defeasance of the Securities pursuant to the provisions of Article VIII hereof or (y) in
accordance with Section 3.13 of this Indenture.

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

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

          (f) The Trustee shall promptly execute and deliver an appropriate instrument prepared and
delivered to it at the expense of the Company evidencing any such release upon receipt of a request
by the Company accompanied by an Officers’ Certificate certifying as to the compliance with this
Section 11.2.

          SECTION 10.3. Right of Contribution. Each Note Guarantor hereby agrees that to the
extent that any Note Guarantor shall have paid more than its proportionate share of any payment
made on the obligations under
the Note Guarantees, such Note Guarantor shall be entitled to seek and receive contribution
from and against the Company, or any other Note Guarantor who has not paid its proportionate share
of such payment. The provisions of this Section 11.3 shall in no respect limit the
obligations and liabilities of each Note Guarantor to the Trustee and the Holders and each Note
Guarantor shall remain liable to the Trustee and the Holders for the full amount guaranteed by such
Note Guarantor hereunder.

          SECTION 10.4. No Subrogation. Notwithstanding any payment or payments made by each
Note Guarantor hereunder, no Note Guarantor shall be entitled to be subrogated to any of the rights
of the Trustee or any Holder against the Company or any other Note Guarantor

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or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for the payment of the
Guarantor Obligations, nor shall any Note Guarantor seek or be entitled to seek any contribution or
reimbursement from the Company or any other Note Guarantor in respect of payments made by such Note
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by the Company on
account of the Guarantor Obligations are paid in full. If any amount shall be paid to any Note
Guarantor on account of such subrogation rights at any time when all of the Guarantor Obligations
shall not have been paid in full, such amount shall be held by such Note Guarantor in trust for the
Trustee and the Holders, segregated from other funds of such Note Guarantor, and shall, forthwith
upon receipt by such Note Guarantor, be turned over to the Trustee in the exact form received by
such Note Guarantor (duly indorsed by such Note Guarantor to the Trustee, if required), to be
applied against the Guarantor Obligations.

ARTICLE XI

COLLATERAL

          SECTION 11.1. The Collateral. (a) The Company hereby appoints The Bank of New York
Trust Company, N.A., to act as Collateral Agent, and the Collateral Agent shall have the
privileges, powers and immunities as set forth herein and in the Collateral Documents. The due and
punctual payment of the principal of, premium, if any, and interest on the Securities and the Note
Guarantees when and as the same shall be due and payable, whether on an interest payment date, at
maturity, by acceleration, repurchase, redemption or otherwise, interest on the overdue principal
of and interest (to the extent permitted by law), if any, on the Securities and the Note Guarantees
and performance of all other obligations under this Indenture, including, without limitation, the
obligations of the Company set forth in Section 7.7, and the Securities and the Note Guarantees and
the Collateral Documents, shall be secured by at least second-priority Liens and security interests
in the Collateral, in each case subject to Permitted Liens, as provided in the Collateral Documents
to which the Company and the Note Guarantors, as the case may be, have entered into simultaneously
with the execution of this Indenture and will be secured by all of the Collateral pledged pursuant
to the Collateral Documents hereafter delivered as required or permitted by this Indenture, the
Collateral Documents and the Intercreditor Agreement. The Company and the Note Guarantors hereby
agree that the Collateral Agent shall hold the Collateral in trust for the benefit of all of the
Holders and the Trustee, in each case pursuant to the terms of the Collateral Documents and the
Intercreditor Agreement and the Collateral Agent
is hereby authorized to execute and deliver the Collateral Documents and the Intercreditor
Agreement.

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

          (c) The Trustee and each Holder, by accepting the Securities and the Note Guarantees,
acknowledges that, as more fully set forth in the Collateral Documents and the Intercreditor
Agreement, the Collateral as now or hereafter constituted shall be held for the benefit of all the
Holders and the Trustee, and that the Lien of this Indenture and the Collateral

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Documents in
respect of the Trustee and the Holders is subject to and qualified and limited in all respects by
the Collateral Documents and the Intercreditor Agreement and actions that may be taken thereunder.

          SECTION 11.2. Maintenance of Collateral. The Company and the Note Guarantors shall
maintain the Collateral in good, safe and insurable operating order, condition and repair (ordinary
wear and tear excepted) and do all other acts as may be reasonably necessary or appropriate to
maintain and preserve the value of the Collateral, except where the failure to maintain such value
would not have a material adverse effect on the Collateral. The Company and the Note Guarantors
shall pay all real estate and other taxes (except for those being contested in good faith and for
which adequate reserves have been made), and maintain in full force and effect in all material
permits and certain insurance coverages, except to the extent that the failure to maintain such
permits and coverages follows the sale, in accordance with this Indenture, of the assets to which
such permits or coverages relate or where such failure would not have a material adverse effect on
the Collateral.

          SECTION 11.3. Further Assurances. (a) The Company and the Note Guarantors shall, at
their sole expense, do all acts reasonably requested by the Collateral Agent which may be
reasonably necessary to confirm that the Collateral Agent holds, for the benefit of the Holders and
the Trustee and the holders of any Pari Passu Secured Indebtedness, duly created, enforceable and
perfected and at least second-priority Liens and security interests in the Collateral (subject to
Permitted Liens) as contemplated by this Indenture, the Collateral Documents and the Intercreditor
Agreement.

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

          SECTION 11.4. After Acquired Property. Upon the acquisition by the Company or any
Note Guarantor after the Closing Date of any assets located in the United States, including, but
not limited to, any after-acquired fee interest in real property or any equipment or fixtures which
constitute accretions, additions or technological upgrades to the equipment or fixtures that form
part of the Collateral (in each case, with value in excess of $1,000,000), to the extent any such
assets secure Credit Agreement Obligations or any Pari Passu Secured Indebtedness, the Company or
such Note Guarantor, as the case may be, shall execute and deliver such Mortgages, security
instruments and financing statements, together with

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reasonably required certificates and opinions
of counsel, as may be necessary to vest in the Collateral Agent a perfected security interest,
subject only to Permitted Liens, in such after-acquired property and to have such after-acquired
property added to the Collateral, and thereupon all provisions of this Indenture and the other
Securities Documents relating to the Collateral shall be deemed to relate to such after-acquired
property to the same extent and with the same force and effect. In addition, the Company or any
Note Guarantor shall comply with the second sentence of Section 3.6.

          SECTION 11.5. Agreements Requiring Application of Proceeds of Collateral. Neither the
Company nor any of its Restricted Subsidiaries shall enter into any agreement that requires the
proceeds received from any sale of Collateral to be applied to repay, redeem, defease or otherwise
acquire or retire any Indebtedness of any Person, other than as permitted by this Indenture, the
Securities, the Note Guarantees, the Collateral Documents and the Intercreditor Agreement. The
Company shall, and shall cause each Note Guarantor to, at its sole cost and expense, execute and
deliver all such agreements and instruments as necessary or as the Collateral Agent or Trustee
shall reasonably request to more fully or accurately describe the assets and property intended to
be Collateral or the obligations intended to be secured by the Collateral Documents.

          SECTION 11.6. Real Estate Mortgages and Filings and Leasehold Interests.
(a) With respect to any fee interest in certain real property interests identified in Schedule
11.5 to this Indenture (individually and collectively, the “Premises”) owned by the Company
or a Note Guarantor on the Issue Date or acquired by the Company or a Note Guarantor after the
Issue Date (in each case, with value in excess of $1,000,000) that secures Credit Agreement
Obligations:

	 	(1)	 	the Company shall deliver to the Collateral Agent, as mortgagee
or beneficiary, as applicable, fully executed counterparts of Mortgages, each
dated as of the Issue Date or, if later, the date such property is pledged to
secure the Credit Agreement Obligations, in accordance with the requirements of
this Indenture and/or the Collateral Documents, duly executed by the Company or
the applicable Note Guarantor, together with evidence of the completion (or
satisfactory arrangements for the completion) of all recordings and filings of
such Mortgage (and payment of any taxes or fees in connection therewith) as may
be necessary to create a valid, perfected at least second-priority Lien
(subject to Permitted Liens) against the properties purported to be covered
thereby;
	 
	 	(2)	 	the Collateral Agent shall have received mortgagee’s title
insurance policies in favor of the Collateral Agent, as mortgagee for the
ratable benefit of itself, the Trustee, Holders and holders of any Pari Passu
Secured Indebtedness, in the form necessary, with respect to the property
purported to be covered by such Mortgage, to insure that the interests created
by the Mortgage constitute valid and at least second-priority Liens on such
property free and clear of all Liens, defects and encumbrances, (other than
Permitted Liens), each such title insurance policy to be in an amount
reasonably satisfactory to the Collateral Agent and such policies

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	 	 	 	shall also
include, to the extent available at a commercially reasonable premium, the
endorsements equivalent to those delivered in connection with the Senior
Secured Credit Agreement and shall be accompanied by evidence of the payment in
full of all premiums thereon; and
	 
	 	(3)	 	the Company shall, or shall cause each Note Guarantor to,
deliver to the Collateral Agent, with respect to each of the covered Premises,
such filings, surveys (or any updates or affidavits that the title company may
reasonably require as necessary to issue the title insurance policies), local
counsel opinions, landlord agreements and fixture filings, along with such
other documents, instruments, certificates and agreements, as the Collateral
Agent and its counsel shall reasonably require to create, evidence or perfect a
valid and at least second-priority Lien on the property subject to each such
Mortgage (subject to Permitted Liens).

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

          SECTION 11.7. Release of Liens on the Collateral. (a) The Liens on the Collateral will be released with respect to the Securities and the
Note Guarantees, as applicable:

	 	(1)	 	in whole, upon payment in full of the principal of, accrued and
unpaid interest, including additional interest, and premium, if any, on the
Securities;
	 
	 	(2)	 	in whole, upon satisfaction and discharge of this Indenture in
accordance with Section 8.1(a);
	 
	 	(3)	 	in whole, upon a legal defeasance as set forth under Article
VIII;
	 
	 	(4)	 	in part, as to any asset constituting Collateral (A) that is
cash withdrawn from deposit accounts for any purpose permitted by this
Indenture, the Collateral Documents or the Intercreditor Agreement, (B) if all
other Liens on that asset securing the Credit Agreement Obligations and any
Pari Passu Secured Indebtedness then secured by that asset (including all
commitments thereunder) are released or (C) otherwise in accordance with, and
as expressly provided for under, this Indenture;
	 
	 	(5)	 	with the consent of holders of sixty-six and two-thirds percent
(66 2/3%) in aggregate principal amount of the Securities (or, in the case of a
release of all or substantially all Collateral, each holder of the Securities
affected

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	 	 	 	thereby), including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of,
Securities; and
	 
	 	(6)	 	with respect to assets of a Note Guarantor upon release of such
Note Guarantor from its Note Guarantee as set forth under Article X above.

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

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

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

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

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

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

          SECTION 11.8. Authorization of Actions to be Taken by the Trustee or the Collateral Agent
Under the Collateral Documents (a) Subject to the provisions of the Collateral Documents and
the Intercreditor Agreement, each of the Trustee or the Collateral Agent may, in its sole
discretion and without the consent of the Holders, on behalf of the Holders, take all actions it
deems necessary or appropriate in order to (i) enforce any of its rights or any of the rights of
the Holders under the Collateral Documents and the Intercreditor Agreement and (ii) collect and
receive any and all amounts payable in respect of the Collateral in respect of the obligations of
the Company and the Note Guarantors hereunder and thereunder. Subject to the provisions of the
Collateral Documents and the Intercreditor Agreement, the Trustee or the Collateral Agent shall
have the power to institute and to maintain such suits and proceedings as it may deem expedient to
prevent any impairment of the Collateral by any acts that may be unlawful or in violation of the
Collateral Documents, the Intercreditor Agreement or this Indenture, and such suits and proceedings
as the Trustee or the Collateral Agent may deem

115

 

expedient to preserve or protect its interest and
the interests of the Holders in the Collateral (including the power to institute and maintain suits
or proceedings to restrain the enforcement of or compliance with any legislative or other
governmental enactment, rule or order that may be unconstitutional or otherwise invalid if the
enforcement of, or compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of the Holders or the Trustee).

          (b) The Trustee or the Collateral Agent shall not be responsible for the existence,
genuineness or value (or diminution of value) of any of the Collateral or for the validity,
perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by
operation of law or by reason of any action or omission to act on its part hereunder, except to the
extent such action or omission constitutes negligence, bad faith or willful misconduct on the part
of the Trustee or the Collateral Agent, for the validity or sufficiency of the Collateral or any
agreement or assignment contained therein, for the validity of the title of the Company to the
Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens
upon the Collateral or otherwise as to the maintenance of the Collateral. The Trustee or the
Collateral Agent shall have no responsibility for recording, filing, re-recording or refiling any
financing statement, continuation statement, document, instrument or other notice in any public
office at any time or times or to otherwise take any action to perfect or maintain the perfection
of any security interest granted to it under the Collateral Documents or otherwise.

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

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

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

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

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

116

 

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

          SECTION 11.9. Acknowledgment by Holders. By acceptance of the benefits hereof, each
Holder (i) irrevocably appoints the Collateral Agent and authorizes the Collateral Agent to take
such actions on its behalf and to exercise such powers as are delegated to the Collateral Agent by
the terms of the Note Pledge and Security Agreement, dated as of the date of this Indenture among
the Company, the Parent, the subsidiaries of the Company party thereto and the Collateral Agent
(“the Note Pledge and Security Agreement”) and this Indenture, together with such powers as are
reasonably incidental thereto; and (ii) acknowledges and consents to the provisions of this
Indenture and the Note Pledge and Security Agreement, and that it shall not be entitled to the
benefits of the Note Pledge and Security Agreement or this Indenture except pursuant to the terms
and conditions of this Indenture and the Note Pledge and Security Agreement.

ARTICLE XII

MISCELLANEOUS

          SECTION 12.1. Trust Indenture Act Controls. If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with another provision which is required to be
included in this Indenture by the TIA,
the provision required by the TIA shall control. Each Note Guarantor in addition to
performing its obligations under its Note Guarantee shall perform such other obligations as may be
imposed upon it with respect to this Indenture under the TIA.

          SECTION 12.2. Notices. Any notice or communication shall be in writing and delivered
in person, sent by facsimile, delivered by commercial courier service or mailed by first-class
mail, postage prepaid, addressed as follows:

if to the Parent, the Company or any Subsidiary

Guarantor:

Libbey Glass Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Fax: (419) 325-2585

Attention: Susan Kovach, Esq.

with copies to:

Christopher Lueking, Esq.

Latham & Watkins LLP

Sears Tower

233 South Wacker Drive

Chicago, IL 60606

117

 

if to the Trustee:

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

2 North LaSalle Street

Chicago, IL 60602

Attention: Corporate Trust Administration

with copies to:

John B. Duer, Esq.

McGuireWoods LLP

1345 Avenue of the Americas

New York NY 10105

          The Company or the Trustee by written notice to the other may designate additional or
different addresses for subsequent notices or communications.

          Any notice or communication to the Company or the Note Guarantors shall be deemed to have been
given or made as of the date so delivered if personally delivered; when
receipt is acknowledged, if telecopied; and five calendar days after mailing if sent by
registered or certified mail, postage prepaid (except that a notice of change of address shall not
be deemed to have been given until actually received by the addressee).

          Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

          SECTION 12.3. Communication by Holders with other Holders. Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA § 312(c).

          SECTION 12.4. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent, if

118

 

any, provided for in this Indenture relating to the proposed action have been complied with.

          SECTION 12.5. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
(other than pursuant to Section 3.18) shall include:

     (1) a statement that the individual making such certificate or opinion has read such
covenant or condition;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

     (4) a statement as to whether or not, in the opinion of such individual, such covenant
or condition has been complied with.

          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

          SECTION 12.6. When Securities Disregarded. In determining whether the Holders of the
required aggregate principal amount of Securities have concurred in any direction, waiver or
consent, Securities owned by the Company, any Note Guarantor or any Affiliate of them shall be
disregarded and deemed not to be outstanding, except that, for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities
which the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any such determination.

          SECTION 12.7. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or at meetings of, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

          SECTION 12.8. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required to be closed in New
York, New York. If a payment date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a
regular record date is a Legal Holiday, the record date shall not be affected.

          SECTION 12.9. GOVERNING LAW. THIS INDENTURE, THE SECURITIES, THE COLLATERAL DOCUMENTS
AND THE INTERCREDITOR AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF

119

 

NEW YORK OR OF THE UNITED STATES SITTING IN THE BOROUGH OF MANHATTAN, THE
CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE
SECURITIES OR THE NOTE GUARANTEES. HOWEVER, THE MORTGAGES WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATES IN WHICH THE APPLICABLE PREMISES ARE LOCATED.

          SECTION 12.10. No Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Parent, the Company or
any of the Subsidiary Guarantors, as such, shall have any liability for any obligations of the
Company or such Note Guarantor under the Securities, this Indenture, a Guarantee, the Collateral
Documents or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Securities by accepting a Security waives and releases all such liability
to the extent permitted by applicable law. The waiver and release are part of the consideration for
issuance of the Securities. Such waiver may not be effective to waive liabilities under the federal
securities laws, and it is the view of the SEC that such a waiver is against public policy.

          SECTION 12.11. Successors. All agreements of the Company and each Note Guarantor in
this Indenture and the Securities shall bind their respective successors. All agreements of the
Trustee in this Indenture shall bind its successors.

          SECTION 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

          SECTION 12.13. Qualification of Indenture. The Company shall qualify this Indenture
under the TIA in accordance with the terms and conditions of the Registration Rights Agreement.
The Trustee shall be entitled to receive from the Company any such Officers’ Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

          SECTION 12.14. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

          SECTION 12.15. Designated Senior Indebtedness. The Company and the Note Guarantors
hereby designate the obligations under this Indenture, the Securities and the Collateral Documents
to be “Designated Senior Indebtedness” and “Designated Guarantor Senior Indebtedness,” as the case
may be, as defined in and for purposes of the indenture governing the Private Placement Notes.

          SECTION 12.16. Force Majeure. In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer

120

 

(software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

          SECTION 12.17. Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

          SECTION 12.18. Severability. In case any one or more of the provisions in this
Indenture or in the Securities shall be held invalid, illegal or unenforceable, in any respect for
any reason, the validity, legality and enforceability of any such provision in every other respect
and of the remaining provisions shall not in any way be affected or impaired thereby, it being
intended that all of the provisions hereof shall be enforceable to the full extent permitted by
law.

121

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	LIBBEY GLASS INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Scott Sellick	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Scott Sellick	 	 
	 

	 	 	 	Title:
	 	Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	LIBBEY INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Scott Sellick	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Scott Sellick	 	 
	 

	 	 	 	Title:
	 	Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	SYRACUSE CHINA COMPANY	 	 
	 	 	WORLD TABLEWARE INC.	 	 
	 	 	LGA4 CORP.	 	 
	 	 	LGA3 CORP.	 	 
	 	 	THE DRUMMOND GLASS COMPANY	 	 
	 	 	LGC CORP.	 	 
	 	 	TRAEX COMPANY	 	 
	 	 	LIBBEY.COM LLC	 	 
	 	 	LGFS INC.	 	 
	 	 	LGAC LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Scott Sellick	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Scott Sellick	 	 
	 

	 	 	 	Title:
	 	Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CRISA INDUSTRIAL, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Susan A. Kovach	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Susan Kovach	 	 
	 

	 	 	 	Title:
	 	Vice President and General Counsel	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., 	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/ Linda Garcia	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	 Linda Garcia
	 
	 

	 	 	 	 Assistant Vice President
	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., 
	 	 
	 	 	as Collateral Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/ Linda Garcia	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	 Linda Garcia
	 
	 

	 	 	 	 Assistant Vice President
	 

 

 

SCHEDULE 3.8

EXISTING AFFILIATE TRANSACTIONS

 

 

SCHEDULE 11.5

PREMISES AND LEASED PREMISES

 

 

EXHIBIT A

[FORM OF FACE OF SERIES A NOTE]

[Applicable Restricted Securities Legend]

[Depository Legend, if applicable]

[OID Legend, if applicable]

	 	 	 
	No. ___

	 	Principal Amount $           , as
	 

	 	revised by the Schedule of Increases and
	 

	 	Decreases in Global Security attached hereto
	 

	 	CUSIP NO.                                         
	 

	 	ISIN:                                                             

LIBBEY GLASS INC.

Floating Rate Senior Secured Note, Series A, due 2011

          Libbey Glass Inc., a Delaware corporation, promises to pay to Cede & Co., or its registered
assigns, the principal sum of [                    ] DOLLARS, as revised by the Schedule of Increases
and Decreases in Global Security attached hereto, on June 1, 2011.

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

     Record Dates: May 15 and November 15

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

A-1

 

	 	 	 	 	 	 	 	 	 
	 	 	LIBBEY GLASS INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 	 
	 

	 	 	 	Name:
	 	Scott Sellick	 	 
	 

	 	 	 	Title:
	 	Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Date:	 	 

A-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

as Trustee, certifies

that this is one of

the Securities referred

to in the withinmentioned Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

     Authorized Signatory
	 	 

Date:

A-3

 

[FORM OF REVERSE SIDE OF SERIES A NOTE]

LIBBEY GLASS INC.

Floating Rate Senior Secured Note, Series A, due 2011

1. Interest

          Libbey Glass Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at a rate per annum, reset semi-annually,
equal to LIBOR (as defined below) plus 7.0% as determined by the calculation agent (the
“Calculation Agent”), which shall initially be the Trustee, commencing June 16, 2006 until
maturity and shall pay additional interest, if any, payable pursuant to Section 2(d) of the
Registration Rights Agreement referred to below. The Company shall make each interest payment in
cash semi-annually in arrears on June 1 and December 1 of each year commencing December 1, 2006, or
if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Notwithstanding the foregoing, if any such Interest Payment Date (other than an
Interest Payment Date at maturity) would otherwise be a day that is not a Business Day, then the
interest payment will be postponed to the next succeeding Business Day (except if that Business Day
falls in the next succeeding calendar month, then interest will be paid on the immediately
preceding Business Day). If the maturity date of the Securities is a day that is not a Business
Day, all payments to be made on such day will be made on the next succeeding Business Day, with the
same force and effect as if made on the maturity date, and no additional interest will be payable
as a result of such delay in payment. The interest rate for each Interest Period (as defined
below), other than the Interest Period commencing June 16, 2006 and continuing until November 30,
2006, for which the interest rate shall be [          ]%, shall be adjusted with effect from the
Interest Payment Date on which such Interest Period begins. Interest on this Security will accrue
from the most recent date to which interest has been paid or, if no interest has been paid, from
June 16, 2006; provided, that the first Interest Payment Date shall be December 1, 2006. The
Company shall pay interest on overdue principal, and on overdue premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the extent lawful.
Interest on the Securities will be computed on the basis of the actual number of days in an
Interest Period and a 360-day year.

          The amount of interest for each day that this Security is outstanding (the “Daily Interest
Amount”) shall be calculated by dividing the interest rate in effect for such day by 360 and
multiplying the result by the principal amount of the Securities. The amount of interest to be
paid on the Securities for each Interest Period will be calculated by adding the Daily Interest
Amounts for each day in the Interest Period. All percentages resulting from any of the above
calculations shall be rounded, if necessary, to the nearest one hundredth thousandth of a
percentage point, with five one-millionths of a percentage point being rounded upwards (e.g.,
9.876545% (or 0.09876545) being rounded to 9.87655% (or 0.0987655)) and all dollar amounts used in
or resulting from such calculations shall be rounded to the nearest cent (with one-half cent being
rounded upwards).

A-4

 

          “Determination Date,” with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

          “Interest Period” means the period commencing on and including an Interest Payment
Date and ending on and including the day immediately preceding the next succeeding Interest Payment
Date; provided that the first Interest Period shall commence on and include June 16, 2006, and end
on and include November 30, 2006.

          “LIBOR” with respect to an Interest Period will be the rate (expressed as a
percentage per annum) for deposits in U.S. dollars for six-month periods beginning on the first day
of such Interest Period that appears on Telerate Page 3750 as of 11:00 a.m., London time, on the
Determination Date. If Telerate Page 3750 does not include such a rate or is unavailable on a
Determination Date, the Calculation Agent will request the principal London office of each of four
major banks in the London interbank market, as selected by the Calculation Agent, to provide such
bank’s offered quotation (expressed as a percentage per annum), as of approximately 11:00 a.m.,
London time, on such Determination Date, to prime banks in the London interbank market for deposits
in a Representative Amount in U. S. dollars for a six-month period beginning on the first day of
such Interest Period. If at least two such offered quotations are so provided, LIBOR for the
Interest Period will be the arithmetic mean of such quotations. If fewer than two such quotations
are so provided, the Calculation Agent will request each of three major banks in New York City, as
selected by the Calculation Agent, to provide such bank’s rate (expressed as a percentage per
annum), as of approximately 11:00 a.m., New York City time, on such Determination Date, for loans
in a Representative Amount in United States dollars to leading European banks for a six-month
period beginning on the first day of such Interest Period. If at least two such rates are so
provided, LIBOR for the Interest Period will be the arithmetic mean of such rates. If fewer than
two such rates are so provided, then LIBOR for the Interest Period will be LIBOR in effect with
respect to the immediately preceding Interest Period.

          “London Banking Day” is any day in which dealings in U.S. dollars are transacted or,
with respect to any future date, are expected to be transacted in the London interbank market.

          “Representative Amount” means a principal amount of not less than $1,000,000 for a
single transaction in the relevant market at the relevant time.

          The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law. The Calculation Agent will, upon the request of the holder of any Securities,
provide the interest rate then in effect with respect to the Securities. All calculations made by
the Calculation Agent in the absence of manifest error will be conclusive for all purposes and
binding on the Company, the Note Guarantors and the holders of the Securities.

          In the event that either the exchange offer registered under the Securities Act (the
“Exchange Offer”) is not completed or the shelf registration statement (the “Shelf
Registration Statement”), if required by the Registration Rights Agreement, dated as of June
16, 2006, among the Company and the Initial Purchasers (the “Registration Rights
Agreement”), has not become effective on or prior to the date that is 270 days after the Issue
Date (the “Target Registration 

A-5

 

Date”), the interest rate on the Securities will be increased by (A) 0.25% per annum
for the first 90-day period immediately following the Target Registration Date and (B) an
additional 0.25% per annum with respect to each subsequent 90-day period, in each case until the
Exchange Offer is completed or the Shelf Registration Statement, if required by the Registration
Rights Agreement, becomes effective, as the case may be, or until the Securities become freely
tradable under the Securities Act, up to a maximum of 1.00% per annum of additional interest. In
the event the Company receives a request pursuant to Section 2(b) of the Registration Rights
Agreement (a “Shelf Request”), and the Shelf Registration Statement required to be filed
thereby has not become effective by the later of (x) the date that is 240 days after the Closing
Date or (y) 90 days after the delivery of such Shelf Request (such later date, the “Shelf
Additional Interest Date”), then the interest rate on the Securities will be increased by (1)
0.25% per annum for the first 90-day period payable commencing from one day after the Shelf
Additional Interest Date and (2) an additional 0.25% per annum with respect to each subsequent
90-day period, in each case until the Shelf Registration Statement is declared effective or the
Securities become freely tradable under the Securities Act, up to a maximum increase of 1.00% per
annum of additional interest.

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

          The Holder of this Security is entitled to the benefits of the Registration Rights Agreement.

2. Method of Payment

          By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest. The Company will pay interest (except Defaulted Interest) to the Persons who
are registered Holders of Securities at the close of business on the May 15 or November 15 next
preceding the interest payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of Securities represented by a Global Security
(including principal, premium, if any, and interest) will be made by the transfer of immediately
available funds to the accounts specified by The Depository Trust Company or any successor
depository. The Company will make all payments

A-6

 

in respect of a Definitive Security (including principal, premium, if any, and interest) by
mailing a check to the registered address of each Holder thereof; provided, however, that payments
on the Securities may also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount of Securities, by wire transfer to a U.S. dollar account maintained by the payee
with a bank in the United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such account no later than 15
days immediately preceding the relevant due date for payment (or such other date as the Trustee may
accept in its discretion).

3. Paying Agent and Registrar

          Initially, The Bank of New York Trust Company, N.A. (the “Trustee”) will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Any of the domestically organized
Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Securities under an Indenture dated as of June 16, 2006 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.

          The Securities are general senior secured obligations of the Company. The aggregate principal
amount of securities that may be authenticated and delivered under the Indenture is unlimited.
This Security is one of the Floating Rate Senior Secured Notes, Series A, due 2011 referred to in
the Indenture. The Securities include (i) $306,000,000 aggregate principal amount of the Company’s
Floating Rate Senior Secured Notes, Series A, due 2011 issued under the Indenture on June 16, 2006
(herein called “Initial Securities”), (ii) if and when issued, additional Floating Rate
Senior Secured Notes, Series A, due 2011 or Floating Rate Senior Secured Notes, Series B, due 2011
of the Company that may be issued from time to time under the Indenture subsequent to June 16, 2006
(herein called “Additional Securities”) and (iii) if and when issued, the Company’s
Floating Rate Senior Secured Notes, Series B, due 2011 that may be issued from time to time under
the Indenture in exchange for Initial Securities or Additional Securities in an offer registered
under the Securities Act as provided in the Registration Rights Agreement (herein called
“Exchange Securities”). The Initial Securities, Additional Securities and Exchange
Securities are treated as a single class of securities under the Indenture. The Indenture imposes
certain limitations on the incurrence of indebtedness, the making of restricted payments, the sale
of assets and subsidiary stock, the incurrence of certain liens, affiliate transactions, the sale
of capital stock of restricted subsidiaries, the making of payments for consents, the entering into
of agreements that restrict distributions from restricted subsidiaries and the consummation of
mergers and consolidations. The Indenture also imposes

A-7

 

requirements with respect to the provision of financial information and the provision of
guarantees of the Securities by certain subsidiaries.

          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Note Guarantors have fully, unconditionally and irrevocably
Guaranteed (and future guarantors, together with the Note Guarantors, will fully, unconditionally
and irrevocably Guarantee), jointly and severally, to each Holder of the Securities and the Trustee
the Guarantor Obligations pursuant to Article X of the Indenture on a senior basis.

5. Redemption

          Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to June 1, 2008. On and after such date, the Securities will be redeemable, at the Company’s
option, in whole or in part, at any time from time to time, upon not less than 30 nor more than 60
days’ prior notice, at the following redemption prices (expressed in percentages of principal
amount), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period commencing on June 1 of the years
set forth below:

	 	 	 	 	 
	Period	 	Percentage
	2008
	 	 	107.500	%
	2009
	 	 	102.500	%
	2010 and thereafter
	 	 	100.000	%

          In addition, at any time and from time to time prior to June 1, 2008, the Company may redeem
in the aggregate up to 35% of the original principal amount of the Securities (after giving effect
to any future issuance of Additional Securities) with the Net Cash Proceeds of one or more Equity
Offerings at a redemption price (expressed as a percentage of principal amount) of 100% of the
principal amount thereof plus a premium equal to the interest rate per annum on the Securities
applicable on the date on which notice of redemption is given, plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date); provided, however, that at least
65% of the original principal amount of the Securities (after giving effect to any future issuance
of Additional Securities) must remain outstanding after each such redemption; provided further,
that each such redemption occurs within 90 days of the date of closing of such Equity Offering.

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

A-8

 

and no additional interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

          In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Securities of $1,000 in original principal amount or less will be
redeemed in part. Any such notice to the Trustee may be cancelled at any time prior to notice of
such redemption being mailed to any Holder and shall thereby be void and of no effect. If any
Security is to be redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. On and after the redemption date, interest will cease
to accrue on Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable redemption price pursuant
to the Indenture.

6. Repurchase Provisions

          If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 5 of the Securities, then such Change of Control shall
constitute a triggering event which shall trigger the obligation of the Company to offer to
repurchase from each Holder all or any part (equal to $1,000 or an integral multiple thereof) of
such Holder’s Securities at a purchase price in cash equal to 101% of the principal amount thereof,
plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the relevant interest
payment date) as provided in, and subject to the terms of, the Indenture.

7. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay a sum sufficient to cover any transfer tax or other
governmental taxes and fees required by law or permitted by the Indenture. The Registrar need not
register the transfer of or exchange of any Security for a period beginning 15 days before the
mailing of a notice of an offer to repurchase or redeem Securities and ending at the close of
business on the day of such mailing. The Registrar shall not be required to register the transfer
of or exchange of any Security selected for redemption.

8. Persons Deemed Owners

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

A-9

 

9. Unclaimed Money

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

10. Defeasance

          Subject to certain exceptions and conditions set forth in the Indenture, the Company at any
time may terminate some or all of its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the payment of
principal, premium, if any, and interest on the Securities to redemption or maturity, as the case
may be.

11. Amendment, Supplement, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Collateral Documents, the Intercreditor Agreement and any Note Guarantee may be amended or
supplemented by the Company, the Note Guarantors and the Trustee with the written consent of the
Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any
default (other than with respect to nonpayment (except in accordance with Section 6.4 of
the Indenture)) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities and except as
otherwise set forth in the Indenture, in each case other than in respect of a provision that cannot
be amended without the written consent of each Holder affected. Subject to certain exceptions set
forth in the Indenture, without the consent of any Holder, the Company, the Note Guarantors and the
Trustee may amend or supplement the Indenture or the Securities cure any ambiguity, omission,
defect or inconsistency; provide for the assumption by a successor corporation of the obligations
of the Company or any Note Guarantor under the Indenture; provide for uncertificated Securities in
addition to or in place of certificated Securities (provided that the uncertificated Securities are
issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f) (2) (B) of the Code); add Guarantees with
respect to the Securities or release a Subsidiary Guarantor upon its designation as an Unrestricted
Subsidiary; provided, however, that the designation is in accordance with the applicable provisions
of the Indenture; secure the Securities with additional Collateral; add to the covenants of the
Company and the Restricted Subsidiaries for the benefit of the Holders or surrender any right or
power conferred upon the Company or any Restricted Subsidiary; make any change that does not
adversely affect the rights of any Holder; comply with any requirement of the SEC in connection
with the qualification of the Indenture under the TIA; release a Note Guarantor from its
obligations under its Note Guarantee or the Indenture in accordance with the applicable provisions
of the Indenture; provide for the appointment of a successor trustee, provided that the successor
trustee is otherwise qualified and eligible to act as such under the terms of the Indenture;
release Liens in favor of the Collateral Agent in the Collateral, as provided under Section 11.7 or
otherwise in accordance with this Indenture, the Collateral Documents or the Intercreditor
Agreement; provide for the issuance of

A-10

 

Exchange Securities that shall have terms substantially identical in all respects to the
Securities (except that the transfer restrictions contained in the Securities shall be modified or
eliminated as appropriate) and that shall be treated, together with any outstanding Securities, as
a single class of securities; or conform the text of the Indenture, the Securities or the
Guarantees to any provision of the “Description of senior secured notes” section of the Offering
Memorandum to the extent that such provision in the “Description of senior secured notes” was
intended to be a verbatim recitation of a provision of the Indenture, the Securities or the Note
Guarantees.

12. Defaults and Remedies

          Under the Indenture, Events of Default include (each of which are more specifically described
in the Indenture) (i) default in any payment of interest or additional interest (as required by the
Registration Rights Agreement) on any Security when due, continued for 30 days; (ii) default in the
payment of principal of or premium, if any, on any Security when due at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company or any Note Guarantor to comply with its obligations under Section 4.1 of the
Indenture; (iv) failure by the Company or any Note Guarantor to comply for 30 days after notice
with any of its obligations under Article III of the Indenture (in each case, other than a
failure to purchase Securities which will constitute an Event of Default under clause (ii) and a
failure to comply with Section 4.1 of the Indenture, which will constitute an Event of
Default under clause (iii)); (v) failure by the Company or any Note Guarantor to comply for 60 days
after notice as provided below with its other agreements contained in the Indenture; (vi) default
under any mortgage, indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default (1) is
caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior
to the expiration of the grace period provided in such Indebtedness or (2) results in the
acceleration of such Indebtedness prior to its maturity, and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates
$15.0 million or more; (vii) certain events set forth in Section 6.1(7) of the Indenture of
bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary, pursuant to or within the meaning of any Bankruptcy Law; (viii) failure by the Company
or any Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its Restricted Subsidiaries)
would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $15.0
million (net of any amounts that a reputable and creditworthy insurance company has acknowledged
liability for in writing), which judgments are not paid, discharged or stayed for a period of 60
days; (ix) any Subsidiary Guarantee, Collateral Document or obligation under the Intercreditor
Agreement of a Significant Subsidiary or group of Restricted Subsidiaries that taken together as of
the latest audited consolidated financial statements for the Company and its Restricted
Subsidiaries would constitute a Significant Subsidiary ceases to be in full force and effect
(except as contemplated

A-11

 

by the terms of the Indenture) or is declared null and void in a judicial proceeding or any
Subsidiary Guarantor that is a Significant Subsidiary or group of Subsidiary Guarantors that taken
together as of the latest audited consolidated financial statements of the Company and its
Restricted Subsidiaries would constitute a Significant Subsidiary denies or disaffirms its
obligations under the Indenture, or its Subsidiary Guarantee any Collateral Document or the
Intercreditor Agreement; or (x) with respect to any Collateral having a fair market value in excess
of $15.0 million, individually or in the aggregate, (A) the security interest under the Collateral
Documents, at any time, ceases to be in full force and effect for any reason other than in
accordance with their terms and the terms of this Indenture and other than the satisfaction in full
of all obligations under this Indenture and discharge of this Indenture, (B) any security interest
created thereunder or under this Indenture is declared invalid or unenforceable or (C) the Company
or any Note Guarantor asserts, in any pleading in any court of competent jurisdiction, that any
such security interest is invalid or unenforceable. However, a default under clauses (iv) and (v)
will not constitute an Event of Default until the Trustee or the Holders of 25% in principal amount
of the outstanding Securities notify the Company of the default and the Company does not cure such
default within the time specified in clauses (iv) and (v) hereof after receipt of such notice.

          If an Event of Default (other than an Event of Default described in (vii) hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the outstanding Securities by notice to the Company and the Trustee, may, and the Trustee
at the request of such Holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest, if any, on all the Securities to be due and payable. If an Event of Default
described in (vii) hereof occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Securities will become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holders.

          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.

13. Trustee Dealings with the Company

          Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company, the Subsidiary Guarantors or
their Affiliates and may otherwise deal with the Company, the Subsidiary Guarantors or their
Affiliates with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

          No director, officer, employee, incorporator or stockholder of the Parent, the Company or any
of the Subsidiary Guarantors, as such, shall have any liability for any

A-12

 

obligations of the Company under the Securities, the Indenture or any Guarantee or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Securities by accepting a Security waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Securities. Such waiver may not be effective to
waive liabilities under the federal securities laws, and it is the view of the SEC that such a
waiver is against public policy.

15. Authentication

          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Security.

16. Abbreviations

          Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=
tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).

17. CUSIP, Common Code and ISIN Numbers

          The Company has caused CUSIP, Common Code or ISIN numbers, if applicable, to be printed on the
Securities and has directed the Trustee to use CUSIP, Common Code or ISIN numbers, if applicable,
in notices of redemption as a convenience to Holders. No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

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

          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:

Libbey Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Attention: Treasurer

A-13

 

ASSIGNMENT FORM

          To assign this Security, fill in the form below:

          I or we assign and transfer this Security to:

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint                      agent to transfer this Security on the books of the
Company. The agent may substitute another to act for him.

 

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed)

 

Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

     In connection with any transfer or exchange of any of the Securities evidenced by this
certificate occurring prior to the date that is two years after the later of the date of original
issuance of such Securities and the last date, if any, on which such Securities were owned by the
Company, or any Affiliate of the Company, the undersigned confirms that such Securities are being:

CHECK ONE BOX BELOW:

	 	1 ̈	 	acquired for the undersigned’s own account, without transfer; or
	 
	 	2 ̈	 	transferred to the Company; or
	 
	 	3 ̈	 	transferred pursuant to and in compliance with Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”); or
	 
	 	4 ̈	 	transferred pursuant to an effective registration statement under the Securities
Act; or
	 
	 	5 ̈	 	transferred pursuant to and in compliance with Regulation S under the Securities
Act; or

A-14

 

	 	6 ̈	 	transferred to an institutional “accredited investor” (within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act), that has furnished to the Trustee
a signed letter containing certain representations and agreements (the form of which
letter appears as Section 2.7 of the Indenture); or
	 
	 	7 ̈	 	transferred pursuant to another available exemption from the registration
requirements of the Securities Act.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any person other than the registered Holder thereof;
provided, however, that if box (5), (6) or (7) is checked, the Trustee or the Company may require,
prior to registering any such transfer of the Securities, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act, such as the exemption provided by Rule 144 under such Act.

	 	 	 	 	 	 	 
	Signature Guarantee:

	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 
	 

(Signature must be guaranteed)

	 	 	 	 

Signature
	 	 

 

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	 	 	 
	 

	 	 
	 

	 	Dated:

A-15

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

     The following increases and decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	Amount of	 	Amount of	 	Principal Amount	 	authorized
	Date of	 	decrease in	 	increase in	 	of this Global	 	signatory of
	Decrease	 	Principal Amount	 	Principal Amount	 	Security following	 	Trustee or
	or	 	of this Global	 	of this Global	 	such decrease or	 	Securities
	Increase	 	Security	 	Security	 	increase	 	Custodian
	 

	 	 
	 	 
	 	 
	 	 

A-16

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you elect to have this Security purchased by the Company pursuant to Section 3.5 or
3.11 of the Indenture, check either box:

o           o

3.5           3.11

     If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.5 or Section 3.11 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $         
                
                
                
                
                
     

	 	 	 	 	 
	Date:                    

	 	Your Signature:	 	 
	 

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

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	                    (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

A-17

 

EXHIBIT B

[FORM OF FACE OF SERIES B NOTE]

[Depository Legend, if applicable]

[OID Legend, if applicable]

	 	 	 	 	 	 	 
	No.      	 	Principal Amount $                     , as
	 	 	revised by the Schedule of Increases and
	 	 	Decreases in Global Security attached hereto
	 	 	CUSIP NO.
	 

	 	 	 	 	 	 
	 

	 	ISIN:	 	 	 	 
	 	 	 	 	 

LIBBEY GLASS INC.

Floating Rate Senior Secured Note, Series B, due 2011

          Libbey Glass Inc., a Delaware corporation, promises to pay to Cede & Co., or its registered
assigns, the principal sum of [                    ] DOLLARS, as revised by the Schedule of Increases
and Decreases in Global Security attached hereto, on June 1, 2011.

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

     Record Dates: May 15 and November 15

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

B-1

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	LIBBEY GLASS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	     Scott Sellick	 	 
	 

	 	Title:
	 	     Vice President and	 	 
	 

	 	 	 	          Chief Financial Officer	 	 
	 

	 	Date:	 	 	 	 

B-2

 

TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

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

as Trustee, certifies

that this is one of

the Securities referred

to in the withinmentioned Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

          Authorized Signatory
	 	 

Date:

B-3

 

EXHIBIT B

[FORM OF REVERSE SIDE OF SERIES B NOTE]

LIBBEY GLASS INC.

Floating Rate Senior Secured Note, Series B, due 2011

1. Interest

          Libbey Glass Inc., a Delaware corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at a rate per annum, reset semi-annually,
equal to LIBOR (as defined below) plus 7.0% as determined by the calculation agent (the
“Calculation Agent”), which shall initially be the Trustee, commencing June 16, 2006 until
maturity and shall pay additional interest, if any, payable pursuant to Section 2(d) of the
Registration Rights Agreement referred to below. The Company shall make each interest payment in
cash semi-annually in arrears on June 1 and December 1 of each year commencing December 1, 2006, or
if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Notwithstanding the foregoing, if any such Interest Payment Date (other than an
Interest Payment Date at maturity) would otherwise be a day that is not a Business Day, then the
interest payment will be postponed to the next succeeding Business Day (except if that Business Day
falls in the next succeeding calendar month, then interest will be paid on the immediately
preceding Business Day). If the maturity date of the Securities is a day that is not a Business
Day, all payments to be made on such day will be made on the next succeeding Business Day, with the
same force and effect as if made on the maturity date, and no additional interest will be payable
as a result of such delay in payment. The interest rate for each Interest Period (as defined
below), other than the Interest Period commencing June 16, 2006 and continuing until November 30,
2006, for which the interest rate shall be [      ]%, shall be adjusted with effect from the
Interest Payment Date on which such Interest Period begins. Interest on this Security will accrue
from the most recent date to which interest has been paid or, if no interest has been paid, from
June 16, 2006; provided, that the first Interest Payment Date shall be December 1, 2006. The
Company shall pay interest on overdue principal, and on overdue premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the extent lawful.
Interest on the Securities will be computed on the basis of the actual number of days in an
Interest Period and a 360-day year of twelve 30-day months.

          The amount of interest for each day that this Security is outstanding (the “Daily Interest
Amount”) shall be calculated by dividing the interest rate in effect for such day by 360 and
multiplying the result by the principal amount of the Securities. The amount of interest to be
paid on the Securities for each Interest Period will be calculated by adding the Daily Interest
Amounts for each day in the Interest Period. All percentages resulting from any of the above
calculations shall be rounded, if necessary, to the nearest one hundredth thousandth of a
percentage point, with five one-millionths of a percentage point being rounded upwards (e.g.,
9.876545% (or 0.09876545) being rounded to 9.87655% (or 0.0987655)) and all dollar amounts

B-1

 

used in or resulting from such calculations shall be rounded to the nearest cent (with
one-half cent being rounded upwards).

          “Determination Date,” with respect to an Interest Period, will be the second London
Banking Day preceding the first day of the Interest Period.

          “Interest Period” means the period commencing on and including an Interest Payment
Date and ending on and including the day immediately preceding the next succeeding Interest Payment
Date; provided that the first Interest Period shall commence on and include June 16, 2006, and end
on and include November 30, 2006.

          “LIBOR” with respect to an Interest Period will be the rate (expressed as a
percentage per annum) for deposits in U.S. dollars for six-month periods beginning on the first day
of such Interest Period that appears on Telerate Page 3750 as of 11:00 a.m., London time, on the
Determination Date. If Telerate Page 3750 does not include such a rate or is unavailable on a
Determination Date, the Calculation Agent will request the principal London office of each of four
major banks in the London interbank market, as selected by the Calculation Agent, to provide such
bank’s offered quotation (expressed as a percentage per annum), as of approximately 11:00 a.m.,
London time, on such Determination Date, to prime banks in the London interbank market for deposits
in a Representative Amount in U. S. dollars for a six-month period beginning on the first day of
such Interest Period. If at least two such offered quotations are so provided, LIBOR for the
Interest Period will be the arithmetic mean of such quotations. If fewer than two such quotations
are so provided, the Calculation Agent will request each of three major banks in New York City, as
selected by the Calculation Agent, to provide such bank’s rate (expressed as a percentage per
annum), as of approximately 11:00 a.m., New York City time, on such Determination Date, for loans
in a Representative Amount in United States dollars to leading European banks for a six-month
period beginning on the first day of such Interest Period. If at least two such rates are so
provided, LIBOR for the Interest Period will be the arithmetic mean of such rates. If fewer than
two such rates are so provided, then LIBOR for the Interest Period will be LIBOR in effect with
respect to the immediately preceding Interest Period.

          “London Banking Day” is any day in which dealings in U.S. dollars are transacted or,
with respect to any future date, are expected to be transacted in the London interbank market.

          “Representative Amount” means a principal amount of not less than $1,000,000 for a
single transaction in the relevant market at the relevant time.

          The interest rate on the Securities will in no event be higher than the maximum rate permitted
by applicable law. The Calculation Agent will, upon the request of the holder of any Securities,
provide the interest rate then in effect with respect to the Securities. All calculations made by
the Calculation Agent in the absence of manifest error will be conclusive for all purposes and
binding on the Company, the Note Guarantors and the holders of the Securities.

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2. Method of Payment

          By no later than 10:00 a.m. (New York City time) on the date on which any principal of,
premium, if any, or interest on any Security is due and payable, the Company shall irrevocably
deposit with the Trustee or the Paying Agent money sufficient to pay such principal, premium, if
any, and/or interest. The Company will pay interest (except Defaulted Interest) to the Persons who
are registered Holders of Securities at the close of business on the May 15 or November 15 next
preceding the interest payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments in respect of Securities represented by a Global Security
(including principal, premium, if any, and interest) will be made by the transfer of immediately
available funds to the accounts specified by The Depository Trust Company or any successor
depository. The Company will make all payments in respect of a Definitive Security (including
principal, premium, if any, and interest) by mailing a check to the registered address of each
Holder thereof; provided, however, that payments on the Securities may also be made, in the case of
a Holder of at least $1,000,000 aggregate principal amount of Securities, by wire transfer to a
U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

          Initially, The Bank of New York Trust Company, N.A. (the “Trustee”) will act as
Trustee, Paying Agent and Registrar. The Company may appoint and change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Any of the domestically organized
Restricted Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

          The Company issued the Securities under an Indenture dated as of June 16, 2006 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture”), among the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the
“Act”). Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all terms and provisions of the Indenture,
and Holders are referred to the Indenture and the Act for a statement of those terms.

          The Securities are general senior secured obligations of the Company. The aggregate principal
amount of securities that may be authenticated and delivered under the Indenture is unlimited.
This Security is one of the Floating Rate Senior Secured Notes, Series B, due 2011 referred to in
the Indenture. The Securities include (i) $306,000,000 aggregate principal amount of the Company’s
Floating Rate Senior Secured Notes, Series A, due 2011

B-3

 

issued under the Indenture on June 16, 2006 (herein called “Initial Securities”), (ii)
if and when issued, additional Floating Rate Senior Secured Notes, Series A, due 2011 or Floating
Rate Senior Secured Notes, Series B, due 2011 of the Company that may be issued from time to time
under the Indenture subsequent to June 16, 2006 (herein called “Additional Securities”) and
(iii) if and when issued, the Company’s Floating Rate Senior Secured Notes, Series B, due 2011 that
may be issued from time to time under the Indenture in exchange for Initial Securities or
Additional Securities in an offer registered under the Securities Act as provided in the
Registration Rights Agreement (herein called “Exchange Securities”). The Initial
Securities, Additional Securities and Exchange Securities are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on the incurrence of
indebtedness, the making of restricted payments, the sale of assets and subsidiary stock, the
incurrence of certain liens, affiliate transactions, the sale of capital stock of restricted
subsidiaries, the making of payments for consents, the entering into of agreements that restrict
distributions from restricted subsidiaries and the consummation of mergers and consolidations. The
Indenture also imposes requirements with respect to the provision of financial information and the
provision of guarantees of the Securities by certain subsidiaries.

          To guarantee the due and punctual payment of the principal, premium, if any, and interest
(including post-filing or post-petition interest) on the Securities and all other amounts payable
by the Company under the Indenture and the Securities when and as the same shall be due and
payable, whether at maturity, by acceleration or otherwise, according to the terms of the
Securities and the Indenture, the Note Guarantors have fully, unconditionally and irrevocably
Guaranteed (and future guarantors, together with the Note Guarantors, will fully, unconditionally
and irrevocably Guarantee), jointly and severally, to each Holder of the Securities and the Trustee
the Guarantor Obligations pursuant to Article X of the Indenture on a senior basis.

5. Redemption

          Except as set forth below, the Securities will not be redeemable at the option of the Company
prior to June 1, 2008. On and after such date, the Securities will be redeemable, at the Company’s
option, in whole or in part, at any time from time to time, upon not less than 30 nor more than 60
days’ prior notice, at the following redemption prices (expressed in percentages of principal
amount), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period commencing on June 1 of the years
set forth below:

	 	 	 	 	 
	Period	 	Percentage
	2008
	 	 	107.500	%
	2009
	 	 	102.500	%
	2010 and thereafter
	 	 	100.000	%

          In addition, at any time and from time to time prior to June 1, 2008, the Company may redeem
in the aggregate up to 35% of the original principal amount of the Securities (after

B-4

 

giving effect to any future issuance of Additional Securities) with the Net Cash Proceeds of
one or more Equity Offerings at a redemption price (expressed as a percentage of principal amount)
of 100% of the principal amount thereof plus a premium equal to the interest rate per annum on the
Securities applicable on the date on which notice of redemption is given, plus accrued and unpaid
interest, if any, to the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided, however, that
at least 65% of the original principal amount of the Securities (after giving effect to any future
issuance of Additional Securities) must remain outstanding after each such redemption; provided
further, that each such redemption occurs within 90 days of the date of closing of such Equity
Offering.

          If the optional redemption date is on or after an interest record date and on or before the
related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person
in whose name the Security is registered at the close of business on such record date, and no
additional interest will be payable to Holders whose Securities will be subject to redemption by
the Company.

          In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee in compliance with the requirements of the principal national securities exchange,
if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, although no Securities of $1,000 in original principal amount or less will be
redeemed in part. Any such notice to the Trustee may be cancelled at any time prior to notice of
such redemption being mailed to any Holder and shall thereby be void and of no effect. If any
Security is to be redeemed in part only, the notice of redemption relating to such Security shall
state the portion of the principal amount thereof to be redeemed. A new Security in principal
amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof
upon cancellation of the original Security. On and after the redemption date, interest will cease
to accrue on Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable redemption price pursuant
to the Indenture.

6. Repurchase Provisions

          If a Change of Control occurs, unless the Company has exercised its right to redeem all of the
Securities as described under paragraph 5 of the Securities, then such Change of Control shall
constitute a triggering event which shall trigger the obligation of the Company to offer to
repurchase from each Holder all or any part (equal to $1,000 or an integral multiple thereof) of
such Holder’s Securities at a purchase price in cash equal to 101% of the principal amount thereof,
plus accrued and unpaid interest, if any, to the date of repurchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the relevant interest
payment date) as provided in, and subject to the terms of, the Indenture.

7. Denominations; Transfer; Exchange

          The Securities are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange

B-5

 

Securities in accordance with the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay a sum sufficient to
cover any transfer tax or other governmental taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer of or exchange of any Security for a
period beginning 15 days before the mailing of a notice of an offer to repurchase or redeem
Securities and ending at the close of business on the day of such mailing. The Registrar shall not
be required to register the transfer of or exchange of any Security selected for redemption.

8. Persons Deemed Owners

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

9. Unclaimed Money

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

10. Defeasance

          Subject to certain exceptions and conditions set forth in the Indenture, the Company at any
time may terminate some or all of its obligations under the Securities and the Indenture if the
Company deposits with the Trustee money or U.S. Government Obligations for the payment of
principal, premium, if any, and interest on the Securities to redemption or maturity, as the case
may be.

11. Amendment, Supplement, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture, the Securities,
the Collateral Documents, the Intercreditor Agreement and any Note Guarantee may be amended or
supplemented by the Company, the Note Guarantors and the Trustee with the written consent of the
Holders of at least a majority in principal amount of the then outstanding Securities and (ii) any
default (other than with respect to nonpayment (except in accordance with Section 6.4 of
the Indenture)) or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the then outstanding Securities and except as
otherwise set forth in the Indenture, in each case other than in respect of a provision that cannot
be amended without the written consent of each Holder affected. Subject to certain exceptions set
forth in the Indenture, without the consent of any Holder, the Company, the Note Guarantors and the
Trustee may amend or supplement the Indenture or the Securities cure any ambiguity, omission,
defect or inconsistency; provide for the assumption by a successor corporation of the obligations
of the Company or any Note Guarantor under the Indenture; provide for uncertificated Securities in
addition to or in place of certificated Securities (provided that the uncertificated Securities are
issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f) (2) (B) of the Code); add Guarantees with
respect to the Securities or release a Subsidiary

B-6

 

Guarantor upon its designation as an Unrestricted Subsidiary; provided, however, that the
designation is in accordance with the applicable provisions of the Indenture; secure the Securities
with additional Collateral; add to the covenants of the Company and the Restricted Subsidiaries for
the benefit of the Holders or surrender any right or power conferred upon the Company or any
Restricted Subsidiary; make any change that does not adversely affect the rights of any Holder;
comply with any requirement of the SEC in connection with the qualification of the Indenture under
the TIA; release a Note Guarantor from its obligations under its Note Guarantee or the Indenture in
accordance with the applicable provisions of the Indenture; provide for the appointment of a
successor trustee, provided that the successor trustee is otherwise qualified and eligible to act
as such under the terms of the Indenture; release Liens in favor of the Collateral Agent in the
Collateral, as provided under Section 11.7 or otherwise in accordance with this Indenture, the
Collateral Documents or the Intercreditor Agreement; provide for the issuance of Exchange
Securities that shall have terms substantially identical in all respects to the Securities (except
that the transfer restrictions contained in the Securities shall be modified or eliminated as
appropriate) and that shall be treated, together with any outstanding Securities, as a single class
of securities; or conform the text of the Indenture, the Securities or the Guarantees to any
provision of the “Description of senior secured notes” section of the Offering Memorandum to the
extent that such provision in the “Description of senior secured notes” was intended to be a
verbatim recitation of a provision of the Indenture, the Securities or the Note Guarantees.

12. Defaults and Remedies

          Under the Indenture, Events of Default include (each of which are more specifically described
in the Indenture) (i) default in any payment of interest or additional interest (as required by the
Registration Rights Agreement) on any Security when due, continued for 30 days; (ii) default in the
payment of principal of or premium, if any, on any Security when due at its Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company or any Note Guarantor to comply with its obligations under Section 4.1 of the
Indenture; (iv) failure by the Company or any Note Guarantor to comply for 30 days after notice
with any of its obligations under Article III of the Indenture (in each case, other than a
failure to purchase Securities which will constitute an Event of Default under clause (ii) and a
failure to comply with Section 4.1 of the Indenture, which will constitute an Event of
Default under clause (iii)); (v) failure by the Company or any Note Guarantor to comply for 60 days
after notice as provided below with its other agreements contained in the Indenture; (vi) default
under any mortgage, indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), other than Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which default (1) is
caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior
to the expiration of the grace period provided in such Indebtedness or (2) results in the
acceleration of such Indebtedness prior to its maturity, and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates
$15.0 million or more; (vii) certain events set forth in Section 6.1(7) of the Indenture of
bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as

B-7

 

of the latest audited consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary, pursuant to or within the meaning of any
Bankruptcy Law; (viii) failure by the Company or any Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries) would constitute a Significant Subsidiary to pay final
judgments aggregating in excess of $15.0 million (net of any amounts that a reputable and
creditworthy insurance company has acknowledged liability for in writing), which judgments are not
paid, discharged or stayed for a period of 60 days; (ix) any Subsidiary Guarantee, Collateral
Document or obligation under the Intercreditor Agreement of a Significant Subsidiary or group of
Restricted Subsidiaries that taken together as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries would constitute a Significant
Subsidiary ceases to be in full force and effect (except as contemplated by the terms of the
Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor that
is a Significant Subsidiary or group of Subsidiary Guarantors that taken together as of the latest
audited consolidated financial statements of the Company and its Restricted Subsidiaries would
constitute a Significant Subsidiary denies or disaffirms its obligations under the Indenture, its
Subsidiary Guarantee, any Collateral Document or the Intercreditor Agreement; or (x) with respect
to any Collateral having a fair market value in excess of $15.0 million, individually or in the
aggregate, (A) the security interest under the Collateral Documents, at any time, ceases to be in
full force and effect for any reason other than in accordance with their terms and the terms of
this Indenture and other than the satisfaction in full of all obligations under this Indenture and
discharge of this Indenture, (B) any security interest created thereunder or under this Indenture
is declared invalid or unenforceable or (C) the Company or any Note Guarantor asserts, in any
pleading in any court of competent jurisdiction, that any such security interest is invalid or
unenforceable. However, a default under clauses (iv) and (v) will not constitute an Event of
Default until the Trustee or the Holders of 25% in principal amount of the outstanding Securities
notify the Company of the default and the Company does not cure such default within the time
specified in clauses (iv) and (v) hereof after receipt of such notice.

          If an Event of Default (other than an Event of Default described in (vii) hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the outstanding Securities by notice to the Company and the Trustee, may, and the Trustee
at the request of such Holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest, if any, on all the Securities to be due and payable. If an Event of Default
described in (vii) hereof occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Securities will become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holders.

          Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or
security reasonably satisfactory to it. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except
a Default or Event of Default in payment of principal, premium, if any, or interest) if it
determines in good faith that withholding notice is in their interest.

B-8

 

13. Trustee Dealings with the Company

          Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with and collect obligations owed to it by the Company, the Subsidiary Guarantors or
their Affiliates and may otherwise deal with the Company, the Subsidiary Guarantors or their
Affiliates with the same rights it would have if it were not Trustee.

14. No Recourse Against Others

          No director, officer, employee, incorporator or stockholder of the Parent, the Company or any
of the Subsidiary Guarantors, as such, shall have any liability for any obligations of the Company
under the Securities, the Indenture or any Guarantee or for any claim based on, in respect of, or
by reason of, such obligations or their creation. Each Holder of Securities by accepting a Security
waives and releases all such liability. The waiver and release are part of the consideration for
issuance of the Securities. Such waiver may not be effective to waive liabilities under the federal
securities laws, and it is the view of the SEC that such a waiver is against public policy.

15. Authentication

          This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent acting on its behalf) manually signs the certificate of authentication on the
other side of this Security.

16. Abbreviations

          Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=
tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).

17. CUSIP, Common Code and ISIN Numbers

          The Company has caused CUSIP, Common Code or ISIN numbers, if applicable, to be printed on the
Securities and has directed the Trustee to use CUSIP, Common Code or ISIN numbers, if applicable,
in notices of redemption as a convenience to Holders. No representation is made as to the accuracy
of such numbers either as printed on the Securities or as contained in any notice of redemption,
and reliance may be placed only on the other identification numbers placed thereon.

18. Governing Law

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

B-9

 

          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:

Libbey Inc.

300 Madison Ave.

P.O. Box 10060

Toledo, Ohio 43699-0060

Attention: Treasurer

B-10

 

ASSIGNMENT FORM

          To assign this Security, fill in the form below:

          I or we assign and transfer this Security to:

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s social security or tax I.D. No.)

and irrevocably appoint                      agent to transfer this Security on the books of the
Company. The agent may substitute another to act for him.

	 	 	 	 	 
	Date:                                         

	 	Your Signature:	 	 
	 

	 	 	 

	 	 	 
	Signature
Guarantee: 
	 	 
	 

	 
	 

	 	                    (Signature must be guaranteed)

      

Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

B-11

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

          The following increases and decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Signature of
	 

	 	Amount of
	 	Amount of
	 	Principal Amount
	 	authorized
	Date of

	 	decrease in
	 	increase in
	 	of this Global
	 	signatory of
	Decrease

	 	Principal Amount
	 	Principal Amount
	 	Security following
	 	Trustee or
	or

	 	of this Global
	 	of this Global
	 	such decrease or
	 	Securities
	Increase

	 	Security
	 	Security
	 	increase
	 	Custodian
	 
	 	 	 	 	 	 	 	 

B-12

 

OPTION OF HOLDER TO ELECT PURCHASE

          If you elect to have this Security purchased by the Company pursuant to Section 3.5 or
3.11 of the Indenture, check either box:

o           o

3.5           3.11

          If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.5 or Section 3.11 of the Indenture, state the amount in principal amount
(must be integral multiple of $1,000): $         
                
                
                
                
                
           

	 	 	 	 	 
	Date:                     

	 	Your Signature:	 	 
	 

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

	 	 	 
	Signature
Guarantee: 
	 	 
	 

	 
	 

	 	                         (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved signature guarantee
medallion program), pursuant to SEC Rule 17Ad-15.

B-13

 

EXHIBIT C

FORM OF INDENTURE SUPPLEMENT TO ADD SUBSIDIARY GUARANTORS

          This
Supplemental Indenture, dated as of
                    
___, 20___ (this “Supplemental
Indenture” or “Guarantee”), among [name of future Subsidiary Guarantor] (the
“Guarantor”), LIBBEY GLASS INC. (together with its successors and assigns, the
“Company”), each other then-existing Guarantors under the Indenture referred to below, and
The Bank of New York Trust Company, N.A., as Trustee under the Indenture referred to below.

WITNESSETH:

          WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have heretofore executed and
delivered an Indenture, dated as of June 16, 2006 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the issuance of Floating Rate Senior Secured
Notes due 2011 of the Company (the “Securities”);

          WHEREAS, Section 3.13 of the Indenture provides that under certain circumstances the
Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the
Company or of any other Restricted Subsidiary to execute and deliver to the Trustee a supplemental
indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, on a joint
and several basis with the other Subsidiary Guarantors, the full and prompt payment of the
principal of, premium, if any, and interest on the Securities on a senior basis; and

          WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company and the
Subsidiary Guarantors are authorized to execute and deliver this Supplemental Indenture to amend or
supplement the Indenture, without the consent of any Holder;

          NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company, the other
Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit
of the Holders of the Securities as follows:

ARTICLE I

Definitions

          SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in
the Indenture or in the preamble or recital hereto are used herein as therein defined, except that
the term “Holders” in this Guarantee shall refer to the term “Holders” as defined
in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words
“herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental

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

ARTICLE II

Agreement to be Bound; Guarantee

          SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all
of the obligations and agreements of a Note Guarantor under the Indenture. The Guarantor agrees to
be bound by all of the provisions of the Indenture applicable to a Note Guarantor and to perform
all of the obligations and agreements of a Note Guarantor under the Indenture.

          SECTION 2.2 Guarantee. The Guarantor agrees, on a joint and several basis with all
the existing Note Guarantors, to fully, unconditionally and irrevocably Guarantee to each Holder of
the Securities and the Trustee the Guarantor Obligations pursuant to Article X of the
Indenture on a senior basis.

ARTICLE III

Miscellaneous

          SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be
given as provided in the Indenture to the Guarantor, at its address set forth below, with a copy to
the Company as provided in the Indenture for notices to the Company.

          SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and the Trustee, any
legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the
Indenture or any provision herein or therein contained.

          SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3.4 Ratification of Indenture; Supplemental Indenture Part of Indenture.
Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and effect. This
Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of
Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee
makes no representation or warranty as to the validity or sufficiency of this Supplemental
Indenture.

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          SECTION 3.5 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement.

          SECTION 3.6 Headings. The headings of the Articles and the Sections in this
Guarantee are for convenience of reference only and shall not be deemed to alter or affect the
meaning or interpretation of any provisions hereof.

          SECTION 3.7 Trustee. The Trustee makes no representation as to the validity or
sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be
those of the Guarantor and not of the Trustee.

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          IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	 	[SECURITIES GUARANTOR],
	 	 	as a Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	     [Address]
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	 	 	COMPANY, N.A.
	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	LIBBEY GLASS INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[EXISTING GUARANTORS]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

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