Document:

ex42.htm

    

     

    COLLATERAL
AGREEMENT

     

     

    dated and
effective as of

     

    April 21,
2008,

     

    among

     

    BERRY
PLASTICS CORPORATION,

     

     

    each
Subsidiary of the Company

    identified
herein,

     

    and

     

    WELLS
FARGO BANK, N.A.,

    as
Collateral Agent

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THIS
COLLATERAL AGREEMENT IS SUBJECT TO THE PROVISIONS OF (1) THE SECOND AMENDED AND
RESTATED SENIOR LENDER PRIORITY AND INTERCREDITOR AGREEMENT DATED AS OF FEBRUARY
5, 2008 AMONG BERRY PLASTICS GROUP, INC., THE COMPANY, CERTAIN OF ITS
SUBSIDIARIES, CREDIT SUISSE, CAYMAN ISLANDS BRANCH, AS TERM FACILITY
ADMINISTRATIVE AGENT AND TERM FACILITY COLLATERAL AGENT, BANK OF AMERICA, N.A.,
AS REVOLVING FACILITY ADMINISTRATIVE AGENT AND REVOLVING FACILITY COLLATERAL
AGENT, AND BANK OF AMERICA, N.A. AS BRIDGE LOAN ADMINISTRATIVE AGENT AND BRIDGE
LOAN COLLATERAL AGENT, SUPPLEMENTED AS OF THE DATE HEREOF THROUGH THE EXECUTION
AND DELIVERY OF A JOINDER AGREEMENT BY THE TERM FACILITY ADMINISTRATIVE AGENT,
THE TERM LOAN COLLATERAL AGENT, THE REVOLVING FACILITY ADMINISTRATIVE AGENT, THE
REVOLVING FACILITY COLLATERAL AGENT, THE COLLATERAL AGENT, THE TRUSTEE, THE
COMPANY AND CERTAIN OF ITS SUBSIDIARIES AND BERRY PLASTICS GROUP, INC., (2) THE
SECOND AMENDED AND RESTATED INTERCREDITOR AGREEMENT DATED AS OF FEBRUARY 5, 2008
AMONG BERRY PLASTICS GROUP, INC., THE COMPANY, CERTAIN OF ITS SUBSIDIARIES,
CREDIT SUISSE, CAYMAN ISLANDS BRANCH AND BANK OF AMERICA, N.A., EACH IN THEIR
CAPACITY AS FIRST LIEN AGENT, BANK OF AMERICA, N.A., AS BRIDGE LOAN
ADMINISTRATIVE AGENT AND BRIDGE LOAN COLLATERAL AGENT AND WELLS FARGO BANK,
N.A., AS SECOND PRIORITY NOTES TRUSTEE, SUPPLEMENTED AS OF THE DATE HEREOF
THROUGH THE EXECUTION AND DELIVERY OF A JOINDER AGREEMENT BY CREDIT SUISSE,
CAYMAN ISLANDS BRANCH AND BANK OF AMERICA, N.A., EACH IN THEIR CAPACITY AS FIRST
LIEN AGENTS, THE COLLATERAL AGENT, THE TRUSTEE AND THE SECOND PRIORITY NOTES
TRUSTEE, THE COMPANY AND CERTAIN OF ITS SUBSIDIARIES, AND BERRY PLASTICS GROUP,
INC.,  AND (3) THE SENIOR FIXED COLLATERAL PRIORITY AND INTERCREDITOR
AGREEMENT DATED AS OF FEBRUARY 5, 2008 AMONG BERRY PLASTICS GROUP, INC., THE
COMPANY, CERTAIN OF ITS SUBSIDIARIES, CREDIT SUISSE, CAYMAN ISLANDS BRANCH, AS
TERM FACILITY ADMINISTRATIVE AGENT AND TERM FACILITY COLLATERAL AGENT, AND BANK
OF AMERICA, N.A. AS BRIDGE LOAN ADMINISTRATIVE AGENT AND BRIDGE LOAN COLLATERAL
AGENT, SUPPLEMENTED AS OF THE DATE HEREOF THROUGH THE EXECUTION AND DELIVERY OF
A JOINDER AGREEMENT BY THE TERM FACILITY ADMINISTRATIVE AGENT, THE TERM LOAN
COLLATERAL AGENT, THE COLLATERAL AGENT, THE TRUSTEE, THE COMPANY AND CERTAIN OF
ITS SUBSIDIARIES, AND BERRY PLASTICS GROUP, INC., AS SET FORTH MORE FULLY IN
SECTION 9.18 HEREOF.  NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY,
THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL AGENT, FOR THE BENEFIT
OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    AND
THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER
SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR
AGREEMENTS.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    
       

      
        	 
      	 
      	
                Page

              
	
                ARTICLE
      I DEFINITIONS

              	 
      	
                3

              
	 
      	
                Section
      1.01.Indenture

              	
                3

              
	 
      	
                Section
      1.02.Other Defined Terms

              	
                3

              
	
                ARTICLE
      II [RESERVED]

              	 
      	
                8

              
	
                ARTICLE
      III PLEDGE OF SECURITIES

              	 
      	
                8

              
	 
      	
                Section
      3.01.Pledge

              	
                8

              
	 
      	
                Section
      3.02.Delivery of the Pledged Collateral

              	
                9

              
	 
      	
                Section
      3.03.Representations, Warranties and Covenants

              	
                10

              
	 
      	
                Section
      3.04.Registration in Nominee Name; Denominations

              	
                12

              
	 
      	
                Section
      3.05.Voting Rights; Dividends and Interest, Etc.

              	
                13

              
	
                ARTICLE
      IV SECURITY INTERESTS IN OTHER PERSONAL PROPERTY

              	 
      	
                15

              
	 
      	
                Section
      4.01.Security Interest

              	
                15

              
	 
      	
                Section
      4.02.Representations and Warranties

              	
                17

              
	 
      	
                Section
      4.03.Covenants

              	
                20

              
	 
      	
                Section
      4.04.Other Actions

              	
                22

              
	 
      	
                Section
      4.05.Covenants Regarding Patent, Trademark and Copyright
      Collateral

              	
                24

              
	
                ARTICLE
      V OTHER SECURITY DOCUMENTS AND OTHER ACTIONS

              	 
      	
                25

              
	 
      	
                Section
      5.01.Mortgages

              	
                25

              
	
                ARTICLE
      VI REMEDIES

              	 
      	
                26

              
	 
      	
                Section
      6.01.Remedies Upon Default

              	
                26

              
	 
      	
                Section
      6.02.Application of Proceeds

              	
                28

              
	 
      	
                Section
      6.03.Securities Act, Etc.

              	
                29

              
	
                ARTICLE
      VII [RESERVED]

              	 
      	
                30

              
	
                ARTICLE
      VIII [RESERVED]

              	 
      	
                30

              
	
                ARTICLE
      IX MISCELLANEOUS

              	 
      	
                30

              
	 
      	
                Section
      9.01.Notices

              	
                30

              
	 
      	
                Section
      9.02.Security Interest Absolute

              	
                30

              
	 
      	
                Section
      9.03.Limitation By Law

              	
                31

              
	 
      	
                Section
      9.04.Binding Effect; Several Agreement

              	
                31

              
	 
      	
                Section
      9.05.Successors and Assigns

              	
                31

              
	 
      	
                Section
      9.06.Collateral Agent’s Fees and Expenses; Indemnification

              	
                31

              
	 
      	
                Section
      9.07.Collateral Agent Appointed Attorney-in-Fact

              	
                32

              
	 
      	
                Section
      9.08.GOVERNING LAW

              	
                33

              
	 
      	
                Section
      9.09.Waivers; Amendment

              	
                33

              
	 
      	
                Section
      9.10.WAIVER OF JURY TRIAL

              	
                34

              
	 
      	
                Section
      9.11.Severability

              	
                34

              
	 
      	
                Section
      9.12.Counterparts

              	
                34

              
	 
      	
                Section
      9.13.Headings

              	
                34

              
	 
      	
                Section
      9.14.Jurisdiction; Consent to Service of Process

              	
                34

              
	 
      	
                Section
      9.15.Termination or Release

              	
                35

              
	 
      	
                Section
      9.16.Additional Subsidiaries

              	
                35

              
	 
      	
                Section
      9.17.Right of Set-off

              	
                35

              
	 
      	
                Section
      9.18.Subject to Intercreditor Agreements

              	
                36

              

      

       

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

     

     

    

     

    Schedules

     

    Schedule
I                  Subsidiary
Parties

    Schedule
II                 Pledged
Stock; Debt Securities

    Schedule
III                Intellectual
Property

    Schedule
IV                Filing
Offices

    Schedule
V                  Mortgaged
Real Properties

    

     

    Exhibits

     

    Exhibit
I                      Form
of Supplement to the Collateral Agreement

    Exhibit
II                     Form
of Perfection Certificate

    

    

    
      
        
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    COLLATERAL
AGREEMENT dated and effective as of April 21, 2008 (this “Agreement”), among
Berry Plastics Corporation (the “Company”), each
subsidiary of the Company identified herein as a party (each such Subsidiary,
together with any Subsidiary of the Company that becomes a party hereto pursuant
to Section 9.16, a “Subsidiary Party”)
and WELLS FARGO BANK, N.A., as collateral agent (in such capacity, the
“Collateral
Agent”) for the Secured Parties (as defined below).

     

    WHEREAS,
pursuant to the terms, conditions and provisions of (a) the Indenture dated as
of the date hereof (as amended, restated, supplemented or otherwise modified
from time to time, the “Indenture”), among
the Company, the Subsidiary Parties and Wells Fargo Bank, N.A., as Trustee (the
“Trustee”), and
(b) the Purchase Agreement dated as of April 16, 2008 (as amended, restated,
supplemented, waived or otherwise modified from time to time, the “Purchase Agreement”),
among Berry Plastics Corporation, certain of its subsidiaries, and the several
parties named in Schedule I thereto (the “Initial Purchasers”),
the Company is issuing $680,600,000 aggregate principal amount of its First
Priority Senior Secured Floating Rate Notes due 2015, which will be guaranteed
on a first priority senior secured basis by each of the Subsidiary
Parties;

     

    WHEREAS,
the Company entered into that certain Senior Secured Bridge Loan Credit
Agreement dated as of February 5, 2008, among the Company, the lenders party
thereto from time to time, Bank of America, N.A. as administrative agent and
collateral agent for the lenders, and the other agents party
thereto, the
outstanding principal amount of which will be
repaid in full on the date hereof with the proceeds of the issuance of the
Original Securities (as defined in the Indenture);

     

    WHEREAS,
pursuant to (i) the Second Amended and Restated Term Loan Credit Agreement dated
as of April 3, 2007, among Berry Plastics Group, Inc., a Delaware corporation
(“Holdings”), the Company,
the lenders party thereto from time to time, Credit Suisse, Cayman
Islands Branch, as administrative agent and collateral agent for the lenders,
and the other agents party thereto and (ii) the Amended and Restated
Revolving Credit Agreement, dated as of April 3, 2007, among Holdings, the
Company, the subsidiaries of the Company party thereto, the lenders party
thereto from time to time, Bank of America, N.A., as administrative agent and
collateral agent, and other agents party thereto and (iii) the
Second Amended and Restated Collateral Agreement, dated as of April 3, 2007,
among the Company, certain subsidiaries of the Company party thereto, the Term
Loan Collateral Agent and the Revolving Facility Collateral Agent, the Grantors (as defined below) have
granted to the Term Loan Collateral
Agent and
Revolving Facility Collateral Agent a first-priority
lien and security interest in the Collateral (as defined below);

     

    WHEREAS,
pursuant to the terms, conditions and provisions of the Indenture dated as of
September 20, 2006, among the Company, subsidiaries of the Company parties
thereto, and Wells Fargo Bank, N.A., as trustee, the Company issued $525,000,000
aggregate principal amount of its 87/8% Second
Priority Senior Secured Fixed Rate Notes due 2014 and $225,000,000 aggregate
principal amount of its Second Priority Senior Secured Floating Rate Notes due
2014, which were guaranteed on a second priority senior secured basis by each of
the subsidiaries party thereto pursuant to, among others, a Collateral Agreement
dated as of September 20, 2006 (the “Second Priority Notes
Collateral Agreement”) among the

     

    
      
         

      

      
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    Company,
certain subsidiaries of the Company party thereto, and the Second Priority
Notes Trustee, as collateral agent;

     

    WHEREAS,
Holdings, the Company, certain subsidiaries of the Company, the Term Facility
Administrative Agent, the Term Loan Collateral Agent, the Revolving Facility
Administrative Agent, the Revolving Facility Collateral Agent, the Bridge Loan
Administrative Agent and the Bridge Loan Collateral Agent have entered into a
Second Amended and Restated Senior Lender Priority and Intercreditor Agreement
dated as of February 5, 2008, as supplemented on the date hereof through the
execution and delivery of a joinder agreement by the Collateral Agent, the
Trustee, the Term Facility Administrative Agent, the Term Loan Collateral Agent,
the Revolving Facility Administrative Agent, the Revolving Facility Collateral
Agent, Holdings, the Company and the Subsidiary Parties, governing the
relationship between the Term Loan Collateral Agent, the Revolving Facility
Collateral Agent and the Collateral Agent;

     

    WHEREAS,
Holdings, the Company, certain subsidiaries of the Company, the Term Facility
Administrative Agent, Term Loan Collateral Agent, the Bridge Loan Administrative
Agent and Bridge Loan Collateral Agent have entered into a Senior Fixed
Collateral Priority and Intercreditor Agreement dated as of February 5, 2008, as
supplemented on the date hereof through the execution and delivery of a joinder
agreement by the Collateral Agent, the Trustee, the Term Facility Administrative
Agent, the Term Loan Collateral Agent, Holdings, the Company and the Subsidiary
Parties, governing the relationship between the Term Loan Collateral Agent and
the Collateral Agent.

     

    WHEREAS,
Holdings, the Company, the Subsidiary Parties, the Term Facility Administrative
Agent, the Term Loan Collateral Agent, the Revolving Facility Administrative
Agent, the Revolving Facility Collateral Agent, the Bridge Loan Administrative
Agent, the Bridge Loan Collateral Agent and the Second Priority Notes Trustee
have entered into a Second Amended and Restated Intercreditor Agreement dated as
of February 5, 2008, as supplemented on the date hereof through the execution
and delivery of a joinder agreement by the Collateral Agent, the Trustee, the
Term Facility Administrative Agent, the Term Loan Collateral Agent, the
Revolving Facility Administrative Agent, the Revolving Facility Collateral
Agent, the Second Priority Notes Trustee, Holdings, the Company and the
Subsidiary Parties, pursuant to which the lien upon and security interest in the
Collateral granted by the Second Priority Notes Collateral Agreement are and
shall be subordinated in all respects to the lien upon and security interest in
the Collateral granted pursuant to, and subject to the terms and conditions of,
this Agreement and the Security Agreement;

     

    WHEREAS,
each Grantor is executing and delivering this Agreement pursuant to the terms of
the Indenture to induce the Trustee to enter into the Indenture and pursuant to
the terms of the Purchase Agreement to induce the Initial Purchasers to purchase
the Original Securities;

     

    WHEREAS,
the Subsidiary Parties are affiliates of the Company, will derive substantial
benefits from the extension of credit to the Company pursuant to the Indenture
and are willing to execute and deliver this Agreement in order to induce the
Trustee to enter into the Indenture and to induce the Initial Purchasers to
purchase the Original Securities; and

     

    
      
        
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    WHEREAS,
each Grantor has duly authorized the execution, delivery and performance of this
Agreement.

     

    NOW,
THEREFORE, for and in consideration of the premises, and of the mutual covenants
herein contained, and in order to induce the Trustee to enter into the Indenture
and the Initial Purchasers to purchase the Original Securities, each Grantor and
the Collateral Agent, on behalf of itself and each Secured Party (and each of
their respective successors or assigns), hereby agree as follows:

     

     

    ARTICLE
I

     

    DEFINITIONS

     

     

    Section
1.01. Indenture.

     

    (a)           Capitalized
terms used in this Agreement and not otherwise defined herein have the
respective meanings assigned thereto in the Indenture.  All terms
defined in the New York UCC (as defined herein) and not defined in this
Agreement have the meanings specified therein.  The term “instrument”
shall have the meaning specified in Article 9 of the New York UCC.

     

    (b)           The
rules of construction specified in Section 1.04 of the Indenture also apply to
this Agreement.

     

     

    Section
1.02. Other Defined
Terms.  As
used in this Agreement, the following terms have the meanings specified
below:

     

    “Account Debtor” means
any person who is or who may become obligated to any Grantor under, with respect
to or on account of an Account, Chattel Paper, General Intangibles, Instruments
or Investment Property.

     

    “Agreement” has the
meaning assigned to such term in the preliminary statement of this
Agreement.

     

    “Article 9 Collateral”
has the meaning assigned to such term in Section 4.01.

     

    “Collateral” means
Article 9 Collateral and Pledged Collateral.

     

    “Collateral Agent”
means the party named as such in this Agreement until a successor replaces it
and, thereafter, means the successor.

     

    “Company” has the
meaning assigned to such term in the preliminary statement of this
Agreement.

     

    “Control Agreement”
means a deposit account control agreement, a securities account control
agreement or a commodity account control agreement, as applicable,
enabling

     

    
      
        
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    the
Collateral Agent to obtain “control” (within the meaning of the New York UCC) of
any such accounts, in form and substance reasonably satisfactory to the
Collateral Agent.

     

    “Copyright License”
means any written agreement, now or hereafter in effect, granting any right to
any Grantor under any Copyright now or hereafter owned by any third party, and
all rights of any Grantor under any such agreement (including, without
limitation, any such rights that such Grantor has the right to
license).

     

    “Copyrights” means all
of the following now owned or hereafter acquired by any Grantor:  (a)
all copyright rights in any work subject to the copyright laws of the United
States or any other country, whether as author, assignee, transferee or
otherwise and (b) all registrations and applications for registration of any
such copyright in the United States or any other country, including
registrations, supplemental registrations and pending applications for
registration in the United States Copyright Office and the right to obtain all
renewals thereof, including those listed on Schedule
III.

     

    “Federal Securities
Laws” has the meaning assigned to such term in Section 6.03.

     

    “General Intangibles”
means all “General Intangibles” as defined in the New York UCC, including all
choses in action and causes of action and all other intangible personal property
of any Grantor of every kind and nature (other than Accounts) now owned or
hereafter acquired by any Grantor, including corporate or other business
records, indemnification claims, contract rights (including rights under leases,
whether entered into as lessor or lessee, Swap Agreements and other agreements),
Intellectual Property, goodwill, registrations, franchises, tax refund claims
and any guarantee, claim, security interest or other security held by or granted
to any Grantor to secure payment by an Account Debtor of any of the
Accounts.

     

    “Governmental
Authority” shall mean any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory or legislative
body.

     

    “Grantor” shall mean
the Company and each Subsidiary Party.

     

    “Holder” has the
meaning assigned to such term in the Indenture.

     

    “Holdings” has the
meaning assigned to such term in the recitals of this Agreement.

     

    “Indenture” has the
meaning assigned to such term in the recitals of this Agreement.

     

    “Indenture Documents”
means (a) the Indenture, the Securities, the Security Documents and this
Agreement and (b) any other related documents or instruments executed and
delivered pursuant to the Indenture or any Security Document, in each case, as
such agreements may be amended, restated, supplemented or otherwise modified
from time to time.

     

    
      
        
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    “Initial Purchasers”
has the meaning assigned to such term in the recitals of this
Agreement.

     

    “Intellectual
Property” means all intellectual property of every kind and nature now
owned or hereafter acquired by any Grantor, including, inventions, designs,
Patents, Copyrights, Trademarks, Patent Licenses, Copyright Licenses, Trademark
Licenses, trade secrets, domain names, confidential or proprietary technical and
business information, know-how, show-how or other data or information and all
related documentation.

     

    “Intellectual Property
Security Agreement” means a security agreement concerning Intellectual
Property in the form hereof or a short form hereof.

     

     “IP Agreements” means
all material Copyright Licenses, Patent Licenses, Trademark Licenses, and all
other agreements, permits, consents, orders and franchises relating to the
license, development, use or disclosure of any material Intellectual Property to
which a Grantor, now or hereafter, is a party or a beneficiary, including,
without limitation, the agreements set forth on Schedule III
hereto.

     

    “Junior Intercreditor
Agreement” refers to the “Second Priority Intercreditor Agreement” as
defined in the Indenture.

     

     “Material Adverse
Effect” shall mean a material adverse effect on the business, property,
operations or condition of the Company and its subsidiaries, taken as a whole,
or the validity or enforceability of any of the material Note Documents or the
rights and remedies of the Trustee, the Collateral Agent and the
Holders.

     

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

     

    “Obligations” shall
mean (i) all obligations, liabilities and indebtedness (including, without
limitation, principal, premium, interest (including, without limitation, all
interest that accrues after the commencement of any case, proceeding or other
action relating to the bankruptcy, insolvency, reorganization or similar
proceeding of any Grantor at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is allowed in
any such proceeding)) owing to the Collateral Agent, the Trustee and the Holders
under the Securities, the Indenture and the Security Documents and the due
performance and compliance by the Grantors with all of the terms, conditions and
agreements contained in the Securities, the Indenture and in Security Documents;
(ii) any and all sums advanced by the Collateral Agent in accordance with the
Indenture or any of the Security Documents in order to preserve the Collateral
or preserve its security interest in the Collateral; and (iii) in the event of
any proceeding for the collection or enforcement of any indebtedness,
obligations, or liabilities of the Grantors referred to in clause (i) above, the
reasonable expenses of retaking, holding, preparing for sale or lease, selling
or otherwise disposing of or realizing on the Collateral, or of any exercise by
the Collateral Agent of its rights hereunder, together with reasonable
attorneys’ fees and court costs.

     

    “Patent License” means
any written agreement, now or hereafter in effect, granting to any Grantor any
right to make, use or sell any invention covered by a Patent, now

     

    
      
        
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    or
hereafter owned by any third party (including, without limitation, any such
rights that such Grantor has the right to license).

     

    “Patents” means all of
the following now owned or hereafter acquired by any Grantor:  (a) all
letters patent of the United States or the equivalent thereof in any other
country or jurisdiction, including those listed on Schedule III, and all
applications for letters patent of the United States or the equivalent thereof
in any other country or jurisdiction, including those listed on Schedule III and
(b) all provisionals, reissues, extensions, continuations, divisions,
continuations-in-part, reexaminations or revisions thereof, and the inventions
disclosed or claimed therein, including the right to make, use, import and/or
sell the inventions disclosed or claimed therein.

     

    “Perfection
Certificate” means the Perfection Certificate with respect to the
Grantors substantially in the form of Exhibit II, completed
and supplemented with the schedules and attachments contemplated thereby, and
duly executed by an Officer of the Company.

     

    “Permitted Liens”
means any Lien not prohibited by Section 4.12 of the Indenture.

     

    “Pledged Collateral”
has the meaning assigned to such term in Section 3.01.

     

    “Pledged Debt
Securities” has the meaning assigned to such term in Section
3.01.

     

    “Pledged Securities”
means any promissory notes, stock certificates or other certificated securities
now or hereafter included in the Pledged Collateral, including all certificates,
instruments or other documents representing or evidencing any Pledged
Collateral.

     

    “Pledged Stock” has
the meaning assigned to such term in Section 3.01.

     

    “Possessory Collateral
Agent” has the meaning attached to such term in the Senior Fixed Lender
Intercreditor Agreement.

     

    “Purchase Agreement”
has the meaning assigned to such term in the recitals of this
Agreement.

     

    “Real Property” means,
collectively, all right, title and interest (including any leasehold estate) in
and to any and all parcels of or interests in real property owned in fee or
leased by the Grantor.

     

    “Second Priority Notes
Collateral Agreement” has the meaning assigned to such term in the
recitals of this Agreement.

     

    “Secured Parties”
means (a) the Collateral Agent, (b) each Holder, (c) the beneficiaries of each
indemnification obligation undertaken by any Grantor under any

     

    
      
        
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    Indenture
Document, (d) the Trustee and (e) the successors and permitted assigns of
each of the foregoing.

     

    “Securities” has the
meaning assigned to such term in the Indenture.

     

    “Security Documents”
means this Agreement, any agreement pursuant to which assets are added to the
Collateral or otherwise pledged to secure the Obligations and any other
instruments or documents entered into and delivered in connection with any of
the foregoing, as such agreements, instruments or documents may from time to
time be amended, restated, supplemented or otherwise modified from time to
time.

     

    “Senior Fixed Lender
Intercreditor Agreement” refers to the “Senior Fixed Collateral
Intercreditor Agreement” as defined in the Indenture.

     

    “Senior Lender Claims”
has the meaning assigned to such term in the Junior Intercreditor
Agreement.

     

    “Senior Lender Intercreditor
Agreement” has the meaning assigned to such term in the
Indenture.

     

    “Trademark License”
means any written agreement, now or hereafter in effect, granting to any Grantor
any right to use any Trademark now or hereafter owned by any third party
(including, without limitation, any such rights that such Grantor has the right
to license).

     

    “Trademarks” means all
of the following now owned or hereafter acquired by any Grantor:  (a)
all trademarks, service marks, corporate names, company names, business names,
fictitious business names, trade styles, trade dress, logos, other source or
business identifiers, designs and general intangibles of like nature, now
existing or hereafter adopted or acquired, all registrations thereof (if any),
and all registration and recording applications filed in connection therewith,
including registrations and registration applications in the United States
Patent and Trademark Office or any similar offices in any State of the United
States or any other country or any political subdivision thereof (except for
“intent-to-use” applications for trademark or service mark registrations filed
pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until
an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of
the Lanham Act has been filed, to the extent, if any, that any assignment of an
“intent-to-use” application prior to such filing would violate the Lanham Act),
and all renewals thereof, including those listed on Schedule III and
(b) all goodwill associated therewith or symbolized thereby.

     

    “Transactions” has the meaning assigned to such term
in the Indenture.

     

    “Trustee” has the
meaning assigned to such term in the recitals of this Agreement until a
successor replaces it and, thereafter, means the successor.

     

    
      
        
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    ARTICLE
II

     

    [RESERVED]

     

     

     

    ARTICLE III

     

    PLEDGE OF
SECURITIES

     

    Section
3.01. Pledge.  Subject
to the terms of the Intercreditor Agreements and the immediately following
paragraph, as security for the payment or performance when due (whether at the
stated maturity, by acceleration or otherwise), as the case may be, in full of
its Obligations, each Grantor hereby assigns and pledges to the Collateral
Agent, its successors and permitted assigns, for the benefit of the Secured
Parties, and hereby grants to the Collateral Agent, its successors and permitted
assigns, for the benefit of the Secured Parties, a security interest in all of
such Grantor’s right, title and interest in, to and under (a) the Equity
Interests directly owned by it (including those listed on Schedule II) and any
other Equity Interests obtained in the future by such Grantor and any
certificates representing all such Equity Interests (the “Pledged Stock”); provided that the
Pledged Stock shall not include (i) (A) more than 65% of the issued and
outstanding voting Equity Interests of any “first tier” Foreign Subsidiary
directly owned by such Grantor, (B) more than 65% of the issued and outstanding
voting Equity Interests of any “first tier” Qualified CFC Holding Company
directly owned by such Grantor, (C) any issued and outstanding Equity Interest
of any Foreign Subsidiary that is not a “first tier” Foreign Subsidiary, (D) any
issued and outstanding Equity Interests of any Qualified CFC Holdings Company
that is not a “first tier” Qualified CFC Holding Company or (E) any Equity
Interests in NIM Holdings Limited, Berry Plastics Acquisition Corporation II,
Berry Plastics Acquisition Corporation XIV, LLC, Berry Plastics Asia Pte. Ltd.,
or Ociesse s.r.l.; (ii) to the extent applicable law requires that a Subsidiary
of such Grantor issue directors’ qualifying shares, such shares or nominee or
other similar shares; (iii) any Equity Interests that would not be required
to be pledged, pursuant to Section 4.15(c) of the Indenture, if hereafter
acquired, (iv) any Equity Interests of a Subsidiary to the extent that, as
of the Issue Date, and for so long as, such a pledge of such Equity Interests
would violate a contractual obligation binding on or relating to such Equity
Interests; (v) any Equity Interests of a person that is not directly or
indirectly a Subsidiary; and (vi) any Equity Interests or other securities of
any of the Company’s Subsidiaries to the extent that the pledge of such
securities results in the Company’s being required to file separate financial
statements of such Subsidiary with the SEC, but only to the extent necessary not
to be subject to such requirement and only for so long as such requirement is in
existence; (b) (i) the debt obligations listed opposite the name of such Grantor
on Schedule II,
(ii) any debt securities in the future issued to such Grantor having, in the
case of each instance of debt securities, an aggregate principal amount in
excess of $5.0 million (which pledge, in the case of any intercompany note
evidencing debt owed by a Foreign Subsidiary to a Grantor, shall be limited to
65% of the amount outstanding thereunder), and (iii) the certificates,
promissory notes and any other instruments, if any, evidencing such debt
securities (the “Pledged Debt
Securities”); (c) subject
to Section 3.05 hereof, all payments of principal or interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of,
and all other

     

    
      
        
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    proceeds
received in respect of, the property referred to in clauses (a) and (b) above;
(d) subject to Section 3.05 hereof, all rights and privileges of such Grantor
with respect to the securities and other property referred to in clauses (a),
(b) and (c) above; and (e) all proceeds of any of the foregoing (the items
referred to in clauses (a) through (e) above being collectively referred to as
the “Pledged
Collateral”).

     

     

    In
addition, notwithstanding anything to the contrary provided herein, in the event
that Rule 3-16 of Regulation S-X under the Securities Act and the Exchange Act
(or any successor regulation) is amended, modified or interpreted by the SEC to
require (or is replaced with another rule or regulation, or any other law, rule
or regulation is adopted, which would require) the filing with the SEC (or any
other governmental agency) of separate financial statements of any Subsidiary of
the Company due to the fact that such Subsidiary’s securities secure the
Obligations, then the securities of such Subsidiary will not be subject to the
Liens securing the Obligations and will automatically be deemed not to be part
of the Collateral but only to the extent necessary not to be subject to such
requirement and only for so long as required to not be subject to the
requirement. In such event, this Agreement may be amended or modified, without
the consent of any Secured Party, to the extent necessary to release the
security interests in favor of the Collateral Agent on the Equity Interests or
other securities that are so deemed to no longer constitute part of the
Collateral for the relevant Obligations. In the event that Rule 3-16 of
Regulation S-X under the Securities Act and the Exchange Act (or any successor
regulation) is amended, modified or interpreted by the SEC to permit (or is
replaced with another rule or regulation, or any other law, rule or regulation
is adopted, which would permit) such Subsidiary’s securities to secure the
Obligations in excess of the amount then pledged without the filing with the SEC
(or any other governmental agency) of separate financial statements of such
Subsidiary, then the securities of such Subsidiary will automatically be deemed
to be a part of the Collateral but only to the extent permitted to not be
subject to any such financial statement requirement.

     

    TO HAVE
AND TO HOLD, to the extent consistent with the terms of the Intercreditor
Agreements, the Pledged Collateral, together with all right, title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the
Collateral Agent, its successors and permitted assigns, for the benefit of the
Secured Parties, forever; subject, however, to the terms,
covenants and conditions hereinafter set forth.

     

     

    Section
3.02. Delivery of the Pledged
Collateral.

     

    (a)           Subject
to the terms of the Intercreditor Agreements, (i) each Grantor agrees promptly
to deliver or cause to be delivered to the Collateral Agent, for the benefit of
the Secured Parties, any and all Pledged Securities to the extent such Pledged
Securities, in the case of promissory notes or other instruments evidencing
Indebtedness, are required to be delivered pursuant to paragraph (b) of this
Section 3.02, (ii) if any Pledged Stock that is uncertificated on the date
hereof shall hereafter become certificated, subject to the terms of the
Intercreditor Agreements, the applicable Grantor shall promptly cause the
certificate or certificates representing Pledged Stock to be delivered to the
Collateral Agent, together with

     

    
      
        
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    the
accompanying stock powers or other documentation required by Section 3.02(c),
and (iii) none of the Grantors shall permit any other party to “control” (for
purposes of Section 8-106 of the New York UCC (or any analogous provision of the
Uniform Commercial Code in effect in the jurisdiction whose law applies)) any
uncertificated securities that constitute Pledged Collateral other than the
Collateral Agent and any other Collateral Agent (as such term is defined in the
Senior Lender Intercreditor Agreement).

     

    (b)           To
the extent any Indebtedness for borrowed money constitutes Pledged
Collateral  (other than (i) intercompany current liabilities incurred
in the ordinary course of business in connection with the cash management
operations of the Company and its Subsidiaries or (ii) to the extent that a
pledge of such promissory note or instrument would violate applicable law),
each Grantor holding such Indebtedness for borrowed money shall cause
such Indebtedness to be evidenced by a duly executed promissory note and,
subject to the terms of the Intercreditor Agreements, such Grantor shall cause
such promissory note to be  pledged and delivered to the Collateral
Agent, for the benefit of the Secured Parties, pursuant to the terms hereof,
provided that,
such pledge in the case of any intercompany note evidencing debt owed by a
Foreign Subsidiary to a Grantor shall be limited to 65% of the amount
outstanding thereunder.  To the extent any such promissory note is a
demand note, each Grantor party thereto agrees, if requested by the Collateral
Agent, to immediately demand payment thereunder upon an Event of Default
specified under Section 6.01(a), (b), (e), (f), or (g) of the Indenture unless
such demand would not be commercially reasonable or would otherwise expose
Grantor to liability to the maker as reasonably determined by the applicable
Grantor.

     

    (c)           Upon
delivery, (i) any Pledged Securities required to be delivered pursuant to the
foregoing paragraphs (a) and (b) of this Section 3.02 shall be accompanied by
stock powers or note powers, as applicable, duly executed in blank or other
instruments of transfer  and by such other instruments and documents
as the Collateral Agent may reasonably request and (ii) all other property
comprising part of the Pledged Collateral delivered pursuant to the terms of
this Agreement shall be accompanied to the extent necessary to perfect the
security interest in or allow realization on the Pledged Collateral by proper
instruments of assignment duly executed by the applicable Grantor and such other
instruments or documents as the Collateral Agent may reasonably
request.  Each delivery of Pledged Securities shall be accompanied by
a schedule describing the securities, which schedule shall be attached hereto as
Schedule II (or
a supplement to Schedule II, as
applicable) and made a part hereof; provided that failure
to attach any such schedule hereto shall not affect the validity of such pledge
of such Pledged Securities.  Each schedule so delivered shall
supplement any prior schedules so delivered.

     

     

    Section
3.03. Representations, Warranties
and Covenants.  The
Grantors, jointly and severally, represent, warrant and covenant to and with the
Collateral Agent, for the benefit of the Secured Parties, that:

     

    (a)           Schedule II correctly
sets forth the percentage of the issued and outstanding shares of each class of
the Equity Interests of the issuer thereof represented by the Pledged Stock and
includes all Equity Interests, debt securities and

     

    
      
        
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    promissory
notes or instruments evidencing Indebtedness required to be delivered pursuant
to Section 3.02;

     

    (b)           the
Pledged Stock and Pledged Debt Securities (solely with respect to Pledged Debt
Securities issued by a person that is not a Subsidiary of the Company or an
Affiliate of any such Subsidiary, to the best of each Grantor’s knowledge) have
been duly and validly authorized and issued by the issuer thereof and (i) in the
case of Pledged Stock, are fully paid and nonassessable and (ii) in the case of
Pledged Debt Securities (solely with respect to Pledged Debt Securities issued
by a person that is not a Subsidiary of the Company or an Affiliate of any such
Subsidiary, to the best of each Grantor’s knowledge) are legal, valid and
binding obligations of the issuers thereof, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally, general
equitable principles (whether considered in a proceeding at law or in equity)
and an implied covenant of good faith and fair dealing;

     

    (c)           except
for the security interests granted hereunder, each Grantor (i) is and, subject
to any transfers made in compliance with the Indenture, will continue to be the
direct owner, beneficially and of record, of the Pledged Securities indicated on
Schedule II as
owned by such Grantor, (ii) holds the same free and clear of all Liens, other
than Permitted Liens, (iii) will make no assignment, pledge, hypothecation or
transfer of, or create or permit to exist any security interest in or other Lien
on, the Pledged Collateral, other than pursuant to a transaction permitted by
the Indenture  and other than Permitted Liens and (iv) subject to the
rights of such Grantor under the Indenture Documents to dispose of Pledged
Collateral, will use commercially reasonable efforts to defend its title or
interest hereto or therein against any and all Liens (other than Permitted
Liens), however arising, of all persons;

     

    (d)           other
than as set forth in the Indenture, and except for restrictions and limitations
imposed by the Indenture Documents, the Intercreditor Agreements, or securities
laws generally or otherwise permitted to exist pursuant to the terms of the
Indenture, the Pledged Stock (other than partnership interests) is and will
continue to be freely transferable and assignable, and none of the Pledged Stock
is or will be subject to any option, right of first refusal, shareholders
agreement, charter or by-law provisions or contractual restriction of any nature
that might prohibit, impair, delay or otherwise affect the pledge of such
Pledged Stock hereunder, the sale or disposition thereof pursuant hereto or the
exercise by the Collateral Agent of rights and remedies hereunder;

     

    (e)           each
Grantor has the power and authority to pledge the Pledged Collateral pledged by
it hereunder in the manner hereby done or contemplated;

     

    (f)           other
than as set forth in the Indenture or this Agreement or the schedules thereto or
hereto, no consent or approval of any Governmental Authority, any securities
exchange or any other person was or is necessary to the validity of the pledge
effected hereby (other than such as have been obtained and are in full force and
effect);

     

    
      
        
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    (g)           by
virtue of the execution and delivery by the Grantors of this Agreement, when any
Pledged Securities are delivered to the Collateral Agent, for the benefit of the
Secured Parties, in accordance with this Agreement and a financing statement
covering such Pledged Securities is filed in the appropriate filing office, the
Collateral Agent will obtain, for the benefit of the Secured Parties, a legal,
valid and perfected lien upon and security interest in such Pledged Securities
under the New York UCC, subject only to Permitted Liens or Liens arising by
operation of law, as security for the payment and performance of the
Obligations;

     

    (h)           each
Grantor that is an issuer of the Pledged Collateral confirms that it has
received notice of the security interest granted hereunder and consents to such
security interest and agrees to transfer record ownership of the Pledged
Securities issued by it in connection with any request by the Collateral
Agent;

     

    (i)           if
any additional direct or indirect Subsidiary of the Issuer is formed or acquired
after the Issue Date (with any redesignation of such Subsidiary resulting in an
Unrestricted Subsidiary becoming a Restricted Subsidiary being deemed to
constitute the acquisition of a Subsidiary) and if such Subsidiary is a Domestic
Subsidiary, the Issuer shall notify the Collateral Agent thereof, cause such
Subsidiary to become a Subsidiary Party and cause the outstanding Equity
Interests in and Indebtedness of such Subsidiary owned by or on behalf of any
Grantor to be pledged pursuant to this Agreement, in each case other than assets
that are not required to become subject to Liens in favor of the Collateral
Agent pursuant to the Security Documents or Section 4.15(c) of the Indenture;
and

     

    (j)           if
any additional Foreign Subsidiary of the Issuer is formed or acquired after the
Issue Date (with any redesignation of such Subsidiary resulting in an
Unrestricted Subsidiary becoming a Restricted Subsidiary being deemed to
constitute the acquisition of a Subsidiary) and if such Subsidiary is a “first
tier” Foreign Subsidiary, the Issuer shall notify the Collateral Agent thereof
and cause the outstanding Equity Interests in such Foreign Subsidiary owned by
or on behalf of any Grantor to be pledged pursuant to this Agreement, in each
case other than assets that are not required to become subject to Liens in favor
of the Collateral Agent pursuant to Section 4.15(c) of the Indenture or the
Security Documents (including, without limitation, pursuant to clause (i) of the
proviso of Section 3.01 of this Agreement).

     

     

    Section
3.04. Registration in Nominee
Name; Denominations.  Subject
to the terms of the Intercreditor Agreements, the Collateral Agent, on behalf of
the Secured Parties, shall have the right (in its sole and absolute discretion)
to hold the Pledged Securities in the name of the applicable Grantor, endorsed
or assigned in blank or in favor of the Collateral Agent or, if an Event of
Default shall have occurred and be continuing, in its own name as pledgee or the
name of its nominee (as pledgee or as sub-agent).  Each Grantor will
promptly give to the Collateral Agent copies of any notices or other
communications received by it with respect to Pledged Securities registered in
the name of such Grantor.  If an Event of Default shall have occurred
and be continuing, the Collateral Agent shall have the right to exchange the
certificates representing Pledged Securities for certificates of smaller or
larger

     

    
      
        
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    denominations
for any purpose consistent with this Agreement.  Each Grantor shall
use its commercially reasonable efforts to cause any Subsidiary that is not a
party to this Agreement to comply with a request by the Collateral Agent,
pursuant to this Section 3.04, to exchange certificates representing Pledged
Securities of such Subsidiary for certificates of smaller or larger
denominations.

     

     

    Section
3.05. Voting Rights; Dividends and
Interest, Etc.

     

    (a)           Unless
and until an Event of Default shall have occurred and be continuing and the
Collateral Agent shall have given notice to the relevant Grantors of the
Collateral Agent’s intention to exercise its rights hereunder:

     

    (i) Each
Grantor shall be entitled to exercise any and all voting and/or other consensual
rights and powers inuring to an owner of Pledged Collateral or any part thereof
for any purpose consistent with the terms of this Agreement, the Indenture and
the other Indenture Documents; provided, that,
except as expressly permitted under the Indenture, such rights and powers shall
not be exercised in any manner that could materially and adversely affect the
rights inuring to a holder of any Pledged Collateral, the rights and remedies of
the Collateral Agent or the other Secured Parties under this Agreement, the
Indenture or any other Indenture Document or the ability of the Secured Parties
to exercise the same.

     

    (ii) The
Collateral Agent shall promptly execute and deliver to each Grantor, or cause to
be executed and delivered to such Grantor, all such proxies, powers of attorney
and other instruments as such Grantor may reasonably request for the purpose of
enabling such Grantor to exercise the voting and/or consensual rights and powers
it is entitled to exercise pursuant to subparagraph (i) above.

     

    (iii) Each
Grantor shall be entitled to receive and retain any and all dividends, interest,
principal and other distributions paid on or distributed in respect of the
Pledged Collateral to the extent and only to the extent that such dividends,
interest, principal and other distributions are permitted by, and otherwise paid
or distributed in accordance with, the terms and conditions of the Indenture,
the other Indenture Documents and applicable laws; provided, that (A)
any noncash dividends, interest, principal or other distributions, payments or
other consideration in respect thereof, including any rights to receive the same
to the extent not so distributed or paid, that would constitute Pledged
Securities, whether resulting from a subdivision, combination or
reclassification of the outstanding Equity Interests of the issuer of any
Pledged Securities, received in exchange for Pledged Securities or any part
thereof, or in redemption thereof, as a result of any merger, consolidation,
acquisition or other exchange of assets to which such issuer may be a party or
otherwise or (B) any non-cash dividends and other distributions paid or payable
in respect of any Pledged Securities that would constitute Pledged Securities,
in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid in surplus,
shall be and become part of the Pledged Collateral, and, if
received

     

    
      
        
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    (iv) by any
Grantor, shall not be commingled by such Grantor with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust
for the benefit of the Collateral Agent, for the benefit of the Secured Parties,
and shall be forthwith delivered to the Collateral Agent, for the benefit of the
Secured Parties, in the same form as so received (endorsed in a manner
reasonably satisfactory to the Collateral Agent), subject to the terms of the
Intercreditor Agreements.

     

    (b)           Subject
to the terms of the Intercreditor Agreements, upon the occurrence and during the
continuance of an Event of Default and after notice by the Collateral Agent to
the Company of the Collateral Agent’s intention to exercise its rights
hereunder, all rights of any Grantor to receive dividends, interest, principal
or other distributions that such Grantor is authorized to receive pursuant to
paragraph (a)(iii) of this Section 3.05 shall cease, and all such rights shall
thereupon become vested, for the benefit of the Secured Parties, in the
Collateral Agent which, subject to the terms of the Intercreditor Agreements,
shall have the sole and exclusive right and authority to receive and retain such
dividends, interest, principal or other distributions.  All dividends,
interest, principal or other distributions received by any Grantor contrary to
the provisions of this Section 3.05 shall not be commingled by such Grantor with
any of its other funds or property but shall be held separate and apart
therefrom, shall be held in trust for the benefit of the Collateral Agent, for
the benefit of the Secured Parties, and, subject to the Intercreditor
Agreements, shall be forthwith delivered to the Collateral Agent, for the
benefit of the Secured Parties, in the same form as so received (endorsed in a
manner reasonably satisfactory to the Collateral Agent).  Any and all
money and other property paid over to or received by the Collateral Agent
pursuant to the provisions of this paragraph (b) shall be retained by the
Collateral Agent in an account to be established by the Collateral Agent upon
receipt of such money or other property and shall be applied in accordance with
the provisions of Section 6.02 hereof.  After all Events of Default
have been cured or waived and the Company has delivered to the Collateral Agent
a certificate to that effect, the Collateral Agent shall promptly repay to each
Grantor (without interest) all dividends, interest, principal or other
distributions that such Grantor would otherwise be permitted to retain pursuant
to the terms of paragraph (a)(iii) of this Section 3.05 and that remain in such
account established pursuant to this Section 3.05(b).

     

    (c)           Subject
to the terms of the Intercreditor Agreements, upon the occurrence and during the
continuance of an Event of Default and after notice by the Collateral Agent to
the Company of the Collateral Agent’s intention to exercise its rights
hereunder, all rights of any Grantor to exercise the voting and/or consensual
rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of
this Section 3.05, and the obligations of the Collateral Agent under paragraph
(a)(ii) of this Section 3.05, shall cease, and all such rights shall thereupon
become vested in the Collateral Agent, for the benefit of the Secured Parties,
which shall have the sole and exclusive right and authority to exercise such
voting and consensual rights and powers; provided that,
subject to the terms of the Intercreditor Agreements and the Indenture,
unless the Collateral Agent shall have received written objections from Holders
of at least 25% in principal amount of the Securities then outstanding, the
Collateral Agent shall have the right from time to time following and during the
continuance of an Event of Default to permit the Grantors to exercise such
rights.  After all Events of Default have been cured or waived and the
Company has delivered to the Collateral Agent a certificate to that effect, each
Grantor shall have the right to exercise the

     

    
      
        
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    voting
and/or consensual rights and powers that such Grantor would otherwise be
entitled to exercise pursuant to the terms of paragraph (a)(i)
above.

     

     

    ARTICLE
IV

     

    SECURITY
INTERESTS IN OTHER PERSONAL PROPERTY

    

     

     

    Section
4.01. Security
Interest.

     

    (a)           As
security for the payment or performance when due (whether at the stated
maturity, by acceleration or otherwise), as the case may be, in full of its
Obligations, each Grantor hereby assigns and pledges to the Collateral Agent,
its successors and permitted assigns, for the benefit of the Secured Parties,
and hereby grants to the Collateral Agent, its successors and permitted assigns,
for the benefit of the Secured Parties, a security interest (the “Security Interest”)
in all right, title and interest in or to any and all of the following assets
and properties now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the “Article 9 Collateral”):

     

    (i) all
Accounts;

     

    (ii) all
Chattel Paper;

     

    (iii) all cash
and Deposit Accounts;

     

    (iv) all
Documents;

     

    (v) all
Equipment;

     

    (vi) all
General Intangibles;

     

    (vii) all
Instruments;

     

    (viii) all
Inventory;

     

    (ix) all
Investment Property;

     

    (x) all
Letter of Credit Rights;

     

    (xi) all
Commercial Tort Claims;

     

    (xii) all other
personal property not otherwise described above (except for property
specifically excluded from any defined term used in any of the foregoing
clauses);

     

    (xiii) all books
and records pertaining to the Article 9 Collateral; and

     

    
      
        
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    (xiv) to the
extent not otherwise included, all proceeds, Supporting Obligations and products
of any and all of the foregoing and all collateral security and guarantees given
by any person with respect to any of the foregoing.

     

    Notwithstanding
anything to the contrary in this Agreement, this Agreement shall not constitute
a grant of a security interest in, and the Article 9 Collateral shall not
include, (a) any vehicle covered by a certificate of title or ownership, whether
now owned or hereafter acquired, (b) any assets (including Equity Interests)
whether now owned or hereafter acquired, which would not be required to be
pledged pursuant to Section 4.15 (c) of the Indenture if hereafter acquired, (c)
any property excluded from the definition of Pledged Collateral pursuant to
Section 3.01 hereof, (d) any Letter of Credit Rights to the extent any Grantor
is required by applicable law to apply the proceeds of a drawing of such Letter
of Credit for a specified purpose, (e) any Grantor’s right, title or interest in
any license, contract or agreement to which such Grantor is a party or any of
its right, title or interest thereunder to the extent, but only to the extent,
that such a grant would, under the terms of such license, contract or agreement,
result in a breach of the terms of, or constitute a default under, or result in
the abandonment, invalidation or unenforceability of, any license, contract or
agreement to which such Grantor is a party (other than to the extent that any
such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408
or 9-409 of the New York UCC or any other applicable law (including, without
limitation, Title 11 of the United States Code) or principles of equity); provided, that
immediately upon the ineffectiveness, lapse or termination of any such
provision, the Collateral shall include, and such Grantor shall be deemed to
have granted a security interest in, all such rights and interests as if such
provision had never been in effect, (f) any Equipment owned by any Grantor that
is subject to a purchase money lien or a Capital Lease Obligation if the
contract or other agreement in which such Lien is granted (or the documentation
providing for such Capital Lease Obligation) prohibits or requires the consent
of any person other than the Grantors as a condition to the creation of any
other security interest on such Equipment, or (g) any Equity Interests or other
securities of any of the Company’s Subsidiaries to the extent that the pledge of
such securities results in the Company’s being required to file separate
financial statements of such Subsidiary with the SEC, but only to the extent
necessary not to be subject to such requirement and only for so long as such
requirement is in existence.  Notwithstanding the provisions of
clauses (a) through (f) above (but subject to clause (g) above), there shall not
be excluded from the grant of the security interest set forth in this Section
4.01 any asset or property of a Grantor that is not also excluded from the grant
of security interest to secure the Term Loan Obligations.

     

    (b)           Each
Grantor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing
statements (including fixture filings) with respect to the Article 9 Collateral
or any part thereof and amendments thereto that contain the information required
by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for
the filing of any financing statement or amendment, including (i) whether such
Grantor is an organization, the type of organization and any organizational
identification number issued to such Grantor, (ii) in the case of a financing
statement filed as a fixture filing, a sufficient description of the real
property to which such Article 9 Collateral relates and (iii) a description of
collateral that describes such property in any other manner as the Collateral
Agent may reasonably determine is necessary

     

    
      
        
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    or
advisable to ensure the perfection of the security interest in the Article 9
Collateral granted under this Agreement, including describing such property as
“all assets” or “all property”.  Each Grantor agrees to provide such
information to the Collateral Agent promptly upon request.

     

    The
Collateral Agent is further authorized to file with the United States Patent and
Trademark Office or United States Copyright Office (or any successor office or
any similar office in any other country) such documents as may be reasonably
necessary or advisable for the purpose of perfecting, confirming, continuing,
enforcing or protecting the Security Interest granted by each Grantor, without
the signature of such Grantor, and naming such Grantor or the Grantors as
debtors and the Collateral Agent as secured party. The Collateral Agent
shall not be responsible for the preparation of the Uniform Commercial Code
financing statements and the Intellectual Property Security Agreement and the
filings thereof at any time or times.

     

    (c)           The
Security Interest is granted as security only and shall not subject the
Collateral Agent or any other Secured Party to, or in any way alter or modify,
any obligation or liability of any Grantor with respect to or arising out of the
Article 9 Collateral.

     

     

    Section
4.02. Representations and
Warranties.  The
Grantors jointly and severally represent and warrant to the Collateral Agent and
the other Secured Parties that:

     

    (a)           Each
Grantor has good and valid rights in and title to the Article 9 Collateral with
respect to which it has purported to grant a Security Interest hereunder and has
full power and authority to grant to the Collateral Agent the Security Interest
in such Article 9 Collateral pursuant hereto and to execute, deliver and perform
its obligations in accordance with the terms of this Agreement, without the
consent or approval of any other person other than any consent or approval that
has been obtained and is in full force and effect or has otherwise been
disclosed herein or in the Indenture.

     

    (b)           The
Perfection Certificate has been duly prepared, completed and executed and the
information set forth therein, including the exact legal name of each Grantor,
is correct and complete, in all material respects, as of the Issue
Date.  The Uniform Commercial Code financing statements (including
fixture filings, as applicable) or other appropriate filings, recordings or
registrations containing a description of the Article 9 Collateral that have
been prepared based upon the information provided to the Collateral Agent in the
Perfection Certificate for filing in each governmental, municipal or other
office specified in Schedule IV hereto
(or specified by notice from the Company to the Collateral Agent after the Issue
Date in the case of filings, recordings or registrations required by Section
4.15 of the Indenture) constitute all the filings, recordings and registrations
(other than filings required to be made in the United States Patent and
Trademark Office and the United States Copyright Office in order to perfect the
Security Interest in Article 9 Collateral consisting of United States Patents,
United States registered Trademarks and United States registered Copyrights)
that are necessary to publish notice of and protect the

     

    
      
        
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    validity
of and to establish a legal, valid and perfected security interest in favor of
the Collateral Agent (for the benefit of the Secured Parties) in respect of all
Article 9 Collateral in which the Security Interest may be perfected by filing,
recording or registration in the United States (or any political subdivision
thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or reregistration is
necessary in any such jurisdiction, except as provided under applicable law with
respect to the filing of continuation statements or amendments.  Each
Grantor represents and warrants that fully executed Intellectual Property
Security Agreements containing a description of all Article 9 Collateral
consisting of Intellectual Property with respect to United States Patents (and
Patents for which United States registration applications are pending), United
States registered Trademarks (and Trademarks for which United States
registration applications are pending) and United States registered Copyrights
(and Copyrights for which United States registration applications are pending)
has been delivered to the Collateral Agent for recording with the United States
Patent and Trademark Office and the United States Copyright Office pursuant to
35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations
thereunder, as applicable, and reasonably requested by the Collateral Agent, to
protect the validity of and to establish a legal, valid and perfected security
interest in favor of the Collateral Agent, for the benefit of the Secured
Parties, in respect of all Article 9 Collateral consisting of such Intellectual
Property in which a security interest may be perfected by recording with the
United States Patent and Trademark Office and the United States Copyright
Office, and no further or subsequent filing, refiling, recording, rerecording,
registration or reregistration is necessary (other than such actions as are
necessary to perfect the Security Interest with respect to any Article 9
Collateral consisting of Patents, Trademarks and Copyrights (or registration or
application for registration thereof) acquired or developed after the date
hereof).

     

    (c)           The
Security Interest constitutes (i) a legal and valid security interest in all the
Article 9 Collateral securing the payment and performance of the Obligations,
(ii) subject to the filings described in Section 4.02(b), a perfected security
interest in all Article 9 Collateral (other than Commercial Tort Claims) in
which a security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States (or any political
subdivision thereof) and its territories and possessions pursuant to the Uniform
Commercial Code or other applicable law in such jurisdictions and (iii) a
security interest that shall be perfected in all Article 9 Collateral in which a
security interest may be perfected upon the receipt and recording of the
Intellectual Property Security Agreements with the United States Patent and
Trademark Office and the United States Copyright Office upon the making of such
filing with such office, in each case, as applicable, with respect to material
Intellectual Property Collateral. The Security Interest is and shall be prior to
any other Lien on any of the Article 9 Collateral, subject to Permitted
Liens.

     

    (d)           The
Article 9 Collateral is owned by the Grantors free and clear of any Lien, other
than Permitted Liens.  None of the Grantors has filed or consented to
the filing of (i) any financing statement or analogous document under the
Uniform Commercial Code or any other applicable laws covering any Article 9
Collateral, (ii)

     

    
      
        
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    any
assignment in which any Grantor assigns any Article 9 Collateral or any security
agreement or similar instrument covering any Article 9 Collateral with the
United States Patent and Trademark Office or the United States Copyright Office
or (iii) any assignment in which any Grantor assigns any Article 9 Collateral or
any security agreement or similar instrument covering any Article 9 Collateral
with any foreign governmental, municipal or other office, which financing
statement or analogous document, assignment, security agreement or similar
instrument is still in effect, except, in each case, for Permitted
Liens.

     

    (e)           None
of the Grantors holds any Commercial Tort Claim individually in excess of $5.0
million as of the Issue Date except as indicated on the Perfection
Certificate.

     

    (f)           Except
as set forth in the Perfection Certificate, as of the Issue Date, all Accounts
have been originated by the Grantors and all Inventory has been produced or
acquired by the Grantors in the ordinary course of business.

     

    (g)           As
to itself and its Article 9 Collateral consisting of Intellectual Property (the
“Intellectual Property
Collateral”), to the best of each Grantor’s knowledge:

     

    (i) The
Intellectual Property Collateral set forth on Schedule III includes
all of the material Patents, domain names, Trademarks, Copyrights and IP
Agreements owned by such Grantor as of the date hereof.

     

    (ii) The
Intellectual Property Collateral is subsisting and has not been adjudged invalid
or unenforceable in whole or part, and to the best of such Grantor’s knowledge,
is valid and enforceable, except as would not reasonably be expected to have a
Material Adverse Effect.  Such Grantor is not aware of any uses of any
item of Intellectual Property Collateral that would be expected to lead to such
item becoming invalid or unenforceable, except as would not reasonably be
expected to have a Material Adverse Effect.

     

    (iii) Such
Grantor has made or performed all commercially reasonable acts, including
without limitation filings, recordings and payment of all required fees and
taxes, required to maintain and protect its interest in each and every item of
Intellectual Property Collateral in full force and effect in the United States
and such Grantor has used proper statutory notice in connection with its use of
each Patent, Trademark and Copyright in the Intellectual Property Collateral, in
each case, except to the extent that the failure to do so would not reasonably
be expected to have a Material Adverse Effect.

     

    (iv) With
respect to each IP Agreement, the absence, termination or violation of which
would reasonably be expected to have a Material Adverse Effect:  (A)
such Grantor has not received any notice of termination or cancellation under
such IP Agreement; (B) such Grantor has not received any notice of a breach or
default under such IP Agreement, which breach or default

     

    
      
        
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    (v) has not
been cured or waived; and (C) neither such Grantor nor any other party to such
IP Agreement is in breach or default thereof in any material respect, and no
event has occurred that, with notice or lapse of time or both, would constitute
such a breach or default or permit termination, modification or acceleration
under such IP Agreement.

     

    (vi) Except as
would not reasonably be expected to have a Material Adverse Effect, no Grantor
or Intellectual Property Collateral is subject to any outstanding consent,
settlement, decree, order, injunction, judgment or ruling restricting the use of
any Intellectual Property Collateral or that would impair the validity or
enforceability of such Intellectual Property Collateral.

     

     

    Section
4.03. Covenants.

     

    (a)           Each
Grantor agrees promptly to notify the Collateral Agent in writing of any change
(i) in its corporate or organization name, (ii) in its identity or type of
organization or corporate structure, (iii) in its Federal Taxpayer
Identification Number or organizational identification number or (iv) in its
jurisdiction of organization.  Each Grantor agrees promptly to provide
the Collateral Agent with certified organizational documents reflecting any of
the changes described in the immediately preceding sentence.  Each
Grantor agrees not to effect or permit any change referred to in the first
sentence of this paragraph (a) unless all filings have been made, or will have
been made within any applicable statutory period, under the Uniform Commercial
Code or otherwise that are required in order for the Collateral Agent to
continue at all times following such change to have a valid, legal and perfected
first priority security interest in all the Article 9 Collateral, for the
benefit of the Secured Parties.  Each Grantor agrees promptly to
notify the Collateral Agent if any material portion of the Article 9 Collateral
owned or held by such Grantor is damaged or destroyed.

     

    (b)           Subject
to the rights of such Grantor under the Indenture Documents to dispose of
Collateral, each Grantor shall, at its own expense, use commercially reasonable
efforts to defend title to the Article 9 Collateral against all persons and to
defend the Security Interest of the Collateral Agent, for the benefit of the
Secured Parties, in the Article 9 Collateral and the priority thereof against
any Lien that is not a Permitted Lien.

     

    (c)           Each
Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause
to be duly filed all such further instruments and documents and take all such
actions that, subject to the terms of the Intercreditor Agreements and the
Indenture, the Holders of at least 25% in principal amount of the Securities
then outstanding or the Collateral Agent may from time to time reasonably
request to better assure, preserve, protect, defend and perfect the Security
Interest and the rights and remedies created hereby, including, without
limitation, the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement and the granting of the Security
Interest and the filing of any financing statements (including fixture filings)
or other documents in connection herewith or therewith, all in accordance with
the terms hereof and of Section 4.15 of the Indenture. If any amount payable
under or in connection with any of the Article 9 Collateral that is in excess of
$5.0 million shall be or become evidenced by any promissory note or
other

     

    
      
        
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    instrument,
subject to the terms of the Intercreditor Agreements, such note or instrument
shall be promptly pledged and delivered to the Collateral Agent, for the benefit
of the Secured Parties, duly endorsed in a manner reasonably satisfactory to the
Collateral Agent, subject to the terms of the Intercreditor
Agreements.

     

    Without
limiting the generality of the foregoing, each Grantor hereby authorizes the
Collateral Agent, with prompt notice thereof to the Grantors, to supplement this
Agreement by supplementing Schedule III or
adding additional schedules hereto to specifically identify any asset or item
that may constitute material Copyrights, Patents, Trademarks, Copyright
Licenses, Patent Licenses or Trademark Licenses; provided that any
Grantor shall have the right, exercisable within 30 days after the Company has
been notified by the Collateral Agent of the specific identification of such
Article 9 Collateral, to advise the Collateral Agent in writing of any
inaccuracy of the representations and warranties made by such Grantor hereunder
with respect to such Article 9 Collateral.  Each Grantor agrees that
it will use its commercially reasonable efforts to take such action as shall be
necessary in order that all representations and warranties hereunder shall be
true and correct with respect to such Article 9 Collateral within 30 days after
the date it has been notified by Collateral Agent of the specific identification
of such Article 9 Collateral.

     

    (d)           Subject
to the terms of the Intercreditor Agreements, after the occurrence of an Event
of Default and during the continuance thereof, the Collateral Agent shall have
the right to verify under reasonable procedures the validity, amount, quality,
quantity, value, condition and status of, or any other matter relating to, the
Article 9 Collateral, including, in the case of Accounts or Article 9 Collateral
in the possession of any third person, by contacting Account Debtors or the
third person possessing such Article 9 Collateral for the purpose of making such
a verification.  The Collateral Agent shall have the right to share
any information it gains from such inspection or verification with any Secured
Party.

     

    (e)           Subject
to the terms of the Intercreditor Agreements, at its option, the Collateral
Agent may discharge past due taxes, assessments, charges, fees, Liens, security
interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not a Permitted Lien, and may pay for the maintenance and
preservation of the Article 9 Collateral to the extent any Grantor fails to do
so as required by the Indenture or this Agreement, and each Grantor jointly and
severally agrees to reimburse the Collateral Agent on demand for any reasonable
payment made or any reasonable expense incurred by the Collateral Agent pursuant
to the foregoing authorization; provided, however, that nothing
in this Section 4.03(e) shall be interpreted as excusing any Grantor from the
performance of, or imposing any obligation on the Collateral Agent or any
Secured Party to cure or perform, any covenants or other promises of any Grantor
with respect to taxes, assessments, charges, fees, Liens, security interests or
other encumbrances and maintenance as set forth herein or in the other Indenture
Documents.

     

    (f)           Each
Grantor (rather than the Collateral Agent or any Secured Party) shall remain
liable for the observance and performance of all the conditions and obligations
to be observed and performed by it under each contract, agreement or instrument
relating to the Article 9 Collateral and each Grantor jointly and severally
agrees to indemnify and hold

     

    
      
        
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    harmless
the Collateral Agent and the Secured Parties from and against any and all
liability for such performance.

     

    (g)           None
of the Grantors shall make or permit to be made an assignment, pledge or
hypothecation of the Article 9 Collateral or shall grant any other Lien in
respect of the Article 9 Collateral, except as expressly permitted by the
Indenture and the other provisions hereof.  None of the Grantors shall
make or permit to be made any transfer of the Article 9 Collateral and each
Grantor shall remain at all times in possession of the Article 9 Collateral
owned by it, except as permitted by the Indenture and the other provisions
hereof.

     

    (h)           [Reserved].

     

    (i)           Subject
to the terms of the Intercreditor Agreements, each Grantor irrevocably makes,
constitutes and appoints the Collateral Agent (and all officers, employees or
agents designated by the Collateral Agent) as such Grantor’s true and lawful
agent (and attorney-in-fact) for the purpose, during the continuance of an Event
of Default, of making, settling and adjusting claims in respect of Article 9
Collateral under policies of insurance, endorsing the name of such Grantor on
any check, draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and decisions with
respect thereto.  In the event that any Grantor at any time or times
shall fail to obtain or maintain any of the policies of insurance required
hereby or to pay any premium in whole or part relating thereto, the Collateral
Agent may, without waiving or releasing any obligation or liability of the
Grantors hereunder or any Event of Default, in its sole discretion, obtain and
maintain such policies of insurance and pay such premium and take any other
actions with respect thereto as the Collateral Agent reasonably deems
advisable.  All sums disbursed by the Collateral Agent in connection
with this Section 4.03(i), including reasonable attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by
the Grantors to the Collateral Agent and shall be additional Obligations secured
hereby.

     

    (j)             In
the event any Grantor shall create any additional security interest upon any
property or assets to secure any obligations under the Term Loan Credit
Agreement, it shall concurrently grant a security interest upon such property as
security for the Obligations.

     

    (k)           Subject
to the terms of the Intercreditor Agreements, in the event any Grantor shall
undertake any actions to perfect or protect any liens on any assets pledged in
connection with the Term Loan Credit Agreement, such Grantor shall also at the
same time undertake such actions with respect to the Collateral for the benefit
of the Collateral Agent without request by the Collateral
Agent.

     

     

    Section
4.04. Other
Actions.  Subject
to the terms of the Intercreditor Agreements, in order to further ensure the
attachment, perfection and priority of, and the ability of the Collateral Agent
to enforce, for the benefit of the Secured Parties, the Collateral Agent’s
security interest in the Article 9 Collateral, each Grantor agrees, in each case
at such Grantor’s own expense, to take the following actions with respect to the
following Article 9 Collateral:

     

    
      
        
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    (a)           Instruments and Tangible
Chattel Paper.  If any Grantor shall at any time hold or
acquire any Instruments (other than checks received and processed in the
ordinary course of business) or Tangible Chattel Paper evidencing an amount in
excess of $5.0 million, subject to the terms of the Intercreditor Agreements,
such Grantor shall forthwith endorse, assign and deliver the same to the
Collateral Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Collateral Agent may from time to time reasonably
request.

     

    (b)           Investment
Property.  Except to the extent otherwise provided in Article III and subject
to the terms of the Intercreditor Agreements, if any Grantor shall at any time
hold or acquire any Certificated Security constituting Pledged Collateral or
Article 9 Collateral, such Grantor shall forthwith endorse, assign and deliver
the same to the Collateral Agent, accompanied by such instruments of transfer or
assignment duly executed in blank as the Collateral Agent may from time to time
reasonably specify.  If any security of a domestic issuer now owned or
hereafter acquired by any Grantor is uncertificated and is issued to such
Grantor or its nominee directly by the issuer thereof, such Grantor shall
promptly notify the Collateral Agent of such uncertificated securities and (a)
upon the Collateral Agent’s reasonable request and (b) upon the occurrence and
during the continuance of an Event of Default, such Grantor shall, pursuant to
an agreement in form and substance reasonably satisfactory to the Collateral
Agent, either (i) cause the issuer to agree to comply with instructions from the
Collateral Agent as to such security, without further consent of any Grantor or
such nominee, or (ii) cause the issuer to register the Collateral Agent as the
registered owner of such security. Subject to the terms of the Intercreditor
Agreements, if any security or other Investment Property, whether certificated
or uncertificated, representing an Equity Interest in a third party and having a
fair market value in excess of $5.0 million now or hereafter acquired by any
Grantor is held by such Grantor or its nominee through a securities intermediary
or commodity intermediary, such Grantor shall promptly notify the Collateral
Agent thereof and, at the Collateral Agent’s request and option, pursuant to a
Control Agreement in form and substance reasonably satisfactory to the
Collateral Agent, either (A) cause such securities intermediary or commodity
intermediary, as applicable, to agree, in the case of a securities intermediary,
to comply with entitlement orders or other instructions from the Collateral
Agent to such securities intermediary as to such securities or other Investment
Property or, in the case of a commodity intermediary, to apply any value
distributed on account of any commodity contract as directed by the Collateral
Agent to such commodity intermediary, in each case without further consent of
any Grantor or such nominee, or (B) in the case of Financial Assets or other
Investment Property held through a securities intermediary, arrange for the
Collateral Agent to become entitlement holders with respect to such Investment
Property, for the ratable benefit of the Secured Parties, with such Grantor
being permitted, only with the consent of the Collateral Agent, to exercise
rights to withdraw or otherwise deal with such Investment Property. The
Collateral Agent agrees with each of the Grantors that the Collateral Agent
shall not give any such entitlement orders or instructions or directions to any
such issuer, securities intermediary or commodity intermediary, and shall not
withhold its consent to the exercise of any withdrawal or dealing rights
by

     

    
      
        
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    any
Grantor, unless an Event of Default has occurred and is continuing or, after
giving effect to any such withdrawal or dealing rights, would
occur.  The provisions of this paragraph (b) shall not apply to any
Financial Assets credited to a securities account for which the Collateral Agent
is the securities intermediary.

     

    (c)           Commercial Tort
Claims.  If any Grantor shall at any time hold or acquire a
Commercial Tort Claim in an amount reasonably estimated to exceed $5.0 million,
such Grantor shall promptly notify the Collateral Agent thereof in a writing
signed by such Grantor, including a summary description of such claim, and grant
to the Collateral Agent in writing a security interest therein and in the
proceeds thereof, all under the terms and provisions of this
Agreement.

     

     

    Section
4.05. Covenants Regarding Patent,
Trademark and Copyright Collateral

     

    (a)           Each
Grantor agrees that it will not knowingly do any act or omit to do any act (and
will exercise commercially reasonable efforts to prevent its licensees from
doing any act or omitting to do any act) whereby any Patent that is material to
the normal conduct of such Grantor’s business may become prematurely
invalidated, abandoned, lapsed or dedicated to the public, and agrees that it
shall take commercially reasonable steps with respect to any material products
covered by any such Patent as necessary and sufficient to establish and preserve
its rights under applicable patent laws.

     

    (b)           Each
Grantor will, and will use its commercially reasonable efforts to cause its
licensees or its sublicensees to, for each material Trademark necessary to the
normal conduct of such Grantor’s business, (i) maintain such Trademark in full
force free from any adjudication of abandonment or invalidity for non-use, (ii)
maintain the quality of products and services offered under such Trademark,
(iii) display such Trademark with notice of federal or foreign registration or
claim of trademark or service mark as required under applicable law and (iv) not
knowingly use or knowingly permit its licensees’ use of such Trademark in
violation of any third-party rights.

     

    (c)           Each
Grantor will, and will use its commercially reasonable efforts to cause its
licensees or its sublicensees to, for each work covered by a material Copyright
necessary to the normal conduct of such Grantor’s business that it publishes,
displays and distributes, use a copyright notice as required under applicable
copyright laws.

     

    (d)           Each
Grantor shall notify the Collateral Agent promptly if it knows that any Patent,
Trademark or Copyright material to the normal conduct of such Grantor’s business
may imminently become abandoned, lapsed or dedicated to the public, or of any
materially adverse determination or development, excluding office actions and
similar determinations or developments in the United States Patent and Trademark
Office, United States Copyright Office, any court or any similar office of any
country, regarding such Grantor’s ownership of any such material Patent,
Trademark or Copyright or its right to register or to maintain the
same.

     

    
      
        
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    (e)           Each
Grantor, either itself or through any agent, employee, licensee or designee,
shall (i) inform the Collateral Agent on an annual basis of each application by
itself, or through any agent, employee, licensee or designee, for any Patent
with the United States Patent and Trademark Office and each registration of any
Trademark or Copyright with the United States Patent and Trademark Office, the
United States Copyright Office or any comparable office or agency in any other
country filed during the preceding twelve-month period, in each case to the
extent such application or registration relates to the Intellectual Property
material to the normal course of such Grantor’s business and (ii) subject
to the terms of the Intercreditor Agreements, execute and deliver any and all
agreements, instruments, documents and papers necessary or as the Collateral
Agent may otherwise reasonably request to evidence the Collateral Agent’s
security interest in such Patent, Trademark or Copyright and the perfection
thereof.

     

    (f)           Each
Grantor shall exercise its reasonable business judgment consistent with the
practice in any proceeding before the United States Patent and Trademark Office,
the United States Copyright Office or any comparable office or agency in any
other country with respect to maintaining and pursuing each application relating
to any Patent, Trademark and/or Copyright (and obtaining the relevant grant or
registration) material to the normal conduct of such Grantor’s business and to
maintain (i) each issued Patent and (ii) the registrations of each Trademark and
each Copyright that is material to the normal conduct of such Grantor’s
business, including, when applicable and necessary in such Grantor’s reasonable
business judgment, timely filings of applications for renewal, affidavits of
use, affidavits of incontestability and payment of maintenance fees, and, if any
Grantor believes necessary in its reasonable business judgment, to initiate
opposition, interference and cancellation proceedings against third
parties.

     

    (g)           In
the event that any Grantor knows or has reason to know that any Article 9
Collateral consisting of a Patent, Trademark or Copyright material to the normal
conduct of its business has been or is about to be materially infringed,
misappropriated or diluted by a third party, such Grantor shall promptly notify
the Collateral Agent and shall, if such Grantor deems it necessary in its
reasonable business judgment, promptly sue and recover any and all damages, and
take such other actions as are reasonably appropriate under the
circumstances.

     

     

    ARTICLE
V

     

    OTHER
SECURITY DOCUMENTS AND OTHER ACTIONS

     

     

    Section
5.01. Mortgages.  In
addition to the security interests created under Articles III and IV, the
parties acknowledge that each Grantor shall use commercially reasonable efforts
to deliver to the Collateral Agent as promptly as reasonably practicable, in any
event within 120 days from the date of the Indenture, (a) counterparts of each
Mortgage to be entered into with respect to each Real Property identified in
Schedule V
owned by a Grantor, which Real Property is currently subject to a Mortgage in
favor of the secured parties under the Security Agreement, duly executed and
delivered by the record owner of such

     

    
      
        
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    property
and suitable for recording or filing and such other documents including, but not
limited to, any consents, agreements and confirmations of third parties with
respect to any such Mortgage or property, in each case consistent in form and
substance with such documents as previously delivered to the Term Facility
Administrative Agent and the Revolving Facility Administrative Agent, and (b) a
policy, policies or pro forma policy or policies or marked up unconditional
binder(s) of title insurance or foreign equivalent thereof (if any and if
available), as applicable, paid for by the Company, issued by a nationally
recognized title insurance company insuring the lien of each mortgage (which may
be the same as the company or companies insuring the Mortgages in favor of the
secured parties under the Security Agreement) to be entered into on or after the
date hereof as a valid lien on the applicable property described therein, free
of any other liens, except for Permitted Liens and liens arising by operation of
law, together with such customary endorsements (including zoning endorsements
where reasonably appropriate and available), and with respect to any such
property located in a state in which a zoning endorsement is not available, a
zoning compliance letter from the applicable municipality in a form consistent
with that previously delivered to the Term Facility Administrative Agent and
Revolving Facility Administrative Agent or such other form as is customary for
such municipality (it being understood that (x) no new or updated surveys shall
be required to be delivered in connection with the delivery of any title
insurance policies and (y) the last survey or update delivered or certified to
the Term Facility Administrative Agent and Revolving Facility Administrative
Agent shall be acceptable to the Collateral Agent together with an affidavit
from the property owner (if required by the title company) stating there have
been no substantial changes materially affecting the use of the property in the
business since the date of such last survey or update, so long as the same is
sufficient for the title insurance company to remove the so-called standard
survey exception and issue all survey-related endorsements to the title
insurance policies described in clause (b) of this sentence, in substantially
the same manner and to substantially the same extent as the title company has
previously insured such persons).

     

     

    ARTICLE
VI

     

    REMEDIES

    

     

     

    Section
6.01. Remedies Upon
Default.  Subject
to the terms of the Intercreditor Agreements, upon the occurrence and during the
continuance of an Event of Default, each Grantor agrees to deliver each item of
Collateral to the Collateral Agent, on demand, and it is agreed that the
Collateral Agent shall have the right to take any of or all the following
actions at the same or different times:  (a) with respect to any
Article 9 Collateral consisting of Intellectual Property, on demand, to cause
the Security Interest to become an assignment, transfer and conveyance of any of
or all such Article 9 Collateral by the applicable Grantors to the Collateral
Agent (on behalf of the Secured Parties) or to license or sublicense, whether
general, special or otherwise, and whether on an exclusive or a nonexclusive
basis, any such Article 9 Collateral throughout the world on such terms and
conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent that
waivers thereunder cannot be obtained with the use of commercially reasonable
efforts, which each Grantor hereby agrees

     

    
      
        
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    to use)
and (b) with or without legal process and with or without prior notice or demand
for performance, to take possession of the Article 9 Collateral and without
liability for trespass to the applicable Grantor to enter any premises where the
Article 9 Collateral may be located for the purpose of taking possession of or
removing the Article 9 Collateral and, generally, to exercise any and all rights
afforded to a secured party under the applicable Uniform Commercial Code or
other applicable law.  Without limiting the generality of the
foregoing, each Grantor agrees that the Collateral Agent shall have the right,
subject to the mandatory requirements of applicable law, to sell or otherwise
dispose of all or any part of the Collateral at a public or private sale or at
any broker’s board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate.  The
Collateral Agent shall be authorized in connection with any sale of a security
(if it deems it advisable to do so) pursuant to the foregoing to restrict the
prospective bidders or purchasers to persons who represent and agree that they
are purchasing such security for their own account, for investment, and not with
a view to the distribution or sale thereof.  Upon consummation of any
such sale of Collateral pursuant to this Section 6.01, the Collateral Agent
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold.  Each such purchaser at any
such sale shall hold the property sold absolutely, free from any claim or right
on the part of any Grantor, and each Grantor hereby waives and releases (to the
extent permitted by law) all rights of redemption, stay, valuation and appraisal
that such Grantor now has or may at any time in the future have under any rule
of law or statute now existing or hereafter enacted.

     

    The
Collateral Agent shall give the applicable Grantors 10 Business Days’ written
notice (which each Grantor agrees is reasonable notice within the meaning of
Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of
the Collateral Agent’s intention to make any sale of Collateral.  Such
notice, in the case of a public sale, shall state the time and place for such
sale and, in the case of a sale at a broker’s board or on a securities exchange,
shall state the board or exchange at which such sale is to be made and the day
on which the Collateral, or portion thereof, will first be offered for sale at
such board or exchange.  Any such public sale shall be held at such
time or times within ordinary business hours and at such place or places as the
Collateral Agent may fix and state in the notice (if any) of such
sale.  At any such sale, the Collateral, or the portion thereof, to be
sold may be sold in one lot as an entirety or in separate parcels, as the
Collateral Agent may (in its sole and absolute discretion)
determine.  The Collateral Agent shall not be obligated to make any
sale of any Collateral if it shall determine not to do so, regardless of the
fact that notice of sale of such Collateral shall have been
given.  The Collateral Agent may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale, and such sale may,
without further notice, be made at the time and place to which the same was so
adjourned.  In the case of any sale of all or any part of the
Collateral made on credit or for future delivery, the Collateral so sold may be
retained by the Collateral Agent until the sale price is paid by the purchaser
or purchasers thereof, but the Collateral Agent shall not incur any liability in
the event that any such purchaser or purchasers shall fail to take up and pay
for the Collateral so sold and, in the case of any such failure, such Collateral
may be sold again upon notice given in accordance with provisions
above.  At any public (or, to the extent permitted by law, private)
sale made pursuant to this Section 6.01, any Secured Party may bid for or
purchase for cash, free (to the

     

    
      
        
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    extent
permitted by law) from any right of redemption, stay, valuation or appraisal on
the part of any Grantor (all such rights being also hereby waived and released
to the extent permitted by law), the Collateral or any part thereof offered for
sale and such Secured Party may, upon compliance with the terms of sale, hold,
retain and dispose of such property in accordance with Section 6.02 hereof
without further accountability to any Grantor therefor.  For purposes
hereof, a written agreement to purchase the Collateral or any portion thereof
shall be treated as a sale thereof; the Collateral Agent shall be free to carry
out such sale pursuant to such agreement and no Grantor shall be entitled to the
return of the Collateral or any portion thereof subject thereto, notwithstanding
the fact that after the Collateral Agent shall have entered into such an
agreement all Events of Default shall have been remedied and the Obligations
paid in full.  As an alternative to exercising the power of sale
herein conferred upon it, the Collateral Agent may proceed by a suit or suits at
law or in equity to foreclose under this Agreement and to sell the Collateral or
any portion thereof pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court-appointed
receiver.  Any sale pursuant to the provisions of this Section 6.01
shall be deemed to conform to the commercially reasonable standards as provided
in Section 9-610(b) of the New York UCC or its equivalent in other
jurisdictions.

     

     

    Section
6.02. Application of
Proceeds.

     

     

    (a)           Subject
to the terms of the Intercreditor Agreements, the Collateral Agent shall
promptly apply the proceeds, moneys or balances of any collection or sale of
Collateral, as well as any Collateral consisting of cash, as
follows:

     

    FIRST, to
the payment of all costs and expenses incurred by the Collateral Agent or the
Trustee in connection with such collection or sale or otherwise in connection
with this Agreement, any other Indenture Document or any of the Obligations,
including without limitation all court costs and the fees and expenses of its
agents and legal counsel, the repayment of all advances made by the Collateral
Agent or the Trustee hereunder or under any other Indenture Document on behalf
of any Grantor, any other costs or expenses incurred in connection with the
exercise of any right or remedy hereunder or under any other Indenture Document,
and all other fees, indemnities and other amounts owing or reimbursable to the
Collateral Agent or the Trustee under any Indenture Document in its capacity as
such;

     

    SECOND,
to interest due in respect of the Obligations which such Collateral
secures;

     

    THIRD, to
the principal of the Obligations which such Collateral secures; and

     

    FOURTH,
to the Company, its successors or assigns, or as a court of competent
jurisdiction may otherwise direct (provided that the
Company and other Grantors may separately allocate such excess proceeds among
themselves after delivery by the Collateral Agent to the Company).

     

    
      
        
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    (b)           Subject
to the terms of the Intercreditor Agreements, the Collateral Agent shall have
absolute discretion as to the time of application of any such proceeds, moneys
or balances in accordance with this Agreement.  Upon any sale of
Collateral by the Collateral Agent (including pursuant to a power of sale
granted by statute or under a judicial proceeding), the receipt of the purchase
money by the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent
or such officer or be answerable in any way for the misapplication
thereof.  If, despite the provisions of this Agreement, any Secured
Party shall receive any payment or other recovery in excess of its portion of
payments on account of the Obligations to which it is then entitled in
accordance with this Agreement, such Secured Party shall hold such payment or
other recovery in trust for the benefit of all Secured Parties hereunder for
distribution in accordance with this Section 6.02.

     

     

    (c)           If,
after receipt of any payment which is applied to the payment of all or any part
of any Obligations, a Secured Party 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 set-off, 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 such Secured
Party and the Company shall be liable to pay to such Secured Party, and shall
indemnify each Secured Party and hold such Secured Party harmless for the amount
of such payment or proceeds surrendered.  The provisions of this
Section 6.02(c) shall be and remain effective notwithstanding any contrary
action which may have been taken by a Secured Party in reliance upon such
payment or application of proceeds, and any such contrary action so taken shall
be without prejudice to the Secured Parties’ rights under this Agreement and
shall be deemed to have been conditioned upon such payment or application of
proceeds having become final and irrevocable.  The provisions of this
Section 6.02(c) shall survive the termination of this Agreement.

     

     

    Section
6.03. Securities Act,
Etc.  In
view of the position of the Grantors in relation to the Pledged Collateral, or
because of other current or future circumstances, a question may arise under the
Securities Act of 1933, as now or hereafter in effect, or any similar federal
statute hereafter enacted analogous in purpose or effect (such Act and any such
similar statute as from time to time in effect being called the “Federal Securities
Laws”) with respect to any disposition of the Pledged Collateral
permitted hereunder.  Each Grantor understands that compliance with
the Federal Securities Laws might very strictly limit the course of conduct of
the Collateral Agent if the Collateral Agent were to attempt to dispose of all
or any part of the Pledged Collateral, and might also limit the extent to which
or the manner in which any subsequent transferee of any Pledged Collateral could
dispose of the same.  Similarly, there may be other legal restrictions
or limitations affecting the Collateral Agent in any attempt to dispose of all
or part of the Pledged Collateral under applicable Blue Sky or other state
securities laws or similar laws analogous in purpose or effect.  Each
Grantor

     

    
      
        
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    acknowledges
and agrees that in light of such restrictions and limitations, the Collateral
Agent, in its sole and absolute discretion, (a) may proceed to make such a sale
whether or not a registration statement for the purpose of registering such
Pledged Collateral or part thereof shall have been filed under the Federal
Securities Laws or, to the extent applicable, Blue Sky or other state securities
laws and (b) may approach and negotiate with a single potential purchaser to
effect such sale.  Each Grantor acknowledges and agrees that any such
sale might result in prices and other terms less favorable to the seller than if
such sale were a public sale without such restrictions.  In the event
of any such sale, the Collateral Agent shall incur no responsibility or
liability for selling all or any part of the Pledged Collateral at a price that
the Collateral Agent, in its sole and absolute discretion, may in good faith
deem reasonable under the circumstances, notwithstanding the possibility that a
substantially higher price might have been realized if the sale were deferred
until after registration as aforesaid or if more than a single purchaser were
approached.  The provisions of this Section 6.03 will apply
notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the
Collateral Agent sells.

     

     

    ARTICLE
VII

     

    [RESERVED]

     

    

     

     

    ARTICLE
VIII

     

    [RESERVED]

     

    

     

     

    ARTICLE
IX

     

    MISCELLANEOUS

     

     

    

     

     

    Section
9.01. Notices.  All
communications and notices hereunder shall (except as otherwise permitted
herein) be in writing and given as provided in Section 13.02 of the
Indenture.  All communications and notices hereunder to any Subsidiary
Party shall be given to it in care of the Company, with such notice to be given
as provided in Section 13.02 of the Indenture.

     

     

    Section
9.02. Security Interest
Absolute.  All
rights of the Collateral Agent hereunder, the Security Interest in the Article 9
Collateral, the security interest in the Pledged Collateral and all obligations
of each Grantor hereunder shall be absolute and unconditional irrespective of
(a) any lack of validity or enforceability of the Indenture, any other Indenture
Document, any agreement with respect to any of the Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or

     

    
      
        
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    waiver of
or any consent to any departure from the Indenture, any other Indenture Document
or any other agreement or instrument, (c) any exchange, release or
non-perfection of any Lien on other collateral, or any release or amendment or
waiver of or consent under or departure from any guarantee, securing or
guaranteeing all or any of the Obligations or (d) any other circumstance that
might otherwise constitute a defense available to, or a discharge of, any
Grantor in respect of the Obligations or this Agreement (other than a defense of
payment or performance).

     

     

    Section
9.03. Limitation By
Law.  All
rights, remedies and powers provided in this Agreement may be exercised only to
the extent that the exercise thereof does not violate any applicable provision
of law, and all the provisions of this Agreement are intended to be subject to
all applicable mandatory provisions of law that may be controlling and to be
limited to the extent necessary so that they shall not render this Agreement
invalid, unenforceable, in whole or in part, or not entitled to be recorded,
registered or filed under the provisions of any applicable law.

     

     

    Section
9.04. Binding Effect; Several
Agreement.  This
Agreement shall become effective as to any party to this Agreement when a
counterpart hereof executed on behalf of such party shall have been delivered to
the Collateral Agent and a counterpart hereof shall have been executed on behalf
of the Collateral Agent, and thereafter shall be binding upon such party and the
Collateral Agent and their respective permitted successors and assigns, and
shall inure to the benefit of such party, the Collateral Agent and the other
Secured Parties and their respective permitted successors and assigns, except
that no party shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly contemplated by this
Agreement or the Indenture.  This Agreement shall be construed as a
separate agreement with respect to each party and may be amended, modified,
supplemented, waived or released with respect to any party without the approval
of any other party and without affecting the obligations of any other party
hereunder.

     

     

    Section
9.05. Successors and
Assigns.  Whenever
in this Agreement any of the parties hereto is referred to, such reference shall
be deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of any Grantor or the
Collateral Agent that are contained in this Agreement shall bind and inure to
the benefit of their respective permitted successors and assigns; provided that no
Grantor may assign, transfer or delegate any of its rights or obligations under
this Agreement without the prior written consent of the Collateral
Agent.  Written notice of resignation by the Collateral Agent as
trustee pursuant to the Indenture shall also constitute notice of resignation as
the Collateral Agent under this Agreement.  Upon the acceptance of any
appointment as the trustee under the Indenture by a successor Collateral Agent,
that successor trustee shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Collateral Agent pursuant
hereto.

     

    Section
9.06. Collateral Agent’s Fees and
Expenses; Indemnification.

     

    (a)           Each
Grantor jointly and severally agrees to pay upon demand to the Collateral Agent
the amount of any and all reasonable expenses, including the reasonable fees,
disbursements and other charges of its counsel and of any experts or agents,
which the Collateral Agent may incur in connection with (i) the administration
of this Agreement, (ii) the custody or preservation of, or the sale of,
collection from or other realization upon any of the Collateral, (iii) the
exercise, enforcement or protection of any rights of the Collateral Agent
hereunder or (iv) the failure of any Grantor to perform or observe any of the
provisions hereof applicable to it.

     

     

    
      
        
        

      

      
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    (b)           Without
limitation of its indemnification obligations under the other Indenture
Documents, each Grantor jointly and severally agrees to indemnify the Collateral
Agent, the Trustee, the Holders and each Affiliate of the foregoing Persons
(each such Person being called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable counsel fees, charges and
disbursements, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of, (i) the execution, delivery or performance
of this Agreement or any other Indenture Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto and
thereto of their respective obligations thereunder or the consummation of the
Transactions and other transactions contemplated hereby, (ii) the use of
proceeds of the Securities or (iii) any claim, litigation, investigation or
proceeding relating to any of the foregoing, or to the Collateral, whether or
not 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, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such
Indemnitee.

     

    (c)           Any
such amounts payable as provided hereunder shall be additional Obligations
secured hereby and by the other Security Documents.  The provisions of
this Section 9.06 shall remain operative and in full force and effect regardless
of the termination of this Agreement or any other Indenture Document, the
consummation of the transactions contemplated hereby, the repayment of any of
the Obligations, the invalidity or unenforceability of any term or provision of
this Agreement or any other Indenture Document, or any investigation made by or
on behalf of the Collateral Agent or any other Secured Party.  All
amounts due under this Section 9.06 shall be payable on written demand therefor,
accompanied by reasonable documentation with respect to any reimbursement,
indemnification or other amount requested.

     

     

    Section
9.07. Collateral Agent Appointed
Attorney-in-Fact.  Each
Grantor hereby appoints the Collateral Agent the attorney-in-fact of such
Grantor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment
is irrevocable and coupled with an interest.  The Collateral Agent
shall have the right, upon the occurrence and during the continuance of an Event
of Default, with full power of substitution either in the Collateral Agent’s
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    the name
of such Grantor, (a) to receive, endorse, assign or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating
to the Collateral or any part thereof; (b) to demand, collect, receive payment
of, give receipt for and give discharges and releases of all or any of the
Collateral; (c) to ask for, demand, sue for, collect, receive and give
acquittance for any and all moneys due or to become due under and by virtue of
any Collateral; (d) to sign the name of any Grantor on any invoice or bill of
lading relating to any of the Collateral; (e) to send verifications of Accounts
to any Account Debtor; (f) to commence and prosecute any and all suits, actions
or proceedings at law or in equity in any court of competent jurisdiction to
collect or otherwise realize on all or any of the Collateral or to enforce any
rights in respect of any Collateral; (g) to settle, compromise, compound, adjust
or defend any actions, suits or proceedings relating to all or any of the
Collateral; (h) to notify, or to require any Grantor to notify, Account Debtors
to make payment directly to the Collateral Agent; and (i) to use, sell, assign,
transfer, pledge, make any agreement with respect to or otherwise deal with all
or any of the Collateral, and to do all other acts and things necessary to carry
out the purposes of this Agreement, as fully and completely as though the
Collateral Agent were the absolute owner of the Collateral for all purposes;
provided, that
nothing herein contained shall be construed as requiring or obligating the
Collateral Agent to make any commitment or to make any inquiry as to the nature
or sufficiency of any payment received by the Collateral Agent, or to present or
file any claim or notice, or to take any action with respect to the Collateral
or any part thereof or the moneys due or to become due in respect thereof or any
property covered thereby.  The Collateral Agent and the other Secured
Parties shall be accountable only for amounts actually received as a result of
the exercise of the powers granted to them herein, and neither they nor their
officers, directors, employees or agents shall be responsible to any Grantor for
any act or failure to act hereunder, except for their own gross negligence or
willful misconduct.

     

     

    Section
9.08. GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     

     

    Section
9.09. Waivers;
Amendment.

     

    (a)           No
failure or delay by the Collateral Agent or any Secured Party in exercising any
right, power or remedy hereunder or under any other Indenture Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right, power or remedy, or any abandonment or discontinuance of steps to
enforce such a right, power or remedy, preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.  The
rights, powers and remedies of the Trustee, Collateral Agent and the Secured
Parties hereunder and under the other Indenture Documents are cumulative and are
not exclusive of any rights, powers or remedies that they would otherwise
have.  No waiver of any provision of this Agreement or consent to any
departure by any Grantor therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) of this Section 9.09, and then such
waiver or consent shall be effective only in the specific instance and
for

     

    
      
        
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    the
purpose for which given.  No notice or demand on any Grantor in any
case shall entitle any Grantor to any other or further notice or demand in
similar or other circumstances.

     

    (b)           Neither
this Agreement nor the Intercreditor Agreements or any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Collateral Agent and the Grantor or Grantors with
respect to which such waiver, amendment or modification is to apply, subject to
the limitations in the Indenture and the Intercreditor Agreements or as
otherwise provided in the Indenture or the Intercreditor
Agreements.

     

     

    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 RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INDENTURE DOCUMENTS.  EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, 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 9.10.

     

     

    Section
9.11. Severability.  In
the event any one or more of the provisions contained in this Agreement or in
any other Indenture Document should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein and therein shall not in any way be affected or
impaired thereby.  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

     

     

    Section
9.12. Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute but
one contract, and shall become effective as provided in Section 9.04
hereof.  Delivery of an executed counterpart to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed
original.

     

     

    Section 9.13. 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 are not to affect the
construction of, or to be taken into consideration in interpreting, this
Agreement.

     

     

    Section
9.14. Jurisdiction; Consent to Service
of Process.

     

    (a)           Each
party to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or any other Indenture 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 shall affect any right that the Trustee, Collateral Agent or any
Secured Party may otherwise have to bring any action or proceeding relating to
this Agreement or any other Indenture Document against any Grantor, or its
properties, in the courts of any jurisdiction.

     

     

    
      
        
        

      

      
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    (b)           Each
party to this Agreement 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 Indenture Document in
any New York State or federal court.  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.

     

     

    Section
9.15. Termination or
Release. This
Agreement, pledges made herein, and all security interests granted hereby shall
terminate only in accordance with the Indenture and consistent with the
Intercreditor Agreements.

     

     

    Section
9.16. Additional
Subsidiaries.  If,
pursuant to the Indenture or this Agreement, the Company is required to cause
any Subsidiary that is not a Subsidiary Party to become a Subsidiary Party to
secure the Obligations of the Company, upon execution and delivery by the
Collateral Agent and such Subsidiary of an instrument in the form of Exhibit I hereto, such
Subsidiary shall become a Subsidiary Party hereunder with the same force and
effect as if originally named as a Subsidiary Party herein.  The
execution and delivery of any such instrument shall not require the consent of
any other party to this Agreement.  The rights and obligations of each
party to this Agreement shall remain in full force and effect notwithstanding
the addition of any new party to this Agreement.

     

     

    Section
9.17. Right of
Set-off

     

    .  If
an Event of Default shall have occurred and be continuing, each Secured Party 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) at any time held and other indebtedness at
any time owing by such Secured Party to or for the credit or the account of any
party to this

     

    
      
        
          --

        

         

      

      
        35

        
          

        

      

      
         

      

    

    Agreement
against any of and all the obligations of such party now or hereafter existing
under this Agreement owed to such Secured Party, irrespective of whether or not
such Secured Party shall have made any demand under this Agreement and although
such obligations may be unmatured.  The rights of each Secured Party
under this Section 9.17 are in addition to other rights and remedies (including
other rights of set-off) that such Secured Party may have. Any amounts
received by any Holder pursuant to this Section 9.17 should be applied pursuant
to Section 6.02.

     

    Section
9.18. Subject to Intercreditor
Agreements

     

    .  Notwithstanding
anything herein to the contrary, the terms of this Agreement are expressly
subject to the terms of (a) the Senior Lender Intercreditor Agreement, (b) the
Junior Intercreditor Agreement and (c) Senior Fixed Lender Intercreditor
Agreement.  In the event of any conflict between the terms of any
Intercreditor Agreement and the terms of this Agreement, the terms of the
applicable Intercreditor Agreement shall govern. Notwithstanding anything
herein to the contrary, so long as the Senior Lender Intercreditor Agreement
and/or the Senior Fixed Lender Intercreditor Agreement are outstanding, (i) the
requirements of this Agreement to endorse, assign or deliver Collateral to the
Collateral Agent shall be deemed satisfied by endorsement, assignment or
delivery of such Collateral to the Possessory Collateral Agent and (ii) any
endorsement, assignment or delivery to the Possessory Collateral Agent shall be
deemed an endorsement, assignment or delivery to the Collateral Agent for all
purposes hereunder.

     

    [Signature
Page Follows]

    
      
        
          --

        

         

      

      
        36

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

     

    

    
      	
               
      

            	
              BERRY
      PLASTICS CORPORATION

            

    

    
      	
               
      

            	
              AEROCON,
      LLC

            

    

    
      	
               
      

            	
              BERRY
      IOWA, LLC

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS DESIGN, LLC

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS OPCO, INC.

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS TECHNICAL SERVICES, INC.

            

    

    
      	
               
      

            	
              BERRY
      STERLING CORPORATION

            

    

    
      	
               
      

            	
              CARDINAL
      PACKAGING, INC.

            

    

    
      	
               
      

            	
              CPI
      HOLDING CORPORATION

            

    

    
      	
               
      

            	
              KNIGHT
      PLASTICS, INC.

            

    

    
      	
               
      

            	
              LANDIS
      PLASTICS, LLC

            

    

    
      	
               
      

            	
              PACKERWARE
      CORPORATION

            

    

    
      	
               
      

            	
              PESCOR,
      INC.

            

    

    
      	
               
      

            	
              POLY-SEAL,
      LLC

            

    

    
      	
               
      

            	
              VENTURE
      PACKAGING, INC.

            

    

    
      	
               
      

            	
              VENTURE
      PACKAGING MIDWEST, INC.

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION
III

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION V

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION
VIII

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION IX

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION X

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION XI

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION
XII

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION
XIII

            

    

    
      	
               
      

            	
              KERR
      GROUP, LLC

            

    

    
      	
               
      

            	
              SAFFRON
      ACQUISITION, LLC

            

    

    
      	
               
      

            	
              SUN
      COAST INDUSTRIES, LLC

            

    

    
      	
               
      

            	
              BERRY
      PLASTICS ACQUISITION CORPORATION XV,
LLC

            

    

    
      	
               
      

            	
              SETCO,
      LLC

            

    

    
      	
               
      

            	
              TUBED
      PRODUCTS, LLC

            

    

    
      	
               
      

            	
              COVALENCE
      SPECIALTY COATINGS LLC

            

    

    
      	
               
      

            	
              COVALENCE
      SPECIALTY ADHESIVES LLC

            

    

    
      	
               
      

            	
              ROLLPAK
      ACQUISITION CORPORATION

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              ROLLPAK
      CORPORATION

            

    

    
      	
               
      

            	
              CAPTIVE
      HOLDINGS, INC.

            

    

    
      	
               
      

            	
              CAPTIVE
      PLASTICS, INC.

            

    

    
      	
               
      

            	
              CAPLAS
      NEPTUNE LLC

            

    

    
      	
               
      

            	
              CAPLAS
      LLC

            

    

    
      	
               
      

            	
              GRAFCO
      INDUSTRIES LIMITED PARTNERSHIP

            

    

     

    
      	
               
      

            	
              By:

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    WELLS
FARGO BANK, N.A.,

    as
Collateral Agent

     

     

    
      	
               
      

            	
              By:

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
I

    to
Collateral Agreement

     

    SUPPLEMENT
NO. ______ dated as of _____________ (this “Supplement”), to the
Collateral Agreement dated as of April 21, 2008 (the “Collateral
Agreement”), among BERRY PLASTICS CORPORATION, a Delaware corporation,
(the “Company”), each
subsidiary of the Company identified herein as a party (each, a “Subsidiary Party”)
and WELLS FARGO BANK, N.A., as collateral agent (in such capacity, the “Collateral Agent”)
for the Secured Parties (as defined therein).

     

    A.           Reference
is made to (i) the Indenture dated as of April 21, 2008 (as amended, restated,
supplemented, waived or otherwise modified from time to time, the “Indenture”), among
the Company, the Subsidiary Parties and Wells Fargo Bank, N.A., as Trustee (the
“Trustee”) and
(ii) the Purchase Agreement dated as of April 16, 2008 (as amended,
restated, stated, supplemented, waived or otherwise modified from time to time,
the “Purchase
Agreement”), among the Company, the several parties named in Schedule I thereto (the
“Initial
Purchasers”) and the Subsidiary Parties thereto.

     

    B.           Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Indenture and the Collateral Agreement referred to
therein.

     

    C.           The
Grantors have entered into the Collateral Agreement in order to induce the
Trustee to enter into the Indenture and the Initial Purchasers to purchase the
Original Securities.  Section 9.16 of the Collateral Agreement
provides that additional Subsidiaries may become Subsidiary Parties under the
Collateral Agreement by execution and delivery of an instrument in the form of
this Supplement.  The undersigned Subsidiary (the “New Subsidiary”) is executing
this Supplement in accordance with the requirements of the Indenture to become a
Subsidiary Party under the Collateral Agreement as consideration for credit
previously extended to the Company.

     

    Accordingly,
the Collateral Agent and the New Subsidiary agree as follows:

     

    SECTION
1.  In accordance with Section 9.16 of the Collateral Agreement, the
New Subsidiary by its signature below becomes a Subsidiary Party and a
Grantor under the Collateral Agreement with the same force and effect as if
originally named therein as a Subsidiary Party and a Grantor, and the New
Subsidiary hereby (a) agrees to all the terms and provisions of the Collateral
Agreement applicable to it as a Subsidiary Party and a Grantor thereunder
and (b) represents and warrants that the representations and warranties made by
it as a Grantor thereunder are true and correct, in all material respects, on
and as of the date hereof.  In furtherance of the foregoing, the New
Subsidiary, as security for the payment and performance in full of the
Obligations (as defined in the Collateral Agreement), does hereby create and
grant to the Collateral Agent, for the benefit of the Secured Parties, a
security interest in and Lien on all the New Subsidiary’s right, title and
interest in and to the Collateral (as defined in the Collateral Agreement) of
the New Subsidiary.  Each reference to a “Subsidiary Party” or a
“Grantor” in the Collateral Agreement shall be deemed to include the New
Subsidiary.  The Collateral Agreement is hereby incorporated herein by
reference.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
2.  The New Subsidiary represents and warrants to the Collateral Agent
and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, subject to (i)
the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent
conveyance or other similar laws affecting creditors’ rights generally, (ii)
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (iii) implied covenants of
good faith and fair dealing.

     

    SECTION
3.  This Supplement may be executed in two or more counterparts, each
of which shall constitute an original but all of which when taken together shall
constitute but one contract.  This Supplement shall become effective
when (a) the Collateral Agent shall have received a counterpart of this
Supplement that bears the signature of the New Subsidiary and (b) the Collateral
Agent has executed a counterpart hereof.

     

    SECTION
4.   The New Subsidiary hereby represents and warrants that (a)
set forth on Schedule
I attached hereto is a true and correct schedule of the location of any
and all Article 9 Collateral of the New Subsidiary as of the date hereof, (b)
set forth on Schedule
II attached hereto is a true and correct schedule of all the Pledged
Securities of the New Subsidiary and (c) set forth under its signature hereto,
is the true and correct legal name of the New Subsidiary, its jurisdiction of
formation and the location of its chief executive office.

     

    SECTION
5.  Except as expressly supplemented hereby, the Collateral Agreement shall
remain in full force and effect.

     

    SECTION
6.THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

     

    SECTION
7.   In the event any one or more of the provisions contained in
this Supplement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and in the Collateral Agreement shall not in any way be affected or
impaired thereby.  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

     

    SECTION
8.  All communications and notices hereunder shall be in writing and
given as provided in Section 9.01 of the Collateral Agreement.

     

    SECTION
9.  The New Subsidiary agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including
the reasonable fees, disbursements and other charges of counsel for the
Collateral Agent.

     

    IN
WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly executed
this Supplement to the Collateral Agreement as of the day and year first above
written.

     

    
      
        
          Exhibit
I

        

         

      

      
         

        
          

        

      

      
         

      

    

    [Name of
New Subsidiary]

     

     

    
      	
               
      

            	
              By:

            	 

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

     

    Legal
Name:

     

     

    Jurisdiction
of Formation:

     

     

    Location
of Chief Executive Office:

     

     

    WELLS
FARGO BANK, N.A.,  as Collateral Agent

     

     

    
      	
               
      

            	
              By:

            	 

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

     

    
      
        
          Exhibit
I

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
II

    to
Collateral Agreement

     

    [Form
of]

     

    PERFECTION
CERTIFICATEex43.htm

    

      

      REGISTRATION
RIGHTS AGREEMENT

      

      

      by and
among

      

      

      Berry
Plastics Corporation

      (formerly
Berry Plastics Holding Corporation),

      

      the
subsidiaries of Berry Plastics Corporation parties hereto

      

      and

      

      

      Banc
of America Securities LLC

      Goldman,
Sachs & Co.

      Lehman
Brothers Inc.

      

      

      

      

      

      Dated as
of April 21, 2008

      

      
        
           

        

        
           

          
            

          

        

        
           

          
            

            

            
              	
                      CG&R
      DRAFT:  4/17/08 12:59 PM #923535 v5
      (S5SF05_.DOC)

                    

            

            

          

        

      

      REGISTRATION
RIGHTS AGREEMENT

       

      This
Registration Rights Agreement (this “Agreement”) is made
and entered into as of April 21, 2008, by and among Berry Plastics Corporation
(formerly Berry Plastics Holding Corporation), a Delaware corporation (the
“Company”), the
subsidiaries of the Company listed on Schedule A hereto (collectively, the
“Guarantors”)  and
Banc of America Securities LLC, Goldman, Sachs & Co. and Lehman Brothers
Inc. (collectively, the “Initial Purchasers”),
each of whom has agreed to purchase, pursuant to the Purchase Agreement (as
defined below), the First Priority Senior Secured Floating Rate Notes due 2015
(the “Initial
Notes”) issued by the Company.  The Guarantors will fully and
unconditionally guarantee (the “Initial Guarantees”),
on a senior secured basis, the Company’s obligations under the Initial
Notes.  The Initial Notes and the Initial Guarantees are herein
collectively referred to as the “Initial
Securities.”

       

      This
Agreement is made pursuant to the Purchase Agreement, dated as of April 16, 2008
(the “Purchase
Agreement”), among the Company, the Guarantors and the Initial
Purchasers, for (i) the benefit of the Initial Purchasers and (ii) the benefit
of the holders from time to time of the Initial Securities, including the
Initial Purchasers.  In order to induce the Initial Purchasers to
purchase the Initial Securities, the Company and the Guarantors have agreed to
provide the registration rights set forth in this Agreement.  The
execution and delivery of this Agreement is a condition to the obligations of
the Initial Purchasers set forth in Section 6(g) of the Purchase
Agreement.

       

      The
parties hereby agree as follows:

       

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

       

      Additional Interest Payment
Date:  With respect to the Initial Securities, each Interest
Payment Date.

       

      Broker-Dealer:  Any
broker or dealer registered under the Exchange Act.

       

      Business Day:  Any
day other than a Saturday, Sunday or U.S. federal holiday or a day on which
banking institutions or trust companies located in New York, New York are
authorized or obligated to be closed.

       

      Closing Date:  The
date of this Agreement.

       

      Commission:  The
U.S. Securities and Exchange Commission.

       

      Consummate:  A
registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the
Securities Act of the Exchange Offer Registration Statement relating to the
Exchange Securities to be issued in the Exchange Offer, (ii) the maintenance of
such Registration Statement continuously effective and the keeping of the
Exchange Offer open for a period not less than the minimum period required
pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the
Registrar under the Indenture of Exchange Securities in the same aggregate
principal amount as the aggregate principal amount of Initial Securities that
were tendered by Holders thereof pursuant to the Exchange Offer.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Effectiveness Target
Date:  As defined in Section 5 hereof.

       

      Exchange Act:  The
Securities Exchange Act of 1934, as amended.

       

      Exchange
Offer:  The registration by the Company under the Securities
Act of the Exchange Securities pursuant to a Registration Statement pursuant to
which the Company offers the Holders of all outstanding Transfer Restricted
Securities the opportunity to exchange all such outstanding Transfer Restricted
Securities held by such Holders for Exchange Securities in an aggregate
principal amount equal to the aggregate principal amount of the Transfer
Restricted Securities tendered in such exchange offer by such
Holders.

       

      Exchange Offer Effectiveness Target
Date: As defined in Section 5 hereof.

       

      Exchange Offer Registration
Statement:  The Registration Statement relating to the Exchange
Offer, including the related Prospectus.

       

      Exchange
Securities:  The First Priority Senior
Secured Floating Rate Notes due 2015 of the same series under the Indenture as
the Initial Notes of such series and the guarantees of such notes, to be issued
to Holders in exchange for Transfer Restricted Securities pursuant to this
Agreement.

       

      Free Writing Prospectus: Any free writing
prospectus, as such term is defined in Rule 405 under the Securities Act,
relating to any portion of the Initial Securities and the Exchange
Securities.

       

      Holders:  As
defined in Section 2(b) hereof.

       

      Indemnified
Holder:  As defined in Section 8(a) hereof.

       

      Indenture:  The
Indenture dated as of April 21, 2008, by and among the Company, the Guarantors
and Wells Fargo Bank, N.A., as trustee (the “Trustee”), pursuant
to which the Initial Notes and the Exchange Securities are to be issued, as such
Indenture may be further amended or supplemented from time to time in accordance
with the terms thereof.

       

      Initial
Guarantees:  As defined in the preamble hereto.

       

      Initial Notes:  As
defined in the preamble hereto.

       

      Initial
Placement:  The issuance and sale by the Company of the Initial
Securities to the Initial Purchasers pursuant to the Purchase
Agreement.

       

      Initial
Purchasers:  As defined in the preamble hereto.

       

      Initial Securities: As defined in the preamble
hereto.

       

      Interest Payment
Date:  As defined in the Securities.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      NASD:  NASD
Inc.

       

      Person:  An
individual, partnership, corporation, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

       

      Prospectus:  The
prospectus included in a Registration Statement, as amended or supplemented by
any prospectus supplement and by all other amendments thereto, including
post-effective amendments, and all material incorporated by reference into such
Prospectus.

       

      Registration
Default:  As defined in Section 5 hereof.

       

      Registration
Statement:  Any registration statement of the Company relating
to (a) an offering of Exchange Securities pursuant to an Exchange Offer or (b)
the registration for resale of Transfer Restricted Securities pursuant to the
Shelf Registration Statement, which is filed pursuant to the provisions of this
Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and all
exhibits and material incorporated by reference therein.

       

      Securities:  As
defined in the Indenture.

       

      Securities
Act:  The Securities Act of 1933, as amended.

       

      Shelf Filing
Deadline:  As defined in Section 4(a) hereof.

       

      Shelf Registration Effectiveness
Date:  As defined in Section 5 hereof.

       

      Shelf Registration
Statement:  As defined in Section 4(a) hereof.

       

      Transfer Restricted
Securities:  Each Initial Security, until the earliest to occur
of (a) the date on which such Initial Security is exchanged in the Exchange
Offer for an Exchange Security entitled to be resold to the public by the Holder
thereof without complying with the prospectus delivery requirements of the
Securities Act, (b) the date on which such Initial Security has been effectively
registered under the Securities Act and disposed of in accordance with a Shelf
Registration Statement and (c) the date on which such Initial Security is
distributed to the public pursuant to Rule 144 under the Securities Act or by a
Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the
Exchange Offer Registration Statement (including delivery of the Prospectus
contained therein).

       

      Trust Indenture
Act:  The Trust Indenture Act of 1939, as amended.

       

      Underwritten Registration or
Underwritten Offering:  A registration in which securities of
the Company are sold to an underwriter for reoffering to the
public.

       

      SECTION
2. Securities Subject to this
Agreement.

       

      (a) Transfer Restricted
Securities.  The securities entitled to the benefits of this
Agreement are the Transfer Restricted Securities.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (b) Holders of Transfer Restricted
Securities.  A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever
such Person owns Transfer Restricted Securities.

       

      SECTION
3. Registered Exchange
Offer.

       

      (a) Unless
the Exchange Offer shall not be permissible under applicable law or Commission
policy, each of the Company and the Guarantors shall (i) use its commercially
reasonable efforts to cause to be filed with the Commission as soon as
practicable after the Closing Date, the Exchange Offer Registration Statement,
(ii) use its commercially reasonable efforts to cause such Registration
Statement to become effective as promptly as possible (unless it becomes
effective automatically upon filing), but in no event later than 270 days after
the Closing Date (or if such 270th day is not a Business Day, the next
succeeding Business Day), (iii) in connection with the foregoing, file (A) all
pre-effective amendments to such Registration Statement as may be necessary in
order to cause such Registration Statement to become effective, (B) if
applicable, a post-effective amendment to such Registration Statement pursuant
to Rule 430A under the Securities Act and (C) cause all necessary filings in
connection with the registration and qualification of the Exchange Securities to
be made under the state securities or blue sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Registration Statement, commence the Exchange
Offer.  The Exchange Offer Registration Statement shall be on the
appropriate form permitting registration of the Exchange Securities to be
offered in exchange for the Transfer Restricted Securities and to permit resales
of Initial Securities held by Broker-Dealers as contemplated by Section 3(c)
hereof.

       

      (b) The
Company and the Guarantors shall cause the Exchange Offer Registration Statement
to be effective continuously and shall keep the Exchange Offer open for a period
of not less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 30 days after the date notice of the
Exchange Offer is mailed to the Holders.  The Company shall cause the
Exchange Offer to comply with all applicable federal and state securities
laws.  No securities other than the Exchange Securities shall be
included in the Exchange Offer Registration Statement.  The Company
shall use its commercially reasonable efforts to cause the Exchange Offer to be
Consummated on the earliest practicable date after the Exchange Offer
Registration Statement has become effective, but in no event later than 30 days
after the date notice of the Exchange Offer is required to be mailed to the
Holders (or if such 30th day is not a Business Day, the next succeeding Business
Day).

       

      (c) The
Company shall indicate in a “Plan of Distribution” section contained in the
Prospectus forming a part of the Exchange Offer Registration Statement that any
Broker-Dealer who holds Initial Securities that are Transfer Restricted
Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company) may exchange such
Initial Securities pursuant to the Exchange Offer; however, such Broker-Dealer
may be deemed to be an “underwriter” within the meaning of the Securities Act
and must, therefore, deliver a prospectus meeting the requirements of the
Securities Act in connection with any resales of the Exchange Securities
received by such Broker-Dealer in the Exchange Offer, which prospectus delivery
requirement may be satisfied by the delivery by such Broker-Dealer of the
Prospectus contained in the Exchange Offer Registration
Statement.  Such “Plan of Distribution” section shall also contain all
other information with respect to such resales by Broker-Dealers that the
Commission may require in order to permit such resales pursuant thereto, but
such “Plan of Distribution” shall not name any such Broker-Dealer or disclose
the amount of Initial Securities held by any such Broker-Dealer except to the
extent required by the Commission.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      Each of
the Company and the Guarantors shall use its commercially reasonable efforts to
keep the Exchange Offer Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 6(c) hereof to
the extent necessary to ensure that it is available for resales of Initial
Securities acquired by Broker-Dealers for their own accounts as a result of
market-making activities or other trading activities, and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time to
time, for a period ending on the earlier of (i) 180 days from the date on which
the Exchange Offer Registration Statement is declared effective and (ii) the
date on which a Broker-Dealer is no longer required to deliver a prospectus in
connection with market-making or other trading activities.

       

      The
Company shall provide sufficient copies of the latest version of such Prospectus
to Broker-Dealers promptly upon request at any time during such 180-day (or
shorter as provided in the foregoing sentence) period in order to facilitate
such resales.

       

      SECTION
4. Shelf
Registration.

       

      (a) Shelf
Registration.  If with respect to the Initial Notes: (i) the
Company and the Guarantors are not permitted to consummate the Exchange Offer
because the Exchange Offer is not permitted by applicable law or Commission
policy, (ii) for any reason the Exchange Offer is not Consummated within 30 days
after the date notice of the Exchange Offer is required to be mailed to the
Holders (or if such 30th day is not a Business Day, the next succeeding Business
Day), or (iii) with respect to any Holder of Transfer Restricted Securities (A)
such Holder is prohibited by applicable law or Commission policy from
participating in the Exchange Offer, or (B) such Holder may not resell the
Exchange Securities acquired by it in the Exchange Offer to the public without
delivering a prospectus (other than by reason of such Holder’s status as an
affiliate of the Company) and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder, or (C) such Holder is a Broker-Dealer and holds Initial Securities
acquired directly from the Company or one of its affiliates, then, upon such
Holder’s request prior to the 20th day following consummation of the Exchange
Offer, the Company and the Guarantors shall, with respect to the Initial
Notes:

       

      (x)           cause
to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration
Statement (in either event, the “Shelf Registration
Statement”) as soon as practicable but in any event on or prior to 90
days after such filing obligation arises (or if such 90th day is not a Business
Day, the next succeeding Business Day) (such date being the “Shelf Filing
Deadline”), which Shelf Registration Statement shall provide for resales
of all Transfer Restricted Securities the Holders of which shall have provided
the information required pursuant to Section 4(b) hereof; and

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (y)           use
their commercially reasonable efforts to cause such Shelf Registration Statement
to be declared effective by the Commission as promptly as possible (unless it
becomes effective automatically upon filing), and in any event on or before the
270th day after the obligation to file such Shelf Registration Statement arises
(or if such 270th day is not a Business Day, the next succeeding Business
Day).

       

      Each of
the Company and the Guarantors shall use its commercially reasonable efforts to
keep such Shelf Registration Statement continuously effective, supplemented and
amended as required by the provisions of Sections 6(b) and (c) hereof to the
extent necessary to ensure that it is available for resales of Initial
Securities by the Holders of Transfer Restricted Securities entitled to the
benefit of this Section 4(a), and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and
regulations of the Commission as announced from time to time, for a period of at
least two years following the effective date of such Shelf Registration
Statement (or shorter period that will terminate when all the Initial Securities
covered by such Shelf Registration Statement have been sold pursuant to such
Shelf Registration Statement).  During the period during which the
Company is required to maintain an effective Shelf Registration Statement
pursuant to this Agreement, the Company will, prior to the expiration of that
Shelf Registration Statement, file, and use its commercially reasonable efforts
to cause to be declared effective (unless it becomes effective automatically
upon filing) within a period that avoids any interruption in the ability of
Holders of Securities covered by the expiring Shelf Registration Statement to
make registered dispositions, a new registration statement relating to the
Securities, which shall be deemed the “Shelf Registration Statement” for
purposes of this Agreement.

       

      (b) Provision by Holders of Certain
Information in Connection with the Shelf Registration
Statement.  No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 Business Days after receipt of a request
therefor, such information as the Company may reasonably request for use in
connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein or amendment or supplement thereto or Free Writing
Prospectus.  Each Holder as to which any Shelf Registration Statement
is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading.

       

      SECTION
5. Additional
Interest.  If (i) unless the Exchange Offer shall not be
permissible under applicable law or Commission policy, the Exchange Offer
Registration Statement has not been declared effective by the Commission (or
become automatically effective) on or prior to 270 days after the Closing Date
(the “Exchange Offer
Effectiveness Target Date”), (ii) in the event the Company and the
Guarantors are required to file a Shelf Registration Statement pursuant to
Section 4(a) hereof, the Shelf Registration Statement has not been declared
effective by the Commission (or become automatically effective) on or prior to
270 days after the obligation to file a Shelf Registration Statement arises (the
“Shelf Registration
Effectiveness Target Date” and, together with the Exchange Offer
Effectiveness Date, the “Effectiveness Target
Date”), (iii) the Exchange Offer has not been Consummated within 30
Business Days after the Exchange Offer Effectiveness Target Date with respect to
the Exchange Offer Registration Statement, or (iv) any Registration Statement
required by this Agreement is filed and declared effective but shall thereafter
cease to be effective or fail to be usable for its intended purpose without
being succeeded immediately by a post-effective amendment to such Registration
Statement that cures such failure and that is itself immediately declared or
automatically effective (except in the case of a Registration Statement that
ceases to be effective or usable as specifically permitted by the last paragraph
of Section 6 hereof) (each such event referred to in clauses (i) through (iv), a
“Registration
Default”), the Company and the Guarantors hereby agree that the interest
rate borne by the affected series of Transfer Restricted Securities shall be
increased by 0.25% per annum during the 90-day period immediately following the
occurrence of any Registration Default and shall increase by 0.25% per annum at
the end of each subsequent 90-day period, but in no event shall such increase
exceed 1.00% per annum.  Following the earliest of (x) the cure of all
Registration Defaults relating to any particular Transfer Restricted Securities,
(y) the date on which such Transfer Restricted Security ceases to be a Transfer
Restricted Security or otherwise becomes freely transferable by Holders other
than affiliates of the Company without further registration under the Securities
Act and (z) the date that is two years after the Closing Date, the interest rate
borne by the relevant Transfer Restricted Securities will be reduced to the
original interest rate borne by such Transfer Restricted Securities; provided, however, that, if after any
such reduction in interest rate, a different Registration Default occurs, the
interest rate borne by the relevant Transfer Restricted Securities shall again
be increased pursuant to the foregoing provisions.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      Notwithstanding
the foregoing, (i) the amount of Additional Interest payable shall not increase
because more than one Registration Default has occurred and is pending and (ii)
a Holder of Transfer Restricted Securities that is not entitled to the benefits
of the Shelf Registration Statement (because, e.g., such Holder has not elected
to include information or has not timely delivered such information to the
Company pursuant to Section 4(b) hereof) shall not be entitled to Additional
Interest with respect to a Registration Default that pertains to the Shelf
Registration Statement.

       

      All
obligations of the Company and the Guarantors set forth in the preceding
paragraph that are outstanding with respect to any Transfer Restricted Security
at the time such security ceases to be a Transfer Restricted Security shall
survive until such time as all such obligations with respect to such security
shall have been satisfied in full.

       

      SECTION
6. Registration
Procedures.

       

      (a) Exchange Offer Registration
Statement.  In connection with the Exchange Offer, the Company
and the Guarantors shall comply with all of the provisions of Section 6(c)
hereof, shall use their commercially reasonable efforts to effect such exchange
to permit the sale of Transfer Restricted Securities being sold in accordance
with the intended method or methods of distribution thereof, and shall comply
with all of the following provisions:

       

      (i) If in the
reasonable opinion of counsel to the Company there is a question as to whether
the Exchange Offer is permitted by applicable law, each of the Company and the
Guarantors hereby agrees to seek a favorable decision from the Commission
allowing the Company and the Guarantors to Consummate an Exchange Offer for such
Initial Securities.  Each of the Company and the Guarantors hereby
agrees to pursue the issuance of such a decision to the Commission staff level
but shall not be required to take commercially unreasonable action to effect a
change of Commission policy.  Each of the Company and the Guarantors
hereby agrees, however, to (A) participate in telephonic conferences with the
Commission, (B) deliver to the Commission staff an analysis prepared by counsel
to the Company setting forth the legal bases, if any, upon which such counsel
has concluded that such an Exchange Offer should be permitted and (C) diligently
pursue a favorable resolution by the Commission staff of such
submission.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (ii) As a
condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Securities shall furnish,
upon the request of the Company, prior to the Consummation thereof, a written
representation to the Company (which may be contained in the letter of
transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that (A) it is not an affiliate of the Company, (B) it is not engaged in,
and does not intend to engage in, and has no arrangement or understanding with
any Person to participate in, a distribution of the Exchange Securities to be
issued in the Exchange Offer and (C) it is acquiring the Exchange Securities in
its ordinary course of business.  In addition, all such Holders of
Transfer Restricted Securities shall otherwise cooperate in the Company’s
preparations for the Exchange Offer.  Each Holder hereby acknowledges
and agrees that any Broker-Dealer and any such Holder using the Exchange Offer
to participate in a distribution of the securities to be acquired in the
Exchange Offer (1) could not under Commission policy as in effect on the date of
this Agreement rely on the position of the Commission enunciated in Morgan Stanley and Co.,
Inc. (available June 5, 1991) and Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993, and similar no-action
letters (which may include any no-action letter obtained pursuant to clause (i)
above), and (2) must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with a secondary resale
transaction and that such a secondary resale transaction should be covered by an
effective registration statement containing the selling security holder
information required by Item 507 or 508, as applicable, of Regulation S-K if the
resales are of Exchange Securities obtained by such Holder in exchange for
Initial Securities acquired by such Holder directly from the
Company.

       

      (b) Shelf Registration
Statement.  In connection with the Shelf Registration
Statement, each of the Company and the Guarantors shall comply with all the
provisions of Section 6(c) hereof and shall use its commercially reasonable
efforts to effect such registration (unless automatically declared effective) to
permit the sale of the Transfer Restricted Securities being sold in accordance
with the intended method or methods of distribution thereof, and pursuant
thereto each of the Company and the Guarantors will as expeditiously as is
commercially reasonable prepare and file with the Commission a Registration
Statement relating to the registration on any appropriate form under the
Securities Act, which form shall be available for the sale of the Transfer
Restricted Securities in accordance with the intended method or methods of
distribution thereof.

       

      (c) General
Provisions.  In connection with any Registration Statement and
any Prospectus required by this Agreement to permit the sale or resale of
Transfer Restricted Securities and any Free Writing Prospectus (including,
without limitation, any Registration Statement and the related Prospectus
required to permit resales of Initial Securities by Broker-Dealers and any Free
Writing Prospectus related thereto), each of the Company and the Guarantors
shall:

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (i) use its
commercially reasonable efforts to keep such Registration Statement continuously
effective during the period required by this Agreement and provide all requisite
financial statements (including, if required by the Securities Act or any
regulation thereunder, financial statements of the Guarantors for the period
specified in Section 3 or 4 hereof, as applicable); upon the occurrence of any
event that would cause any such Registration Statement or the Prospectus
contained therein (A) to contain a material misstatement or omission or (B) not
to be effective and usable for resale of Transfer Restricted Securities during
the period required by this Agreement, the Company shall file promptly an
appropriate amendment to such Registration Statement, in the case of clause (A),
correcting any such misstatement or omission, and, in the case of either clause
(A) or (B), use its commercially reasonable efforts to cause such amendment to
be declared effective (unless automatically declared effective) and such
Registration Statement and the related Prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter;

       

      (ii) prepare
and file with the Commission such amendments and post-effective amendments to
the applicable Registration Statement as may be necessary to keep the
Registration Statement effective for the applicable period set forth in Section
3 or 4 hereof, as applicable, or such shorter period as will terminate when all
Transfer Restricted Securities covered by such Registration Statement have been
sold; cause the Prospectus to be supplemented by any required Prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 under the
Securities Act, and to comply fully with the applicable provisions of Rules 424
and 430A under the Securities Act in a timely manner; and comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period
in accordance with the intended method or methods of distribution by the sellers
thereof set forth in such Registration Statement or supplement to the
Prospectus;

       

      (iii) advise
the underwriter(s), if any, and selling Holders promptly and, if requested by
such Persons, to confirm such advice in writing, (A) when the Prospectus, any
Prospectus supplement, any post-effective amendment or any Free Writing
Prospectus has been filed, and, with respect to any Registration Statement or
any post-effective amendment thereto, when the same has become effective, (B) of
any request by the Commission for amendments to the Registration Statement or
amendments or supplements to the Prospectus or for additional information
relating thereto, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement under the Securities
Act, of the suspension by any state securities commission of the qualification
of the Transfer Restricted Securities for offering or sale in any jurisdiction,
or the initiation of any proceeding for any of the preceding purposes, of the
issuance by the Commission of a notification of objection to the use of the form
on which the Registration Statement has been filed, or of the happening of any
event that causes the Company to become an “ineligible issuer,” as defined in
Commission Rule 405, (D) of the existence of any fact or the happening of
any event that makes any statement of a material fact made in the Registration
Statement, the Prospectus, any amendment or supplement thereto or any document
incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement or the Prospectus in order
to make the statements therein not misleading.  If at any time the
Commission shall issue any stop order suspending the effectiveness of the
Registration Statement or a notification of objection to the use of the form on
which the Registration Statement has been filed or if any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or blue sky laws, each of the Company and the
Guarantors shall use its commercially reasonable efforts to obtain the
withdrawal or lifting of such order at the earliest practicable
time;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (iv) (A)           (1)
furnish without charge to each of the Initial Purchasers, each selling Holder
named in any Registration Statement that has requested such copies, if any, and
each of the underwriter(s), if any, before filing with the Commission, copies of
any Registration Statement or any Prospectus included therein or any amendments
or supplements to any such Registration Statement or Prospectus (including all
documents incorporated by reference after the initial filing of such
Registration Statement), which documents will be subject to the review and
comment of such requesting Holders and underwriter(s) in connection with such
sale, if any, for a period of at least five Business Days, and (2) not file any
such Registration Statement or Prospectus or any amendment or supplement to any
such Registration Statement or Prospectus (including all such documents
incorporated by reference) to which an Initial Purchaser of Transfer Restricted
Securities covered by such Registration Statement or the underwriter(s), if any,
shall reasonably object in writing within five Business Days after the receipt
thereof (such objection to be deemed timely made upon confirmation of telecopy
transmission within such period).  The objection of an Initial
Purchaser, or underwriter, if any, shall be deemed to be reasonable if such
Registration Statement, amendment, Prospectus or supplement, as applicable, as
proposed to be filed, contains a material misstatement or omission;

       

      (B)           (1)
furnish without charge to each of the Initial Purchasers before filing with the
Commission, a copy of any Free Writing Prospectus, which will be subject to the
consent of the Initial Purchasers, and (2) not file any such Free Writing
Prospectus to which the Initial Purchasers of Transfer Restricted Securities
covered by such Registration Statement have not consented (such consent not to be
unreasonably withheld, conditioned or delayed);

       

      (v) promptly
prior to the filing of any document that is to be incorporated by reference into
a Registration Statement or Prospectus, provide copies of such document to the
Initial Purchasers, each selling Holder named in any Registration Statement that
has requested such documents, if any, and to the underwriter(s), if any, make
the Company’s and the Guarantors’ representatives available for discussion of
such document and other customary due diligence matters, subject to customary
confidentiality agreements, and include such information in such document prior
to the filing thereof as such selling Holders or underwriter(s), if any,
reasonably may request;

       

      (vi) make
available, subject to customary confidentiality agreements, at reasonable times
for inspection by the Initial Purchasers, the managing underwriter(s), if any,
participating in any disposition pursuant to such Registration Statement and any
attorney or accountant retained by such Initial Purchasers or any of the
underwriter(s), all financial and other records, pertinent corporate documents
and properties of each of the Company and the Guarantors, and cause the
Company’s and the Guarantors’ officers, directors and employees to supply all
information, in each case as shall be reasonably necessary to enable any such
Holder, underwriter, attorney or accountant to exercise any applicable
responsibilities in connection with such Registration Statement or any
post-effective amendment thereto subsequent to the filing thereof and prior to
its effectiveness and to participate in meetings with investors to the extent
reasonably requested by the managing underwriter(s), if any;

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (vii) if
requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in any Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have
included therein, including, without limitation, information relating to the
“Plan of Distribution” of the Transfer Restricted Securities, information with
respect to the principal amount of Transfer Restricted Securities being sold to
such underwriter(s), the purchase price being paid therefor and any other terms
of the offering of the Transfer Restricted Securities to be sold in such
offering; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company is notified of
the matters to be incorporated in such Prospectus supplement or post-effective
amendment;

       

      (viii) cause the
Transfer Restricted Securities covered by the Registration Statement to be rated
with the appropriate rating agencies, if so requested by the Holders of a
majority in aggregate principal amount of Securities covered thereby or the
underwriter(s), if any;

       

      (ix) furnish
to each Initial Purchaser each selling Holder and each of the underwriter(s), if
any, without charge, at least one copy of the Registration Statement, as first
filed with the Commission, and of each amendment thereto, including financial
statements and schedules, all documents incorporated by reference therein and
all exhibits (including exhibits incorporated therein by
reference);

       

      (x) deliver
to each selling Holder and each of the underwriter(s), if any, without charge,
as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; each of
the Company and the Guarantors hereby consents to the use of the Prospectus and
any amendment or supplement thereto by each of the selling Holders and each of
the underwriter(s), if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or
supplement thereto;

       

      (xi) enter
into such agreements (including an underwriting agreement), and make such
representations and warranties, and take all such other commercially reasonable
actions in connection therewith in order to expedite or facilitate the
disposition of the Transfer Restricted Securities pursuant to any Registration
Statement contemplated by this Agreement, all to such extent as may be
reasonably requested by any Initial Purchaser or by any Holder of Transfer
Restricted Securities or underwriter in connection with any sale or resale
pursuant to any Registration Statement contemplated by this Agreement; and
whether or not an underwriting agreement is entered into and whether or not the
registration is an Underwritten Registration, each of the Company and the
Guarantors shall:

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      (A)            furnish
to each Initial Purchaser, each selling Holder and each underwriter, if any, in
such substance and scope as they may reasonably request and as are customarily
made by issuers to underwriters in primary underwritten offerings, upon the date
of the effectiveness of the Shelf Registration Statement:

       

      (1)           a
certificate, dated the date of effectiveness of the Shelf Registration
Statement, as the case may be, signed by (y) the President or any Vice President
and (z) a principal financial or accounting officer of each of the Company and
the Guarantors, confirming, as of the date thereof, the matters set forth in
Section 6(c) of the Purchase Agreement and such other matters as such parties
may reasonably request;

       

      (2)           if
requested by a majority of selling Holders, an opinion, dated the date of
effectiveness of the Shelf Registration Statement, as the case may be, of
counsel for the Company and the Guarantors, covering the matters set forth in
the opinion delivered pursuant to Section 6(a)(i) of the Purchase Agreement and
such other matter as such parties may reasonably request, and in any event
including a statement to the effect that such counsel has participated in
conferences with officers and other representatives of the Company and the
Guarantors, representatives of the independent public accountants for the
Company and the Guarantors, representatives of the underwriter(s), if any, and
counsel to the underwriter(s), if any, in connection with the preparation of
such Registration Statement and the related Prospectus and have considered the
matters required to be stated therein and the statements contained therein,
although such counsel has not independently verified the accuracy, completeness
or fairness of such statements; and that such counsel advises that, on the basis
of the foregoing, no facts came to such counsel’s attention that caused such
counsel to believe that the applicable Registration Statement, (A) at the
date of the opinion and at the time such Registration Statement or any
post-effective amendment thereto became effective, (B) at the applicable
time identified by such Holders or managing underwriters, and (C) in the
case of the Exchange Offer Registration Statement, as of the date of
Consummation, in the case of (A), (B) and (C) contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, or that the
Prospectus contained in such Registration Statement as of its date and, in the
case of the opinion dated the date of Consummation of the Exchange Offer, as of
the date of Consummation, contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements
therein not misleading.  Without limiting the foregoing, such counsel
may state further that such counsel assumes no responsibility for, and has not
independently verified, the accuracy, completeness or fairness of the financial
statements, notes and schedules and other financial data included in any
Registration Statement contemplated by this Agreement or the related Prospectus;
and

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (3)           a
customary comfort letter, dated the date of effectiveness of the Shelf
Registration Statement, from the Company’s independent accountants, in the
customary form and covering matters of the type customarily requested to be
covered in comfort letters by underwriters in connection with primary
underwritten offerings, and covering or affirming the matters set forth in the
comfort letters delivered pursuant to Section 6(d) of the Purchase Agreement,
without exception;

       

      (B)            set
forth in full or incorporate by reference in the underwriting agreement, if any,
the indemnification provisions and procedures of Section 8 hereof with respect
to all parties to be indemnified pursuant to said Section; and

       

      (C)            deliver
such other documents and certificates as may be reasonably requested by such
parties to evidence compliance with Section 6(c)(xi)(A) hereof and with any
customary conditions contained in the underwriting agreement or other agreement
entered into by the Company or any of the Guarantors pursuant to this Section
6(c)(xi), if any.

       

      If at any
time the representations and warranties of the Company and the Guarantors
contemplated in Section 6(c)(xi)(A)(1) hereof cease to be true and correct, the
Company or the Guarantors shall so advise the Initial Purchasers and the
underwriter(s), if any, and each selling Holder promptly and, if requested by
such Persons, shall confirm such advice in writing;

       

      (xii) prior to
any public offering of Transfer Restricted Securities, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in
connection with the registration and qualification of the Transfer Restricted
Securities under the state securities or blue sky laws of such jurisdictions as
the selling Holders or underwriter(s), if any, may request and do any and all
other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Transfer Restricted Securities covered by the Shelf
Registration Statement; provided, however, that none of the
Company or the Guarantors shall be required to register or qualify as a foreign
corporation where it is not then so qualified or to take any action that would
subject it to the service of process in suits or to taxation, other than as to
matters and transactions relating to the Registration Statement, in any
jurisdiction where it is not then so subject;

       

      (xiii) issue,
upon the request of any Holder of Initial Securities covered by the Shelf
Registration Statement, Exchange Securities having an aggregate principal amount
equal to the aggregate principal amount of Initial Securities surrendered to the
Company by such Holder in exchange therefor or being sold by such Holder; such
Exchange Securities to be registered in the name of such Holder or in the name
of the purchaser(s) of such Securities, as the case may be; in return, the
Initial Securities held by such Holder shall be surrendered to the Company for
cancellation;

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (xiv) subject
to the terms of the Indenture, cooperate with the selling Holders and the
underwriter(s), if any, to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends; and enable such Transfer Restricted Securities
to be in such denominations and registered in such names as the Holders or the
underwriter(s), if any, may request at least two Business Days prior to any sale
of Transfer Restricted Securities made by such Holders or
underwriter(s);

       

      (xv) use its
commercially reasonable efforts to cause the Transfer Restricted Securities
covered by the Registration Statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to enable the
seller or sellers thereof or the underwriter(s), if any, to consummate the
disposition of such Transfer Restricted Securities, subject to the proviso
contained in Section 6(c)(xii) hereof;

       

      (xvi) if any
fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist or have
occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein not
misleading;

       

      (xvii) provide a
CUSIP number for all Securities not later than the effective date of the
Registration Statement covering such Securities and provide the Trustee under
the applicable Indenture with printed certificates for such Securities which are
in a form eligible for deposit with the Depository Trust Company and take all
other action necessary to ensure that all such Securities are eligible for
deposit with the Depository Trust Company;

       

      (xviii) cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including any
“qualified independent underwriter”) that is required to be retained in
accordance with the rules and regulations of the NASD;

       

      (xix) otherwise
use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make generally available to its security
holders, as soon as practicable, a consolidated earning statement meeting the
requirements of Rule 158 (which need not be audited) for the twelve-month period
(A) commencing at the end of any fiscal quarter in which Transfer
Restricted Securities are sold to underwriters in a firm commitment or best
efforts Underwritten Offering or (B) if not sold to underwriters in such an
offering, beginning with the first month of the Company’s first fiscal quarter
commencing after the effective date of the Registration Statement;

       

      
        
          
          

        

        
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      (xx) cause the
Indenture to be qualified under the Trust Indenture Act not later than the
effective date of the first Registration Statement required by this Agreement,
and, in connection therewith, cooperate with the Trustee and the Holders of
Securities to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the Trust Indenture
Act; and to execute, and to use its commercially reasonable efforts to cause the
Trustee to execute, all documents that may be required to effect such changes
and all other forms and documents required to be filed with the Commission to
enable such Indenture to be so qualified in a timely manner;

       

      (xxi) maintain
the listing of all Securities covered by the Registration Statement on The
PORTALSM Market;
and

       

      (xxii) provide
promptly to each Holder upon request each document filed with the Commission
pursuant to the requirements of Section 13 and Section 15 of the Exchange
Act.

       

      Each
Holder agrees by acquisition of a Transfer Restricted Security that, upon
receipt of any notice from the Company of the existence of any fact of the kind
described in Section 6(c)(iii)(D) hereof, such Holder will forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the applicable
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or
until it is advised in writing (the “Advice”) by the
Company that the use of the Prospectus may be resumed, and has received copies
of any additional or supplemental filings that are incorporated by reference in
the Prospectus.  If so directed by the Company, each Holder will
deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of such notice.  In the event the Company shall give any such
notice, the time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended
by the number of days (a “Delay Period”) during
the period from and including the date of the giving of such notice pursuant to
Section 6(c)(iii)(D) hereof to and including the date when each selling Holder
covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof or
shall have received the Advice; provided that there shall not
be more than 75 days of Delay Periods during any 12-month period; provided further, however, that (except as
provided in Section 5(iv) hereof) no such extension shall be taken into account
in determining whether Additional Interest is due pursuant to Section 5
hereof or the amount of such Additional Interest, it being agreed that the
Company’s option to suspend use of a Registration Statement pursuant to this
paragraph shall be treated as a Registration Default for purposes of Section 5
hereof.

       

      SECTION
7. Registration
Expenses.

       

      (a) All
expenses incident to the Company’s and the Guarantor’s performance of or
compliance with this Agreement will be borne by the Company and the Guarantors,
jointly and severally, regardless of whether a Registration Statement becomes
effective, including, without limitation: (i) all registration and filing fees
and expenses (including filings made by any Initial Purchaser or Holder with the
NASD (and, if applicable, the fees and expenses of any “qualified independent
underwriter”, and one counsel to such person, that may be required by the rules
and regulations of the NASD)); (ii) all fees and expenses of compliance with
federal securities and state securities or blue sky laws (including the
reasonable fees and disbursements of one counsel to the Holder of Transfer
Restricted Securities); (iii) all expenses of printing (including printing
certificates for the Exchange Securities to be issued in the Exchange Offer and
printing of Prospectuses), messenger and delivery services and telephone; (iv)
all fees and disbursements of counsel for the Company and the Guarantors and,
subject to Section 7(b) hereof, one counsel to the Holders of Transfer
Restricted Securities; (v) all application and filing fees in connection with
listing the Exchange Securities on a securities exchange or automated quotation
system pursuant to the requirements thereof; and (vi) all fees and disbursements
of independent certified public accountants of the Company and the Guarantors
(including the expenses of any special audit and comfort letters required by or
incident to such performance).

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      Each of
the Company and the Guarantors will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expenses of any annual
audit and the fees and expenses of any Person, including special experts,
retained by the Company or the Guarantors.

       

      (b) In
connection with any Registration Statement required by this Agreement
(including, without limitation, the Exchange Offer Registration Statement and
the Shelf Registration Statement), the Company and the Guarantors, jointly and
severally, will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Securities being tendered in the Exchange Offer and/or resold
pursuant to the “Plan of Distribution” contained in the Exchange Offer
Registration Statement or registered pursuant to the Shelf Registration
Statement, as applicable, for the reasonable fees and disbursements of not more
than one counsel, who shall be Cahill Gordon & Reindel llp or such other
counsel as may be chosen by the Holders of a majority in principal amount of the
Transfer Restricted Securities for whose benefit such Registration Statement is
being prepared.

       

      SECTION
8. Indemnification.

       

      (a) The
Company and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) each Holder and (ii) each Person, if any, who controls (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
any Holder (any of the Persons referred to in this clause (ii) being hereinafter
referred to as a “controlling person”) and (iii) the respective officers,
directors, partners, employees, representatives and agents of any Holder or any
controlling person (any Person referred to in clause (i), (ii) or (iii) may
hereinafter be referred to as an “Indemnified Holder”),
to the fullest extent lawful, from and against any and all losses, claims,
damages, liabilities, judgments, actions and expenses (including, without
limitation, and as incurred, reimbursement of all reasonable costs of
investigating, preparing, pursuing, settling, compromising, paying or defending
any claim or action, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, including the reasonable fees and
expenses of counsel to any Indemnified Holder), joint or several, directly or
indirectly caused by, related to, based upon, arising out of or in connection
with any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement, Prospectus (or any amendment or
supplement thereto) or Free Writing Prospectus, or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or expenses are caused by an untrue
statement or omission or alleged untrue statement or omission that is made in
reliance upon and in conformity with information relating to any of the Holders
furnished in writing to the Company by any of the Holders expressly for use
therein.  This indemnity agreement shall be in addition to any
liability that the Company or any of the Guarantors may otherwise
have.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      In case
any action or proceeding (including any governmental or regulatory investigation
or proceeding) shall be brought or asserted against any of the Indemnified
Holders with respect to which indemnity may be sought against the Company or the
Guarantors, such Indemnified Holder (or the Indemnified Holder controlled by
such controlling person) shall promptly notify the Company and the Guarantors in
writing; provided, however, that the failure to
give such notice shall not relieve any of the Company or the Guarantors of its
obligations pursuant to this Agreement.  Such Indemnified Holder shall
have the right to employ its own counsel in any such action and the fees and
expenses of such counsel shall be paid, as incurred, by the Company and the
Guarantors (regardless of whether it is ultimately determined that an
Indemnified Holder is not entitled to indemnification hereunder).  The
Company and the Guarantors shall not, in connection with any one such action or
proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the reasonable fees and expenses of more than
one separate firm of attorneys (in addition to any local counsel) at any time
for such Indemnified Holders, which firm shall be designated by the
Holders.  The Company and the Guarantors shall be liable for any
settlement of any such action or proceeding effected with the Company’s and the
Guarantors’ prior written consent, which consent shall not be withheld
unreasonably, and each of the Company and the Guarantors agrees to indemnify and
hold harmless any Indemnified Holder from and against any loss, claim, damage,
liability or expense by reason of any settlement of any action effected with the
written consent of the Company and the Guarantors.  The Company and
the Guarantors shall not, without the prior written consent of each Indemnified
Holder, settle or compromise or consent to the entry of judgment in or otherwise
seek to terminate any pending or threatened action, claim, litigation or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not any Indemnified Holder is a party thereto), unless
such settlement, compromise, consent or termination includes an unconditional
release of each Indemnified Holder from all liability arising out of such
action, claim, litigation or proceeding.

       

      (b) Each
Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors and their respective
directors, officers of the Company and the Guarantors who sign a Registration
Statement, and any Person controlling (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) the Company or any of the
Guarantors, and the respective officers, directors, partners, employees,
representatives and agents of each such Person, to the same extent as the
foregoing indemnity from the Company and the Guarantors to each of the
Indemnified Holders, but only with respect to claims and actions based on
information relating to such Holder furnished in writing by such Holder
expressly for use in any Registration Statement.  In case any action
or proceeding shall be brought against the Company, the Guarantors or their
respective directors or officers or any such controlling person in respect of
which indemnity may be sought against a Holder of Transfer Restricted
Securities, such Holder shall have the rights and duties given the Company and
the Guarantors, and the Company, the Guarantors, their respective directors and
officers and such controlling person shall have the rights and duties given to
each Holder by the preceding paragraph.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (c) If the
indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions
provided in those Sections) in respect of any losses, claims, damages,
liabilities, judgments, actions or expenses referred to therein, then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Holders, on the other hand,
from the Initial Placement (which in the case of the Company and the Guarantors
shall be deemed to be equal to the total gross proceeds to the Company and the
Guarantors from the Initial Placement), the amount of Additional Interest which
did not become payable as a result of the filing of the Registration Statement
resulting in such losses, claims, damages, liabilities, judgments actions or
expenses, and such Registration Statement, or if such allocation is not
permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims, damages,
liabilities or expenses, as well as any other relevant equitable
considerations.  The relative fault of the Company and the Guarantors,
on the one hand, and of the Indemnified Holder on the other shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or any of the
Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.  The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and
expenses referred to above shall be deemed to include, subject to the
limitations set forth in the second paragraph of Section 8(a) hereof, any legal
or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim.

       

      The
Company, the Guarantors and each Holder of Transfer Restricted Securities agree
that it would not be just and equitable if contribution pursuant to this
Section 8(c) were determined by pro rata allocation (even if the Holders
were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph.  The amount paid or payable
by an indemnified party as a result of the losses, claims, damages, liabilities
or expenses referred to in the immediately preceding paragraph shall be deemed
to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding
the provisions of this Section 8, none of the Holders (and its related
Indemnified Holders) shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the total discount received by such
Holder with respect to the Initial Securities exceeds the amount of any damages
which such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.  No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  The Holders’
obligations to contribute pursuant to this Section 8(c) are several in
proportion to the respective principal amount of Initial Securities held by each
of the Holders hereunder and not joint.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      SECTION
9. Rule 144A.  Each of
the Company and the Guarantors hereby agrees with each Holder, for so long as
any Transfer Restricted Securities remain outstanding, to make available to any
Holder or beneficial owner of Transfer Restricted Securities in connection with
any sale thereof and any prospective purchaser of such Transfer Restricted
Securities from such Holder or beneficial owner, the information required by
Rule 144A(d)(4) under the Securities Act in order to permit resales of such
Transfer Restricted Securities pursuant to Rule 144A under the Securities
Act.

       

      SECTION
10. Participation in Underwritten
Registrations.  No Holder may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder’s
Transfer Restricted Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting
arrangements.

       

      SECTION
11. Selection of
Underwriters.  The Holders of Transfer Restricted Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Transfer Restricted Securities in an Underwritten Offering.  In any
such Underwritten Offering, the investment banker(s) and managing underwriter(s)
that will administer such offering will be selected by the Holders of a majority
in aggregate principal amount of the Transfer Restricted Securities included in
such offering; provided, however, that such
investment banker(s) and managing underwriter(s) must be reasonably satisfactory
to the Company.

       

      SECTION
12. Miscellaneous.

       

      (a) Remedies.  Each of
the Company and the Guarantors hereby agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agree to waive the defense in any action
for specific performance that a remedy at law would be adequate.

       

      (b) No Inconsistent
Agreements.  Each of the Company and the Guarantors will not on
or after the date of this Agreement enter into any agreement with respect to its
securities that conflicts with the provisions hereof.  The rights
granted to the Holders hereunder do not in any way conflict with the rights
granted to the holders of the Company’s or any of the Guarantors’ securities
under any agreement in effect on the date hereof.

       

      (c) Adjustments Affecting the
Securities.  The Company will not effect any change, or permit
any change to occur, in each case, with respect to the terms of the Securities
that would materially and adversely affect the ability of the Holders to
Consummate any Exchange Offer.

       

      (d) Amendments
and Waivers.  The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the
provisions hereof may not be given unless the Company has (i) in the case of
Section 5 hereof and this Section 12(d)(i), obtained the written consent of
Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a
majority of the outstanding principal amount of Transfer Restricted Securities
(excluding any Transfer Restricted Securities held by the Company or their
Affiliates).  Notwithstanding the foregoing, a waiver or consent to
departure from the provisions hereof that relates exclusively to the rights of
Holders whose securities are being tendered pursuant to the Exchange Offer and
that does not affect directly or indirectly the rights of other Holders whose
securities are not being tendered pursuant to such Exchange Offer may be given
by the Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities being tendered or registered; provided, however, that, with respect
to any matter that directly or indirectly affects the rights of any Initial
Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser with respect to which such amendment, qualification,
supplement, waiver, consent or departure is to be effective.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      (e) Notices.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail (registered or certified,
return receipt requested), telex, telecopier, or air courier guaranteeing
overnight delivery:

       

      (i) if to a
Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

       

      (ii) if to the
Company or the Guarantors:

       

      Berry
Plastics Corporation

      101
Oakley St.

      Evansville,
IN 47710

      Telecopier
No.:  (812) 424-0128

      Attention:  James
M. Kratochvil

       

      With a
copy to:

       

      Wachtell,
Lipton, Rosen & Katz

      51 West
52nd Street

      New York,
New York 10019

      Telecopier
No.: (212) 403-2114

      Attention:  Eric
Rosof

       

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

       

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

       

      (f) Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including,
without limitation, and without the need for an express assignment, subsequent
Holders of Transfer Restricted Securities; provided, however, that this Agreement
shall not inure to the benefit of or be binding upon a successor or assign of a
Holder unless and to the extent such successor or assign acquired Transfer
Restricted Securities from such Holder.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

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

       

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

       

      (i) Governing
Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICTS OF LAW RULES THEREOF.

       

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

       

      (k) Entire
Agreement.  This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein.  There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company and the
Guarantors with respect to the Transfer Restricted Securities.  This
Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

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

       

      Very truly yours,

       

      BERRY
PLASTICS CORPORATION

      

      By:
_________________________________

            Name:

            Title:

      

      BERRY
PLASTICS TECHNICAL SERVICES, INC.

      BERRY
STERLING CORPORATION

      CARDINAL
PACKAGING, INC.

      CPI
HOLDING CORPORATION

      KNIGHT
PLASTICS, INC.

      PACKERWARE
CORPORATION

      PESCOR,
INC.

      VENTURE
PACKAGING, INC.

      VENTURE
PACKAGING MIDWEST, INC.

      BERRY
PLASTICS ACQUISITION CORPORATION III

      BERRY
PLASTICS ACQUISITION CORPORATION V

      BERRY
PLASTICS OPCO, INC.

      BERRY
PLASTICS ACQUISITION CORPORATION VIII

      BERRY
PLASTICS ACQUISITION CORPORATION IX

      BERRY
PLASTICS ACQUISITION CORPORATION X

      BERRY
PLASTICS ACQUISITION CORPORATION XI

      BERRY
PLASTICS ACQUISITION CORPORATION XII

      BERRY
PLASTICS ACQUISITION CORPORATION XIII

      ROLLPAK
ACQUISITION CORPORATION

      ROLLPAK
CORPORATION

      CAPTIVE
HOLDINGS, INC.

      CAPTIVE
PLASTICS, INC.

      CAPLAS
NEPTUNE, LLC

      CAPLAS
LLC

      

      By:
_____________________________________

      Name:

      Title:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      COVALENCE
SPECIALTY ADHESIVES LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole
member

      

      By:
_________________________________

      Name:

      Title:

      

      COVALENCE
SPECIALTY COATINGS LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole
member

      

      By:
_________________________________

      Name:

      Title:

      

      AEROCON,
LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

      Name:

      Title:

      

      BERRY
IOWA, LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

      Name:

      Title:

      

      BERRY
PLASTICS DESIGN, LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

             Name:

             Title:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      POLY-SEAL,
LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

             Name:

             Title:

      

      KERR
GROUP, LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

             Name:

             Title:

      

      SAFFRON
ACQUISITION, LLC

      By: KERR
GROUP, LLC,

        its sole member and
manager

          By:
BERRY PLASTICS CORPORATION,

            its sole
member and manager

      

      By:
_________________________________

             Name:

             Title:

      

      SUN COAST
INDUSTRIES, LLC

      By:
SAFFRON ACQUISITION, LLC,

        its sole member and
manager

        By:
KERR GROUP, LLC,

          its sole
member and manager

          By:
BERRY PLASTICS CORPORATION,

            its sole
member and manager

      

      By:
_________________________________

             Name:

             Title:

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      LANDIS
PLASTICS, LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole member and
manager

      

      By:
_________________________________

             Name:

             Title:

      

      SETCO,
LLC

      By: KERR
GROUP, LLC,

        its sole
member

          By:
BERRY PLASTICS CORPORATION,

            its sole
member and manager

      

      By:
________________________________

             Name:

             Title:

      

      TUBED
PRODUCTS, LLC

      By: KERR
GROUP, LLC

        its sole
member

          By:
BERRY PLASTICS CORPORATION,

            its sole
member and manager

      

      By:
________________________________

             Name:

             Title:

      

      GRAFCO
INDUSTRIES LIMITED PARTNERSHIP

      By:
Caplas Neptune, LLC

        its General
Partner

      

      By:
________________________________

             Name:

             Title:

      

      BERRY
PLASTICS ACQUISITION CORPORATION XV, LLC

      By: BERRY
PLASTICS CORPORATION,

        its sole
member

      

      By:
_________________________________

             Name:

             Title:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
foregoing Registration Rights Agreement is hereby confirmed and accepted as of
the date first above written:

       

      The
foregoing Agreement is hereby

      confirmed
and accepted as of the

      date
first above written.

       

      BANC OF
AMERICA SECURITIES LLC

       

      By:     ___________________________

      Managing Director

       

      GOLDMAN,
SACHS & CO.

       

      By:    _____________________________

      (Goldman, Sachs &
Co.)

       

      LEHMAN
BROTHERS INC.

       

      
        	
                By

              	
                ___________________________

              

      

      
        	
                 
      

              	
                Name:

              

      

      
        	
                 
      

              	
                Title:

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
A

       

      Guarantors

       

      
        	
                1.  

              	
                Berry
      Iowa, LLC

              

      

      
        	
                2.  

              	
                Packerware
      Corporation

              

      

      
        	
                3.  

              	
                Knight
      Plastics, Inc.

              

      

      
        	
                4.  

              	
                Berry
      Sterling Corporation

              

      

      
        	
                5.  

              	
                Berry
      Plastics Design, LLC

              

      

      
        	
                6.  

              	
                Poly-Seal,
      LLC

              

      

      
        	
                7.  

              	
                Venture
      Packaging, Inc.

              

      

      
        	
                8.  

              	
                Venture
      Packaging Midwest, Inc.

              

      

      
        	
                9.  

              	
                Berry
      Plastics Technical Services, Inc.

              

      

      
        	
                10.  

              	
                CPI
      Holding Corporation

              

      

      
        	
                11.  

              	
                Cardinal
      Packaging, Inc.

              

      

      
        	
                12.  

              	
                AeroCon,
      LLC

              

      

      
        	
                13.  

              	
                Pescor,
      Inc.

              

      

      
        	
                14.  

              	
                Landis
      Plastics, LLC

              

      

      
        	
                15.  

              	
                Berry
      Plastics Acquisition Corporation
III

              

      

      
        	
                16.  

              	
                Berry
      Plastics Acquisition Corporation V

              

      

      
        	
                17.  

              	
                Berry
      Plastics Opco, Inc. (formerly Berry Plastics Acquisition Corporation
      VII)

              

      

      
        	
                18.  

              	
                Berry
      Plastics Acquisition Corporation
VIII

              

      

      
        	
                19.  

              	
                Berry
      Plastics Acquisition Corporation IX

              

      

      
        	
                20.  

              	
                Berry
      Plastics Acquisition Corporation X

              

      

      
        	
                21.  

              	
                Berry
      Plastics Acquisition Corporation XI

              

      

      
        	
                22.  

              	
                Berry
      Plastics Acquisition Corporation
XII

              

      

      
        	
                23.  

              	
                Berry
      Plastics Acquisition Corporation
XIII

              

      

      
        	
                24.  

              	
                Berry
      Plastics Acquisition Corporation XV,
LLC

              

      

      
        	
                25.  

              	
                Kerr
      Group, LLC

              

      

      
        	
                26.  

              	
                Saffron
      Acquisition, LLC

              

      

      
        	
                27.  

              	
                Sun
      Coast Industries, LLC

              

      

      
        	
                28.  

              	
                Setco,
      LLC

              

      

      
        	
                29.  

              	
                Tubed
      Products, LLC

              

      

      
        	
                30.  

              	
                Covalence
      Specialty Adhesives LLC

              

      

      
        	
                31.  

              	
                Covalence
      Specialty Coatings LLC

              

      

      
        	
                32.  

              	
                Rollpak
      Acquisition Corporation

              

      

      
        	
                33.  

              	
                Rollpak
      Corporation

              

      

      
        	
                34.  

              	
                Captive
      Plastics, Inc.

              

      

      
        	
                35.  

              	
                Captive
      Holdings, Inc.

              

      

      
        	
                36.  

              	
                Caplas
      Neptune, LLC

              

      

      
        	
                37.  

              	
                Caplas
      LLC

              

      

      
        	
                38.  

              	
                Grafco
      Industries Limited Partnership

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]