Document:

Exhibit
4.2

 

THE
MACERICH COMPANY

 

DEFERRED
COMPENSATION PLAN

 

FOR
EXECUTIVES

 

(Effective as of January 1,
2005)

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  TITLE AND DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  - Title

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  - Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  - Participation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  DEFERRAL ELECTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  - Elections to
  Defer Compensation

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  - Investment Elections

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  PARTICIPANT ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  - Deferral Account

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  - Company Matching
  Account

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  VESTING

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  - Deferral Account

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  - Company Matching
  Account

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  - Time and Form of
  Distribution

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  - Small Benefits

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  HARDSHIP
  DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  - Hardship Distribution

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  - Members

  	
   

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  - Committee Action

  	
   

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  - Powers and
  Duties of the Committee

  	
   

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  - Construction
  and Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  - Information

  	
   

  

 

i

 

	
  8.6

  	
  - Compensation, Expenses and
  Indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  8.7

  	
  - Quarterly Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  - Unsecured General
  Creditor

  	
   

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  - Restriction
  Against Assignment

  	
   

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  - Withholding

  	
   

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  - Amendment, Modification,
  Suspension or Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  - Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  - Receipt or Release

  	
   

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  -
  Payments on Behalf of Persons under Incapacity

  	
   

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  - Headings, etc. Not Part of
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  - Limitation
  on Participants’ Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  CLAIMS PROCEDURE

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  - Claims Procedure

  	
   

  

 

ii

 

THE
MACERICH COMPANY

 

2005
DEFERRED COMPENSATION PLAN

 

FOR EXECUTIVES

 

(Effective January 1, 2005)

 

The Macerich Company (the “Company”) hereby establishes this
deferred compensation plan (the “Plan”), effective January 1, 2005, to provide
supplemental retirement income benefits through deferrals of salary and
bonuses.

 

ARTICLE
I

TITLE AND DEFINITIONS

 

1.1 - Title.

 

This Plan shall be known as The Macerich Company 2005 Deferred Compensation Plan for Executives.

 

1.2 - Definitions.

 

Whenever the
following words and phrases are used in this Plan, with the first letter
capitalized, they shall have the meanings specified below.

 

“Account” or “Accounts”
shall mean a Participant’s Deferral Account and/or Company Matching Account.

 

“Beneficiary”
means (a) in the case of a Participant who is a participant in the Prior Plan,
the beneficiary designated under the Prior Plan by the Participant to receive
benefits in the event of the Participant’s death or (b) in the case of a
Participant who is not a participant in the Prior Plan, the person or persons,
including a trustee,

 

 

personal
representative or other fiduciary, last designated in writing by a Participant
in accordance with procedures established by the Committee to receive the
benefits specified hereunder in the event of the Participant’s death.  If there is no valid Beneficiary designation
in effect, or if there is no surviving designated Beneficiary, then the
Participant’s surviving spouse shall be the Beneficiary.  If there is no surviving spouse to receive
any benefits payable in accordance with the preceding sentence, the duly
appointed and currently acting personal representative of the Participant’s
estate (which shall include either the Participant’s probate estate or living
trust) shall be the Beneficiary.  In any
case where there is no such personal representative of the Participant’s estate
duly appointed and acting in that capacity within 90 days after the Participant’s
death (or such extended period as the Committee determines is reasonably
necessary to allow such personal representative to be appointed, but not to
exceed 180 days after the Participant’s death), then Beneficiary shall mean the
person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the
benefits specified hereunder.  In the
event any amount is payable under the Plan to a minor, payment shall not be
made to the minor, but instead be paid (a) to that person’s living parent(s) to
act as custodian, (b) if that person’s parents are then divorced, and one
parent is the sole custodial parent, to such custodial parent, or (c) if no
parent of that person is then living, to a custodian selected by the Committee
to hold the funds for the minor under the Uniform Transfers or Gifts to Minors
Act in effect in the jurisdiction in which the minor resides.  If no parent is living and the Committee
decides not to select another custodian to hold the funds for the minor, then
payment shall be made to the duly appointed and currently acting guardian of
the estate for the minor

 

2

 

or,
if no guardian of the estate for the minor is duly appointed and currently
acting within 60 days after the date the amount becomes payable, payment shall
be deposited with the court having jurisdiction over the estate of the minor.

 

“Board of Directors” or “Board” shall mean
the Board of Directors of The Macerich Company.

 

“Bonus” shall mean
any incentive compensation payable to a Participant in addition to the
Participant’s Salary prior to any deferrals under this Plan or any salary
reduction contributions to a plan described in Section 401(k) of the Code
or Section 125 of the Code.

 

“Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

“Committee” shall mean the Committee
appointed pursuant to Section 8.1 of this Plan.

 

“Company” shall
mean The Macerich Company, its subsidiaries and
successors and, where the context warrants, The Macerich
Partnership, L.P., Macerich Property Management
Company, LLC, Macerich Management Company, Westcor Partners, LLC, Westcor
Realty Limited Partnership and Macerich  Westcor Management Company.

 

“Company Matching
Account” shall mean the bookkeeping account maintained by the Committee for
each Participant that is credited with an amount equal to (1) the Company
Matching Amount and (2) earnings or losses thereon pursuant to Section 4.2.

 

3

 

“Company Matching
Amount” shall mean an amount equal to a percentage, determined by the Company
in its sole discretion, of the amount of Compensation deferred under the Plan
for the Plan Year.

 

“Compensation”
shall mean the Salary and Bonus that the Participant is entitled to for
services rendered to the Company.

 

“Deferral Account”
shall mean the bookkeeping account maintained by the Committee for each
Participant that is credited with amounts equal to (1) the portion of the
Participant’s Salary that he or she elects to defer, (2) the portion of the
Participant’s Bonus that he or she elects to defer, and (3) earnings or
losses thereon pursuant to Section 4.1.

 

“Earnings Rate”
shall mean, for each Fund, an amount equal to the net rate of gain or loss on
the assets of such Fund determined for each business day.

 

“Effective Date” of this Plan shall mean
January 1, 2005.

 

“Eligible Employee”
for any Plan Year shall mean each key executive of the Company designated by
the Committee whose annualized Salary is equal to or greater than $80,000 and
who is not eligible to participate in the Macerich
Company Deferred Compensation Plan for Senior Executives.  Notwithstanding the foregoing, any key
executive of the Company designated by the Committee who is a participant in
the Prior Plan shall be an Eligible Employee for purposes of this Plan.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

4

 

“Fund” or “Funds”
shall mean one or more of the investment funds designated in Section 3.2(a).

 

“Key Employee”
shall mean any Participant who is a “key employee” of the Company as defined in
Section 416(i) of the Code.

 

“Participant”
shall mean any Eligible Employee who elects to defer compensation in accordance
with Section 3.1.

 

“Payment
Eligibility Date” shall mean the first day of the month following the day on
which a Participant terminates employment or dies; provided, however, that if a
Participant is a Key Employee and his or her employment terminates for any
reason other than death, then the Payment Eligibility Date shall mean the last
day of the six-month period immediately following the Participant’s termination
of employment (or, if the Participant dies prior to the end of such six-month
period, the date of the Participant’s death). 
Notwithstanding the foregoing, a termination of employment shall not be
deemed to have occurred for any purpose under the Plan unless such termination
of employment constitutes a “separation from service” as defined under Section 409A
(or other applicable section) of the Code and any regulations promulgated thereunder.

 

“Plan” shall mean
The Macerich Company 2005 Deferred Compensation Plan
for Executives set forth herein, now in effect, or as amended from time to
time.

 

“Plan Year” shall
mean the 12 consecutive month period beginning on January 1 each year.

 

5

 

“Prior Plan” shall
mean The Macerich Company Deferred Compensation Plan
for Executives, as amended.

 

“Salary” shall
mean the Participant’s base pay prior to any deferrals under this Plan or any
salary reduction contributions to a plan described in Section 401(k) of
the Code or Section 125 of the Code.

 

6

 

ARTICLE
II

PARTICIPATION

 

2.1 - Participation.

 

Participation in
the Plan is voluntary.  An Eligible
Employee shall become a Participant in the Plan by electing to defer
Compensation in accordance with Section 3.1.

 

7

 

ARTICLE
III

DEFERRAL ELECTIONS

 

3.1 - Elections to
Defer Compensation.

 

(a)           Elections to Defer.  Each Eligible Employee may elect to defer
Compensation for any Plan Year by filing with the Committee an election that
conforms to the requirements of this Section 3.1, on a form provided by
the Committee, no later than the December 15 immediately preceding such Plan
Year (or such later date that the Committee determines, but in no event later
than December 31) in which the Compensation is to be earned.  The Committee shall notify each Eligible
Employee of his or her eligibility to participate in the Plan at least 10 days
prior to the time he or she must file an election for participation.  Each participation election shall signify the
portion of the Eligible Employee’s Salary or Bonus, as applicable, that he or
she elects to defer.

 

(b)           Amount of Deferrals.  The amount of Compensation that an Eligible
Employee may elect to defer is as follows:

 

(1)           Any
percentage of Salary up to 50%, which shall be deferred ratably over the Plan
Year; and/or

 

(2)           Any
percentage of Bonus, if any, up to 100%.

 

Notwithstanding the foregoing, the maximum amount of Compensation that
an Eligible Employee may defer under this Plan and any other nonqualified
elective plan of deferred compensation maintained by the Company shall be
reduced by the amount of Compensation that the Eligible Employee could have deferred
under any qualified cash

 

8

 

or deferred
arrangements as described in Section 401(k) of the Code (a “401(k) Plan”)
without violating Section 402(g) of the Code or the maximum elective
contributions permitted under the terms of the 401(k) Plan.

 

(c)           Effect of Election.  An election to defer Salary for a Plan Year
shall apply to all Salary earned during each pay period beginning in such Plan
Year, and an election to defer Bonuses for a Plan Year shall apply to any Bonus
earned during such Plan Year. 
Notwithstanding the foregoing, an individual who becomes an Eligible
Employee during a Plan Year may elect to participate in the Plan during such
Plan Year by filing such written application with the Committee no later than
the 30th day following the date on which such individual becomes an Eligible
Employee.  An election filed in
accordance with the preceding sentence shall be effective solely with respect
to Salary and that portion of any Bonus earned on or after the first day of the
first complete pay period commencing after the filing of such election.

 

(d)           Irrevocability.  Any election filed pursuant to this Section 3.1
shall apply only prospectively and shall be irrevocable for the Plan Year (or
portion thereof) to which such election applies.

 

3.2 - Investment Elections.

 

(a)           At the time of making the first
deferral election described in Section 3.1, the Participant shall
designate, on a form provided by the Committee or otherwise in accordance with
procedures established by the Committee, the Fund or Funds in which the
Participant’s deferrals under such election (and any subsequent deferral
elections) and corresponding Company Matching Amounts will be deemed to be

 

9

 

invested
for purposes of determining the amount of earnings or losses to be credited to
the Participant’s Accounts.  As of the Effective
Date, the Funds shall be the following:

 

1.                                       Northwestern
Mutual Life Guaranteed Interest Fund

 

2.                                       Northwestern
Mutual Life Money Market Fund

 

3.                                       Northwestern
Mutual Life Select Bond Fund

 

4.                                       Northwestern
Mutual Life High Yield Bond Fund

 

5.                                       Northwestern
Mutual Life Balanced Fund

 

6.                                       Northwestern
Mutual Life Index 500 Stock Fund

 

7.                                       Mason
Street Advisors Large Cap Core Stock Fund

 

8.                                       Northwestern
Mutual Life Growth Stock Fund

 

9.                                       Franklin
Templeton International Equity Fund

 

10.                                 Northwestern
Mutual Life Aggressive Growth Stock Fund

 

11.                                 Northwestern
Mutual Life Index 400 Stock Fund

 

12.                                 Russell
Real Estate Securities Fund

 

13.                                 T.
Rowe Price Small Cap Value Fund

 

(b)           In making the designation pursuant to
this Section 3.2, the Participant must specify, in whole numbers, the
percentage of his or her Deferral Account and Company Matching Account that
shall be deemed to be invested in one or more of the Funds.  Effective as of the end of the day on which
the Committee receives the Participant’s election, a Participant may change the
designation made under this Section 3.2 by filing an election in
accordance with procedures established by the Committee.  If a Participant fails to elect a Fund under
this Section 3.2, he or she shall be deemed to have elected the Northwestern
Mutual Life Money Market Fund.

 

10

 

(c)           The Earnings Rate of each Fund shall
be used to determine the amount of earnings or losses to be credited to the
Participant’s Accounts under Article IV. 
The Company reserves the right to increase or decrease the number of the
Funds listed in Section 3.2(a), as well as the right to designate other
investment funds as the Funds (instead of those currently listed in Section 3.2(a))
for purposes of this Plan.

 

(d)           Notwithstanding the Participant’s
ability to designate the Funds in which his or her Accounts shall be deemed to
be invested, the Company shall have no obligation to invest any funds in
accordance with any Participant’s election. 
A Participant’s Accounts shall merely be bookkeeping entries on the
Company’s books, and no Participant shall obtain any interest in any Funds.

 

11

 

ARTICLE
IV

PARTICIPANT ACCOUNTS

 

4.1 - Deferral Account.

 

The Committee
shall establish and maintain a Deferral Account for each Participant under the
Plan.  Each Participant’s Deferral
Account shall be divided into separate subaccounts (“investment
fund subaccounts”), each of which corresponds to an
investment fund elected by the Participant pursuant to Section 3.2.  A Participant’s Deferral Account shall be
credited as follows:

 

(a)           As of the last date of each month,
the Committee shall credit the investment fund subaccounts
of the Participant’s Deferral Account with an amount equal to Salary deferred
by the Participant during each pay period ending in that month in accordance
with the Participant’s election under Section 3.2(a); that is, the portion
of the Participant’s deferred Salary that the Participant has elected to be
deemed to be invested in a certain Fund shall be credited to the investment
fund subaccount corresponding to that Fund;

 

(b)           As of the last day of the month in
which the Bonus or partial Bonus would have been paid, the Committee shall
credit the investment fund subaccounts of the
Participant’s Deferral Account with an amount equal to the portion of the Bonus
deferred by the Participant’s election under Section 3.2(a); that is, the
portion of the Participant’s deferred Bonus that the Participant has elected to
be deemed to be invested in a particular Fund shall be credited to the
investment fund subaccount corresponding to that
Fund; and

 

12

 

(c)           As of the end of each business day,
each investment fund subaccount of a Participant’s Deferral
Account shall be credited with earnings or losses in an amount equal to that
determined by multiplying the balance of such investment fund subaccount as of the end of the prior business day by the
Earnings Rate for the corresponding Fund for the day of crediting.

 

4.2 - Company Matching Account.

 

The Committee
shall establish and maintain a separate Company Matching Account for each
Participant under the Plan.  Each
Participant’s Company Matching Account shall be divided into separate
investment fund subaccounts corresponding to the
investment funds elected by the Participant pursuant to Section 3.2.  A Participant’s Company Matching Account
shall be credited as follows:

 

(a)           As of the last day of each Plan Year
or at more frequent intervals as determined by the Committee, the Company shall
credit the investment fund subaccounts of the
Participant’s Company Matching Account with an amount equal to the Company
Matching Amount, if any, applicable to that Participant; that is, the portion
of the Company Matching Amount, if any, which the Participant elected to be
deemed to be invested in a certain Fund shall be credited to the corresponding
investment fund subaccount; and

 

(b)           As of the end of each business day,
each investment fund subaccount of a Participant’s
Company Matching Amount shall be credited with earnings or losses in an amount
equal to that determined by multiplying the

 

13

 

balance
of such investment fund subaccount as of the end of
the prior business day by the Earnings Rate for the corresponding Fund for the
day of the crediting.

 

In addition, the Company may at any time direct the Committee to credit
a Participant’s Company Matching Account with such additional amount that the
Company has determined, for any reason, to credit to such Participant.

 

14

 

ARTICLE V

VESTING

 

5.1 - Deferral Account.

 

A Participant’s
Deferral Account shall at all times be 100% vested.

 

5.2 - Company Matching Account.

 

A Participant’s
Company Matching Account shall at all times be 100% vested.

 

15

 

ARTICLE
VI

DISTRIBUTIONS

 

6.1 - Time and Form of Distribution.

 

(a)           The amount credited to a Participant’s
Deferral Account and the amount credited to his or her Company Matching Account
shall be paid to the Participant (or, in the case of his or her death,
Beneficiary) in the form of a cash lump sum payment on his or her Payment
Eligibility Date.  Notwithstanding the
foregoing, on a distribution election form filed simultaneously with and in the
same manner as the first deferral election form that a Participant files in
accordance with the provisions of Section 3.1 hereof, a Participant may
elect to have the amounts credited to his or her Accounts distributed to him or
her in any one of the following optional forms of distribution:

 

(1)           A
scheduled in-service distribution on a specified date (no earlier than January
1 of the year following the Participant’s first year of participation in the
Plan) of all or a specified percentage of the amount credited to the
Participant’s Accounts (as of the specified date), with all remaining amounts
then credited or subsequently credited to the Participant’s Accounts
distributed in a lump sum on the Participant’s Payment Eligibility Date;
provided that, if the Participant’s Payment Eligibility Date occurs prior to
the scheduled in-service distribution date, then the total amount credited to
the Participant’s Accounts will be paid in a lump sum payment on the
Participant’s Payment Eligibility Date;

 

16

 

(2)           A
cash lump sum payable on the later of some specified date or the Participant’s
Payment Eligibility Date;

 

(3)           A
specified number of substantially equal monthly installments (not to exceed
180) commencing on the later of a specified date or the Participant’s Payment
Eligibility Date;

 

(4)           A
specified number of substantially equal annual installments (not to exceed 15)
commencing on the later of a specified date or the Participant’s Payment
Eligibility Date; or

 

(5)           Any
other method selected by the Participant that is approved by the Committee in
its sole and absolute discretion, provided that payment is not made or payments
do not begin before the Participant’s Payment Eligibility Date.

 

(b)           An election made under Section 6.1(a)
shall apply to all amounts deferred for all Plan Years under this Plan and may
be changed only in accordance with Section 6.3.

 

(c)           The Participant’s Accounts shall
continue to be credited with earnings or losses pursuant to Article IV of the
Plan until all amounts credited to his or her Accounts under the Plan have been
distributed.

 

(d)           For all purposes under this Plan, a
Participant shall not be considered terminated from employment if the
Participant remains employed by The Macerich Company,
any of its subsidiaries, The Macerich Partnership,
L.P., Macerich

 

17

 

Property Management Company,
LLC, Macerich Management Company, Westcor
Partners, LLC, Westcor Realty Limited Partnership or Macerich  Westcor Management
Company.

 

(e)           In the event of the death of a
Participant, the benefits described in this Section 6.1 shall be paid to
the Participant’s Beneficiary in accordance with the Participant’s election
hereunder.

 

6.2 - Small
Benefits.

 

Notwithstanding
anything herein contained to the contrary, if the amount distributable in a
form other than a cash lump sum to a Participant (or to the Beneficiary of a
Participant as a result of the Participant’s death) is less than $10,000, such
amount shall be paid in the form of a cash lump sum to the Participant (or
Beneficiary); provided, however, that if this provision would cause amounts
deferred under this Plan to be included in the income of a Participant prior to
the date of distribution, this provision shall not apply and distributions to
each Participant shall be in accordance his or her election under this Plan.

 

6.3
– Change in Election of Time and Form of Distribution.

 

A Participant may
elect to change his or her distribution election under Section 6.1 by filing a
new election with the Committee; provided, however, that (i)
no such election shall be effective until one year after the date on which the
election is made, (ii) the first payment with respect to which such election is
made must be deferred for a period of not less than five years from the date
such payment would otherwise have been made (except for distributions on
account of death or hardship distributions), and (iii) any

 

18

 

election
related to a payment that commences on any date other than the Payment
Eligibility Date shall only be effective if it is made at least twelve months
prior to the date of the first scheduled payment under such election.

 

19

 

ARTICLE VII

HARDSHIP DISTRIBUTIONS

 

7.1 - Hardship Distribution.

 

(a)           Upon written request of a
Participant, the Committee may, in its sole discretion, make a lump sum payment
and/or accelerate the payment of installment payments due to a Participant in
order to meet a severe financial hardship to the Participant resulting from
(1) an illness or accident of the Participant, the Participant’s spouse or
a dependent (as defined in Section 152(a) of the Code) of the Participant,
(2) loss of the Participant’s property due to casualty or (3) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. 
However, no payment shall be made under this Section 7.1 to the
extent that a hardship is or may be relieved (1) through reimbursement or
compensation by insurance or otherwise or (2) by liquidation of the Participant’s
assets, to the extent the liquidation of such assets would not itself cause
severe financial hardship.  The amount of
any hardship lump sum payment and/or accelerated amount shall not exceed the
lesser of (1) the amount required to meet the immediate financial need
created by such hardship plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution or (2) the entire amounts
credited to the Participant’s Accounts.  The amount of any such payment shall be
deducted from the amount credited to the Participant’s Accounts, pro rata from
among each of the investment subaccounts of the
Participant’s Deferral Account and Company Matching Account.  The remaining amounts credited to a
Participant’s Accounts shall be distributed in accordance with the Participant’s
distribution election.

 

20

 

ARTICLE
VIII

ADMINISTRATION

 

8.1 - Members.

 

A Committee shall
be appointed by, and serve at the pleasure of, the Board of Directors.  The number of members comprising the
Committee shall be determined by the Board, which may from time to time vary
the number of members.  A member of the
Committee may resign by delivering a written notice of resignation to the
Board.  The Board may remove any member
by delivering a certified copy of its resolution of removal to such
member.  Vacancies in the membership of
the Committee shall be filled promptly by the Board.

 

8.2 - Committee
Action.

 

The Plan shall be
administered by the Committee.  The
Committee shall act at meetings by affirmative vote of a majority of the members
of the Committee.  Any action permitted
to be taken at a meeting may be taken without a meeting if, prior to such
action, a written consent to the action is signed by all members of the
Committee and such written consent is filed with the minutes of the proceedings
of the Committee.  A member of the
Committee shall not vote or act upon any matter which relates solely to himself
or herself as a Participant.  The
Chairman or any other member or members of the Committee designated by the
Chairman may execute any certificate or other written direction on behalf of
the Committee.

 

21

 

8.3 - Powers and
Duties of the Committee.

 

(a)           The Committee, on behalf of the
Participants and their Beneficiaries, shall enforce the Plan in accordance with
its terms, shall be charged with the general administration of the Plan, and
shall have all powers necessary to accomplish its purposes, including, but not
by way of limitation, the following:

 

(1)           To
determine all questions relating to the eligibility of employees to
participate;

 

(2)           To
construe and interpret the terms and provisions of this Plan;

 

(3)           To
compute the Earnings Rate for each Fund in accordance with the terms of the
Plan;

 

(4)           To
compute and certify to the amount and kind of benefits payable to Participants
and their Beneficiaries;

 

(5)           To
maintain all records that may be necessary for the administration of the Plan;

 

(6)           To
provide for the disclosure of all information and the filing or provision of
all reports and statements to Participants, Beneficiaries or governmental
agencies as shall be required by law;

 

(7)           To
make and publish such rules for the regulation of the Plan and procedures for
the administration of the Plan as are not inconsistent with the terms hereof;
and

 

22

 

(8)           To
appoint a plan administrator or any other agent, and to delegate to them such
powers and duties in connection with the administration of the Plan as the
Committee may from time to time prescribe.

 

8.4 - Construction and
Interpretation.

 

The Committee
shall have full discretion to construe and interpret the terms and provisions
of this Plan, which interpretation or construction shall be final and binding
on all parties, including but not limited to the Company and any Participant or
Beneficiary.  The Committee shall
administer such terms and provisions in a uniform and nondiscriminatory manner
and in full accordance with any and all laws applicable to the Plan.

 

8.5 - Information.

 

To enable the
Committee to perform its functions, the Company shall supply full and timely
information to the Committee on all matters relating to the Compensation of all
Participants, their death or other cause of termination, and such other
pertinent facts as the Committee may require.

 

8.6 - Compensation,
Expenses and Indemnity.

 

(a)           The members of the Committee shall
serve without compensation for their services hereunder.

 

(b)           The Committee is authorized at the
expense of the Company to employ such legal counsel as it may deem advisable to
assist in the performance of its

 

23

 

duties
hereunder.  Expenses and fees in
connection with the administration of the Plan shall be paid by the Company.

 

(c)           To the extent permitted by applicable
state law, the Company shall indemnify and save harmless the Committee and each
member thereof, the Board of Directors and any delegate of the Committee who is
an employee of the Company against any and all expenses, liabilities and
claims, including legal fees to defend against such liabilities and claims
arising out of their discharge in good faith of responsibilities under or
incident to the Plan, other than expenses and liabilities arising out of
willful misconduct.  This indemnity shall
not preclude such further indemnities as may be available under insurance
purchased by the Company or provided by the Company under any bylaw, agreement
or otherwise, as such indemnities are permitted under state law.

 

8.7 - Quarterly Statements.

 

Under procedures
established by the Committee, a Participant shall receive a statement with
respect to such Participant’s Accounts as soon as practicable following the end
of each calendar quarter ending on March 31, June 30, September 30 or December
31.

 

24

 

ARTICLE
IX

MISCELLANEOUS

 

9.1 - Unsecured General Creditor.

 

Participants and
their Beneficiaries, heirs, successors, and assigns shall have no legal or
equitable rights, claims, or interest in any specific property or assets of the
Company.  No assets of the Company shall
be held under any trust, or held in any way as collateral security for the
fulfilling of the obligations of the Company under this Plan.  Any and all of the Company’s assets shall be,
and remain, the general, unpledged, unrestricted
assets of the Company.  The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured
promise of the Company to pay money in the future, and the rights of the
Participants and Beneficiaries shall be no greater than those of unsecured
general creditors.

 

9.2 - Restriction Against Assignment.

 

The Company shall
pay all amounts payable hereunder only to the person or persons designated by
the Plan and not to any other person or corporation.  No part of a Participant’s Accounts shall be
liable for the debts, contracts, or engagements of any Participant, his or her
Beneficiary, or successors in interest, nor shall a Participant’s Accounts be
subject to execution by levy, attachment, or garnishment or by any other legal
or equitable proceeding, nor shall any such person have any right to alienate,
anticipate, commute, pledge, encumber, or assign any benefits or payments
hereunder in any manner whatsoever.  If
any Participant, Beneficiary or successor in interest is adjudicated bankrupt
or purports to anticipate, alienate, sell, transfer, assign, pledge,

 

25

 

encumber
or charge any distribution or payment from the Plan, voluntarily or involuntarily,
the Committee, in its discretion, may cancel such distribution or payment (or
any part thereof) to or for the benefit of such Participant, Beneficiary or
successor in interest in such manner as the Committee shall direct.

 

9.3 - Withholding.

 

(a)           There shall be deducted from each
payment made under the Plan all taxes which are
required to be withheld by the Company in respect to such payment.  The Company shall have the right to reduce
any payment by the amount of cash sufficient to provide the amount of said
taxes.

 

(b)           In the event that a Participant
defers compensation in excess of the amount required to be withheld for
federal, state or local tax purposes, the Company shall have the right to
reduce any other payments to the Participant by the amount sufficient to
provide the amount of said taxes.

 

9.4 - Amendment,
Modification, Suspension or Termination.

 

The Company may
amend, modify, suspend or terminate the Plan in whole or in part.  The Committee may amend the Plan to (a)
ensure the Plan complies with the requirements of Section 409A of the Code for
the deferral of taxation on deferred compensation to the time of distribution
and (b) add provisions for changes to the deferral elections and elections as
to the time and manner of distributions that comply with such requirements of
Section 409A of the Code. 
Notwithstanding the foregoing rights of the Company and the Committee to
amend the Plan, no amendment,

 

26

 

modification,
suspension or termination shall reduce any amounts allocated previously to a
Participant’s Accounts.  In the event
that this Plan is terminated, the amounts credited to a Participant’s Deferral
Account and Company Matching Account shall be distributed to the Participant
or, in the event of his or her death, to his or her Beneficiary in a lump sum
within thirty (30) days following the date of termination; provided, however,
if the foregoing provision would cause the amounts deferred under this Plan to
be included in the income of Participants prior to the date of distribution,
such provision shall not apply and distributions to the Participants or their
Beneficiaries shall be made on the dates on which the Participants or their
Beneficiaries would receive benefits hereunder without regard to the
termination of the Plan.  Notwithstanding
the foregoing, if amounts deferred under the Plan have become taxable to
Participants as of the date of the Plan termination, distributions shall be
made as soon as practicable following the termination of the Plan.  The Company reserves the right to change the
Funds as described in Section 3.2(d).

 

9.5 - Governing
Law.

 

The Plan shall be governed
by and construed in accordance with Section 409A (or other applicable
section) of the Code, and any regulations promulgated thereunder,
and the laws of the State of California to the extent such laws are not
preempted by the Employee Retirement Income Security Act of 1974, as amended.

 

9.6 - Receipt or Release.

 

Any payment to a
Participant or the Participant’s Beneficiary in accordance with the provisions
of the Plan shall, to the extent thereof, be in full satisfaction of all claims
against the Committee and the Company. 
The Committee may

 

27

 

require
such Participant or Beneficiary, as a condition precedent to such payment, to
execute a receipt and release to such effect.

 

9.7 - Payments on
Behalf of Persons under Incapacity.

 

In the event that
any amount becomes payable under the Plan to a person who, in the sole judgment
of the Committee, is considered by reason of physical or mental condition to be
unable to give a valid receipt therefor, the
Committee may direct that such payment be made to any person found by the
Committee, in its sole judgment, to have assumed the care of such person.  Any payment made pursuant to such
determination shall constitute a full release and discharge of the Committee
and the Company.

 

9.8 - Headings,
etc.  Not Part of
Agreement.

 

Headings and
subheadings in this Plan are inserted for convenience of reference only and are
not to be considered in the construction of the provisions hereof.

 

9.9 - Limitation on
Participants’ Rights.

 

Participation in
this Plan shall not give any Eligible Employee the right to be retained in the
Company’s employ or any right or interest in the Plan other than as herein
provided.  The Company reserves the right
to dismiss any Eligible Employee without any liability for any claim against
the Company, except to the extent provided herein.

 

28

 

ARTICLE
X

CLAIMS PROCEDURE

 

10.1 - Claims
Procedure.

 

(a)           Claim.  A person who believes that he or she is being
denied a benefit to which he or she is entitled under this Plan (hereinafter
referred to as “Claimant”) may file a written request for such benefit with the
Committee, setting forth his or her claim. 
The request must be addressed to the Committee at the Company’s then
principal place of business.  Within a
reasonable period of time, but not later than 90 days after receipt of a claim
for benefits, the Committee or its delegate shall notify the Claimant of any
adverse benefit determination on the claim, unless special circumstances
require an extension of time for processing the claim.  In no event may the extension period exceed
90 days from the end of the initial 90-day period.  If an extension is necessary, the Committee
or its delegate shall provide the Claimant with a written notice to this effect
prior to the expiration of the initial 90-day period.  The notice shall describe the special
circumstances requiring the extension and the date by which the Committee or
its delegate expects to render a determination on the claim.

 

(b)           Claim Decision.  In the case of an adverse benefit
determination, the Committee or its delegate shall provide to the Claimant
written or electronic notification setting forth in a manner calculated to be
understood by the Claimant:  (i) the specific reason or reasons for the adverse benefit
determination, (ii) reference to the specific Plan provisions on which the
adverse benefit determination is based, (iii) a description of any additional
material or information necessary for the Claimant to

 

29

 

perfect
the claim and an explanation of why the material or information is necessary,
and (iv) a description of the Plan’s claim review procedures and the time
limits applicable to such procedures, including a statement of the Claimant’s
right to bring a civil action under Section 502(a) of ERISA
following an adverse final benefit determination on review.

 

(c)           Request
for Review.  Within 60 days after receipt
by the Claimant of notification of the adverse benefit determination, the Claimant
or his duly authorized representative, upon written application to the Committee,
may request that the Committee fully and fairly review the adverse benefit
determination.  On review of an adverse
benefit determination, upon request and free of charge, the Claimant shall have
reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant’s claim for benefits.  The Claimant shall have the opportunity to
submit written comments, documents, records, and other information relating to
the claim for benefits.  The Committee’s (or
delegate’s) review shall take into account all comments, documents, records,
and other information submitted regardless of whether the information was
previously considered in the initial adverse benefit determination.

 

(d)           Review of Decision.  Within a reasonable period of time, but not
later than 60 days after receipt of such request for review, the Committee or
its delegate shall notify the Claimant of any final benefit determination on
the claim, unless special circumstances require an extension of time for
processing the claim.  In no event may
the extension period exceed 60 days from the end of the initial 60-day
period.  If an extension is necessary,
the Committee or its delegate shall provide the Claimant with a written notice
to this effect prior to the expiration of the initial 60-day period.  The notice

 

30

 

shall
describe the special circumstances requiring the extension and the date by
which the Committee or its delegate expects to render a final determination on
the request for review.  In the case of
an adverse final benefit determination, the Committee or its delegate shall
provide to the Claimant written or electronic notification setting forth in a
manner calculated to be understood by the Claimant:  (i) the specific
reason or reasons for the adverse final benefit determination; (ii) reference
to the specific Plan provisions on which the adverse final benefit
determination is based; (iii) a statement that the Claimant is entitled to
receive, upon request and free of charge, reasonable access to, and copies of,
all documents, records and other information relevant to the Claimant’s claim
for benefits; and (iv) a statement of the Claimant’s right to bring a
civil action under Section 502(a) of ERISA
following an adverse final benefit determination on review.

 

31

 

IN WITNESS
WHEREOF, the Company has caused this document to be executed by its duly authorized officers on this              
day of                                        ,
2004.

 

	
   

  	
  THE MACERICH
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  

 

32EXHIBIT 10.1

 

 

 

AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT

 

Dated as of November 12,
2004

 

Among

 

GGRC CORP.

 

as Seller

 

and

 

GEORGIA GULF CORPORATION

 

and

 

GEORGIA GULF CHEMICALS AND
VINYLS, LLC

 

as Initial Servicers

 

and

 

BLUE RIDGE ASSET FUNDING
CORPORATION

 

as a Purchaser

 

and

 

VICTORY RECEIVABLES CORPORATION

 

as a Purchaser

 

and

 

WACHOVIA BANK, NATIONAL
ASSOCIATION

 

as Administrative Agent and
Blue Ridge Purchaser Agent

 

and

 

THE BANK OF TOKYO-MITSUBISHI,
LTD., NEW YORK BRANCH

 

as Victory Purchaser Agent

 

 

 

 

TABLE OF CONTENTS

 

	
  Article I Purchases and Reinvestments

  	
   

  
	
  Section 1.1

  	
  Commitments to Purchase; Limits on
  Purchasers’ Obligations.

  	
   

  
	
  Section 1.2

  	
  Purchase Procedures; Assignment of
  Purchasers’ Interests.

  	
   

  
	
  Section 1.3

  	
  Reinvestments of Certain Collections;
  Payment of Remaining Collections.

  	
   

  
	
  Section 1.4

  	
  Frequency of Computation of Asset Interest.

  	
   

  
	
  Article II Computational Rules

  	
   

  
	
  Section 2.1

  	
  Selection of Asset Tranches.

  	
   

  
	
  Section 2.2

  	
  Computation of Invested Amount, Purchaser
  Group Invested Amount and Purchasers’ Tranche Investments.

  	
   

  
	
  Section 2.3

  	
  Computation of Concentration Limits and
  Unpaid Balance.

  	
   

  
	
  Section 2.4

  	
  Computation of Earned Discount and CP
  Costs.

  	
   

  
	
  Section 2.5

  	
  Estimates of Earned Discount Rate, CP
  Costs, Fees, Etc.

  	
   

  
	
  Article III Settlements
  8

  	
   

  
	
  Section 3.1

  	
  Settlement Procedures.

  	
   

  
	
  Section 3.2

  	
  Deemed Collections; Reduction of the
  Invested Amount, Etc.

  	
   

  
	
  Section 3.3

  	
  Payments and Computations, Etc.

  	
   

  
	
  Section 3.4

  	
  Treatment of Collections and Deemed
  Collections.

  	
   

  
	
  Article IV Fees and Yield Protection

  	
   

  
	
  Section 4.1

  	
  Fees.

  	
   

  
	
  Section 4.2

  	
  Yield Protection.

  	
   

  
	
  Section 4.3

  	
  Funding Losses.

  	
   

  
	
  Article V Conditions of Purchases

  	
   

  
	
  Section 5.1

  	
  Conditions Precedent to Initial Purchase.

  	
   

  
	
  Section 5.2

  	
  Conditions Precedent to All Purchases and
  Reinvestments.

  	
   

  
	
  Article VI Representations and
  Warranties

  	
   

  
	
  Section 6.1

  	
  Representations and Warranties of Seller
  Parties.

  	
   

  
	
  Article VII General Covenants of
  Seller Parties

  	
   

  
	
  Section 7.1

  	
  Affirmative Covenants of Seller Parties.

  	
   

  
	
  Section 7.2

  	
  Reporting Requirements of
  Seller Parties.

  	
   

  
	
  Section 7.3

  	
  Negative Covenants of
  Seller Parties.

  	
   

  
	
  Section 7.4

  	
  Separate Corporate
  Existence of Seller.

  	
   

  
	
  Article VIII Administration and Collection

  	
   

  
	
  Section 8.1

  	
  Designation of Servicers.

  	
   

  
	
  Section 8.2

  	
  Duties of Servicers.

  	
   

  
	
  Section 8.3

  	
  Rights of the
  Administrative Agent.

  	
   

  
	
  Section 8.4

  	
  Responsibilities of Seller
  Parties.

  	
   

  
	
  Section 8.5

  	
  Further Action Evidencing
  Purchases and Reinvestments.

  	
   

  
	
  Section 8.6

  	
  Application of Collections.

  	
   

  
	
  Article IX Security Interest

  	
   

  
	
  Section 9.1

  	
  Grant of Security Interest.

  	
   

  
	
  Section 9.2

  	
  Further Assurances.

  	
   

  
	
  Section 9.3

  	
  Remedies.

  	
   

  

 

i

 

	
  Article X Liquidation Events

  	
   

  
	
  Section 10.1

  	
  Liquidation Events.

  	
   

  
	
  Section 10.2

  	
  Remedies.

  	
   

  
	
  Article XI The Administrative Agent

  	
   

  
	
  Section 11.1

  	
  Administrative Agent
  Authorization and Action.

  	
   

  
	
  Section 11.2

  	
  Administrative Agent’s
  Reliance, Etc.

  	
   

  
	
  Section 11.3

  	
  Blue Ridge Purchaser Agent
  Authorization and Action.

  	
   

  
	
  Section 11.4

  	
  Blue Ridge Purchaser Agent’s
  Reliance, Etc.

  	
   

  
	
  Section 11.5

  	
  Victory Authorization and
  Action.

  	
   

  
	
  Section 11.6

  	
  Victory Purchaser Agent’s
  Reliance, Etc.

  	
   

  
	
  Section 11.7

  	
  Wachovia and Affiliates.

  	
   

  
	
  Article XII Assignments

  	
   

  
	
  Section 12.1

  	
  Restrictions on
  Assignments.

  	
   

  
	
  Section 12.2

  	
  Rights of Assignee.

  	
   

  
	
  Section 12.3

  	
  Terms and Evidence of
  Assignment.

  	
   

  
	
  Section 12.4

  	
  Rights of Liquidity Banks.

  	
   

  
	
  Article XIII Indemnification

  	
   

  
	
  Section 13.1

  	
  Indemnities by Seller.

  	
   

  
	
  Section 13.2

  	
  Indemnities by Servicers.

  	
   

  
	
  Article XIV Miscellaneous

  	
   

  
	
  Section 14.1

  	
  Amendments, Etc.

  	
   

  
	
  Section 14.2

  	
  Notices, Etc.

  	
   

  
	
  Section 14.3

  	
  No Waiver; Remedies.

  	
   

  
	
  Section 14.4

  	
  Binding Effect; Survival.

  	
   

  
	
  Section 14.5

  	
  Costs, Expenses and Taxes.

  	
   

  
	
  Section 14.6

  	
  No Proceedings.

  	
   

  
	
  Section 14.7

  	
  Confidentiality of Seller
  Information.

  	
   

  
	
  Section 14.8

  	
  Confidentiality of Program
  Information.

  	
   

  
	
  Section 14.9

  	
  Captions and Cross
  References.

  	
   

  
	
  Section 14.10

  	
  Integration.

  	
   

  
	
  Section 14.11

  	
  Governing Law.

  	
   

  
	
  Section 14.12

  	
  Waiver Of Jury Trial.

  	
   

  
	
  Section 14.13

  	
  Consent To Jurisdiction;
  Waiver Of Immunities.

  	
   

  
	
  Section 14.14

  	
  Execution in Counterparts.

  	
   

  
	
  Section 14.15

  	
  No Recourse Against Other
  Parties.

  	
   

  
	
  Section 14.16

  	
  Severability of Provisions.

  	
   

  

 

ii

 

	
  Appendices

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Appendix A

  	
   

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 6.1(i)

  	
   

  	
  Description
  of Material Adverse Changes

  	
   

  
	
  Schedule 6.1(n)

  	
   

  	
  List of Offices
  of Servicer and Seller where Records Are Kept

  	
   

  
	
  Schedule 6.1(o)

  	
   

  	
  List of Lock-Box
  Banks Main Office Address & Account Number

  	
   

  
	
  Schedule 14.2

  	
   

  	
  Notice
  Addresses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  1.2(a)

  	
   

  	
  Form of
  Purchase Request

  	
   

  
	
  Exhibit 3.1(a-1)

  	
   

  	
  Form of
  Information Package

  	
   

  
	
  Exhibit 3.1(a-2)

  	
   

  	
  Form of
  Interim Information Package

  	
   

  
	
  Exhibit A-1

  	
   

  	
  Form of Lock-Box
  Agreement

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of
  Certificate of Financial Officer

  	
   

  
	
  Exhibit C

  	
   

  	
  Credit and
  Collection Policy

  	
   

  

 

iii

 

AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT

 

Dated as of November 12,
2004

 

THIS IS AN
AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Agreement”),
among:

 

(1)                                  GGRC
CORP., a Delaware corporation (together with its successors and permitted
assigns, “Seller”);

 

(2)                                  GEORGIA
GULF CORPORATION, a Delaware corporation (together with its successors, “Georgia Gulf”), and GEORGIA GULF
CHEMICALS AND VINYLS, LLC, a Delaware limited liability company (together with
its successors, “GGCV” as
initial servicers, the “Initial Servicers”) hereunder (in such capacity,
together with any successor servicer appointed pursuant to Section 8.1,
each individually a, “Servicer”
and together, the “Servicers”;
Georgia Gulf and GGCV, in its capacity as Servicer, together with Seller, each
a “Seller Party” and collectively the “Seller Parties”);

 

(3)                                  BLUE
RIDGE ASSET FUNDING CORPORATION, a Delaware corporation (together with its
successors and assigns, “Blue Ridge”);

 

(4)                                  VICTORY
RECEIVABLES CORPORATION, a Delaware corporation (together with its successors
and permitted assigns, “Victory”
and together with Blue Ridge, the “Purchasers”
and individually, each a “Purchaser”);

 

(5)                                  WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association (“Wachovia”), as a purchaser agent for
the Blue Ridge Purchaser Group (the “Blue
Ridge Purchaser Agent”) and as administrative agent for the
Purchasers (in such capacity, together with any successors thereto in such
capacity, the “Administrative Agent”); and

 

(7)                                  THE
BANK OF TOKYO-MITSUBISHI, LTD., NEW YORK BRANCH, a Japanese banking corporation
acting through its New York Branch (“BTM”),
as purchaser agent for Victory and the Victory Purchaser Group (in such
capacity, together with any successors thereto, the “Victory Purchaser Agent”).

 

Unless
otherwise indicated, capitalized terms used in this Agreement are defined in Appendix
A (with such meaning being equally applicable to both the singular and
plural forms of the terms defined).

 

Background

 

1.                                       The
Seller is a wholly-owned direct subsidiary of Georgia Gulf.

 

2.                                       Georgia
Gulf is engaged in the business of manufacturing and marketing chlorovinyl and
aromatic chemicals.

 

 

3.                                       GGCV
is engaged in the business of manufacturing and marketing chlorovinyl and
aromatic chemicals.

 

4.                                       Georgia
Gulf, GGCV and Georgia Gulf Lake Charles, LLC as Originators and the Seller
have entered into the Receivables Sale Agreement  (“Sale
Agreement”) pursuant to which the Originators have transferred,
and hereafter will transfer, to the Seller all of their respective right, title
and interest in and to the Pool Receivables and certain related property.

 

5.                                       The
Seller desires to transfer and assign Asset Interests from time to time.

 

6.                                       Each
Purchaser shall purchase Asset Interests from the Seller from time to time
either by issuing its Commercial Paper Notes or by availing itself of a
Liquidity Funding to the extent available.

 

7.                                       Wachovia
Bank, National Association, has been requested and is willing to act as
Administrative Agent on behalf of Blue Ridge and Victory and as Blue Ridge
Purchaser Agent on behalf of Blue Ridge and its assigns in accordance with the
terms hereof.

 

8.                                       The
Bank of Tokyo-Mitsubishi, Ltd., New York Branch has been requested and is
willing to act as the Victory Purchaser Agent on behalf of Victory and its
assigns in accordance with the terms hereof.

 

9.                                       This
Agreement amends and restates in its entirety that certain Receivables Purchase
Agreement dated as of November 15, 2002, by and among the parties thereto,
as the same may have been amended from time to time (the “Existing Agreement”).

 

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

 

Article I

 

Purchases and Reinvestments

 

Section 1.1                                   Commitments
to Purchase; Limits on Purchasers’ Obligations.

 

Upon the terms
and subject to the conditions of this Agreement (including, without limitation,
Article V), from time to time during the Revolving Period, prior to
the Termination Date, the Seller may request that the Purchasers purchase from
the Seller ownership interests in Pool Receivables and Related Assets, and Blue
Ridge and Victory shall make such purchase (each being a “Purchase”);
provided that no Purchase shall be made by any Purchaser if, after
giving effect thereto, based upon the most recent Information Package delivered
pursuant to the first sentence of Section 3.1(a), either (a) the
Invested Amount would exceed $135,000,000 (as such amount may be adjusted
pursuant to Section 3.2(b), the “Purchase
Limit”), (b) such Purchaser Group’s Purchaser Group Invested
Amount would exceed the related Purchaser Group Limit or (c) the Asset Interest
would exceed 100% (the “Allocation Limit”);
and provided, further that each Purchase made pursuant to this Section 1.1
shall have a purchase price equal to at least $1,000,000 and shall be an
integral multiple of $100,000.

 

2

 

Section 1.2                                   Purchase
Procedures; Assignment of Purchasers’ Interests.

 

(a)                                  Purchase
Request.  Each Purchase from the
Seller by the Purchasers shall be made on notice from the Seller to each
Purchaser Agent (on behalf of the Purchasers) received by such Purchaser Agent
not later than 12:00 noon (New York City time) on the second Business Day
preceding the date of such proposed Purchase. 
Each such notice of a proposed Purchase shall be irrevocable and shall
be substantially in the form of Exhibit 1.2(a) and shall specify, among
other items, the desired amount and date of such Purchase.  Each Purchaser Agent shall promptly upon
receipt notify the related Purchaser of any such notice.  The Seller may not request more than one
Purchase in any calendar week.

 

(b)                                 Funding
of Purchase.  On the date of each
Purchase, each Purchaser shall, upon satisfaction of the applicable conditions
set forth in Article V, make available to the Seller its Pro Rata
Share of the amount of the Purchase in same day funds by wire transfer to an
account designated in writing by the Seller.

 

(c)                                  Assignment
of Asset Interests.  The Seller
hereby sells, assigns and transfers to the Administrative Agent on behalf of
the Purchasers on a pro rata basis for the benefit of the Secured Parties,
effective on and as of the date of each Purchase and each Reinvestment by the
Administrative Agent on behalf of the Purchasers for the benefit of the Secured
Parties hereunder, the Asset Interest.

 

Section 1.3                                   Reinvestments
of Certain Collections; Payment of Remaining Collections.

 

(a)                                  On
the close of business on each day during the period from the date of the first
Purchase to the Termination Date, the Servicers will, out of all Collections
received on such day from Pool Receivables and Related Assets:

 

(i)                                     determine
the portion of the Collections attributable to the Asset Interest by multiplying
(A) the amount of such Collections times (B) the lesser of (1) the Asset
Interest and (2) 100%;

 

(ii)                                  out
of the portion of such Collections allocated to the Asset Interest pursuant to clause
(i) of this Section 1.3(a), set aside and hold in trust for the
Purchasers an amount equal to the sum of the estimated amount of Earned
Discount and CP Costs accrued in respect of each Asset Tranche (based on rate
information provided by the Administrative Agent pursuant to Section 2.5),
all other amounts due to the Purchasers, the Purchaser Agents and/or the
Administrative Agent hereunder and the Purchasers’ Share of the Servicer’s Fee
(in each case, accrued through such day) and not so previously set aside;

 

(iii)                               apply
the Collections allocated to the Asset Interest pursuant to clause (i)
of this Section 1.3(a) and not required to be set aside pursuant to
clause (ii) of this Section 1.3(a) to the purchase from the
Seller of ownership interests in Pool Receivables and Related Assets (each such
purchase being a “Reinvestment”);
provided that:

 

3

 

(A)                              if,
after giving effect to such Reinvestment, (1) the Asset Interest would exceed
the Allocation Limit, (2) any Purchaser Group Invested Amount shall exceed the
related Purchaser Group Limit or (3) the Invested Amount would exceed the
Purchase Limit, then the Servicers shall not make such Reinvestment, but shall
set aside and hold in trust for the benefit of the Purchasers, a portion of
such Collections which, together with other Collections previously set aside
and then so held, shall equal the amount necessary to reduce (I) the Invested
Amount to the Purchase Limit, (II) any Purchaser Group’s Purchaser Group
Invested Amount to such Purchaser Group’s Purchaser Group Limit and (II) the
Asset Interest to the Allocation Limit; and

 

(B)                                if
any of the conditions precedent to Reinvestment in clause (a), (b),
and (d) of Section 5.2(a), subject to the proviso set forth
therein, are not satisfied, then the Servicers shall not reinvest any of such
remaining Collections, but shall set them aside and hold them in trust for the
benefit of the Purchasers;

 

(iv)                              out
of the portion of Collections not allocated to the Asset Interest pursuant to clause
(i) of this Section 1.3(a), pay to the Servicers (in such
proportion as may from time to time be determined among the Servicers) or set
aside (at the option of the Servicers) the Seller’s Share of the Servicer’s Fee
accrued through such day and not previously paid; and

 

(v)                                 pay
to the Seller (A) the remaining portion of Collections not allocated to either (1)
the Asset Interest pursuant to clause (i) of this Section 1.3(a)
or (2) to the Servicers pursuant to clause (iv) of this Section 1.3(a),
and (B) the Collections applied to Reinvestment pursuant to clause (iii)
of this Section 1.3(a).

 

(b)                                 Unreinvested
Collections.  The Servicers shall set
aside and hold in trust for the benefit of the Purchasers all Collections
which, pursuant to Section 1.3(a)(iii), may not be reinvested in
the Pool Receivables and Related Assets. 
If, prior to the date when such Collections are required to be paid to
any Purchaser Agent for the benefit of the related Purchaser pursuant to Section 1.3(c)(iv),
the amount of Collections so set aside exceeds the amount, if any, necessary to
reduce (i) the Invested Amount to the Purchase Limit, (ii) each Purchaser Group
Invested Amount to the related Purchaser Group Limit and (iii) the Asset
Interest to the Allocation Limit, and the conditions precedent to Reinvestment
set forth in clauses (a), (b) and (d) of Section 5.2,
subject to the proviso set forth therein, are satisfied, then the Servicers
shall apply such Collections (or, if less, a portion of such Collections equal
to the amount of such excess) to the making of a Reinvestment.

 

(c)                                  Payment
of Amounts Set Aside.

 

(i)                                     The
Servicers shall pay all amounts set aside pursuant to Section 1.3(a)(ii)
in respect of Earned Discount on an Asset Tranche funded by a Liquidity Funding
to each Purchaser Agent, on the related Purchaser’s behalf, on the last day of
the then current Yield Period for such Asset Tranche as provided in Section 3.1.

 

4

 

(ii)                                  The
Servicers shall pay all amounts of Collections set aside pursuant to Section 1.3(a)(ii)
in respect of CP Costs on any Asset Tranche funded by Commercial Paper Notes to
each Purchaser Agent, on the related Purchaser’s behalf, on the Settlement Date
following the last day of each CP Accrual Period for such Asset Tranche, as
provided in Section 3.1.

 

(iii)                               The
Servicers shall pay all amounts of Collections set aside pursuant to Section 1.3(a)(ii)
and not applied pursuant to clauses (i) or (ii) above to each
Purchaser Agent, on the related Purchaser’s behalf, on each Settlement Date for
each Settlement Period, as provided in Section 3.1.

 

(iv)                              The
Servicers shall pay all amounts set aside pursuant to Section 1.3(b)
to each Purchaser Agent for the account of the related Purchaser (A) on the
last day of each Yield Period for any Asset Tranche funded by a Liquidity
Funding of such Purchaser Group, as provided in Section 3.1, in an
amount not exceeding the related Purchaser’s Tranche Investment of such Asset
Tranche, and (B) on the Settlement Date following the last day of each CP
Accrual Period for any Asset Tranche funded by Commercial Paper Notes, as
provided in Section 3.1, in an amount not exceeding the related
Purchaser’s Tranche Investment of such Asset Tranche.

 

(d)                                 Funds
Under Sale Agreement.  Upon the
written request of the Purchaser Agents, on behalf of the Purchasers, given at
any time when (i) based on the most recent Information Package or Interim
Information Package, as the case may be, either (A) the Asset Interest would
exceed the Allocation Limit, (B) any Purchaser Group Invested Amount would
exceed the related Purchaser Group Limit or (C) the Invested Amount would
exceed the Purchase Limit, or (ii) a Liquidation Event or Unmatured Liquidation
Event shall have occurred and be continuing, the Seller shall set aside and
hold in trust for the Purchasers all funds that under the Sale Agreement would
be applied to repay principal of the Subordinated Note.  The Seller may apply such funds only for the
purposes of (i) at any time, purchasing Receivables from the Originators in
accordance with the Sale Agreement; (ii) on the Settlement Date for any
Settlement Period, making payments in accordance with the last sentence of Section 3.1(c)(ii),
and (iii) on the Settlement Date for any Settlement Period, if, on the basis of
the most recent Information Package or Interim Information Package, as the case
may be, and after giving effect to any payment made to the Servicers on such
date pursuant to the last sentence of Section 3.1(c)(ii), both (A)
the Invested Amount does not exceed the Purchase Limit, (B) no Purchaser Group
Invested Amount exceeds the related Purchaser Group Limit and (C) the Asset
Interest does not exceed the Allocation Limit, and provided that no Liquidation
Event or Unmatured Liquidation Event shall have occurred and be continuing, repaying
principal of the Subordinated Note in accordance with this Agreement and the
Sale Agreement.

 

Section 1.4                                   Frequency
of Computation of Asset Interest.

 

The Asset
Interest shall be computed as provided in Section 3.1, as of the
Cut-Off Date for each Settlement Period, after giving effect to the payments
made pursuant to Section 3.1. 
In addition, at any time, any Purchaser Agent, on behalf of the related
Purchaser, may require the Servicers to provide an interim report (an “Interim Information Package”), based
on the information then available to the Servicers, for purposes of computing
the Asset Interest, any

 

5

 

Purchaser Group Limit or the
Purchase Limit as of any other date, and the Servicers agree to do so within
five (5) (or three (3), if a Liquidation Event has occurred and is continuing)
Business Days of its receipt of such Purchaser Agent’s request (such date, the “Interim Reporting Date”).

 

Article II

 

Computational Rules

 

Section 2.1                                   Selection
of Asset Tranches.

 

Each Purchaser
Agent shall, from time to time for purposes of computing Earned Discount and CP
Costs, divide the Asset Interest into Asset Tranches.  The applicable Earned Discount Rate or CP
Rate, as the case may be, and the maturity may be different for each Asset
Tranche.  The related Purchaser Group
Invested Amount shall be allocated to each Asset Tranche by the related
Purchaser Agent, on the related Purchaser’s behalf, to reflect the funding
sources for the Asset Interest, so that:

 

(a)                                  there
will be one or more Asset Tranches equal to the excess (if any) of the related
Purchaser Group Invested Amount over the aggregate amount allocated at such
time pursuant to clause (b) below, which Asset Tranche (or Asset
Tranches, if more than one) shall reflect the portion of the Asset Interest
funded by Commercial Paper Notes of the related Purchaser; and

 

(b)                                 there
may be one or more Asset Tranches, selected by a Purchaser Agent, on the
related Purchaser’s behalf, reflecting the portion of the Asset Interest funded
by outstanding Liquidity Fundings of such Purchaser Group.

 

Section 2.2                                   Computation
of Invested Amount, Purchaser Group Invested Amount and Purchasers’ Tranche
Investments.

 

In making any
determination of the Invested Amount, any Purchaser Group Invested Amount and
any Purchaser’s Tranche Investment, the following rules shall apply:

 

(a)                                  The
Invested Amount and each Purchaser Group Invested Amount, as the case may be,
shall not be considered reduced by any allocation, setting aside or
distribution of any portion of Collections unless such Collections shall have
been actually delivered hereunder to the related Purchaser Agent, on the
related Purchaser’s behalf;

 

(b)                                 The
Invested Amount and each Purchaser Group Invested Amount, as the case may be,
shall not be considered reduced by any distribution of any portion of
Collections if at any time such distribution is rescinded or must otherwise be
returned for any reason; and

 

(c)                                  if
there is any reduction in the Invested Amount or any Purchaser Group Invested
Amount, as the case may be, there shall be a corresponding reduction in the
related Purchaser’s Tranche Investment with respect to one or more Asset
Tranches selected by a Purchaser Agent, on the related Purchaser’s behalf, in
its reasonable discretion.

 

6

 

Section 2.3                                   Computation
of Concentration Limits and Unpaid Balance.

 

The Obligor
Concentration Limits and the aggregate Unpaid Balance of Pool Receivables of
any Obligor and its Affiliated Obligors (if any) shall be calculated as if such
Obligor and its Affiliated Obligors were one Obligor.

 

Section 2.4                                   Computation
of Earned Discount and CP Costs.

 

In making any
determination of Earned Discount and CP Costs, the following rules shall apply:

 

(a)                                  each
Purchaser Agent, on the related Purchaser’s behalf, shall determine (i) the
Earned Discount accruing with respect to each Asset Tranche funded by a
Liquidity Funding for each Yield Period, in accordance with the definition of
Earned Discount and (ii) the CP Costs accruing with respect to each Asset
Tranche funded by Commercial Paper Notes for each CP Accrual Period, in
accordance with the definition of CP Costs;

 

(b)                                 no
provision of this Agreement shall require the payment or permit the collection
of Earned Discount in excess of the maximum permitted by applicable law; and

 

(c)                                  Earned
Discount for any Asset Tranche shall not be considered paid by any distribution
if at any time such distribution is rescinded or must otherwise be returned for
any reason.

 

It is the
intent of Blue Ridge and Victory to fund its portion of the Asset Interest by
the issuance of Commercial Paper Notes. 
If, for any reason, either Blue Ridge or Victory is unable, or
determines that it is undesirable, to issue Commercial Paper Notes to fund its
portion of the Asset Interest, or is unable for any reason to repay such
Commercial Paper Notes upon the maturity thereof, such Purchaser will draw on
Liquidity Fundings to the extent available. 
If any Purchaser funds itself through Liquidity Fundings, the Earned
Discount payable by the Seller will be based on the Bank Rate.

 

Section 2.5                                   Estimates
of Earned Discount Rate, CP Costs, Fees, Etc.

 

For purposes
of determining the amounts required to be set aside by the Servicers pursuant
to Section 1.3, each Purchaser Agent, on the related Purchaser’s
behalf, shall notify the Servicers (and, if Georgia Gulf and GGCV are not the
Servicers, the Seller) from time to time of the related Purchaser’s Tranche
Investment of each Asset Tranche, the Earned Discount Rate applicable to each
Asset Tranche funded by a  Liquidity
Funding, the CP Costs applicable to each Asset Tranche funded by Commercial
Paper Notes and the rates at which fees and other amounts are accruing
hereunder.  It is understood and agreed
that (a) the CP Costs for any Asset Tranche funded by Commercial Paper Notes
are determined in arrears and may change from one applicable CP Accrual Period
to the next, (b) the Earned Discount Rate for any Asset Tranche funded by a
Liquidity Funding may change from one applicable Yield Period to the next, and
the Bank Rate used to calculate the Earned Discount Rate may change from time
to time during an applicable Yield Period, (c) certain rate information
provided by any Purchaser Agent to the Servicers shall be based upon such
Purchaser Agent’s good faith estimate, (d) the amount of Earned Discount
actually accrued with respect to an Asset Tranche funded by a Liquidity

 

7

 

Funding during any Yield Period
may exceed, or be less than, the amount set aside with respect thereto by the
Servicers, (e) the amounts of CP Costs actually accrued with respect to an
Asset Tranche funded by the issuance of Commercial Paper Notes during any CP
Accrual Period may exceed, or be less than, the amount set aside with respect
thereto by the Servicers, and (f) the amount of fees or other amounts payable
which have accrued hereunder with respect to any Settlement Period may exceed,
or be less than, the amount set aside with respect thereto by the
Servicers.  Failure to set aside any
amount so accrued shall not relieve the Servicers of their respective
obligation to remit Collections to the related Purchaser Agent, for the benefit
of the related Purchaser, with respect to such accrued amount, as and to the
extent provided in Section 3.1.

 

Article III

 

Settlements

 

Section 3.1                                   Settlement
Procedures.

 

The parties
hereto will take the following actions with respect to each Settlement Period:

 

(a)                                  Information
Package.  On (i) the 18th day of each
calendar month (if such day is not a Business Day, then on the next Business
Day) and (ii) on any day requested by the Agents in accordance with the
succeeding sentence (each such day, a “Reporting
Date”), the Servicers
shall deliver to each Purchaser Agent, on the related Purchaser’s behalf, a
report in the forms of Exhibit 3.1(a-1), and, at the request of any
Agent, Exhibit 3.1(a-2) (or in another form mutually agreed to by such
Agent and the Servicers) (each, an “Information Package”)
with respect to the immediately preceding calendar month (with respect to each
Reporting Date described in clause (i) hereof) or such other period as
such Agent shall request (with respect to each Reporting Date described in clause
(ii) hereof).  The Information
Package shall be accompanied by an electronic file in a form satisfactory to
each Purchaser Agent; provided, however, if a Credit Event shall
have occurred, such Purchaser Agent may request an Information Package on a day
or days other than the Reporting Date described in clause (i) of this Section 3.1(a);
provided, further, however, that such Purchaser Agent shall not
make a request for an Information Package more frequently than weekly.

 

(b)                                 Earned
Discount and CP Costs; Other Amounts Due. 
(i) (A) on or before 12:00 noon, Atlanta, Georgia time on the Business
Day before the last day of each Yield Period, each Purchaser Agent shall notify
the Servicers of the amount of Earned Discount accrued with respect to any
Asset Tranche funded by a Liquidity Funding corresponding to such Yield Period
and (B) on or before 12:00 noon (Atlanta, Georgia time) five (5) Business Days
before each Reporting Date, each Purchaser Agent shall notify the Servicers of
the CP Costs accrued during the most recently ended CP Accrual Period with
respect to any Asset Tranche funded with Commercial Paper Notes of such
Purchaser Group during all or any portion of such CP Accrual Period, (ii) the
Servicers shall pay to such Purchaser Agent for the benefit of the related
Purchaser the amount of such Earned Discount before 12:00 noon (Atlanta,
Georgia time) on the last day of such Yield Period and the amount of such CP
Costs before 12:00 noon (Atlanta, Georgia time) on each Settlement Date, (iii)
on or before 12:00 noon, Atlanta, Georgia time, on the Business Day before each
Reporting Date, each Purchaser Agent, on the related Purchaser’s

 

8

 

behalf, shall notify the
Servicers of all fees and other amounts accrued and payable by the Seller under
this Agreement during the prior calendar month (other than amounts described in
clause (c) below), (iv) the Servicers shall pay to each Purchaser Agent,
for the benefit of the related Purchaser, the amount of such fees and other
amounts (to the extent of Collections attributable to the Asset Interest during
such Settlement Period) on the Settlement Date for such month, (v) each
Purchaser Agent shall notify the Servicers of any Broken Funding Costs incurred
by the related Purchaser and (vi) the Servicers shall pay to each
Purchaser Agent, for the benefit of the related Purchaser, the amount of such
Broken Funding Costs on the first Business Day following receipt by the
Servicers of notice of such Broken Funding Costs.  Such payments shall be made out of amounts
set aside pursuant to Section 1.3 for such payment; provided,
however, that to the extent Collections attributable to the Asset
Interest during such Settlement Period are not sufficient to make such payment,
such payments shall be made out of funds paid by the Servicers to the Seller
(which amounts the Seller hereby agrees to pay to the Servicers), and in the
case of Earned Discount, to the extent that funds were not set aside pursuant
to Section 1.3 for such payment (because the actual Earned Discount
for such month was greater than the estimated Earned Discount used in
calculating the Asset Interest during such month), out of funds paid by the
Servicers to the Seller (which amounts the Seller hereby agrees to pay to the
Servicers), up to the aggregate amount of Collections applied to Reinvestment
under Section 1.3(a) or (b) during such month.

 

(c)                                  Asset
Interest Computations.

 

(i)                                     On
the Reporting Date for each Settlement Period, the Servicers shall compute, as
of the related Cut-Off Date and based upon the assumptions in the next
sentence, (A) the Asset Interest, (B) the amount of the reduction or increase
(if any) in the Asset Interest since the next preceding Cut-Off Date, (C) the
excess (if any) of the Asset Interest over the Allocation Limit, (D) the excess
(if any) of any Purchaser Group Invested Amount over such Purchaser Group Limit
and (E) the excess (if any) of the Invested Amount over the Purchase
Limit.  Such calculation shall be based
upon the assumptions that (I) the information in the Information Package is
correct, and (II) Collections set aside pursuant to Section 1.3(b)
will be paid to each Purchaser Agent, for the benefit of the related Purchaser,
on the Settlement Date for such Settlement Period.

 

(ii)                                  If,
according to the computations made pursuant to clause (i) above, either (A)
the Asset Interest exceeds the Allocation Limit, (B) any Purchaser Group
Invested Amount exceeds such Purchaser Group Limit or (C) the Invested Amount
exceeds the Purchase Limit, then on the Settlement Date for such Settlement
Period, the Servicers shall pay to the applicable Purchaser Agent, for the
benefit of the related Purchaser, (to the extent of Collections during the
related Settlement Period attributable to all Asset Tranches funded by such
Purchaser Group and not previously paid to such Purchaser Agent) the amount
necessary to reduce both (1) the Invested Amount to the Purchase Limit, (2) any
Purchaser Group Invested Amount to such Purchaser Group Limit and (3) the Asset
Interest to the Allocation Limit, subject, however, to the
proviso to Section 1.3(c)(iv). 
Such payment shall be made out of amounts set aside pursuant to Section 1.3
for such purpose and, to the extent such amounts were not so set aside, the
Seller hereby agrees to pay such amounts to the Servicers to the extent of
Collections applied to Reinvestment under Section 1.3 during the
relevant Settlement Period.

 

9

 

(iii)                               In
addition to the payments described in clause (ii) above and clause (iv)
below, during the Liquidation Period, the Servicer shall pay to each
Purchaser Agent, for the benefit of the related Purchaser, (A) all amounts
identified pursuant to Section 1.3 (a) on the last day of the
current Yield Period for any Asset Tranche funded by a Liquidity Funding in an
amount not exceeding such Purchaser’s Tranche Investment of such Asset Tranche,
and (B) after reduction to zero of such Purchaser’s Tranche Investment of the
Asset Tranches, if any, funded by Liquidity Fundings of such Purchaser Group on
the last day of each CP Accrual Period, in an amount not exceeding such
Purchaser’s Tranche Investment of the Asset Tranche funded by Commercial Paper
Notes issued by the related Purchaser.

 

(iv)                              On
the Interim Reporting Date for each Interim Reporting Period, if any, the
Servicer shall compute, as of the related Interim Cut-Off Date and based upon
the assumptions in the next sentence, (A) the Asset Interest, (B) the amount of
the reduction or increase (if any) in the Asset Interest since the next
preceding Cut-Off Date or Interim Cut-Off Date, (C) the excess (if any) of the
Asset Interest over the Allocation Limit, (D) the excess (if any) of any
Purchaser Group Invested Amount over the related Purchaser Group Limit and (E)
the excess (if any) of the Invested Amount over the Purchase Limit.  Such calculations shall be based upon the
assumptions that (1) the information in the Interim Information Package is
correct, and (2) Collections identified pursuant to Section 1.3(b)
will be paid to each Purchaser Agent, for the benefit of the related Purchaser,
on the Settlement Date for such Collection Period.

 

(v)                                 If,
according to the computations made pursuant to clause (iv) above, (A)
the Asset Interest exceeds the Allocation Limit, (B) any Purchaser Group
Invested Amount exceeds the related Purchaser Group Limit or (C) the Invested
Amount exceeds the Purchase Limit, then on the 
Interim Settlement Date for such Interim Reporting Period, the Servicer
shall pay to the applicable Purchaser Agent, for the benefit of the related
Purchaser, (to the extent of Collections during the related Interim Reporting
Period attributable to all Asset Tranches funded by the related Purchaser Group
and not previously paid to such Purchaser Agent) the amount necessary to reduce
(1) the Invested Amount to the Purchase Limit, (2) any Purchaser Group Invested
Amount to the related Purchaser Group Limit and (3) the Asset Interest to the
Allocation Limit, subject, however, to the proviso to Section 1.3(c)(iv).
Such payment shall be made out of amounts identified pursuant to Section 1.3
for such purpose and, to the extent such amounts were not so identified, the
Seller hereby agrees to pay such amounts to the Servicer to the extent of
Collections applied to Reinvestment under Section 1.3 during the
relevant Interim Reporting Period.

 

(d)                                 Order
of Application.  Upon receipt by each
Purchaser Agent, on the related Purchaser’s behalf, of funds distributed
pursuant to this Section 3.1, such Purchaser Agent shall apply them
to the items specified in the subclauses below, in the order of priority of
such subclauses:

 

(i)                                     to
accrued Earned Discount, CP Costs and Broken Funding Costs, plus any
previously accrued Earned Discount, CP Costs and Broken Funding Costs not paid,
to the extent owing to such Purchaser Group;

 

10

 

(ii)                                  to
the related Purchaser’s Share of the accrued and unpaid Servicer’s Fee (if
Servicer is not the Seller or its Affiliate);

 

(iii)                               to
such Purchaser Group’s Pro Rata Share of the Program Fee accrued during such
Settlement Period, plus any previously accrued Program Fee not paid on a
prior Settlement Date;

 

(iv)                              to
the reduction of the Invested Amount on a pro rata basis and the reduction of
any Purchaser Group Invested Amount, to the extent such reduction is required
under Section 3.1(c);

 

(v)                                 to
other accrued and unpaid amounts owing to any Purchaser or any Agent hereunder
(except Earned Discount on any Asset Tranche funded by a Liquidity Funding of
any Purchaser Group, as the case may be, which has accrued but is not yet
overdue under Section 1.3(c));

 

(vi)                              to
the related Purchaser’s Share of the accrued and unpaid Servicer’s Fee (if
Servicer is the Seller or its Affiliate); and

 

(vii)                           to
purchase newly originated Receivables during the Revolving Period.

 

(e)                                  Non-Distribution
of Servicer’s Fee.  Each Purchaser
Agent hereby consents (which consent may be revoked at any time after the
occurrence and during the continuance of a Liquidation Event), to the retention
by the Servicers of the amounts (if any) set aside pursuant to Section 1.3
in respect of the Servicer’s Fee, in which case no
distribution shall be made in respect of Servicer’s Fee pursuant to clause
(d) above.

 

(f)                                    Delayed
Payment.  If on any day described in
this Section 3.1 (or in Section 1.3(c) in respect of
accrued Earned Discount on Asset Tranches funded by a Liquidity Funding or
accrued CP Costs on Asset Tranches funded by the issuance of Commercial Paper
Notes by any Purchaser), because Collections during the relevant CP Accrual
Period or Yield Period were less than the aggregate amounts payable, the
Servicers shall not make any payment otherwise required, the next available
Collections in respect of the Asset Interest shall be applied to such payment,
and no Reinvestment shall be permitted hereunder until such amount payable has
been paid in full.

 

Section 3.2                                   Deemed
Collections; Reduction of the Invested Amount, Etc.

 

(a)                                  Deemed
Collections.  If on any day

 

(i)                                     the
Unpaid Balance of any Pool Receivable is

 

(A)                              reduced
as a result of any defective, rejected or returned merchandise or services, any
cash discount, or any other adjustment by any Seller Party or any Affiliate
thereof, or as a result of any tariff or other governmental or regulatory
action, or

 

11

 

(B)                                reduced
or canceled as a result of a setoff in respect of any claim by the Obligor
thereof (whether such claim arises out of the same or a related or an unrelated
transaction), or

 

(C)                                reduced
on account of the obligation of any Seller Party or any Affiliate thereof to
pay to the related Obligor any rebate or refund, or

 

(D)                               less
than the amount included in calculating the Net Pool Balance for purposes of
any Information Package or Interim Information Package, as the case may be (for
any reason other than such Receivable becoming a Defaulted Receivable), or

 

(ii)                                  any
of the representations or warranties of the Seller set forth in Section 6.1(j),
(l) or (p) were not true when made with respect to any Pool Receivable,
or any of the representations or warranties of the Seller set forth in Section 6.1(l)
are no longer true with respect to any Pool Receivable, or any Pool Receivable
is repurchased by the Originator pursuant to the Sale Agreement,

 

then, on such day, the Seller
shall be deemed to have received a Collection of such Pool Receivable

 

(A)                              in
the case of clause (i) above, in the amount of such reduction or
cancellation or the difference between the actual Unpaid Balance and the amount
included in calculating such Net Pool Balance, as applicable; and

 

(B)                                in
the case of clause (ii) above, in the amount of the Unpaid Balance of
such Pool Receivable.

 

Collections deemed received by
the Seller under this Section 3.2(a) are herein referred to as “Deemed Collections”.

 

(b)                                 Seller’s
Optional Reduction of the Invested Amount. 
The Seller may at any time elect to reduce the Invested Amount and each
Purchaser Group Invested Amount as follows:

 

(i)                                     the
Seller shall give each Purchaser Agent, on the related Purchaser’s behalf,
prior written notice in conformity with the Required Notice Period of such
reduction (which notice shall be irrevocable and shall include the amount of
such proposed reduction and the proposed date on which such reduction will
commence),

 

(ii)                                  on
the proposed date of commencement of such reduction and on each day thereafter,
the Servicers shall refrain from reinvesting Collections pursuant to Section 1.3
until the amount thereof not so reinvested shall equal the desired amount of
reduction, and

 

(iii)                               the
Servicers shall hold such Collections in trust for the Purchasers, pending
payment to the related Purchaser Agents, as provided in Section 1.3;

 

provided
that:

 

12

 

(A)                              the
amount of any such reduction shall be in an amount of $1,000,000 or an integral
multiple thereof,

 

(B)                                the
Seller shall use reasonable efforts to attempt to choose a reduction amount,
and the date of commencement thereof, so that such reduction shall commence and
conclude in the same Settlement Period,

 

(C)                                unless
the Invested Amount will be reduced to zero, after giving effect to such
reduction, the Invested Amount will be at least $25,000,000, and

 

(D)                               each
reduction of the Invested Amount shall be done on a pro rata basis and shall
result in a corresponding reduction in each Purchaser Group Invested Amount.

 

Section 3.3                                   Payments
and Computations, Etc.

 

(a)                                  Payments.  All amounts to be paid or deposited by the
Seller or the Servicers to any Purchaser Agent or any other Person hereunder
(other than amounts payable under Section 4.2) shall be paid or
deposited in accordance with the terms hereof no later than 12:00 noon
(Atlanta, Georgia time) on the day when due in lawful money of the United
States of America in same day funds to the related Purchaser Agent Account or
to such other account at the bank named therein or at such other bank as any
Purchaser Agent on behalf of the related Purchaser may designate by written
notice to the Person making such payment.

 

(b)                                 Late
Payments.  The Seller or the
Servicers, as applicable, shall, to the extent permitted by law, pay to the
Person to whom payment is due interest on all amounts not paid or deposited
when due hereunder at 2% per  annum above the Alternate Base Rate,
payable on demand, provided, however, that such interest rate
shall not at any time exceed the maximum rate permitted by applicable law.

 

(c)                                  Method
of Computation.  All computations of
interest, Earned Discount, any fees payable under Section 4.1 and
any other fees payable by Seller to any Purchaser or any Purchaser Agent
hereunder shall be made on the basis of a year of 360 days for the actual
number of days (including the first day but excluding the last day) elapsed.

 

Section 3.4                                   Treatment
of Collections and Deemed Collections.

 

The Seller
shall forthwith deliver to the Servicers all Deemed Collections, and the
Servicers shall hold or distribute such Deemed Collections as CP Costs, Broken
Funding Costs, Earned Discount, accrued Servicer’s Fee, repayment of the
Invested Amount or any Purchaser Group Invested Amount and to other accrued
amounts owing hereunder to the same extent as if such Deemed Collections had
actually been received on the date of such delivery to the Servicers.  If Collections are then being paid to any
Agent, on behalf of the Purchasers, or its designee, or lock boxes or accounts
directly or indirectly owned or controlled by the Administrative Agent, on
behalf of the Purchasers, the Servicers shall forthwith cause such Deemed
Collections to be paid to each Purchaser Agent, on the related Purchaser’s
behalf, or its designee or to such lock boxes or accounts, as applicable, or as
the Purchaser Agent shall request.  So
long as the Seller shall hold any Collections (including Deemed Collections)

 

13

 

required to be paid to the
Servicers or any Agent, it shall hold such Collections in trust for the benefit
of the Agents, on behalf of the Purchasers, and shall clearly mark its records
to reflect such trust; provided that unless the Administrative Agent
shall have requested it in writing to do so, the Seller shall not be required
to hold such Collections in a separate deposit account containing only such
Collections.

 

Article IV

 

Fees and Yield Protection

 

Section 4.1                                   Fees.

 

The Seller
shall pay to each Agent and each Purchaser certain fees from time to time in
amounts payable on such dates as are set forth in the letter dated November 12,
2004 (as amended from time to time, the “Fee Letter”)
among the Seller, the Purchasers and the Agents.

 

Section 4.2                                   Yield
Protection.

 

If (a)
Regulation D or (b) any Regulatory Change occurring after November 15,
2002:

 

(i)                                     shall
subject an Affected Party to any tax, duty or other charge with respect to any
portion of the Asset Interest owned by or funded by it, or any obligations or
right to make Purchases or Reinvestments or to provide funding therefor, or
shall change the basis of taxation of payments to the Affected Party of any
portion of  Invested Amount, CP Costs or
Earned Discount owned by, owed to or funded in whole or in part by it or any
other amounts due under this Agreement in respect of any portion of the Asset
Interest owned by or funded by it or its obligations or rights, if any, to make
Purchases or Reinvestments or to provide funding therefor (except for (A) taxes
based on, or measured by, net income, or changes in the rate of tax on or
determined by reference to the overall net income, of such Affected Party
imposed by the United States of America, by the jurisdiction in which such
Affected Party’s principal executive office is located and, if such Affected
Party’s principal executive office is not in the United States of America, by
the jurisdiction where such Affected Party’s principal office in the United
States is located or, (B) franchise taxes, taxes on, or in the nature of, doing
business taxes or capital taxes); or

 

(ii)                                  shall
impose, modify or deem applicable any reserve (including, without limitation,
any reserve imposed by the Federal Reserve Board, but excluding any reserve
included in the determination of Earned Discount), special deposit or similar
requirement against assets of any Affected Party, deposits or obligations with
or for the account of any Affected Party or with or for the account of any
affiliate (or entity deemed by the Federal Reserve Board to be an affiliate) of
any Affected Party, or credit extended by any Affected Party; or

 

(iii)                               shall
change the amount of capital maintained or required or requested or directed to
be maintained by any Affected Party; or

 

14

 

(iv)                              shall
impose any other condition affecting any Asset Interest owned or funded in
whole or in part by any Affected Party, or its obligations or rights, if any,
to make Purchases or Reinvestments or to provide funding therefor; or

 

(v)                                 shall
change the rate for, or the manner in which the Federal Deposit Insurance
Corporation (or a successor thereto) assesses, deposit insurance premiums or
similar charges;

 

and the result of any of the
foregoing is or would be

 

(A)                              to
increase the cost to or to impose a cost on (1) an Affected Party funding or
making or maintaining any Purchases or Reinvestments, any purchases,
reinvestments, or loans or other extensions of credit under any Liquidity
Agreement, or any commitment of such Affected Party with respect to any of the
foregoing, or (2) any Agent for continuing its or the Seller’s relationship
with any Purchaser, in each case, in an amount deemed to be material by such
Affected Party,

 

(B)                                to
reduce the amount of any sum received or receivable by an Affected Party under
this Agreement or under any Liquidity Agreement, or

 

(C)                                in
the reasonable determination of such Affected Party, to reduce the rate of
return on the capital of an Affected Party as a consequence of its obligations
hereunder or arising in connection herewith to a level below that which such
Affected Party could otherwise have achieved,

 

then, within thirty days after
demand by such Affected Party (which demand shall be accompanied by a certificate
setting forth, in reasonable detail, the basis of such demand and the
methodology for calculating, and the calculation of, the amounts claimed by the
Affected Party), the Seller shall pay directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such
additional or increased cost or such reduction.

 

(c)                                  Each
Affected Party will promptly notify the Seller and each Agent of any event of
which it has knowledge (including any future event that, in the judgment of
such Affected Party, is reasonably certain to occur) which will entitle such
Affected Party to compensation pursuant to this Section 4.2; provided,
however, any failure to give or delay in giving such notification shall
not adversely affect the rights of any Affected Party to such compensation.

 

(d)                                 In
determining any amount provided for or referred to in this Section 4.2,
an Affected Party may use any reasonable averaging and attribution methods
(consistent with its ordinary business practices) that it (in its reasonable
discretion) shall deem applicable. 
Notwithstanding anything herein to the contrary, Wachovia and BTM, in
their capacity as a Liquidity Bank, the Purchasers and the Purchaser Agents,
respectively, shall (i) use commercially reasonable efforts to cause each
Affected Party to proportionally allocate any increased cost or reduced return
to all Other Customers that are affected similarly by any Regulatory Change or
Regulation D and (ii) use commercially reasonable efforts in accordance with
its normal practices to minimize amounts payable under this Article IV.  Any Affected Party when making a claim under
this Section 4.2 shall submit to the Seller the above-referenced

 

15

 

certificate as to such
increased cost or reduced return (including calculation thereof in reasonable
detail), which statement shall, in the absence of demonstrable error, be
conclusive and binding upon the Seller.

 

(e)                                  For
avoidance of doubt, any interpretation of Accounting Research Bulletin
No. 51 by the Financial Accounting Standards Board shall constitute an
adoption, change, request or directive subject to this Section 4.2.

 

Section 4.3                                   Funding
Losses.

 

In the event
that any Purchaser or any Liquidity Bank shall actually incur any loss or
expense (including, without limitation, any loss or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by such
Purchaser or such Liquidity Bank to make any Liquidity Funding or maintain any
Liquidity Funding) as a result of (a) any settlement with respect to the
related Purchaser’s Tranche Investment of any portion of any Asset Tranche
funded by a Liquidity Funding being made on any day other than the scheduled
last day of an applicable Yield Period with respect thereto (it being
understood that the foregoing shall not apply to any portion of the Invested
Amount that is accruing Earned Discount calculated by reference to the
Alternate Base Rate), or (b) any Purchase not being made in accordance with a
request therefor under Section 1.2, or (c) any settlement with
respect to the Purchaser’s Tranche Investment of any Asset Tranche funded by
Commercial Paper Notes issued by any Purchaser being made on any day other than
a Settlement Date, then, upon written notice from any Purchaser Agent to the
Seller and the Servicers, the Seller shall pay to the Servicers, and the
Servicers shall pay to such Purchaser Agent for the account of the related
Purchaser or such Liquidity Bank, the amount of such loss or expense.  Such written notice (which shall include the
methodology for calculating, and the calculation of, the amount of such loss or
expense, in reasonable detail) shall, in the absence of demonstrable error, be
conclusive and binding upon the Seller and the Servicers.

 

Article V

 

Conditions of Purchases

 

Section 5.1                                   Conditions
Precedent to Initial Purchase.

 

The initial
Purchase is subject to the condition precedent that each Purchaser Agent,
on  the related Purchaser’s behalf, shall
have received, on or before the date of such initial Purchase, the following
each (unless otherwise indicated) dated such date and in form and substance
reasonably satisfactory to such Purchaser Agent:

 

(a)                                  The
Sale Agreement and all other Transaction Documents, duly executed by the
parties thereto;

 

(b)                                 A
certificate of the Secretary or Assistant Secretary of each Seller Party
certifying the names and true signatures of the officers authorized on its
behalf to sign this Agreement and the other Transaction Documents to be
delivered by it hereunder (on which certificate the Administrative Agent and
the Purchasers may conclusively rely until such time as the Purchaser

 

16

 

Agent, on the related Purchaser’s
behalf, shall receive from such Seller Party a revised certificate meeting the
requirements of this subsection (b));

 

(c)                                  The
articles or certificate of incorporation or organization of each Seller Party,
duly certified by the Secretary of State of such Seller Party’s state of
incorporation, dated within thirty (30) days prior to the Closing Date, on the
related Purchaser’s behalf, in each case together with a copy of the by-laws of
such Seller Party, duly certified by the Secretary or an Assistant Secretary of
such Seller Party;

 

(d)                                 A
true and complete copy of the resolutions of the Board of Directors, managers
or members, as applicable, of each Seller Party authorizing the execution,
delivery and performance of this Agreement and the Transaction Documents to
which it is a party and the transactions contemplated hereby and thereby;

 

(e)                                  Copies
of good standing certificates for each Seller Party dated within thirty (30)
days prior to the Closing Date, issued by the Secretaries of State of the state
of incorporation or organization of such Seller Party and the state where such
Seller Party’s principal place of business is located;

 

(f)                                    Acknowledgment
copies (or other evidence of filing reasonably acceptable to the Administrative
Agent, on the Purchaser’s behalf,) of (i) proper amended financing statements
(Form UCC-1), in such form as the Administrative Agent, on behalf of the
Secured Parties, may reasonably request, naming Georgia Gulf and GGCV as the
debtors and the sellers of the Receivables and Related Assets, the Seller as
the secured party and purchaser thereof and the Administrative Agent, for the
benefit of the Secured Parties, as assignee, and (ii) amended financing
statements (Form UCC-1), in such form as the Administrative Agent, on behalf of
the Secured Parties, may reasonably request, naming the Seller as the debtor
and seller of an undivided percentage interest in the Pool Receivables and
Related Assets and the Administrative Agent, for the benefit of the Secured
Parties, as the secured party and purchaser thereof, or other, similar
instruments or documents, as may be necessary or, in the opinion of the
Administrative Agent, on behalf of the Secured Parties, desirable under the UCC
or any comparable law of all appropriate jurisdictions to perfect the sale by
Georgia Gulf and GGCV to the Seller of, and the Administrative Agent’s, for the
benefit of the secured parties, undivided percentage interest in, the Pool
Receivables and Related Assets;

 

(g)                                 Search
reports provided in writing to the Administrative Agent, on behalf of the
Secured Parties, with results as of a date within thirty (30) days prior to the
Closing Date, listing all effective financing statements that name any Seller
Party as debtor and that are filed in the jurisdictions in which filings were
made pursuant to subsection (f) above and in such other
jurisdictions that the Administrative Agent shall reasonably request, together
with copies of such financing statements (none of which (other than any of the
financing statements described in subsection (f) above) shall cover
any Receivables or Related Assets);

 

(h)                                 The
Subordinated Notes, duly executed by Seller;

 

(i)                                     A
favorable opinion of Jones Day, counsel to the Seller Parties, as to:

 

17

 

(i)                                     the
existence of a “true sale” of the Receivables from the Originators to the
Seller under the Sale Agreement;

 

(ii)                                  the
inapplicability of the doctrine of substantive consolidation to the Seller,
Georgia Gulf and GGCV in connection with any bankruptcy proceeding involving
any Seller Party;

 

(iii)                               the
creation or existence of a first priority perfected security interest in favor
of the Purchasers in (A) all the Pool Receivables and Related Assets (and
including specifically any undivided interest therein retained by the Seller hereunder),
(B) the rights of the Seller in, to and under the Sale Agreement and the other
Transaction Documents and (C) all proceeds of any of the foregoing;

 

(iv)                              due
authorization, execution, delivery, enforceability and other corporate matters
of the Seller Parties as to the Transaction Documents; and

 

(v)                                 such
other matters as the Administrative Agent, acting on behalf of the Secured
Parties, may reasonably request.

 

(j)                                     A
pro forma Information Package, prepared as of the Cut-Off Date of September 30,
2004;

 

(k)                                  A
report in form and substance satisfactory to each Purchaser Agent, on the
related Purchaser’s behalf, from the Initial Due Diligence Auditor as to a
pre-closing due diligence audit by the Initial Due Diligence Auditor (such
report and any amendment, supplement, update or other modification, the “Due Diligence Report”);

 

(l)                                     The
Blue Ridge Liquidity Agreement, in form and substance satisfactory to the
Administrative Agent, on the Purchasers’ behalf, duly executed by each of the
parties thereto;

 

(m)                               The
Victory Liquidity Agreement, in form and substance satisfactory to the Victory
Purchaser Agent, duly executed by each of the parties thereto;

 

(n)                                 With
respect to Georgia Gulf and GGCV, a consolidated balance sheet, income
statement and statement of cashflows as at December 31, 2003 and June 30,
2004, respectively, and with respect to the Seller, a balance sheet, income
statement and statement of cashflows as at December 31, 2003 and June 30,
2004, respectively, each of the foregoing together with a certification of the
chief financial officer, treasurer or corporate controller in the form attached
hereto as Exhibit B;

 

(o)                                 The
Administrative Agent and the Purchaser Agents shall have received copies of a
Lock-Box Agreement for each Lock-Box Account, duly executed by each of the
parties thereto.

 

(p)                                 Such
other agreements, instruments, certificates, opinions and other documents as
any Purchaser Agent may reasonably request.

 

18

 

Section 5.2                                   Conditions
Precedent to All Purchases and Reinvestments.

 

Each Purchase
(including the initial Purchase) and each Reinvestment shall be subject to the
further conditions precedent that on the date of such Purchase or Reinvestment
the following statements shall be true (and the Seller, by accepting the amount
of such Purchase or by receiving the proceeds of such Reinvestment, and each
other Seller Party, upon such acceptance or receipt by the Seller, shall be
deemed to have certified that):

 

(a)                                  the
representations and warranties contained in Section 6.1 are correct
in all material respects on and as of such day as though made on and as of such
day and shall be deemed to have been made on such day (except to the extent of
changes resulting from transactions contemplated or permitted by this Agreement
or to the extent of changes that have otherwise been consented to by the
Administrative Agent on behalf of the Secured Parties); provided  that
the materiality threshold in the preceding clause shall not be applicable with
respect to any clause of any representation or warranty which itself contains a
materiality qualification,

 

(b)                                 no
event has occurred and is continuing, or would result from such Purchase or
Reinvestment, that constitutes a Liquidation Event or Unmatured Liquidation
Event,

 

(c)                                  after
giving effect to each proposed Purchase or Reinvestment, (i) the Invested
Amount will not exceed the Purchase Limit, (ii) no Purchaser Group Invested
Amount will exceed the related Purchaser Group Limit and (iii) the Asset
Interest will not exceed the Allocation Limit,

 

(d)                                 the
Termination Date shall not have occurred,

 

(e)                                  in
the case of a Purchase, each Purchaser Agent shall have timely received an
appropriate notice of the proposed Purchase in accordance with Section 1.2(a),

 

(f)                                    the
Servicers shall have delivered to each Purchaser Agent, on the related
Purchaser’s behalf, a completed Information Package or Interim Information
Package (if applicable) as of the applicable Reporting Date, and

 

(g)                                 such
other agreements, instruments, certificates, opinions and other documents as
the Administrative Agent may reasonably request have been delivered.

 

Article VI

 

Representations and Warranties

 

Section 6.1                                   Representations
and Warranties of Seller Parties.

 

Each Seller
Party represents and warrants as to itself as follows:

 

(a)                                  Organization
and Good Standing; Ownership.  Each
Seller Party’s jurisdiction of organization is correctly set forth in the
preamble to this Agreement.  Each Seller
Party is duly organized and is validly existing as a corporation or limited
liability company in good standing

 

19

 

under the laws of such
jurisdiction and is a “registered organization” as defined in the UCC in effect
in such jurisdiction, with power and authority to own its properties and to
conduct its business as such properties are presently owned and such business
is presently conducted.  The Seller had
at all relevant times, and now has, all necessary power, authority, and legal
right to acquire and own the Pool Receivables and Related Assets.  Collectively, the Originators own 100% of all
the issued and outstanding capital stock of the Seller.

 

(b)                                 Due
Qualification.  Each Seller Party is
duly qualified to do business as a foreign corporation or limited liability
company in good standing, and has obtained all necessary licenses and
approvals, in all jurisdictions in which the ownership or lease of property or
the conduct of its business requires such qualification, licenses or approvals,
except where the failure to be so qualified or have such licenses or approvals
would not have a Material Adverse Effect.

 

(c)                                  Power
and Authority; Due Authorization. 
Each Seller Party (i) has all necessary power, authority and legal right
(A) to execute and deliver this Agreement and the other Transaction Documents
to which it is a party, (B) to carry out the terms of the Transaction Documents
to which it is a party, (C) in the case of the Servicers, to service the
Receivables and the Related Assets in accordance with this Agreement and the
Sale Agreement, and (D) in the case of the Seller, sell and assign the Asset
Interest on the terms and conditions herein provided, and (ii) has duly
authorized by all necessary corporate or limited liability company action the
execution, delivery and performance of this Agreement and the other Transaction
Documents and, in the case of the Seller, the sales and assignments described
in clause (i)(D) above.

 

(d)                                 Valid
Sale; Binding Obligations.  (i) This
Agreement constitutes a valid sale, transfer, and assignment of the Asset
Interest to the Administrative Agent, as agent for the Purchasers, enforceable
against creditors of, and purchasers from, the Seller, and (ii) this Agreement
and each other Transaction Document signed by such Seller Party constitutes, a
legal, valid and binding obligation of such Seller Party, enforceable in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, or other similar laws from time to time
in effect affecting the enforcement of creditors’ rights generally and by
general principles of equity, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

 

(e)                                  No
Violation.  The consummation of the
transactions contemplated by this Agreement and the other Transaction Documents
and the fulfillment of the terms hereof and thereof will not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time or both) a default under, the articles or
certificate of incorporation or organization or the by-laws or operating
agreement of such Seller Party, or any material indenture, loan agreement,
receivables purchase agreement, mortgage, deed of trust, or other agreement or
instrument to which such Seller Party is a party or by which it or any of its
properties is bound, (ii) result in the creation or imposition of any Lien upon
any of such Seller Party’s properties pursuant to the terms of any such
material indenture, loan agreement, receivables purchase agreement, mortgage,
deed of trust, or other agreement or instrument, other than this Agreement and
the other Transaction Documents, or (iii) violate any law or any order, rule,
or regulation applicable to such Seller Party of any court or of any federal or
state regulatory body, administrative agency, or other governmental
instrumentality having jurisdiction over such Seller Party or any of its
properties.

 

20

 

(f)                                    No
Proceedings.  Except as set forth in
the Annual Report of Georgia Gulf and its subsidiaries on Form 10-K for the
year ended December 31, 2003, or in any document filed prior to the date
of this Agreement pursuant to Section 13(a), 14 or 15(d) of the Securities
Exchange Act of 1934, there are no proceedings or investigations pending, or,
to such Seller Party’s knowledge, threatened, before any court, regulatory
body, administrative agency, or other tribunal or governmental instrumentality (i)
asserting the invalidity of this Agreement or any other Transaction Document, (ii)
seeking to prevent the sale and assignment of the Receivables under the Sale
Agreement or of the Asset Interest under this Agreement or the consummation of
any of the other transactions contemplated by this Agreement or any other
Transaction Document, or (iii) that would have a Material Adverse Effect.

 

(g)                                 Bulk
Sales Act.  No transaction
contemplated hereby requires compliance with any bulk sales act or similar law.

 

(h)                                 Government
Approvals.  No authorization or
approval or other action by, and no notice to or filing with, any Governmental
Authority or regulatory body is required for the due execution, delivery and
performance by such Seller Party of this Agreement and each other Transaction
Document to which it is a party, except, in the case of the Seller, for (i)
the filing of the amendments to the UCC financing statements referred to in Article V,
and (ii) the filing of any UCC continuation statements and amendments from time
to time required in relation to any UCC financing statements filed in
connection with this Agreement, as provided in Section 8.5, all of
which, at the time required in Article V or Section 8.5,
as applicable, shall have been duly made and shall be in full force and effect.

 

(i)                                     Financial
Condition.  (i) The consolidated
balance sheets of Georgia Gulf and its consolidated subsidiaries as at December 31,
2003 and June 30, 2004, respectively, and the related statements of income
and shareholders’ equity of Georgia Gulf and its consolidated subsidiaries for
the fiscal period then ended, certified by Deloitte & Touche, independent
certified public accountants, copies of each of which have been furnished to
the Agents, fairly present in all material respects the consolidated financial
condition of Georgia Gulf and its consolidated subsidiaries as at such dates
and the consolidated results of the operations of Georgia Gulf and its
consolidated subsidiaries for the period ended on such dates, all in accordance
with GAAP consistently applied, (ii) since December 31, 2003 and June 30,
2004, respectively, there has been no material adverse change in any such
financial condition, business or operations except as described in Schedule 6.1(i),
(iii) the balance sheets of the Seller as at December 31, 2003 and June 30,
2004, respectively, certified by the chief financial officer, treasurer or
corporate controller of the Seller by means of a Certificate of Financial
Officer in the form attached hereto as Exhibit B, copies of which have
been furnished to the Agents, fairly present in all material respects the
financial condition, assets and liabilities of the Seller as at such dates, all
in accordance with GAAP consistently applied, and (iv) since December 31,
2003 and June 30, 2004, respectively, there has been no material adverse
change in the Seller’s financial condition, business or operations.

 

(j)                                     Nature
of Receivables.  Each Receivable
constitutes an “account” as such term is defined in the UCC.

 

21

 

(k)                                  Margin
Regulations.  The use of all funds
obtained by such Seller Party under this Agreement or any other Transaction
Document will not conflict with or contravene any of Regulations T, U and X
promulgated by the Board of Governors of the Federal Reserve System from time
to time (including, without limitation, its obligations hereunder and under the
Sale Agreement, whether or not such obligations are then due or yet to become
due).

 

(l)                                     Good
Title.  The Seller owns and has good
and marketable title to the Collateral free and clear of any Lien, except as
created by the Transaction Documents.

 

(m)                               Accurate
Reports.  No Information Package or
Interim Information Package (if prepared by such Seller Party, or to the extent
information therein was supplied by such Seller Party) or other information,
exhibit, financial statement, document, book, record or report furnished or to
be furnished, in each case in writing, by or on behalf of such Seller Party to
any  Agent or any Purchaser pursuant to
this Agreement was or will be inaccurate in any material respect as of the date
it was or will be dated or (except as otherwise disclosed to such Agent or such
Purchaser at such time) as of the date so furnished, or contained or (in the
case of information or other materials to be furnished in the future) will
contain any material misstatement of fact or omitted or (in the case of
information or other materials to be furnished in the future) will omit to
state a material fact or any fact necessary to make the statements contained
therein not materially misleading in light of the circumstances made or
presented.

 

(n)                                 Offices.  The principal places of business and chief
executive offices of the Servicers and the Seller are located at the respective
addresses set forth on Schedule 14.2, and the offices where the
Servicers and the Seller keep all their books, records and documents evidencing
Pool Receivables, the related Contracts and all purchase orders and other
agreements related to such Pool Receivables are located at the addresses
specified in Schedule 6.1(n) (or at such other locations, notified
to the Administrative Agent, on the Purchasers’ behalf, in accordance with Section 7.1(f),
in jurisdictions where all action required by Section 8.5 has been
taken and completed).

 

(o)                                 Lock-Box
Accounts.  The names and addresses of
all the Lock-Box Banks, together with the account numbers of the accounts of
the Originators or the Seller at such Lock-Box Banks, are specified in Schedule 6.1(o)
(or have been notified to and approved by the Administrative Agent, on the
Purchasers’ behalf, in accordance with Section 7.3(d)).

 

(p)                                 Eligible
Receivables.  Each Receivable
included in the Net Pool Balance as an Eligible Receivable on the date of any
Purchase, Reinvestment or computation of Net Pool Balance shall be an Eligible
Receivable on such date.

 

(q)                                 Servicing
Programs.  No license or approval is
required for the Administrative Agent’s use of any program used by the
Servicers in the servicing of the Receivables, other than those which have been
obtained and are in full force and effect.

 

(r)                                    Perfection.

 

(i)                                     This
Agreement creates a valid and continuing security interest (as defined in the
UCC) in the Collateral in favor of Administrative Agent for the benefit of the

 

22

 

Secured Parties,
which security interest is prior to all other Liens and is enforceable as such
as against creditors and purchasers from the Seller.

 

(ii)                                  There
have been duly filed all financing statements or other similar instruments or
documents necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect (A) the Seller’s ownership interest in each
Receivable, its Collections and the Related Assets and (B) the Administrative
Agent’s (on behalf of the Secured Parties) security interest in the Collateral.

 

(iii)                               Other
than the security interest granted to Administrative Agent for the benefit of
the Secured Parties pursuant to this Agreement, the Seller has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of
the Collateral.

 

(iv)                              The
Seller’s jurisdiction of organization is a jurisdiction whose law generally
requires information concerning the existence of a nonpossessory security
interest to be made generally available in a filing, record or registration
system as a condition or result of such a security interest’s obtaining
priority over the rights of a lien creditor which respect to collateral.

 

(v)                                 The
Seller has not authorized the filing of and is not aware of any financing
statements against the Seller that include a description of collateral covering
the Collateral other than any financing statement relating to the security
interest granted to Administrative Agent for the benefit of the Secured Parties
hereunder or that has been terminated. 
The Seller is not aware of any judgment or tax lien filings against the
Seller.

 

(s)                                  Compliance
with Credit and Collection Policy. 
With respect to each Pool Receivable, each Seller Party has complied in
all material respects with the Credit and Collection Policy.

 

(t)                                    Names.  In the past five (5) years, the Seller has
not used any corporate names, trade names or assumed names other than the name
in which it has executed this Agreement.

 

(u)                                 Ownership
of the Seller.  Collectively, the
Originators own, directly or indirectly, 100% of the issued and outstanding
capital stock of the Seller, free and clear of any Lien other than the Lien
granted in favor of the Guarantee Collateral Agent for the benefit of the
Guarantee Secured Parties pursuant to the Collateral Agreement.  Such capital stock is validly issued, fully
paid and nonassessable, and there are no options, warrants or other rights to
acquire securities of the Seller.

 

(v)                                 Investment
Company.  No Seller Party is an “investment
company” within the meaning of the Investment Company Act of 1940, as amended
from time to time, or any successor statute.

 

(w)                               Taxes.  Each Seller Party has filed all material tax
returns and reports required by law to have been filed by it and has paid all
taxes and governmental charges thereby shown to be owing, except to the extent
any failure to file such returns or reports or pay such taxes or charges would
not result in a Material Adverse Effect.

 

23

 

(x)                                   Restrictions
on Transfers.  No Contract requires
the prior written consent of an Obligor or contains any other restriction
relating to the transfer or assignment of rights of payment under such Contract
which are legally enforceable (other than a consent or waiver of such
restriction that has been obtained prior to the Closing Date).

 

Article VII

 

General Covenants of Seller Parties

 

Section 7.1                                   Affirmative
Covenants of Seller Parties.

 

From the date
hereof until the Final Payout Date, unless each Agent shall otherwise consent
in writing:

 

(a)                                  Compliance
With Laws, Etc  Each Seller Party
will comply in all material respects with all applicable laws, rules,
regulations and orders, including those with respect to the Pool Receivables
and related Contracts, except where the failure to so comply would not
individually or in the aggregate have a Material Adverse Effect.

 

(b)                                 Preservation
of Corporate Existence.  Each Seller
Party will preserve and maintain its corporate or limited liability company
existence, rights, franchises and privileges in the jurisdiction of its
incorporation or organization, and qualify and remain qualified in good
standing as a foreign corporation or limited liability company in each
jurisdiction where the failure to preserve and maintain such existence, rights,
franchises, privileges and qualification would have a Material Adverse Effect.

 

(c)                                  Audits.  Each Seller Party will (i) at any time and
from time to time upon not less than five (5) Business Days’ notice (unless a
Liquidation Event has occurred and is continuing (or any Purchaser Agent, on
the related Purchaser’s behalf, believes in good faith that a Liquidation Event
has occurred and is continuing), in which case no such notice shall be
required) during regular business hours, permit such Purchaser Agent, on the
related Purchaser’s behalf, or any of its agents or representatives, (A) to
examine and make copies of and abstracts from all books, records and documents
(including, without limitation, computer tapes and disks) in the possession or
under the control of such Seller Party relating to Pool Receivables, including,
without limitation, the related Contracts and purchase orders and other
agreements, and (B) to visit the offices and properties of such Seller Party
for the purpose of examining such materials described in clause (i)(A)
next above, and to discuss matters relating to Pool Receivables or such Seller
Party’s performance hereunder with any of the officers or employees of such
Seller Party having knowledge of such matters; (ii) permit each Purchaser Agent
or any of its agents or representatives, upon not less than five (5) Business
Days’ notice from such Purchaser Agent (unless a Liquidation Event has occurred
and is continuing (or such Purchaser Agent believes in good faith that a
Liquidation Event has occurred and is continuing) in which case no such notice
shall be required), to meet with the independent auditors of such Seller Party,
to review such auditors’ work papers and otherwise to review with such auditors
the books and records of such Seller Party with respect to the Pool Receivables
and Related Assets; and (iii) without limiting the provisions of clause (i)
or (ii) next above, from time to time, at the expense of such Seller
Party, permit certified public accountants or other auditors acceptable to each

 

24

 

Purchaser Agent to conduct a
review of such Seller Party’s books and records with respect to the Pool
Receivables and Related Assets; provided, that, so long as no
Liquidation Event has occurred and is continuing, (A) such reviews (as between
the Agents) shall not be done more than four (4) times in any one calendar year
and (B) the Seller Parties shall only be responsible for the costs and expenses
of one such review (as between the Agents) in any one calendar year.  The Purchaser Agents agree that they will
consult and coordinate with each other regarding the scheduling of all reviews
and neither will conduct a review without providing reasonable prior notice to
the other Purchaser Agent.

 

(d)                                 Keeping
of Records and Books of Account.  The
Servicers will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Pool
Receivables in the event of the destruction of the originals thereof), and keep
and maintain, all documents, books, records and other information reasonably
necessary or advisable for the collection of all Pool Receivables (including,
without limitation, records adequate to permit the daily identification of
outstanding Unpaid Balances by Obligor and related debit and credit details of
the Pool Receivables).

 

(e)                                  Performance
and Compliance with Receivables and Contracts.  Each Seller Party will, at its expense,
timely and fully perform and comply with all material provisions, covenants and
other promises, if any, required to be observed by it under the Contracts
related to the Pool Receivables and all agreements related to such Pool
Receivables.

 

(f)                                    Location
of Records.  Each Seller Party will
keep its chief place of business and chief executive office, and the offices
where it keeps its records concerning the Pool Receivables, all related
Contracts and all agreements related to such Pool Receivables (and all original
documents relating thereto), at the address(es) of the Servicers and Seller
referred to in Section 6.1(n) or, upon 30 days’ prior written
notice to the Administrative Agent (with a copy to each Purchaser Agent), at
such other locations in jurisdictions where all action required by Section 8.5
shall have been taken and completed.

 

(g)                                 Credit
and Collection Policies.  Each Seller
Party will comply with the Credit and Collection Policy in regard to each Pool
Receivable and the related Contract.

 

(h)                                 Sale
Agreement.  The Seller will perform
and comply with all of its covenants and agreements set forth in the Sale
Agreement, and will enforce the performance by the Originators of its
obligations under the Sale Agreement.

 

(i)                                     Collection
Bank Agreement.  All Obligors shall
be instructed to make payments on Receivables directly to a Lock-Box Account in
the name of the Seller which is the subject of a Lock-Box Agreement.  If, notwithstanding the foregoing, any
Collections are paid directly to any Seller Party, such Seller Party, shall
deposit the same (with any necessary endorsements) to such a Lock-Box Account
within two (2) Business Days after receipt thereof.  Upon demand of the Administrative Agent at
the direction of the Agents, either the Seller or the Initial Servicers shall
establish a segregated account at Wachovia which is subject to a perfected
security interest in favor of the Administrative Agent, for the benefit of the
Secured Parties (the “Collection Account”),
into which all deposits from time to time in Lock-Box Accounts, and all other
Collections, are concentrated pending application in accordance with the terms
of this

 

25

 

Agreement.  The
Seller, or any Servicer on behalf of the Seller, shall cause evidence to be
delivered to Administrative Agent (with a copy to each Purchaser Agent) within
thirty (30) days of the Closing Date showing that the each Lock-Box and
Collection Account were maintained on the Closing Date, and continue to be
maintained, in the name of the Seller.

 

Section 7.2                                   Reporting
Requirements of Seller Parties.

 

From the date hereof until the Final Payout Date, unless each Agent, on
the related Purchaser’s behalf, shall otherwise consent in writing:

 

(a)                                  Quarterly
Financial Statements.  Georgia Gulf
will furnish to each Purchaser Agent, on the related Purchaser’s behalf, as
soon as available and in any event within 50 days after the end of each of the
first three quarters of each fiscal year of Georgia Gulf, copies of its
consolidated, and, to the extent otherwise available, consolidating balance
sheets and related statements of income and statements of cash flow, showing
the financial condition of Georgia Gulf and its consolidated Subsidiaries as of
the close of such fiscal quarter and the results of its operations and the
operations of such Subsidiaries during such fiscal quarter and the then elapsed
portion of the fiscal year, together with a Certificate of Financial Officer in
the form attached hereto as Exhibit B executed by the chief financial
officer, treasurer or corporate controller of Georgia Gulf.

 

(b)                                 Annual
Financial Statements.  Georgia Gulf
will furnish to each Purchaser Agent, on the related Purchaser’s behalf, as
soon as available and in any event within 95 days after the end of each fiscal
year of Georgia Gulf, copies of its consolidated and consolidating balance
sheets and related statements of income and statements of cash flow, showing
the financial condition of Georgia Gulf and its consolidated Subsidiaries as of
the close of such fiscal year and the results of its operations and the
operations of such Subsidiaries during such year, all audited by Deloitte &
Touche or other independent public accountants of recognized national standing
acceptable to each Agent and accompanied by an opinion of such accountants
(which shall not be qualified in any material respect) to the effect that such
consolidated financial statements fairly present the financial condition and
results of operations of Georgia Gulf on a consolidated basis (except as noted
therein) in accordance with GAAP consistently applied;

 

(c)                                  Annual
Financial Statements-GGCV.  GGCV will
furnish to each Purchaser Agent, on the related Purchaser’s behalf, as soon as
available and in any event within 95 days after the end of each fiscal year of
GGCV, copies of the financial statements of GGCV, consisting of at least a
balance sheet of GGCV for such year and statements of earnings, cash flows and
shareholders’ equity, setting forth in each case in comparative form
corresponding figures from the preceding fiscal year, together with a
Certificate of Financial Officer in the form attached hereto as Exhibit B
executed by the chief financial officer, treasurer or corporate controller of
GGCV;

 

(d)                                 Annual
Financial Statements-Seller.  The
Seller will furnish to each Purchaser Agent, on the related Purchaser’s behalf,
as soon as available and in any event within 95 days after the end of each
fiscal year of the Seller, copies of the financial statements of the Seller,
consisting of at least a balance sheet of the Seller for such year and
statements of earnings, cash flows and shareholders’ equity, setting forth in
each case in comparative form corresponding

 

26

 

figures from the preceding fiscal year, together with
a Certificate of Financial Officer in the form attached hereto as Exhibit B
executed by the chief financial officer, treasurer or corporate controller of
the Seller;

 

(e)                                  Reports
to Holders and Exchanges.  In
addition to the reports required by subsections (a), (b), (c)
and (d) next above, promptly upon any Agent’s request, Georgia Gulf and
GGCV will furnish to such Agent, on the related Purchaser’s behalf, copies of
any reports specified in such request which Georgia Gulf and GGCV send to any
of its securityholders, and any reports or registration statements that Georgia
Gulf and GGCV file with the Securities and Exchange Commission or any national
securities exchange other than registration statements relating to employee
benefit plans and to registrations of securities for selling securities;

 

(f)                                    ERISA.  Promptly after the filing or receiving
thereof, each Seller Party will furnish to each Purchaser Agent, on the related
Purchaser’s behalf, copies of all reports and notices with respect to any
Reportable Event defined in Article IV of ERISA which any Seller Party
files under ERISA with the Internal Revenue Service, the Pension Benefit
Guaranty Corporation or the U.S. 
Department of Labor or which such Seller Party receives from the Pension
Benefit Guaranty Corporation;

 

(g)                                 Liquidation Events, etc.  As
soon as possible and in any event within three (3) Business Days after
obtaining knowledge of the occurrence of any Liquidation Event or any Unmatured
Liquidation Event, each Seller Party will furnish to each Purchaser Agent, on
the related Purchaser’s behalf, a written statement of the chief financial
officer, treasurer or chief accounting officer of such Seller Party setting
forth details of such event and the action that such Seller Party will take
with respect thereto;

 

(h)                                 Litigation.  As soon as possible and in any event within
ten Business Days of any Seller Party’s knowledge thereof, such Seller Party
will furnish to each Purchaser Agent, on the related Purchaser’s behalf, notice
of (i) any litigation, investigation or proceeding which may exist at any time
which could reasonably be expected to have a Material Adverse Effect and (ii)
any development in previously disclosed litigation which development could
reasonably be expected to have a Material Adverse Effect;

 

(i)                                     Change
in Credit and Collection Policy. 
Prior to its effective date, each Seller Party will furnish to each
Purchaser Agent, on the related Purchaser’s behalf, notice of (i) any material
change in the character of such Seller Party’s business, and (ii) any material
change in the Credit and Collection Policy;

 

(j)                                     Ratings.  Within one Business Day of the occurrence
thereof, each Seller Party will furnish to each Purchaser Agent, on the related
Purchaser’s behalf, notice of any downgrading or withdrawal of any rating of
any Indebtedness of Georgia Gulf or GGCV by any rating agency; and

 

(k)                                  Other.  Promptly, from time to time, each Seller
Party will furnish to each Purchaser Agent, on the related Purchaser’s behalf,
such other information, documents, records or reports respecting the
Receivables or the condition or operations, financial or otherwise, of such
Seller Party as such Purchaser Agent may from time to time reasonably request
in order to

 

27

 

protect the interests of such Purchaser Agent or such
related Purchaser under or as contemplated by this Agreement.

 

Section 7.3                                   Negative
Covenants of Seller Parties.

 

From the date hereof until the Final Payout Date, without the prior
written consent of the Administrative Agent:

 

(a)                                  Sales, Liens, Etc.  (i) No
Seller Party will, except as otherwise provided herein and in the other
Transaction Documents, sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Lien upon or with
respect to, any Pool Receivable or any Related Asset, or any interest therein,
or any account to which any Collections of any Pool Receivable are sent, or any
right to receive income or proceeds from or in respect of any of the foregoing
(except, prior to the execution of Lock-Box Agreements, set-off rights of any
bank at which any such account is maintained), and (ii) no Seller Party will
assert any interest in the Receivables, except as the Servicers.

 

(b)                                 Extension
or Amendment of Receivables.  No
Seller Party will, except as otherwise permitted in Section 8.2(c),
extend, amend or otherwise modify the terms of any Pool Receivable, or amend,
modify or waive any material term or condition of any Contract related thereto
in any way that adversely affects the collectibility of any Pool Receivable or
any Purchaser’s rights therein.

 

(c)                                  Change
in Business or Credit and Collection Policy.  No Seller Party will make or permit to be
made any change in the character of its business or in the Credit and
Collection Policy, which change would, in either case, impair the
collectibility of any significant portion of the Pool Receivables or otherwise
adversely affect the interests or remedies of the Purchasers under this
Agreement or any other Transaction Document.

 

(d)                                 Change
in Payment Instructions to Obligors. 
No Seller Party will add or terminate any bank as a Lock-Box Bank from
those listed in Schedule 6.1(o) or, after Lock-Box Accounts have
been delivered pursuant to Section 7.1(i), make any change in its
instructions to Obligors regarding payments to be made to the Seller or the
Servicers or payments to be made to any Lock-Box Bank (except for a change in
instructions solely for the purpose of directing Obligors to make such payments
to another existing Lock-Box Bank), unless each such Lock-Box Account is in the
name of the Seller and each of the Agents shall have received prior written
notice of such addition, termination or change and duly executed copies of the
Lock-Box Agreements with each new Lock-Box Bank.

 

(e)                                  Deposits
to Collection Account.  No Seller
Party will deposit or otherwise credit, or cause or permit to be so deposited
or credited, to the Collection Account, any cash or cash proceeds other than
Collections of Pool Receivables.

 

(f)                                    Changes
to Other Documents.  The Seller will
not enter into any amendment or modification of, or supplement to, the Sale
Agreement or Seller’s certificate of incorporation.

 

(g)                                 Restricted
Payments by Seller.  The Seller will
not (i) purchase or redeem any shares of the capital stock of the Seller, (ii)
declare or pay any dividends thereon (other than

 

28

 

stock dividends), make any distribution to
stockholders or set aside any funds for any such purpose or (iii) pay all or
any portion of the principal amount of the Subordinated Notes (clauses (i)
through (iii) being, “Restricted
Payments”), except that in the case of clause (ii)
or (iii) above, the Seller may make a Restricted Payment on the
Settlement Date for any Settlement Period, after making any payment required to
be made by Seller on such Settlement Date in accordance with the last sentence
of Section 3.1(c)(ii) if after giving effect to such payment the
sum of the Invested Amount and the Earned Discount does not exceed the Purchase
Limit and the Asset Interest does not exceed the Allocation Limit and the
Seller’s Net Worth shall not be less than the Required Capital Amount.

 

(h)                                 Seller
Indebtedness.  The Seller will not
incur or permit to exist any indebtedness or liability on account of deposits
or advances or for borrowed money or for the deferred purchase price of any
property or services, except (i) indebtedness of Seller to the Originators
incurred in accordance with the Sale Agreement, (ii) current accounts payable
arising under the Transaction Documents and not overdue and (iii) other current
accounts payable arising in the ordinary course of business and not overdue, in
an aggregate amount at any time outstanding not to exceed $4,500.

 

(i)                                     Negative
Pledges.  No Seller Party will enter
into or assume any agreement (other than this Agreement and the other
Transaction Documents) prohibiting the creation or assumption of any Lien upon
any Pool Receivables or Related Assets, whether now owned or hereafter
acquired, except as contemplated by the Transaction Documents, or otherwise
prohibiting or restricting any transaction contemplated hereby or by the other
Transaction Documents.

 

(j)                                     Change
of Name.  Seller will not change its
name, any trade name or corporate structure, or commence the use of any new
trade name unless it has given the Agents at least 30 days prior written notice
thereof and has taken all steps necessary to continue the perfection of the
Purchasers’ interest, including the filing of amendments to the UCC financing
statements filed pursuant to Section 5.1(f).

 

(k)                                  Mergers,
Consolidations and Acquisitions.  
The Seller will not merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or purchase,
lease or otherwise acquire (in one transaction or a series of transactions) all
or substantially all of the assets of any other Person (whether directly by
purchase, lease or other acquisition of all or substantially all of the assets
of such Person or indirectly by purchase or other acquisition of all or
substantially all of the capital stock of such other Person) other than the
acquisition of the Receivables and Related Assets pursuant to the Sale
Agreement and the sale of an interest in the Pool Receivables and Related
Assets hereunder.

 

(l)                                     Disposition
of Assets.  Except pursuant to this
Agreement, the Seller will not sell, lease, transfer, assign or otherwise
dispose of (in one transaction or in a series of transactions) any Receivables
and Related Assets.

 

(m)                               Amendments
to Other Agreements.  The Seller
hereby covenants and agrees with the Purchasers that, for so long as the
Agreement is in effect, unless each of the Agents otherwise consents in
writing, the Seller will not agree to permit Georgia Gulf or GGCV to amend,
agree to

 

29

 

permit any such Person to amend or consent to the
amendment of (i) the definition of “Permitted Receivables Transaction” in Section 1.01
of the Credit Agreement, (ii) the definition of “Transferred Receivables” in Section 1.1
of the Collateral Agreement, (iii) Section 7(a) of the Collateral Agreement
or (iv) the Credit Agreement or the Collateral Agreement in a manner that would
cause a breach of any representation, warranty or covenant by either the
Seller, Georgia Gulf or GGCV under this Agreement or any other Transaction
Document.

 

(n)                                 Notice
under Collateral Agreement.  Each
Seller Party hereby covenants and agrees that unless each of the Agents
otherwise consents in writing, it will not permit, and will not permit any
other Person to, give notice to the Administrative Agent (as defined in the Credit
Agreement) or any Lender (as defined in the Credit Agreement) pursuant to Section 5.02(f)
of the Credit Agreement or otherwise in connection with the Pledge Amendment
that the obligations hereunder have been paid in full.

 

Section 7.4                                   Separate Corporate
Existence of Seller.

 

Each Seller Party hereby acknowledges that the Purchasers and each
Agent are entering into the transactions contemplated hereby in reliance upon
the Seller’s identity as a legal entity separate from the Servicers and its
other Affiliates.  Therefore, each Seller
Party shall take all steps specifically required by this Agreement or
reasonably required by the Agents to continue the Seller’s identity as a
separate legal entity and to make it apparent to third Persons that the Seller
is an entity with assets and liabilities distinct from those of its Affiliates,
and is not a division of Georgia Gulf or GGCV or any other Person.  Without limiting the foregoing, each Seller
Party will take such actions as shall be required in order that:

 

(a)                                  The
Seller will be a limited purpose corporation whose primary activities are
restricted in its certificate of incorporation to purchasing or otherwise
acquiring from the Originators, owning, holding, granting security interests,
or selling interests, in Receivables in the Receivables Pool and Related
Assets, entering into agreements for the selling and servicing of the
Receivables Pool, and conducting such other activities as it deems necessary or
appropriate to carry out its primary activities;

 

(b)                                 The
Seller shall have a Board of Directors of at least three (3) members and not
less than one member of Seller’s Board of Directors (the “Independent
Director”) shall be an individual who is not, and has not been at any time
during the preceding five (5) years:  (i)
a creditor, supplier, director, officer, employee, family member, manager or
contractor of Georgia Gulf, GGCV, any Originator or any of their respective
Subsidiaries or Affiliates (other than Seller), (ii) a direct or indirect or
beneficial owner, excluding de
minimus ownership interests, (at the time of such individual’s appointment as
an Independent Director or at any time thereafter while serving as an
Independent Director) of any of the outstanding common shares of Seller,
Georgia Gulf, GGCV, any Originator, or any of their respective Subsidiaries or
Affiliates, having general voting rights, or (iii) a person who controls
(whether directly, indirectly or otherwise) Georgia Gulf, GGCV, any Originator
or any of their respective Subsidiaries or Affiliates (other than Seller) or
any creditor, supplier, employee, officer, director, manager or contractor of
Georgia Gulf, GGCV, any Originator or any of their respective Subsidiaries or
Affiliates (other than Seller).

 

30

 

(c)                                  The
Independent Director shall not at any time serve as a trustee in bankruptcy for
Seller or any Affiliate thereof;

 

(d)                                 The
Seller shall maintain a sufficient number of employees in light of its
contemplated business operations and compensate all employees, consultants and
agents directly, from its own funds, for services provided to the Seller by
such employees, consultants and agents. 
Subject to the first sentence of this clause (d), the Seller will
not engage any agents other than its attorneys, auditors and other
professionals, and a servicer and any other agent contemplated by the
Transaction Documents for the Receivables Pool. 
The Servicers will be fully compensated for its services by payment of
the Servicer’s Fee, and certain organizational expenses in connection with the
formation of Seller;

 

(e)                                  The
Seller will contract with the Servicers to perform for the Seller all
operations required on a daily basis to service the Receivables Pool.  The Seller will pay the Servicers the
Servicer’s Fee pursuant hereto.  The
Seller will not incur any material indirect or overhead expenses for items
shared with Georgia Gulf or GGCV (or any other Affiliate thereof) which are not
reflected in the Servicer’s Fee.  To the
extent, if any, that the Seller (or any other Affiliate thereof) share items of
expenses not reflected in the Servicer’s Fee, for legal, auditing and other
professional services and directors’ fees, such expenses will be allocated
fairly and reasonably on the basis of actual use or the value of services
rendered, and otherwise on a basis reasonably related to the actual use or the
value of services rendered, it being understood that Georgia Gulf or GGCV shall
pay all expenses relating to the preparation, negotiation, execution and
delivery of the Transaction Documents, including, without limitation, legal,
rating agency and other fees;

 

(f)                                    The
Seller’s operating expenses will not be paid by any other Seller Party or other
Affiliate of the Seller and all of its liabilities will be paid out of its own
funds;

 

(g)                                 The
Seller will have its own stationery, invoices and checks;

 

(h)                                 The
books of account, financial reports and corporate records of the Seller will be
maintained separately from any other Person;

 

(i)                                     Any
financial statements of any Seller Party or Affiliate thereof which are
consolidated to include the Seller will contain notes in accordance with GAAP
reflecting, and the accounting records and the published financial statements
of the Originators will clearly show, that, for accounting purposes, the Pool
Receivables and Related Assets have been sold by the Originators to the Seller;

 

(j)                                     The
Seller’s assets will be maintained in a manner that facilitates their
identification and segregation from those of the Servicers and the other
Affiliates;

 

(k)                                  The
Seller will observe all corporate formalities required by its certificate of
incorporation.  Each Affiliate of the
Seller will strictly observe corporate formalities in its dealings with the
Seller, and, except as permitted pursuant to this Agreement with respect to
Collections, funds or other assets of the Seller will not be commingled with
those of any other Person;

 

31

 

(l)                                     No
Affiliate of the Seller will maintain joint bank accounts with the Seller or
other depository accounts with the Seller to which any such Affiliate (other
than in its capacity as the Servicer hereunder or under the Sale Agreement) has
independent access;

 

(m)                               No
Affiliate of the Seller shall, directly or indirectly, name the Seller or enter
into any agreement to name the Seller as a direct or contingent beneficiary or
loss payee on any insurance policy covering the property of any Affiliate of
the Seller;

 

(n)                                 Each
Affiliate of the Seller will maintain arm’s length relationships with the
Seller, and each Affiliate of the Seller that renders or otherwise furnishes
services or merchandise to the Seller will be compensated by the Seller at
market rates for such services or merchandise;

 

(o)                                 No
Affiliate of the Seller will be, nor will it hold itself out to be, responsible
for the debts of the Seller or the decisions or actions in respect of the daily
business and affairs of the Seller. 
Georgia Gulf, GGCV and the Seller will immediately correct any known
misrepresentation with respect to the foregoing and they will not operate or
purport to operate as an integrated single economic unit with respect to each
other or in their dealing with any other entity.  The Seller will not (i) guarantee or become
obligated for the debts of any other Person or hold out its credit as being
available to satisfy the obligations of others, (ii) acquire obligations or
securities of its shareholders or Affiliates or (iii) pledge its assets for the
benefit of any other Person or make any loans or advances to any other Person;

 

(p)                                 The
Seller will keep correct and complete books and records of account and minutes
of the meetings and other proceedings of its stockholder and board of
directors, as applicable, and the resolutions, agreements and other instruments
of the Seller will be continuously maintained as official records by the
Seller;

 

(q)                                 Each
of the Seller, on the one hand, and the Originators, on the other hand, will
conduct its business solely in its own corporate name and in such a separate
manner so as not to mislead others with whom they are dealing and will correct
any known misunderstanding regarding such Person’s separate identity; and

 

(r)                                    The
Seller will maintain adequate capital in light of its contemplated business
operations as reasonably determined by the Seller from time to time.

 

Article VIII

 

Administration and
Collection

 

Section 8.1                                   Designation of
Servicers.

 

(a)                                  Georgia
Gulf and GGCV as Initial Servicers. 
The servicing, administering and collection of the Pool Receivables
shall be conducted by the Persons designated as Servicers hereunder from time
to time in accordance with this Section 8.1.  Until the Administrative Agent at the request
of the Agents, on Purchasers’ behalf, gives to Georgia Gulf and/or GGCV a Successor
Notice (as defined in Section 8.1(b)), Georgia Gulf and GGCV are
hereby designated

 

32

 

as, and hereby agree to perform the duties and
obligations of, Servicer pursuant to the terms hereof.

 

(b)                                 Successor
Notice:  Servicer Transfer Events.  Upon receipt by a Servicer of a notice from
the Administrative Agent of the Administrative Agent’s designation at the
direction of the Agents, of a new Servicer (a “Successor
Notice”), each Servicer agrees that it will terminate its
activities as Servicer hereunder in a manner that the Agents believes will
facilitate the transition of the performance of such activities to the new
Servicer, and the Administrative Agent (or its designee) shall assume each and
all of such terminated Servicer’s obligations to service and administer such
Receivables, on the terms and subject to the conditions herein set forth, and
each Servicer shall use its best efforts to assist the Administrative Agent (or
its designee) in assuming such obligations. 
Without limiting the foregoing, each Servicer agrees at their joint and
several expense, to take all actions necessary to provide the new Servicer with
access to all computer software necessary or useful in collecting, billing or
maintaining records with respect to Receivables.  The Administrative Agent agrees not to give a
Successor Notice until after the occurrence and during the continuance of any
Liquidation Event (any such event being herein called a “Servicer
Transfer Event”), in which case such Successor Notice may be
given at any time in the Administrative Agent’s discretion.  If any Servicer disputes the occurrence of a
Servicer Transfer Event, such Servicer may take appropriate action to resolve
such dispute; provided that such Servicer must terminate its activities
hereunder as Servicer and allow the newly designated Servicer to perform such
activities on the date provided by the Administrative Agent as described above,
notwithstanding the commencement or continuation of any proceeding to resolve
the aforementioned dispute, if the Administrative Agent, at the direction of
the Agents, reasonably determines, in good faith, that such termination is
necessary or advisable to protect the Purchasers’ interests hereunder.

 

(c)                                  Subcontracts.  A Servicer may, with the prior consent of the
Agents, subcontract with any other Person for servicing, administering or
collecting the Pool Receivables, provided that the Servicers shall
remain jointly and severally liable for the performance of the duties and
obligations of the Servicers pursuant to the terms hereof and such subservicing
arrangement may be terminated at any Agent’s request, on the related Purchaser’s
behalf, at anytime after a Successor Notice has been given.

 

Section 8.2                                   Duties of
Servicers.

 

(a)                                  Appointment;
Duties in General.  Each of the
Seller, the Purchasers and the Agents hereby appoints as its agent the
Servicers, as from time to time designated pursuant to Section 8.1,
to enforce its rights and interests in and under the Pool Receivables, the
Related Security and the related Contracts. 
The Servicers shall take or cause to be taken all such actions as may be
necessary or advisable to collect each Pool Receivable from time to time, all
in accordance with applicable laws, rules and regulations, with reasonable care
and diligence, and in accordance with the Credit and Collection Policy.

 

(b)                                 Allocation
of Collections; Segregation.  The
Servicers shall set aside and hold in trust for the account of the Seller and
the Purchasers their respective allocable shares of the Collections of Pool
Receivables in accordance with Section 1.3 but shall not be
required (unless otherwise requested by the Administrative Agent, on behalf of
the Secured Parties) to segregate

 

33

 

the funds constituting such portions of such
Collections prior to the remittance thereof in accordance with said
Section.  If instructed by the
Administrative Agent, on behalf of the Secured Parties, the Servicers shall
segregate and deposit into the Collection Account, the Purchasers’ Share of
Collections of Pool Receivables, on the second Business Day following receipt
by the Servicers of such Collections in immediately available funds.

 

(c)                                  Modification
of Receivables.  So long as no
Liquidation Event and no Unmatured Liquidation Event shall have occurred and be
continuing, Georgia Gulf and GGCV, while they are Servicers, may, only if in
accordance with the Credit and Collection Policy, (i) extend the maturity or
adjust the Unpaid Balance of any Defaulted Receivable as Georgia Gulf and GGCV
may reasonably determine to be appropriate to maximize Collections thereof, and
(ii) adjust the Unpaid Balance of any Receivable to reflect the reductions or
cancellations described in Section 3.2(a).

 

(d)                                 Documents
and Records.  Each Seller Party shall
deliver to the Servicers, and the Servicers shall hold in trust for the Seller
and the Purchasers in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer
tapes or disks) that evidence or relate to Pool Receivables.

 

(e)                                  Certain
Duties to Seller.  The Servicers
shall, as soon as practicable following receipt, turn over to the Seller (i)
that portion of Collections of Pool Receivables representing its undivided
percentage interest therein, less the Seller’s Share of the Servicer’s Fee,
and, in the event that neither Georgia Gulf and GGCV nor any other Seller Party
or Affiliate thereof is the Servicer, all reasonable and appropriate out-of-pocket
costs and expenses of the Servicer of servicing, collecting and administering
the Pool Receivables to the extent not covered by the Servicer’s Fee received
by it, and (ii) the Collections of any Receivable which is not a Pool
Receivable.  The Servicer, if other than
Georgia Gulf and GGCV or any other Seller Party or Affiliate thereof, shall, as
soon as practicable upon demand, deliver to the Seller all documents,
instruments and records in its possession that evidence or relate to
Receivables of the Seller other than Pool Receivables, and copies of documents,
instruments and records in its possession that evidence or relate to Pool
Receivables.

 

(f)                                    Termination.  Each Servicer’s authorization under this
Agreement shall terminate upon the Final Payout Date.

 

(g)                                 Power
of Attorney.  The Seller hereby
grants to the Servicers an irrevocable power of attorney, with full power of
substitution, coupled with an interest, to take in the name of the Seller all
steps which are necessary or advisable to endorse, negotiate or otherwise
realize on any writing or other right of any kind held or transmitted by the
Seller or transmitted or received by the Purchasers (whether or not from the
Seller) in connection with any Receivable.

 

Section 8.3                                   Rights of the
Administrative Agent.

 

(a)                                  Notice
to Obligors.  At any time when a
Liquidation Event has occurred and is continuing, the Administrative Agent, at
the direction of the Agents, may notify the Obligors of Pool Receivables, or
any of them, of the ownership of the Asset Interest by the Purchasers.

 

34

 

(b)                                 Notice
to Lock-Box Banks.  At any time
following the occurrence of a Notice Event, the Administrative Agent is hereby
authorized to give notice to the Lock-Box Banks and shall, at the direction of
the Agents, give such notice, as provided in the Lock-Box Agreements, of the
transfer to the Administrative Agent  for
the benefit of the Secured Parties of dominion and control over the lock-boxes
and related accounts to which the Obligors of Pool Receivables make
payments.  The Seller and the Servicers
hereby transfer to the Administrative Agent for the benefit of the Secured
Parties, effective when the Administrative Agent shall give notice to the
Lock-Box Banks as provided in the Lock-Box Agreements, the exclusive dominion
and control over such lock-boxes and accounts, and shall take any further
action that the Administrative Agent (at the direction of the Agents) may
reasonably request to effect such transfer.

 

(c)                                  Rights
on Servicer Transfer Event.  At any
time following the designation of a Servicer other than Georgia Gulf, GGCV or
any Affiliate of either of them pursuant to Section 8.1:

 

(i)                                     The
Administrative Agent for the benefit of the Secured Parties may direct the Obligors
of Pool Receivables, or any of them, to pay all amounts payable under any Pool
Receivable directly to the Administrative Agent or its designee.

 

(ii)                                  Any
Seller Party shall, at the Administrative Agent’s request and at such Seller
Party’s expense, give notice of the Purchasers’ ownership and security
interests in the Pool Receivables to each Obligor of Pool Receivables and
direct that payments be made directly to the Administrative Agent or its
designee.

 

(iii)                               Each Seller Party shall,
at any Agent’s request, (A) assemble all of the documents, instruments and
other records (including, without limitation, computer programs, tapes and
disks) which evidence the Pool Receivables, and the related Contracts and
Related Security, or which are otherwise necessary or desirable to collect such
Pool Receivables, and make the same available to the successor Servicer at a
place selected by such Agent, and (B) segregate all cash, checks and other
instruments received by it from time to time constituting Collections of Pool
Receivables in a manner acceptable to the Agents and promptly upon receipt,
remit all such cash, checks and instruments, duly endorsed or with duly
executed instruments of transfer, to the successor Servicer.

 

(iv)                              Each
Seller Party and each Purchaser hereby authorizes the Administrative Agent, on
such Purchaser’s behalf, and grants to the Administrative Agent an irrevocable
power of attorney (which shall terminate on the Final Payout Date), to take any
and all steps in such Seller Party’s name and on behalf of the Seller Parties
and the Purchasers which are necessary or desirable, in the determination of
the Administrative Agent, to collect all amounts due under any and all Pool
Receivables, including, without limitation, endorsing any Seller Party’s name
on checks and other instruments representing Collections and enforcing such
Pool Receivables and the related Contracts.

 

Section 8.4                                   Responsibilities
of Seller Parties.

 

Anything herein to the contrary notwithstanding:

 

35

 

(a)                                  Contracts.  Each Seller Party shall remain responsible
for performing all of its obligations (if any) under the Contracts related to
the Pool Receivables and under the related agreements to the same extent as if
the Asset Interest had not been sold hereunder, and the exercise by the
Administrative Agent or its designee of its rights hereunder shall not relieve
any Seller Party from such obligations.

 

(b)                                 Limitation
of Liability.  No Agent or Purchaser
shall have any obligation or liability with respect to any Pool Receivables,
Contracts related thereto or any other related agreements, nor shall any of
them be obligated to perform any of the obligations of any Seller Party or any
Originator thereunder.

 

Section 8.5                                   Further Action Evidencing
Purchases and Reinvestments.

 

(a)                                  Further
Assurances.  Each Seller Party agrees
that from time to time, at its expense, it will promptly execute and deliver
all further instruments and documents, and take all further action that any
Agent or its designee may reasonably request in order to perfect, protect or
more fully evidence the Purchases hereunder and the resulting Asset Interest,
or to enable Secured Parties or the Agents or any of their respective designees
to exercise or enforce any of their respective rights hereunder or under any
Transaction Document in respect thereof. 
Without limiting the generality of the foregoing, each Seller Party
will:

 

(i)                                     upon
the request of the Administrative Agent at the direction of the Purchaser
Agents on behalf of the Purchasers, execute and file such financing or
continuation statements, or amendments thereto or assignments thereof, and such
other instruments or notices, as may be necessary or appropriate, in accordance
with the terms of this Agreement;

 

(ii)                                  upon
the request of any Agent after the occurrence and during the continuance of a
Liquidation Event, mark conspicuously each Contract evidencing each Pool
Receivable with a legend, acceptable to the Agents, evidencing that the Asset
Interest has been sold in accordance with this Agreement; and

 

(iii)                               mark its master data
processing records evidencing such Pool Receivables and related Contracts with
a legend, acceptable to the Agents, evidencing that the Asset Interest has been
sold in accordance with this Agreement.

 

(b)                                 Additional
Financing Statements; Performance by Administrative Agent.

 

(i)                                     Each
Seller Party irrevocably authorizes the Administrative Agent at any time and
from time to time in the sole discretion of the Administrative Agent, and
appoints the Administrative Agent as its attorney-in-fact, to act on behalf of
such Seller Party (A) to authorize on behalf of the Seller as debtor and to
file financing statements necessary or desirable in the Administrative Agent’s
sole discretion to perfect and to maintain the perfection and priority of the
interest of the Administrative Agent, for the benefit of the Secured Parties,
in the Receivables and (B) to file a carbon, photographic or other reproduction
of this Agreement or any financing statement with respect to the Receivables as
a financing statement in such offices as the Administrative Agent in its sole
discretion deems necessary or desirable to perfect and to maintain the
perfection and

 

36

 

priority of the Administrative Agent’s security interest in the
Collateral, for the benefit of the Secured Parties.  This appointment is coupled with an interest
and is irrevocable.

 

(ii)                                  (A)
Each of the Seller Parties hereby authorizes the Administrative Agent to file
financing statements and other filing or recording documents with respect to
the Receivables and Related Assets (including any amendments thereto, or
continuation or termination statements thereof), without the signature or other
authorization of the Seller Party, in such form and in such offices as the
Administrative Agent reasonably determines appropriate to perfect or maintain
the perfection of the security interest of the Administrative Agent hereunder, (B)
each of the Seller Parties acknowledges and agrees that it is not authorized
to, and will not, file financing statements or other filing or recording
documents with respect to the Receivables or Related Assets (including any
amendments thereto, or continuation or termination statements thereof), without
the express prior written approval by the Administrative Agent, consenting to
the form and substance of such filing or recording document, and (C) each of
the Seller Parties approves, authorizes and ratifies any filings or recordings
made by or on behalf of the Administrative Agent in connection with the
perfection of the security interests in favor of the Seller or the
Administrative Agent.

 

(iii)                               The reasonable expenses
of the Administrative Agent or its designee incurred in connection with this Section 8.5
shall be payable by the Seller Parties as provided in Section 14.5.

 

(c)                                  Continuation
Statements; Opinion.  Without
limiting the generality of subsection (a), the Seller will, not
earlier than six (6) months and not later than three (3) months prior to the
fifth anniversary of the date of filing of the financing statements referred to
in Section 5.1(f) or any other financing statement filed pursuant
to this Agreement or in connection with any Purchase hereunder, if the Final
Payout Date shall not have occurred:

 

(i)                                     execute
and deliver and file or cause to be filed an appropriate continuation statement
with respect to such financing statement; and

 

(ii)                                  deliver
or cause to be delivered to each Agent an opinion of the counsel for the Seller
Parties, in form and substance reasonably satisfactory to each Agent,
confirming and updating the opinion delivered pursuant to Section 5.1(i)
to the effect that the Asset Interest hereunder continues to be a valid and
perfected ownership or security interest, subject to no other Liens of record
except as provided herein or otherwise permitted hereunder.

 

Section 8.6                                   Application of
Collections.

 

Any payment by an Obligor in respect of any indebtedness owed by it to
the Originators or the Seller shall, except as otherwise specified by such
Obligor or required by the underlying Contract or law, be applied, first,
as a Collection of any Pool Receivable or Receivables then outstanding of such
Obligor in the order of the age of such Pool Receivables, starting with the oldest
of such Pool Receivables and, second, to any other indebtedness of such
Obligor.

 

37

 

Article IX

 

Security Interest

 

Section 9.1                                   Grant of Security
Interest.

 

To secure all obligations of the Seller arising in connection with this
Agreement and each other Transaction Document, whether now or hereafter
existing, due or to become due, direct or indirect, or absolute or contingent,
including, without limitation, all Indemnified Amounts, payments on account of
Collections received or deemed to be received and fees, in each case pro rata
according to the respective amounts thereof, the Seller hereby assigns and
pledges to the Administrative Agent on behalf of the Purchasers and their
respective successors and assigns, for the benefit of the Secured Parties, and
hereby grants to the Administrative Agent, on behalf of the Purchasers for the
benefit of the Secured Parties, a security interest in, all of the Seller’s
right, title and interest now or hereafter existing in, to all assets of the
Seller including, without limitation, all of the Seller’s right, title and
interest now or hereafter existing in (a) all the Pool Receivables and Related
Assets (and including specifically any undivided interest therein retained by
the Seller hereunder), (b) the Sale Agreement and the other Transaction
Documents and (c) all proceeds of any of the foregoing (collectively, the “Collateral”).

 

Section 9.2                                   Further
Assurances.

 

The provisions of Section 8.5 shall apply to the security
interest granted under Section 9.1 as well as to the Purchases,
Reinvestments and all the Asset Interests hereunder.

 

Section 9.3                                   Remedies.

 

Upon the occurrence of a Liquidation Event, each Purchaser shall have,
with respect to the Collateral granted pursuant to Section 9.1, and
in addition to all other rights and remedies available to the Purchasers or the
Administrative Agent under this Agreement and the other Transaction Documents
or other applicable law, all the rights and remedies of a secured party upon
default under the UCC.

 

Article X

 

Liquidation Events

 

Section 10.1                            Liquidation Events.

 

The following events shall be liquidation events, (each a “Liquidation Event” and collectively, “Liquidation Events”) hereunder:

 

(a)                                  Any
Servicer (if any Seller Party or Affiliate thereof is Servicer) or the Seller
(in the case of clause (ii) below) (i) shall fail to perform or observe
any term, covenant or agreement that is an obligation of the Servicers
hereunder (other than as referred to in clause (ii) below or in other
paragraphs of this Section 10.1) and such failure shall remain
unremedied for ten (10) days (or in the case of the failure to deliver the
Information Package one (1) Business Day) after the earlier of (A) written
notice thereof shall have been given by the Administrative Agent to the

 

38

 

Servicers or (B) a Responsible Officer of any Servicer
shall have actual knowledge thereof or should have had knowledge thereof if
such Responsible Officer had exercised reasonable care in the performance of
his or her duties, or (ii) shall fail to make any payment or deposit to be made
by it hereunder when due; or

 

(b)                                 Any
representation or warranty made or deemed to be made by any Seller Party (or
any of its officers) under this Agreement or any other Transaction Document or
any Information Package, Interim Information Package or other information or
report delivered pursuant hereto shall prove to have been false or incorrect in
any material respect when made; provided  that the materiality
threshold in the preceding clause shall not be applicable with respect to any
clause of any representation or warranty which itself contains a materiality
qualification; or

 

(c)                                  Any
Seller Party shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement or any of the other Transaction Documents
on its part to be performed or observed and any such failure shall remain
unremedied for ten (10) days (or, in the case of the failure to deliver the Information
Package, one (1) Business Day) after the earlier of (A) written notice thereof
shall have been given by any Agent to any Seller Party or (b) a Responsible
Officer of such Seller Party shall have actual knowledge thereof or should have
had knowledge thereof if such Responsible Officer had exercised reasonable care
in the performance of his or her duties; or

 

(d)                                 (i)
Any Seller Party shall (A) fail to pay any principal or interest, regardless of
amount, due in respect of any Indebtedness when the aggregate unpaid principal
amount is in excess of in the case of the Seller, $10,750, or in the case of
any other Seller Party, $10,000,000 when and as the same shall become due and
payable (after expiration of any applicable grace or cure period) or (B) fail
to observe or perform any other term, covenant, condition or agreement (after
expiration of any applicable grace period or cure) contained in any agreement
or instrument evidencing or governing any such Indebtedness if the effect of
any failure referred to in this clause (B) is to cause, or permit the
holder or holders of such Indebtedness or a trustee on its or their behalf
(with or without the giving of notice) to cause, such Indebtedness to become
due prior to its stated maturity; (ii) any default under any other agreement or
instrument relating to the purchase of receivables in an aggregate amount in
excess of in the case of the Seller, 
$10,750, or in the case of any other
Seller Party $10,000,000, or any other event, shall occur and shall continue after
the applicable grace period, if any, specified in such agreement or instrument,
if the effect of such default (A) is to permit the termination of the
commitment of any party to such agreement or instrument to purchase receivables
or the right of such Seller Party to reinvest in receivables the principal
amount paid by any party to such agreement or instrument for its interest in
receivables or (B) is to terminate such commitment or right; or (iii) a
default, amortization event, liquidation event or other similar event shall
occur under any asset securitization agreement or arrangement entered into by
any Seller Party for the sale of receivables or an interest therein in excess
of $10,000,000; or

 

(e)                                  An
Event of Bankruptcy shall have occurred and remain continuing with respect to
the Servicers or any Seller Party; or

 

39

 

(f)                                    The
rolling three month average Dilution Ratio at any Cut-Off Date exceeds 3.75%;
or

 

(g)                                 The
rolling three month average Default Ratio at any Cut-Off Date exceeds 2.35%; or

 

(h)                                 The
rolling three month average Delinquency Ratio at any Cut-Off Date exceeds
3.25%; or

 

(i)                                     On
any Settlement Date, after giving effect to the payments made under Section 3.1(c),
(i) the Asset Interest exceeds 100%, (ii) the Invested Amount exceeds the
Purchase Limit, or (iii) any Purchaser Group Invested Amount exceeds the
related Purchaser Group Limit; or

 

(j)                                     There
shall have occurred any event which materially adversely impairs the ability of
Georgia Gulf or GGCV to originate Receivables of a credit quality which are at
least of the credit quality of the Receivables included in the first Purchase,
or any other event occurs that is reasonably likely to have a Material Adverse
Effect; or

 

(k)                                  Any
Seller Party is subject to a Change in Control (unless approved in writing by
each Purchaser); or

 

(l)                                     The
Internal Revenue Service shall file notice of a lien pursuant to Section 6323
of the Internal Revenue Code with regard to any of the Receivables or Related
Assets and such lien shall not have been released within seven (7) days, or the
Pension Benefit Guaranty Corporation shall, or shall indicate its intention to,
file notice of a lien pursuant to Section 4068 of the Employee Retirement
Income Security Act of 1974 with regard to any of the Receivables or Related
Assets; or

 

(m)                               Georgia
Gulf or GGCV shall make any material change in the policies as to origination
of Receivables or in the Credit and Collection Policy without the prior written
consent of the Agents; or

 

(n)                                 The
Administrative Agent, for the benefit of the Secured Parties, for any reason,
does not have a valid, perfected first priority interest in the Pool
Receivables and the Related Assets; or

 

(o)                                 A
final judgment or judgments shall be rendered against Georgia Gulf, GGCV, the
Seller or any combination thereof for the payment of money with respect to
which an aggregate amount in excess of $10,750 with respect to the Seller and
$10,000,000 with respect to Georgia Gulf and GGCV is not covered by insurance and
the same shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to levy upon assets or properties of Georgia Gulf
or GGCV or the Seller to enforce any such judgment; or

 

(p)                                 A
Reportable Event or Reportable Events, or a failure to make a required
installment or other payment (within the meaning of Section 412(n)(1) of
the Code), shall have occurred with respect to any Plan or Plans that
reasonably could be expected to result in liability of Georgia Gulf or GGCV to
the Pension Benefit Guaranty Corporation (“PBGC”) or
to a Plan in

 

40

 

an aggregate amount exceeding $10,000,000 and, within
30 days after the reporting of any such Reportable Event to the Agents, on the
Purchasers’ behalf, any Agent shall have notified Georgia Gulf or GGCV in
writing that (i) such Agent, on the related Purchaser’s behalf, has made a
determination that, on the basis of such Reportable Event or Reportable Events
or the failure to make a required payment, there are reasonable grounds (A) for
the termination of such Plan or Plans by the PBGC, (B) for the appointment by
the appropriate United States District Court of a trustee to administer such
Plan or Plans or (C) for the imposition of a lien in favor of a Plan and (ii)
as a result thereof a Liquidation Event exists hereunder; or a trustee shall be
appointed by a United States District Court to administer any such Plan or
Plans; or the PBGC shall institute proceedings to terminate any Plan or Plans;
or

 

(q)                                 The
occurrence of a Servicer Default.

 

(r)                                    An
“Event of Default” shall occur under the Credit Agreement.

 

(s)                                  The
sum of (i) cash that is not subject to any Lien or otherwise encumbered and (ii)
undrawn funding availability under the Credit Agreement shall be less than
$15,000,000.

 

(t)                                    The
Seller’s Net Worth shall be less than the Required Capital Amount.

 

(u)                                 The
occurrence of a Pledge Default.

 

Section 10.2                            Remedies.

 

(a)                                  Optional
Liquidation.  Upon the occurrence of
a Liquidation Event (other than a Liquidation Event described in Section 10.1(e)),
any Agent shall, at the request, or may with the consent, of the related
Purchaser, by notice to the Seller declare the Purchase Termination Date to
have occurred and the Liquidation Period to have commenced.

 

(b)                                 Automatic
Liquidation.  Upon the occurrence of
a Liquidation Event described in Section 10.1(e), the Purchase
Termination Date shall occur and the Liquidation Period shall commence
automatically.

 

(c)                                  Additional
Remedies.  Upon any Purchase
Termination Date pursuant to this Section 10.2, no Purchases or
Reinvestments thereafter will be made, and each of the Agents, the Purchasers,
BTM and Wachovia shall have, in addition to all other rights and remedies under
this Agreement or otherwise, all other rights and remedies provided under the
UCC of each applicable jurisdiction and other applicable laws, which rights
shall be cumulative.

 

Article XI

 

The Administrative
Agent

 

Section 11.1                            Administrative Agent
Authorization and Action.

 

Pursuant to agreements entered into with the Administrative Agent, each
Purchaser has appointed and authorized the Administrative Agent (or its
designees) to take such action as agent on its behalf and to exercise such
powers under this Agreement as are delegated to the

 

41

 

Administrative Agent by the terms hereof,
together with such powers as are reasonably incidental thereto.  The Purchasers hereby authorize the
Administrative Agent to file each of the Uniform Commercial Code financing
statements on behalf of the Purchasers for the benefit of the Secured Parties
(the terms of which shall be binding on the Purchasers).

 

Section 11.2                            Administrative Agent’s Reliance, Etc.

 

The Administrative Agent and its directors, officers, agents or
employees shall not be liable for any action taken or omitted to be taken by it
or them in good faith under or in connection with the Transaction Documents
(including, without limitation, the servicing, administering or collecting Pool
Receivables as Servicer pursuant to Section 8.1), except for its or
their own breach of the terms of the applicable terms of the Transaction
Documents or its or their own gross negligence or willful misconduct.  Without limiting the generality of the
foregoing, the Administrative Agent:  (a)
may consult with legal counsel (including counsel for the Seller), independent
certified public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (b) makes
no warranty or representation to the Purchasers, any Purchaser Agent or any
other holder of any interest in Pool Receivables and shall not be responsible
to the Purchasers, any Purchaser Agent or any such other holder for any
statements, warranties or representations made by any Seller Party in or in
connection with any Transaction Document; (c) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of any Transaction Document on the part of any
Seller Party or to inspect the property (including the books and records) of
any Seller Party; (d) shall not be responsible to Purchaser or any other holder
of any interest in Pool Receivables for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Transaction Document;
and (e) shall incur no liability under or in respect of this Agreement by
acting upon any notice (including notice by telephone where permitted herein),
consent, certificate or other instrument or writing (which may be by facsimile
or telex) in good faith believed by it to be genuine and signed or sent by the
proper party or parties.

 

Section 11.3                            Blue Ridge Purchaser
Agent Authorization and Action.

 

Pursuant to agreements entered into with the Blue Ridge Purchaser
Agent, Blue Ridge has appointed and authorized the Blue Ridge Purchaser Agent
(or its designees) to take such action as agent on its behalf and to exercise
such powers under this Agreement as are delegated to the Blue Ridge Purchaser
Agent by the terms hereof, together with such powers as are reasonably incidental
thereto.

 

Section 11.4                            Blue Ridge Purchaser
Agent’s Reliance, Etc.

 

The Blue Ridge Purchaser Agent and its directors, officers, agents or
employees shall not be liable for any action taken or omitted to be taken by it
or them in good faith under or in connection with the Transaction Documents
(including, without limitation, the servicing, administering or collecting Pool
Receivables as a Servicer pursuant to Section 8.1), except for its
or their own breach of the terms of the applicable terms of the Transaction
Documents or its or their own gross negligence or willful misconduct.  Without limiting the generality of the

 

42

 

foregoing, the Blue Ridge Purchaser
Agent:  (a) may consult with legal
counsel (including counsel for the Seller), independent certified public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (b) makes no warranty or
representation to Blue Ridge or any other holder of any portion of the Blue
Ridge Purchaser Group’s interest in Pool Receivables and shall not be
responsible to Blue Ridge or any such other holder for any statements, warranties
or representations made by any Seller Party in or in connection with any
Transaction Document; (c) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions
of any Transaction Document on the part of any Seller Party or to inspect the
property (including the books and records) of any Seller Party; (d) shall not
be responsible to Blue Ridge or any other holder of any of the Blue Ridge
Purchaser Group’s interest in Pool Receivables for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Transaction
Document; and (e) shall incur no liability under or in respect of this
Agreement by acting upon any notice (including notice by telephone where permitted
herein), consent, certificate or other instrument or writing (which may be by
facsimile or telex) in good faith believed by it to be genuine and signed or
sent by the proper party or parties.

 

Section 11.5                            Victory Authorization
and Action.

 

Pursuant to agreements entered into with the Victory Purchaser Agent,
Victory has appointed and authorized the Victory Purchaser Agent (or its
designees) to take such action as agent on its behalf and to exercise such
powers under this Agreement as are delegated to the Victory Purchaser Agent by
the terms hereof, together with such powers as are reasonably incidental
thereto.

 

Section 11.6                            Victory Purchaser Agent’s
Reliance, Etc.

 

(a)                                  The
Victory Purchaser Agent and its directors, officers, agents or employees shall
not be liable for any action taken or omitted to be taken by it or them in good
faith under or in connection with the Transaction Documents (including, without
limitation, the servicing, administering or collecting Pool Receivables as a
Servicer pursuant to Section 8.1), except for its or their own
breach of the terms of the applicable terms of the Transaction Documents or its
or their own gross negligence or willful misconduct.  Without limiting the generality of the
foregoing, the Victory Purchaser Agent: 
(a) may consult with legal counsel (including counsel for the Seller),
independent certified public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts;
(b) makes no warranty or representation to Victory or any other holder of any
portion of the Victory Purchaser Group’s interest in Pool Receivables and shall
not be responsible to Victory or any such other holder for any statements,
warranties or representations made by any Seller Party in or in connection with
any Transaction Document; (c) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of any Transaction Document on the part of any Seller Party or to
inspect the property (including the books and records) of any Seller Party; (d)
shall not be responsible to Victory or any other holder of any of the Victory
Purchaser Group’s interest in Pool Receivables for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Transaction
Document; and (e) shall incur no liability

 

43

 

under or in respect of this Agreement by acting upon
any notice (including notice by telephone where permitted herein), consent,
certificate or other instrument or writing (which may be by facsimile or telex)
in good faith believed by it to be genuine and signed or sent by the proper
party or parties.

 

Section 11.7                            Wachovia and Affiliates.

 

Wachovia and any of its Affiliates may generally engage in any kind of
business with any Seller Party or any Obligor, any of their respective
Affiliates and any Person who may do business with or own securities of any
Seller Party or any Obligor or any of their respective Affiliates, all as if
Wachovia was not the Administrative Agent hereunder, and without any duty to
account therefor to the Purchasers, any Purchaser Agent or any other holder of
an interest in Pool Receivables.

 

Article XII

 

Assignments

 

Section 12.1                            Restrictions on
Assignments.

 

(a)                                  No
Seller Party may assign its rights, or delegate its duties hereunder or any
interest herein without the prior written consent of the Agents.  No Purchaser may assign its rights hereunder
(although it may delegate its duties hereunder as expressly indicated herein)
or any portion of the Asset Interest funded by the related Purchaser Group to
any Person without the prior written consent of the Seller, which consent shall
not be unreasonably withheld; provided, however, that

 

(i)                                     Any
Purchaser may assign all of its rights and interests in the Transaction
Documents, together with all its interest in the Asset Interest, to any
Liquidity Bank, Wachovia, BTM or any Affiliate thereof, or to any “bankruptcy
remote” special purpose entity, the business of which is administered by
Wachovia, BTM or any Affiliate thereof (which assignee shall then be subject to
this Article XII); and

 

(ii)                                  Each
Purchaser may assign and grant a security interest in all of its rights in the
Transaction Documents, together with all of its rights and interest in the
Asset Interest, to secure such Purchaser’s obligations under or in connection
with the Commercial Paper Notes, the related Liquidity Agreement, and certain
other obligations of such Purchaser incurred in connection with the funding of
the Purchases and Reinvestments hereunder, which assignment and grant of a
security interest shall not be considered an “assignment” for purposes of Section 12.1(b)
or, prior to the enforcement of such security interest, for purposes of any
other provision of this Agreement (other than Section 12.3).

 

(b)                                 The
Seller agrees to advise the Agents within five (5) Business Days after notice
to the Seller of any proposed assignment by any Purchaser of the Asset Interest
(or any portion thereof), not otherwise permitted under subsection (a)
above, of the Seller’s consent or non-consent to such assignment, and if it
does not consent, the reasons therefor. 
If the Seller does not consent to such assignment, each Purchaser may
immediately or at any time thereafter assign

 

44

 

such Asset Interest (or portion thereof) to any Person
or Persons permitted under Section 12.1(a)(i).

 

Section 12.2                            Rights of Assignee.

 

Upon the assignment by a Purchaser in accordance with this Article XII,
the assignee receiving such assignment shall have all of the rights of the
related Purchaser with respect to the Transaction Documents and the Asset
Interest (or such portion thereof as has been assigned).

 

Section 12.3                            Terms and Evidence of
Assignment.

 

Any assignment of the Asset Interest (or any portion thereof) to any
Person which is otherwise permitted under this Article XII shall be
upon such terms and conditions as the related Purchaser and the assignee may
mutually agree, and may be evidenced by such instrument(s) or document(s) as
may be satisfactory to such Purchaser, the related Purchaser Agent and the
assignee.

 

Section 12.4                            Rights of Liquidity
Banks.

 

The Seller hereby agrees that, upon notice to the Seller, the Liquidity
Banks may exercise all the rights of the related Purchaser Agent and the
Purchaser hereunder, with respect to the portion of the Asset Interest funded
by the related Purchaser Group (or any portions thereof), and Collections with
respect thereto, which are owned by the related Purchaser, and all other rights
and interests of the Purchasers in, to or under this Agreement or any other
Transaction Document.  Without limiting
the foregoing, upon such notice or at any time thereafter (but subject to any
conditions applicable to the exercise of such rights by the Agents), the
Liquidity Banks may request the Servicers to segregate the Purchasers’ allocable
shares of Collections from the Seller’s allocable share, may give a Successor
Notice pursuant to and in accordance with Section 8.1(b), may give
or require the Administrative Agent to give notice to the Lock-Box Banks as
referred to in Section 8.3(b) and may direct the Obligors of Pool
Receivables to make payments in respect thereof directly to an account
designated by them, in each case, to the same extent as the Administrative
Agent might have done.

 

Article XIII

 

Indemnification

 

Section 13.1                            Indemnities by Seller.

 

(a)                                  General
Indemnity.  Without limiting any
other rights which any such Person may have hereunder or under applicable law,
the Seller hereby agrees to indemnify each of Wachovia, both individually and
as the Blue Ridge Purchaser Agent, BTM, both individually and as the Victory
Purchaser Agent, the Purchasers, the Liquidity Banks, the Liquidity Agent, each
of their respective Affiliates, and all successors, transferees, participants
and assigns and all officers, directors, shareholders, controlling persons,
employees and agents of any of the foregoing (each an “Indemnified
Party”), forthwith on demand, from and against any and all
damages, losses, claims, liabilities and related costs and expenses, including
attorneys’ fees and disbursements (all of the foregoing being collectively
referred to as “Indemnified Amounts”)
awarded against or

 

45

 

incurred by any of them arising out of or relating to
the Transaction Documents or the ownership or funding of the Asset Interest or
in respect of any Receivable or any Contract, excluding, however, (x)
Indemnified Amounts to the extent determined by a court of competent
jurisdiction to have resulted from gross negligence or willful misconduct on
the part of such Indemnified Party or (y) recourse (except as otherwise
specifically provided in this Agreement) for Defaulted Receivables.  Without limiting the foregoing, the Seller
shall indemnify each Indemnified Party for Indemnified Amounts arising out of
or relating to:

 

(i)                                     the
transfer by any Seller Party of any interest in any Receivable other than the
transfer of Receivables and related property by the Originators to the Seller
pursuant to the Sale Agreement, the transfer of an Asset Interest to the
Purchasers pursuant to this Agreement and the grant of a security interest to
the Purchasers pursuant to Section 9.1;

 

(ii)                                  any
representation or warranty made by any Seller Party (or any of its officers)
under or in connection with any Transaction Document, any Information Package,
Interim Information Package or any other information or report delivered by or
on behalf of any Seller Party pursuant hereto, which shall have been false,
incorrect or misleading in any material respect when made or deemed made or
delivered, as the case may be;

 

(iii)                               the failure by any
Seller Party to comply with any applicable law, rule or regulation with respect
to any Pool Receivable or the related Contract, or the nonconformity of any
Pool Receivable or the related Contract with any such applicable law, rule or
regulation;

 

(iv)                              the
failure to vest and maintain vested in the Purchasers an undivided percentage
ownership interest, to the extent of the Asset Interest, in the Receivables in,
or purporting to be in, the Receivables Pool, free and clear of any Lien, other
than a Lien arising solely as a result of an act of any Purchaser or the
Administrative Agent, whether existing at the time of any Purchase or
Reinvestment of such Asset Interest or at any time thereafter;

 

(v)                                 the
failure to file, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other
applicable laws with respect to any Receivables in, or purporting to be in, the
Receivables Pool, whether at the time of any Purchase or Reinvestment or at any
time thereafter;

 

(vi)                              any
dispute, claim, offset or defense (other than discharge in bankruptcy) of the
Obligor to the payment of any Receivable in, or purporting to be in, the
Receivables Pool (including, without limitation, a defense based on such
Receivables or the related Contract not being a legal, valid and binding
obligation of such Obligor enforceable against it in accordance with its
terms), or any other claim resulting from the sale of the merchandise or
services related to such Receivable or the furnishing or failure to furnish
such merchandise or services;

 

(vii)                           any matter described in clause
(i) or (ii) of Section 3.2(a);

 

46

 

(viii)                        any failure of any Seller
Party, as Servicer or otherwise, to perform its duties or obligations in
accordance with the provisions of Article III or Article VIII;

 

(ix)                                any
product liability claim arising out of or in connection with merchandise or
services that are the subject of any Pool Receivable;

 

(x)                                   any
claim of breach by any Seller Party of any related Contract with respect to any
Pool Receivable; or

 

(xi)                                any
tax or governmental fee or charge (but not including taxes upon or measured by
net income), all interest and penalties thereon or with respect thereto, and
all out-of-pocket costs and expenses, including the reasonable fees and
expenses of counsel in defending against the same, which may arise by reason of
the purchase or ownership of any Asset Interest, or any other interest in the
Pool Receivables or in any goods which secure any such Pool Receivables.

 

(b)                                 Contest
of Tax Claim; After-Tax Basis.  If
any Indemnified Party shall have notice of any attempt to impose or collect any
tax or governmental fee or charge for which indemnification will be sought from
any Seller Party under Section 13.1(a)(xi), such Indemnified Party
shall give prompt and timely notice of such attempt to the Seller and the
Seller shall have the right, at its expense, to participate in any proceedings
resisting or objecting to the imposition or collection of any such tax,
governmental fee or charge. 
Indemnification hereunder shall be in an amount necessary to make the
Indemnified Party whole after taking into account any tax consequences to the
Indemnified Party of the payment of any of the aforesaid taxes (including any
deduction) and the receipt of the indemnity provided hereunder or of any refund
of any such tax previously indemnified hereunder, including the effect of such
tax, deduction or refund on the amount of tax measured by net income or profits
which is or was payable by the Indemnified Party.

 

(c)                                  Contribution.  If for any reason the indemnification
provided above in this Section 13.1 (and subject to the exceptions
set forth therein) is unavailable to an Indemnified Party or is insufficient to
hold an Indemnified Party harmless, whether as a result of such provision being
unenforceable or otherwise unavailable and provided that the damage, loss,
claim or liability  for which indemnity
is or has been sought is of the type and character otherwise described above in
this Section 13.1 (and subject to the exceptions set forth
therein), then the Seller shall contribute to the amount paid or payable by
such Indemnified Party as a result of such loss, claim, damage or liability in
such proportion as is appropriate to reflect not only the relative benefits
received by such Indemnified Party on the one hand and the Seller on the other
hand but also the relative fault of such Indemnified Party as well as any other
relevant equitable considerations.

 

Section 13.2                            Indemnities by Servicers.

 

Without limiting any other rights which any Indemnified Party may have
hereunder or under applicable law, the Servicers hereby agree to indemnify each
of the Indemnified Parties forthwith on demand, from and against any and all
Indemnified Amounts awarded against or incurred by any of them arising out of
or relating to the Servicers’ performance of, or failure to perform, any of its
obligations under or in connection with any Transaction Document, or any

 

47

 

representation or warranty made by the
Servicers (or any of its officers) under or in connection with any Transaction
Document, any Information Package, Interim Information Package or any other
information or report delivered by or on behalf of the Servicers, which shall
have been false, incorrect or misleading in any material respect when made or
deemed made or delivered, as the case may be, or the failure of the Servicers
to comply with any applicable law, rule or regulation with respect to any Pool
Receivable or the related Contract. 
Notwithstanding the foregoing, in no event shall any Indemnified Party
be awarded any Indemnified Amounts (a) to the extent determined by a court of
competent jurisdiction to have resulted from gross negligence or willful
misconduct on the part of such Indemnified Party or (b) recourse for Defaulted
Receivables.

 

If for any reason the indemnification provided above in this Section 13.2
(and subject to the exceptions set forth therein) is unavailable to an
Indemnified Party or is insufficient to hold an Indemnified Party harmless,
whether as a result of such provision being unenforceable or otherwise
unavailable and provided that the damage, loss, claim or liability  for which indemnity is or has been sought is
of the type and character otherwise described above in this Section 13.2
(and subject to the exceptions set forth therein), then the Servicers shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such loss, claim, damage or liability in such proportion as is appropriate
to reflect not only the relative benefits received by such Indemnified Party on
the one hand and the Servicers on the other hand but also the relative fault of
such Indemnified Party as well as any other relevant equitable considerations.

 

Article XIV

 

Miscellaneous

 

Section 14.1                            Amendments,
Etc.

 

No amendment or waiver of any provision of this Agreement nor consent
to any departure by any Seller Party therefrom shall in any event be effective
unless the same shall be in writing and signed by (a) each Seller Party, the
Agents and each Purchaser (with respect to an amendment), or (b) the Agents and
each Purchaser (with respect to a waiver or consent by them) or any Seller
Party (with respect to a waiver or consent by it), as the case may be, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that in the
case of any material amendment, waiver or consent, each Purchaser is required
to obtain confirmation from certain rating agencies that such material
amendment, waiver or consent will not result in a withdrawal or reduction in
the short-term ratings of such Purchaser’s commercial paper promissory notes
prior to such Purchaser agreeing to such material amendment, waiver or
consent.  The parties acknowledge that,
before entering into such an amendment or granting such a waiver or consent, a
Purchaser may also be required to obtain the approval of some or all of the
related Liquidity Banks or to obtain confirmation from certain rating agencies
that such amendment, waiver or consent will not result in a withdrawal or
reduction of the ratings of the Commercial Paper Notes issued by such
Purchaser.  The Administrative Agent
shall promptly deliver copies of all amendments to this Agreement to each of
Moody’s and S&P.

 

48

 

Section 14.2                            Notices,
Etc.

 

All notices and other communications provided for hereunder shall,
unless otherwise stated herein, be in writing (including facsimile
communication) and shall be personally delivered or sent by express mail or
courier or by certified mail, postage prepaid, or by facsimile, to the intended
party at the address or facsimile number of such party set forth on Schedule 14.2
or at such other address or facsimile number as shall be designated by such
party in a written notice to the other parties hereto.  All such notices and communications shall be
effective, (a) if personally delivered or sent by express mail or courier or if
sent by certified mail, when received, and (b) if transmitted by facsimile,
when sent, receipt confirmed by telephone or electronic means.

 

Section 14.3                            No Waiver; Remedies.

 

No failure on the part of the Administrative Agent, any Affected Party,
any Indemnified Party, any Purchaser or any other holder of the Asset Interest
(or any portion thereof) to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right.  The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.  Without limiting the
foregoing, each of Wachovia, individually and as Administrative Agent and the
Blue Ridge Purchaser Agent, BTM, individually and as the Victory Purchaser
Agent, and each Victory Purchaser Group and each Liquidity Bank is hereby
authorized by the Seller 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 Wachovia, BTM, such Victory Purchaser Group
and such Liquidity Bank to or for the credit or the account of the Seller, now
or hereafter existing under this Agreement, to any Agent, any Affected Party,
any Indemnified Party or any Purchaser, or their respective successors and
assigns.

 

Section 14.4                            Binding Effect; Survival.

 

This Agreement shall be binding upon and inure to the benefit of each
Seller Party, the Agents, the Purchasers and their respective successors and
assigns, and the provisions of Section 4.2 and Article XIII
shall inure to the benefit of the Affected Parties and the Indemnified Parties,
respectively, and their respective successors and assigns; provided, however,
nothing in the foregoing shall be deemed to authorize any assignment not
permitted by Section 12.1. 
This Agreement shall create and constitute the continuing obligations of
the parties hereto in accordance with its terms, and shall remain in full force
and effect until the Final Payout Date. 
The rights and remedies with respect to any breach of any representation
and warranty made by Seller pursuant to Article VI and the
indemnification and payment provisions of Article XIII and Sections
4.2, 14.5, 14.6, 14.7, 14.8 and 14.15
shall be continuing and shall survive any termination of this Agreement.

 

49

 

Section 14.5                            Costs,
Expenses and Taxes.

 

In addition to its obligations under Article XIII, the
Seller Parties jointly and severally agree to pay on demand:

 

(a)                                  all
reasonable costs and expenses incurred by the Agents, any Liquidity Bank, any
Purchaser and their respective Affiliates in connection with:

 

(i)                                     the
negotiation, preparation, execution and delivery of this Agreement, the other
Transaction Documents or the Liquidity Agreement, any amendment of or consent
or waiver under any of the Transaction Documents which is requested or proposed
by any Seller Party (whether or not consummated), or the enforcement by any of
the foregoing Persons of, or any actual or claimed breach of, this Agreement or
any of the other Transaction Documents, including, without limitation, the
reasonable fees and expenses of counsel to any of such Persons incurred in
connection with any of the foregoing or in advising such Persons as to their
respective rights and remedies under any of the Transaction Documents in
connection with any of the foregoing, and

 

(ii)                                  the
administration (including periodic auditing as provided for herein) of this
Agreement and the other Transaction Documents, including, without limitation,
all reasonable out-of-pocket expenses (including reasonable fees and expenses
of independent accountants), incurred in connection with any review of any
Seller Party’s books and records either prior to the execution and delivery
hereof or pursuant to Section 7.2(g) or 7.1(c)(iii);
and

 

(b)                                 all
stamp and other taxes and fees payable or reasonably determined to be payable
in connection with the execution, delivery, filing and recording of this
Agreement or the other Transaction Documents (and Seller Parties, jointly and
severally agree to indemnify each Indemnified Party against any liabilities
with respect to or resulting from any delay in paying or omission to pay such
taxes and fees).

 

Section 14.6                            No Proceedings.

 

The Servicers hereby agree that it will not institute against the
Seller, or join any Person in instituting against the Seller, each Seller
Party, the Servicers, Wachovia (individually or as Administrative Agent or Blue
Ridge Purchaser Agent) and BTM (individually or as the Victory Purchaser Agent)
each hereby agrees that it will not institute against any Purchaser, or join
any other Person in instituting against any Purchaser, any insolvency
proceeding (namely, any proceeding of the type referred to in the definition of
Event of Bankruptcy) so long as any Commercial Paper Notes issued by such
Purchaser shall be outstanding or there shall not have elapsed one year plus
one day since the last day on which any such Commercial Paper Notes shall have
been outstanding.

 

Section 14.7                            Confidentiality of
Seller Information.

 

(a)                                  Confidential
Seller Information.  Each party
hereto (other than Seller Parties) acknowledges that certain of the information
provided to such party by or on behalf of the Seller Parties in connection with
this Agreement and the transactions contemplated hereby is or may be

 

50

 

confidential, and each such party severally agrees
that, unless Georgia Gulf and GGCV shall otherwise agree in writing, and except
as provided in subsection (b) of this Section 14.7,
such party will not disclose to any other person or entity:

 

(i)                                     any
information regarding, or copies of, any nonpublic financial statements,
reports, schedules and other information furnished by any Seller Party to any
Purchaser or any Agent (A) prior to the date hereof in connection with such
party’s due diligence relating to the Seller Parties and the transactions
contemplated hereby, or (B) pursuant to Section 3.1, 5.1, 6.1(i),
7.1(c) or 7.2, or

 

(ii)                                  any
other information regarding any Seller Party which is designated by any Seller
Party to such party in writing as confidential

 

(the information referred to in clauses (i) and (ii)
above, whether furnished by any Seller Party or any attorney for or other
representative thereof (each a “Seller Information
Provider”), is collectively referred to as the “Seller Information”); provided,
however, “Seller Information” shall not include any information which is
or becomes generally available to the general public or to such party on a
nonconfidential basis from a source other than any Seller Information Provider,
or which was known to such party on a nonconfidential basis prior to its
disclosure by any Seller Information Provider.

 

(b)                                 Disclosure.  Notwithstanding subsection (a)
above, each party may disclose any Seller Information:

 

(i)                                     to
any of such party’s independent attorneys, consultants and auditors, and to any
dealer or placement agent for such Purchaser’s Commercial Paper Notes, who (A)
in the good faith belief of such party, have a need to know such Seller
Information, and (B) are informed by such party of the confidential nature of
the Seller Information and the terms of this Section 14.7 and has
agreed, verbally or otherwise, to be bound by the provisions of this Section 14.7,

 

(ii)                                  to
any Liquidity Bank, any actual or potential assignees of, or participants in,
any rights or obligations of any Purchaser, any Liquidity Bank or the related
Purchaser Agent under or in connection with this Agreement who has agreed to be
bound by the provisions of this Section 14.7,

 

(iii)                               to any rating agency
that maintains a rating for such Purchaser’s Commercial Paper Notes or is
considering the issuance of such a rating, for the purposes of reviewing the credit
of such Purchaser in connection with such rating,

 

(iv)                              to
any other party to this Agreement (and any independent attorneys, consultants
and auditors of such party), for the purposes contemplated hereby,

 

(v)                                 as
may be required by any municipal, state, federal or other regulatory body
having or claiming to have jurisdiction over such party, in order to comply
with any law, order, regulation, regulatory request or ruling applicable to
such party,

 

51

 

(vi)                              subject
to subsection (c) below, in the event such party is legally
compelled (by interrogatories, regulatory and bank examiners’ requests for
information or copies, subpoena, civil investigative demand or similar process)
to disclose such Seller Information, or

 

(vii)                           in connection with the
enforcement of this Agreement or any other Transaction Document.

 

In addition, each Purchaser and each Agent may disclose on a “no name”
basis to any actual or potential investor in such Purchaser’s Commercial Paper Notes
information regarding the nature of this Agreement, the basic terms hereof
(including without limitation the amount and nature of such Purchaser’s
commitment and the Invested Amount with respect to the Asset Interest funded by
such Purchaser Group and any other credit enhancement provided by any Seller
Party hereunder), the nature, amount and status of the Pool Receivables, and
the current and/or historical ratios of losses to liquidations and/or
outstandings with respect to the Receivables Pool.

 

(c)                                  Legal
Compulsion.  In the event that any
party hereto (other than any Seller Party) or any of its representatives is
requested or becomes legally compelled (by interrogatories, regulatory and bank
examiners’ requests for information or documents, subpoena, civil investigative
demand or similar process) to disclose any of the Seller Information, such
party will (or will cause its representative to)

 

(i)                                     provide
Georgia Gulf and GGCV, to the extent permitted by law, with prompt written
notice so that (A) Georgia Gulf and GGCV may seek a protective order or other
appropriate remedy, or (B) Georgia Gulf and GGCV may, if it so chooses, agree
that such party (or its representatives) may disclose such Seller Information
pursuant to such request or legal compulsion; and

 

(ii)                                  unless
Georgia Gulf and GGCV agrees that such Seller Information may be disclosed,
make a timely objection to the request or compulsion to provide such Seller
Information on the basis that such Seller Information is confidential and
subject to the agreements contained in this Section 14.7.

 

In the event such protective order or remedy is not obtained, or
Georgia Gulf and GGCV agree that such Seller Information may be disclosed, such
party will furnish only that portion of the Seller Information which (in such
party’s good faith judgment) is legally required to be furnished and will
exercise reasonable efforts to obtain reliable assurance that confidential
treatment will be afforded the Seller Information.

 

(d)                                 This
Section 14.7 shall survive termination of this Agreement.

 

Section 14.8                            Confidentiality of
Program Information.

 

(a)                                  Confidential
Information.  Each party hereto
acknowledges that Wachovia, individually and in its capacity as Administrative
Agent and BTM, respectively, regards the structure of the transactions
contemplated by this Agreement to be proprietary, and each such party agrees
that:

 

52

 

(i)                                     it
will not disclose without the prior consent of Wachovia and BTM, respectively,
(other than to the directors, employees, auditors, counsel or affiliates
(collectively, “representatives”)
of such party, each of whom shall be informed by such party of the confidential
, nature of the Program Information (as defined below) and of the terms of this
Section 14.8), (A) any information regarding the pricing in, or
copies of, the Fee Letter, the Mandate Letter, the Due Diligence Report and the
other confidential or proprietary information with respect to the Agents and
the Purchasers and their respective businesses obtained in connection with the
structuring, negotiating and execution of the transactions contemplated herein
or therein, (B) any information regarding the organization, business or
operations of the Purchasers generally or the services performed by Wachovia as
the Administrative Agent for the Purchasers, or (C) any information which is
furnished by Wachovia and BTM, respectively, to such party and which is
designated by Wachovia or BTM, as applicable, in writing to such party or
otherwise as confidential or not otherwise available to the general public (the
information referred to in clauses (A), (B) and (C) is
collectively referred to as the “Program Information”);
provided, however, that such party may disclose any such Program
Information (1) to any other party to this Agreement (and any independent
attorneys, consultants and auditors of any such party) for the purposes
contemplated hereby, (2) as may be required by any municipal, state, federal or
other regulatory body having or claiming to have jurisdiction over such party,
including, without limitation, the Securities and Exchange Commission and
various public utility commissions having jurisdiction over Georgia Gulf or
GGCV, (3) in order to comply with any law, order, regulation, regulatory
request or ruling applicable to such party, (4) subject to subsection (c),
in the event such party is legally compelled (by interrogatories, regulatory
and bank examiners requests for information or copies, subpoena, civil
investigative demand or similar process) to disclose any such Program
Information, or (5) in financial statements as required by GAAP;

 

(ii)                                  it
will use the Program Information solely for the purposes of evaluating,
administering and enforcing the transactions contemplated by this Agreement and
making any necessary business judgments with respect thereto; and

 

(iii)                               it will, upon demand,
return (and cause each of its representatives to return) to Wachovia and BTM,
respectively, all documents or other written material received from Wachovia
and BTM, respectively, in connection with (a)(i)(B) or (C) above
and all copies thereof made by such party which contain the Program
Information.

 

(b)                                 Availability
of Confidential Information.  This Section 14.8
shall be inoperative as to such portions of the Program Information which are
or become generally available to the public or such party on a nonconfidential
basis from a source other than Wachovia and BTM, respectively, or were known to
such party on a nonconfidential basis prior to its disclosure by Wachovia and
BTM, respectively.

 

(c)                                  Legal
Compulsion to Disclose.  In the event
that any party or anyone to whom such party or its representatives transmits
the Program Information is requested or becomes legally compelled (by
interrogatories, regulatory and bank examiners requests for information or
documents, subpoena, civil investigative demand or similar process) to disclose
any of the Program Information, such party will:

 

53

 

(i)                                     provide
Wachovia and BTM, respectively, with prompt written notice so that Wachovia and
BTM, respectively, may seek a protective order or other appropriate remedy
and/or, if it so chooses, agree that such party may disclose such Program
Information pursuant to such request or legal compulsion; and

 

(ii)                                  unless
Wachovia and BTM, respectively, agree that such Program Information may be
disclosed, make a timely objection to the request or confirmation to provide
such Program Information on the basis that such Program Information is
confidential and subject to the agreements contained in this Section 14.8.

 

In the event that such protective order or other remedy is not
obtained, or Wachovia and BTM, respectively, each agree that such Program
Information may be disclosed, such party will furnish only that portion of the
Program Information which (in such party’s good faith judgment) is legally
required to be furnished and will exercise reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded the Program
Information.  In the event any Seller
Party is required to file a copy of this Agreement with the SEC or any other
Governmental Authority, it will (A) provide Wachovia and BTM, respectively,
with prompt written notice of such requirement and (B) exercise reasonable
efforts to obtain reliable assurance that such Governmental Authority will give
confidential treatment to this Agreement.

 

(d)                                 Survival.  This Section 14.8 shall survive
termination of this Agreement.

 

Section 14.9                            Captions and Cross References.

 

The various captions (including, without limitation, the table of
contents) in this Agreement are provided solely for convenience of reference
and shall not affect the meaning or interpretation of any provision of this
Agreement.  Unless otherwise indicated,
references in this Agreement to any Section, Appendix, Schedule or Exhibit
are to such Section of or Appendix, Schedule or Exhibit to this
Agreement, as the case may be, and references in any Section, subsection, or
clause to any subsection, clause or subclause are to such subsection, clause or
subclause of such Section, subsection or clause.

 

Section 14.10                     Integration.

 

This Agreement and the other Transaction Documents contain a final and
complete integration of all prior expressions by the parties hereto with
respect to the subject matter hereof and shall constitute the entire
understanding among the parties hereto with respect to the subject matter
hereof, superseding all prior oral or written understandings.

 

Section 14.11                     Governing Law.

 

THIS AGREEMENT, INCLUDING THE RIGHTS AND
DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

 

54

 

Section 14.12                     Waiver Of Jury Trial.

 

EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR UNDER ANY
AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING OR OTHER
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL NOT BE
TRIED BEFORE A JURY.

 

Section 14.13                     Consent To Jurisdiction; Waiver
Of Immunities.

 

EACH SELLER PARTY HEREBY ACKNOWLEDGES AND
AGREES THAT:

 

(a)                                  IT
IRREVOCABLY (i) SUBMITS TO THE JURISDICTION, FIRST, OF ANY UNITED STATES
FEDERAL COURT, AND SECOND, IF FEDERAL JURISDICTION IS NOT AVAILABLE, OF ANY NEW
YORK STATE COURT, IN EITHER CASE SITTING IN NEW YORK COUNTY, NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, (ii) AGREES
THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED ONLY IN SUCH NEW YORK STATE OR FEDERAL COURT AND NOT IN ANY OTHER
COURT, AND (iii) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING.

 

(b)                                 TO
THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM THE
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR
NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID TO EXECUTION, EXECUTION
OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, IT HEREBY IRREVOCABLY
WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER OR IN CONNECTION WITH
THIS AGREEMENT.

 

Section 14.14                     Execution in Counterparts.

 

This Agreement may be executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same Agreement. 
Delivery of an executed counterpart of a signature page by facsimile
transmission shall be effective as delivery of a manually executed counterpart
of this Agreement.

 

Section 14.15                     No Recourse Against Other
Parties.

 

The obligations of each Purchaser under this Agreement are solely the
corporate obligations of such Purchaser. 
No recourse shall be had for the payment of any amount owing by any
Purchaser under this Agreement or for the payment by such Purchaser of any fee
in

 

55

 

respect hereof or any other obligation or
claim of or against such Purchaser arising out of or based upon this Agreement,
against Wachovia, BTM or against any employee, officer, director, incorporator
or stockholder of such Purchaser.  For
purposes of this Section 14.15, the term “Wachovia” and “BTM” shall mean and include Wachovia
Bank, National Association and The Bank of Tokyo-Mitsubishi, Ltd., New York
Branch, as the case may be, and all affiliates thereof and any employee,
officer, director, incorporator, stockholder or beneficial owner of any of
them; provided, however, that for purposes of this paragraph,
Blue Ridge shall not be considered to be an affiliate of Wachovia and Victory
shall not be considered to be an affiliate of BTM. No recourse shall be had for
the payment of any amount owing in respect of any obligation of, or claim
against, Victory arising out of or based upon this Agreement or any other
related Agreement against J H Management Corporation or against any
stockholder, employee, officer, director, or incorporator of Victory or J H
Management Corporation; provided, however, that the foregoing shall not relieve
any such person or entity from any liability they might otherwise have arising
from his, her or its willful misconduct or intentional misrepresentation.  Each of the Seller, the Servicers and the
Agents agree that each Purchaser shall be liable for any claims that such party
may have against such Purchaser only to the extent such Purchaser has excess
funds and to the extent such assets are insufficient to satisfy the obligations
of such Purchaser hereunder, such Purchaser shall have no liability with
respect to any amount of such obligations remaining unpaid and such unpaid
amount shall not constitute a claim against such Purchaser.  Any and all claims against any Purchaser or
the related Purchaser Agent shall be subordinate to the claims of the holders
of Commercial Paper Notes and the related Liquidity Banks.

 

Section 14.16                     Severability of Provisions.

 

Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability, without invalidating the remaining
provisions hereof or affecting the validity or enforceability, of such
provision in any other jurisdiction.

 

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

56

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

 

	
   

  	
  GGRC CORP.,
  as Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  JOEL I. BEERMAN

  	
   

  
	
   

  	
  Name:

  	
    Joel
  I. Beerman

  	
   

  
	
   

  	
  Title:

  	
    Vice
  President, General Counsel and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GEORGIA GULF
  CORPORATION,

  
	
   

  	
  as Initial
  Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  JOEL I. BEERMAN

  	
   

  
	
   

  	
  Name:

  	
    Joel
  I. Beerman

  	
   

  
	
   

  	
  Title:

  	
    Vice
  President, General Counsel and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GEORGIA GULF
  CHEMICALS & VINYLS, LLC,

  
	
   

  	
  as Initial
  Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  JOEL I. BEERMAN

  	
   

  
	
   

  	
  Name:

  	
    Joel
  I. Beerman

  	
   

  
	
   

  	
  Title:

  	
    Vice
  President, General Counsel and Secretary

  	
   

  
					

 

 

[additional signatures to
follow]

 

 

[Signature Page to Amended and
Restated Receivables Purchase Agreement]

 

 

	
   

  	
  BLUE RIDGE
  ASSET FUNDING

  
	
   

  	
  CORPORATION,

  
	
   

  	
  as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:  Wachovia Capital Markets, LLC,

  
	
   

  	
  as Attorney-in-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Douglas R. Wilson, Sr.

  	
   

  
	
   

  	
  Name:

  	
    Douglas
  R. Wilson, Sr.

  	
   

  
	
   

  	
  Title:

  	
     Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK,

  
	
   

  	
  NATIONAL
  ASSOCIATION,

  
	
   

  	
  as Administrative
  Agent and Blue Ridge Purchaser

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  JOHN A. FOXGROVER

  	
   

  
	
   

  	
  Name:

  	
    John
  A. Foxgrover

  	
   

  
	
   

  	
  Title:

  	
     Director

  	
   

  
					

 

 

	
   

  	
  VICTORY
  RECEIVABLES CORPORATION,

  
	
   

  	
  as Purchaser

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Blake W. Grosch

  	
   

  
	
   

  	
  Name:

  	
   Blake
  W. Grosch

  	
   

  
	
   

  	
  Title:

  	
     Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  TOKYO-MITSUBISHI, LTD.,

  
	
   

  	
  NEW YORK
  BRANCH,

  
	
   

  	
  as Victory
  Purchaser Agent

  
	
   

  	
  By:

  	
    /s/
  A. K. Reddy

  	
   

  
	
   

  	
  Name:

  	
   A. K.
  Reddy

  	
   

  
	
   

  	
  Title:

  	
     Vice
  President

  	
   

  
						

 

[end of signatures]

 

 

APPENDIX A

 

DEFINITIONS

 

This is Appendix A to the Amended and Restated Receivables Purchase
Agreement dated as of November 12, 2004 among GGRC Corp. as Seller,
Georgia Gulf Corporation (“Georgia Gulf”)
and Georgia Gulf Chemicals & Vinyls, LLC (“GGCV”), as initial Servicers, Blue Ridge Asset Funding Corporation,
as a Purchaser, Wachovia Bank, National Association, as Administrative Agent
and Blue Ridge Purchaser Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York
Branch, as Victory Purchaser Agent, and Victory Receivables Corporation, as a
Purchaser (as amended, supplemented or otherwise modified from time to time,
this “Agreement”).  Each reference in this Appendix A to
any Section, Appendix or Exhibit refers to such Section of or Appendix or
Exhibit to this Agreement.

 

A.                                   Defined
Terms.  As used in this Agreement,
unless the context requires a different meaning, the following terms have the
meanings indicated herein below:

 

Adjusted Dilution Ratio:  The 12-month rolling average of the Dilution
Ratio.

 

Administrative Agent:  As defined in the preamble.

 

Affected Party:  Each of the Purchasers, each Liquidity Bank,
any assignee or participant of any Purchaser or any Liquidity Bank, Wachovia,
any successor to Wachovia, as Administrative Agent or Blue Ridge Purchaser
Agent, The Bank of Tokyo-Mitsubishi, Ltd., New York Branch, as Victory
Purchaser Agent, or any sub-agent of any Agent.

 

Affiliate: 
With respect to a Person, any other Person controlling, controlled by,
or under common control with, such Person.

 

Affiliated Obligor:  In relation to any Obligor, an Obligor that
is an Affiliate of such Obligor.

 

Agent or Agents:  Any Purchaser Agent or the Administrative
Agent or, collectively, the Purchaser Agents and the Administrative Agent, as
the case may be.

 

Allocation Limit:  As defined in Section 1.1(c).

 

Alternate Base Rate:  For a Purchaser Group, on any day, the rate
per annum equal to the higher as of such day of (i) the Prime Rate for such
Purchaser Group, or (ii) one-half of one percent above the Federal Funds Rate.  For purposes of determining the Alternate
Base Rate for any day, changes in the Prime Rate or the Federal Funds Rate
shall be effective on the date of each such change.  The Alternate Base Rate is not necessarily
intended to be the lowest rate of interest determined by the Agents in connection
with extensions of credit.

 

Applicable Rate:  As defined in Exhibit A to the Fee Letter.

 

Asset Interest:  At any time, the undivided percentage
ownership interest of the Purchasers in all outstanding Pool Receivables and
all Related Assets with respect to such Pool Receivables.

 

A-1

 

On any date, the Asset Interest shall equal the percentage equivalent
of the following fraction:

 

	
  IA+RR

  
	
  NPB

  

 

where:

 

	
  IA

  	
  =

  	
  the Invested
  Amount;

  
	
   

  	
   

  	
   

  
	
  RR

  	
  =

  	
  the Required
  Reserve; and

  
	
   

  	
   

  	
   

  
	
  NPB

  	
  =

  	
  the Net Pool
  Balance;

  

 

provided,
however, that the Asset Interest during the Liquidation Period shall
equal 100%.

 

Asset Tranche: 
At any time a portion of the Asset Interest funded by any Purchaser
Group selected by the related Purchaser Agent pursuant to Section 2.1.

 

Bank Rate: 
For a Purchaser Group and any Yield Period with respect to any Asset
Tranche funded by the related Purchaser means:

 

(i)                                     in
the case of any Yield Period other than a Yield Period described in clause
(ii), an interest rate per  annum equal to the sum of (A) the
Applicable Rate per annum, plus (B) the applicable Eurodollar Rate
(Reserve Adjusted) for such Yield Period;

 

(ii)                                  in
the case of

 

(A)                              any
Yield Period commencing on or prior to the first day of which the related
Purchaser or any related Liquidity Bank shall have notified the related
Purchaser Agent that (1) the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank
or other Governmental Authority asserts that it is unlawful, for such Person to
fund such Asset Tranche at the rate described in clause (i), or (2) due
to market conditions affecting the interbank eurodollar market, funds are not
reasonably available to such Person in such market in order to enable it to
fund such Asset Tranche at the rate described in clause (i) (and in the
case of subclause (1) or (2), such Person shall not have
subsequently notified the related Purchaser Agent that such circumstances no
longer exist), or

 

(B)                                any
Yield Period as to which the related Purchaser Agent does not receive notice or
determine, by no later than 12:00 noon (Atlanta, Georgia time) on the third
Business Day preceding the first day of such Yield Period, that the related
Asset Tranche will be funded by a Liquidity Funding and not by the issuance of
Commercial Paper Notes,

 

an interest rate per annum equal to the applicable Alternate Base Rate
in effect from time to time during such Yield Period; it being understood that,
in the case of paragraph (ii)(A) above, such

 

A-2

 

rate shall only apply to the Person affected by the circumstances
described in such paragraph (ii)(A).

 

Blue Ridge: 
As defined in the preamble.

 

Blue Ridge Broken Funding Costs:  For any Asset Tranche funded by the Blue
Ridge Purchaser Group which:  (i) has its
Purchaser Group Invested Amount reduced without compliance by the Seller with
the notice requirements hereunder or (ii) does not become subject to a
reduction following the delivery of any notice pursuant to Section 3.2(b)
or (iii) is assigned by Blue Ridge to the Liquidity Banks under the related
Liquidity Agreement or terminated prior to the date on which it was originally
scheduled to end; an amount equal to the excess, if any, of (A) the CP Costs
that would have accrued during the remainder of the tranche periods for
Commercial Paper Notes or (as applicable) Earned Discount that would have
accrued during the remainder of the Yield Periods determined by the Blue Ridge
Purchaser Agent to relate to such Asset Tranche (as applicable) subsequent to
the date of such reduction, assignment or termination (or in respect of clause
(ii) above, the date such reduction was designated to occur pursuant to the
notice) of the related Purchaser Group Invested Amount of such Asset Tranche if
such reduction, assignment or termination had not occurred or such notice had
not been delivered, over (B) the sum of (1) to the extent all or a
portion of such the related Purchaser Group Amount is allocated to another
Asset Tranche, the amount of CP Costs or Earned Discount actually accrued
during the remainder of such period on such Invested Amount for the new Asset
Tranche, and (2) to the extent such Purchaser Group Invested Amount is not
allocated to another Asset Tranche, the income, if any, actually received
during the remainder of such period by the holder of such Asset Tranche from
investing the portion of such Purchaser Group Invested Amount not so allocated.  All Blue Ridge Broken Funding Costs shall be
due and payable hereunder upon demand.

 

Blue Ridge CP
Costs:  For each
day, the sum of (i) discount or interest accrued on Pooled Commercial Paper
issued by Blue Ridge on such day, plus (ii) any and all accrued
commissions in respect of placement agents and Commercial Paper Note dealers,
and issuing and paying agent fees incurred, in respect of such Pooled
Commercial Paper for such day, plus (iii) other costs associated with
funding small or odd-lot amounts with respect to all receivable purchase or
financing facilities which are funded by Pooled Commercial Paper issued by Blue
Ridge for such day, minus (iv) any accrual of income net of expenses
received on such day from investment of collections received under all
receivable purchase or financing facilities funded substantially with Pooled
Commercial Paper of Blue Ridge, minus (v) any payment received on such
day net of expenses in respect of Blue Ridge Broken Funding Costs related to
the prepayment of any investment of Blue Ridge pursuant to the terms of any
receivable purchase or financing facilities funded substantially with Pooled
Commercial Paper.  In addition to the
foregoing costs, if  Seller shall request
any Purchase during any period of time determined by the Blue Ridge Purchaser
Agent in its sole discretion to result in incrementally higher CP Costs
applicable to such Purchase, the principal associated with any such Purchase
shall, during such period, be deemed to be funded by Blue Ridge in a special
pool (which may include capital associated with other receivable purchase or
financing facilities) for purposes of determining such additional Blue Ridge CP
Costs applicable only to such special pool and charged each day during such
period against such principal. 
Notwithstanding the foregoing, on any day when any Liquidation Event or
Unmatured Liquidation Event shall have occurred and be continuing, the Blue
Ridge CP Costs for each Asset Tranche funded through the issuance of Commercial
Paper Notes by Blue Ridge

 

A-3

 

shall equal the greater of (A)
the amount determined for such day pursuant to the preceding two sentences, and
(B) the interest on the related Purchaser Group Invested Amount associated with
such Asset Tranche a rate per annum equal to the Base Rate plus 2% per annum.

 

Blue Ridge
Liquidity Agreement: 
The Liquidity Asset Purchase Agreement dated as of June 19, 2000
among Blue Ridge, Wachovia, as Administrative Agent, Wachovia, as Liquidity
Agent, and Wachovia and/or one or more other banks or other financial
institutions, as Liquidity Banks, and any other agreement hereafter entered
into by Blue Ridge providing for the making of loans, purchase of assets or
other extensions of credit to Blue Ridge secured by a direct or indirect security
interest in the portion of the Asset Interest funding by Blue Ridge (or any
portion thereof), to support all or part of Blue Ridge’s payment obligations
under the Commercial Paper Notes issued by Blue Ridge or to provide an
alternate means of funding Blue Ridge’s investments in accounts receivable or
other financial assets, and under which the amount available from such
extensions of credit is limited to an amount calculated by reference to the
value or eligible unpaid balance of such accounts receivable or other financial
assets or any portion thereof or the level of deal-specific credit enhancement
available with respect thereto, as such Blue Ridge Liquidity Agreement or other
agreement may be amended, supplemented or otherwise modified from time to time.

 

Blue Ridge
Liquidity Bank: 
The commercial lending institutions that are at any time parties to the
Blue Ridge Liquidity Agreement as liquidity providers thereunder.

 

Blue Ridge Prime Rate:  Refers to that interest rate so denominated
and set by Wachovia from time to time as an interest rate basis for
borrowings.  The Blue Ridge Prime Rate is
but one of several interest rate bases used by Wachovia.  Wachovia lends at interest rates above and
below the Blue Ridge Prime Rate.

 

Blue Ridge
Purchaser Agent: 
Wachovia, in such capacity, and its successors and assigns.

 

Blue Ridge
Purchaser Account: 
Account number 8735-098787 at Wachovia Bank, National Association, ABA
number 0531000494.

 

Blue Ridge
Purchaser Group: 
Blue Ridge, Wachovia (individually and as Blue Ridge Purchaser Agent)
and each related Liquidity Bank, together with their respective successors,
assigns and participants).

 

Blue Ridge Purchaser Group Limit:  $67,500,000.

 

Broken Funding Costs:  For any Asset Interest, the sum of Blue Ridge
Broken Funding Costs and Victory Broken Funding Costs.

 

BTM:  As
defined in the Preamble.

 

Business Day: 
(i) with respect to any matters relating to the Eurodollar Rate, a day
on which banks are open for business in New York, New York, and in Atlanta,
Georgia, and on which dealings in Dollars are carried on in the London
interbank market and (ii) for all other purposes, any day other than a
Saturday, Sunday or other day on which banking institutions or trust

 

A-4

 

companies in New York, New York, or Atlanta, Georgia, are authorized or
obligated by law, executive order or governmental decree to be closed.

 

Canadian Obligor:  As defined in Exhibit A to the Fee Letter.

 

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

 

Change in Control:  (i) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Exchange Act and the rules of the SEC thereunder as in effect on
the date hereof) other than Permitted Holders, of shares or membership
interests, as the case may be, representing more than 30% of the aggregate
ordinary voting power represented by the issued and outstanding capital stock
or membership interests, as the case may be, of Georgia Gulf, GGCV or any other
Originator; (ii) occupation of a majority of the seats (other than vacant
seats) on the board of directors or board of managers, as the case may be, of
Georgia Gulf, GGCV or any other Originator by Persons who were neither (A)
nominated by the board of directors  or
board of managers, as the case may be, of Georgia Gulf, GGCV or any other
Originator nor (B) appointed by directors or managers so nominated; (iii) the
acquisition of direct or indirect Control of Georgia Gulf, GGCV or any
Originator by any Person or group other than Permitted Holders; or (iv) the
failure of the Originators to collectively own 100% of the issued and
outstanding capital stock of the Seller, free and clear of any Lien other than
the Lien granted in favor of the Guarantee Collateral Agent for the benefit of
the Guarantee Secured Parties pursuant to the Collateral Agreement.

 

Closing Date: 
November 12, 2004.

 

Code: 
The Internal Revenue Code of 1986, as the same may be amended from time
to time.

 

Collateral: 
As defined in Section 9.1.

 

Collateral Agreement:  That certain Guarantee and Collateral
Agreement dated as of November 12, 1999 by and among Georgia Gulf, the
Subsidiary Guarantors party thereto and Chase Manhattan Bank as Collateral
Administrative Agent.

 

Collection Account:  As defined in Section 7.1(i).

 

Collections: 
With respect to any Receivable, all cash collections and other cash
proceeds in respect of such Receivable, including, without limitation, all
Finance Charges or other related amounts accruing in respect thereof and all
cash proceeds of Related Security with respect to such Receivable; provided
that, prior to such time as Georgia Gulf and GGCV shall cease to be the
Servicers, Finance Charges shall not be deemed to be Collections.

 

Commercial Paper Notes:  The commercial paper promissory notes issued
by a Purchaser in the commercial paper market.

 

A-5

 

Consolidated Cash Interest Expense:  Has the meaning given to such term in the
Credit Agreement (without giving effect to any changes thereto occurring after
May 27, 2004 which changes have not been approved in writing by the
Administrative Agent) and each term used therein shall have the meaning given
to such term in the Credit Agreement (without giving effect to any changes
thereto occurring after May 27, 2004 which changes have not been approved in
writing by the Administrative Agent).

 

Consolidated EBITDA:  Has the meaning given to such term in the
Credit Agreement (without giving effect to any changes thereto occurring after
May 27, 2004 which changes have not been approved in writing by the
Administrative Agent) and each term used therein shall have the meaning given
to such term in the Credit Agreement (without giving effect to any changes
thereto occurring after May 27, 2004 which changes have not been approved in
writing by the Administrative Agent).

 

Contract: 
A contract between Seller or the Originators and any Person, or an
invoice sent or to be sent by Seller or the Originators, pursuant to or under
which a Receivable shall arise or be created, or which evidences a
Receivable.  A ‘related Contract’ or
similar reference means rights to payment, collection and enforcement, and
other rights under a Contract to the extent directly related to a Receivable in
the Receivables Pool, but not any other rights under such Contract.

 

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

 

CP Accrual Period:  Each Settlement Period during which any Asset
Tranche is funded with Commercial Paper Notes.

 

CP Costs: 
As the context may require, Blue Ridge CP Costs and/or Victory CP Costs.

 

CP Rate: 
With respect to any CP Accrual Period, the rate per annum equivalent to
the CP Costs accrued with respect to the Invested Amount allocated to any Asset
Tranche funded with Commercial Paper Notes.

 

Credit Agreement:  That certain Credit Agreement dated as of November 12,
1999 by and among the Originator and the Parent, as Borrowers, certain
financial institutions, as the Lenders, and Chase Manhattan Bank (“Chase”), as Administrative Agent for
the Lenders, as has been amended and as may be amended, restated, substituted
or replaced from time to time.

 

Credit and Collection Policy:  Those credit and collection policies and
practices of Georgia Gulf and GGCV relating to Contracts and Receivables as in
effect on the date of this Agreement, in the form of Exhibit C hereto,
as modified without violating Section 7.3(c), but subject to
compliance with applicable tariffs or state regulations in effect from time to
time.

 

Credit Event: 
A Credit Event shall occur at any time that, with respect to Georgia
Gulf, either (i) the Leverage Ratio as of the last day of any fiscal quarter of
Georgia Gulf shall exceed the Leverage Ratio Trigger Level or (ii) as of the
last day of any fiscal quarter of Georgia Gulf, the ratio of (a) Consolidated
EBITDA (for the period of four (4) consecutive fiscal quarters ending

 

A-6

 

on such date) to (b) Consolidated Cash Interest Expense (for the period
of four (4) consecutive fiscal quarters ending on such date) is less than
Interest Coverage Ratio Trigger Level.

 

Cut-Off Date: 
The last day of each Settlement Period.

 

Days Sales Outstanding or DSO:  As of any day, an amount equal to the product
of (i) 91, multiplied by (ii) the amount obtained by dividing (A) the aggregate
outstanding balance of Receivables as of the most recent Cut-Off Date, by (B)
the aggregate amount of Receivables created during the three Settlement Periods
including and immediately preceding such Cut-Off Date.

 

Deemed Collections:  As defined in Section 3.2(a).

 

Default Horizon Ratio:  As of any Cut-Off Date, the ratio (expressed
as a percentage) of (i) the sum of (A) the aggregate dollar amount of
Receivables generated by the Originators during the immediately preceding four
Settlement Periods ending on such Cut-Off Date and (B) 1/2 of the aggregate
dollar amount of Receivables generated by the Originators during the fifth
preceding Settlement Period divided by (ii) the Net Pool Balance on such
Cut-Off Date.

 

Default Ratio: 
At any time, an amount (expressed as a percentage) equal to a fraction,
the numerator of which is equal to the sum of Receivables that become Defaulted
Receivables during the immediately preceding Settlement Period and the
denominator of which is the aggregate dollar amount of Receivables generated by
the Originators during the Settlement Period three months prior to the
immediately preceding Settlement Period.

 

Defaulted Receivable:  A Receivable: 
(i) as to which any payment, or part thereof, remains unpaid for 61 days
or more from the original due date for such payment; (ii) as to which an Event
of Bankruptcy has occurred and remains continuing with respect to the Obligor
thereof; or (iii) which has been, or would be written off in accordance with
the Originator’s Credit and Collection Policy as uncollectible.

 

Delinquency Ratio:  At any time, the percentage equivalent of a
fraction, computed as of the Cut-Off Date for the next preceding Settlement
Period, the numerator of which is the 
aggregate Unpaid Balance of all Pool Receivables that are Delinquent
Receivables on such Cut-Off Date and the denominator of which is the aggregate
Unpaid Balance of Pool Receivables on such Cut-Off Date.

 

Delinquent Receivable:  A Pool Receivable (i) that is not a Defaulted
Receivable and (ii) as to which any payment, or part thereof, remains unpaid
for 31 days or more from the original due date for such payment.

 

Dilution: 
The amount of any reduction or cancellation of the Unpaid Balance of a
Pool Receivable as described in Section 3.2(a).

 

Dilution Horizon Ratio:  An amount (expressed as a percentage) equal
to a fraction, the numerator of which is the aggregate dollar amount of
Receivables generated by the Originators for the most recent Settlement Period
and the denominator of which is the aggregate balance of the Net Pool Balance
as of the most recent Cut-Off Date.

 

A-7

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