Document:

Exhibit 10.1 Form of Indemnification Agrmt

 

Exhibit 10.1 Form of Indemnification Agreement for Directors and Officers

INDEMNITY AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of
                         , by and between PAYCHEX, INC., a Delaware corporation (the
“Company”), and                          (“Indemnitee”).

RECITALS

     WHEREAS, highly competent persons have become more reluctant to serve
publicly-held corporations as directors or in other capacities unless they are
provided with adequate protection through insurance or adequate indemnification
against inordinate risks of claims and actions against them arising out of
their service to and activities on behalf of the corporation.

     WHEREAS, the Board of Directors of the Company (the “Board”) has
determined that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole expense,
liability insurance to protect persons serving the Company and its subsidiaries
from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States based corporations and
other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only
at higher premiums and with more exclusions. At the same time, directors,
officers, and other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming litigation
relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself. The Certificate
of Incorporation of the Company requires indemnification of the officers and
directors of the Company. Indemnitee may also be entitled to indemnification
pursuant to the Delaware General Corporation Law (“DGCL”). The Certificate of
Incorporation and the DGCL expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that
contracts may be entered into between the Company and members of the board of
directors, officers and other persons with respect to indemnification.

     WHEREAS, the uncertainties relating to such insurance and to
indemnification have increased the difficulty of attracting and retaining such
persons.

     WHEREAS, the Board has determined that the increased difficulty in
attracting and retaining such persons is detrimental to the best interests of
the Company’s stockholders and that the Company should act to assure such
persons that there will be increased certainty of such protection in the
future.

     WHEREAS, it is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnity, and to advance expenses on
behalf of, such persons to the fullest extent permitted by applicable law so
that they will serve or continue to serve the Company free from undue concern
that they will not be so indemnified.

 

     WHEREAS, this Agreement is a supplement to and in furtherance of the
Certificate of Incorporation of the Company and any resolutions adopted
pursuant thereto, and shall not be deemed a substitute therefore, nor to
diminish or abrogate any rights of Indemnitee thereunder.

     WHEREAS, Indemnitee does not regard the protection available under the
Company’s Certificate of Incorporation and insurance as adequate in the present
circumstances, and may not be willing to serve as an officer or director
without adequate protection, and the Company desires Indemnitee to serve in
such capacity. Indemnitee is willing to serve, continue to serve and to take
on additional service for or on behalf of the Company on the condition that he
be so indemnified;

     NOW, THEREFORE, in consideration of the promises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

		
	 	     1. Services to the Company. Indemnitee will serve or continue to
serve, at the will of the Company, as an officer, director or key employee
of the Company for so long as Indemnitee is duly elected or appointed or
until Indemnitee tenders his or her resignation.
	 
	 	     2. Definitions. As used in this Agreement:

                      (a) A “Change in Control” shall be deemed to occur upon the earliest
to occur after the date of this Agreement of any of the following events:

                                                (i) Acquisition of Stock by Third Party. Any Person (as defined below) is
or becomes the Beneficial Owner (as defined below), directly or indirectly, of
securities of the Company representing fifteen percent (15%) or more of the
combined voting power of the Company’s then outstanding securities;

                                                (ii) Change in Board of Directors. During any period of two (2)
consecutive years (not including any period prior to the execution of this
Agreement), individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction
described in Sections 2(a)(i), 2(a)(iii) or 2(a)(iv)) whose election by the
Board or nomination for election by the Company’s stockholders was approved by
a vote of at least two-thirds of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination
for election was previously so approved, cease for any reason to constitute at
least a majority of the members of the Board;

                                                (iii) Corporate Transactions. The effective date of a merger or
consolidation of the Company with any other entity, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted

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into voting securities of the surviving entity) more than 51% of the combined
voting power of the voting securities of the surviving entity outstanding
immediately after such merger or consolidation and with the power to elect at
least a majority of the board of directors or other governing body of such
surviving entity;

                                    (iv) Liquidation. The approval by the stockholders of the Company of a
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets; and

                                    (v) Other Events. There occurs any other event of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A (or a response to any similar item on any similar schedule or form)
promulgated under the Exchange Act (as defined below), whether or not the
Company is then subject to such reporting requirement.

For purposes of this Section 2(a), the following terms shall have the following
meanings:

		
	 	     (A) “Exchange Act” shall mean the
Securities Exchange Act of 1934, as
amended.
	 
	 	     (B) “Person” shall have the meaning as
set forth in Sections 13(d) and 14(d) of
the Exchange Act; provided, however, that
Person shall exclude (i) the Company,
(ii) any trustee or other fiduciary
holding securities under an employee
benefit plan of the Company, and (iii)
any corporation owned, directly or
indirectly, by the stockholders of the
Company in substantially the same
proportions as their ownership of stock
of the Company.
	 
	 	     (C) “Beneficial Owner” shall have the
meaning given to such term in Rule 13d-3
under the Exchange Act; provided,
however, that Beneficial Owner shall
exclude any Person otherwise becoming a
Beneficial Owner by reason of the
stockholders of the Company approving a
merger of the Company with another
entity.

     (b)  “Company” shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its directors,
officers, employees or agents, so that if Indemnitee is or was a director,
officer, employee

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or agent of such constituent corporation, or is or was serving at the request
of such constituent corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee
would have with respect to such constituent corporation of its separate
existence had continued.

     (c)  “Corporate Status” describes the status of a person who is or was a
director, officer, employee or agent of the Company or of any other
corporation, partnership or joint venture, trust, employee benefit plan or
other enterprise which such person is or was serving at the request of the
Company.

     (d)  “Disinterested Director” means a director of the Company who is not
and was not a party to the Proceeding in respect of which indemnification is
sought by lndemnitee.

     (e)  “Enterprise” shall mean the Company and any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise of
which Indemnitee is or was serving at the request of the Company as a director,
officer, employee, agent or fiduciary.

     (f)  “Expenses” shall include all reasonable attorneys’ fees, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, being or preparing to be a witness in, or
otherwise participating in, a Proceeding. Expenses also shall include Expenses
incurred in connection with any appeal resulting from any Proceeding, including
without limitation the premium, security for, and other costs relating to any
cost bond, supersedes bond, or other appeal bond or its equivalent. Expenses,
however, shall not include amounts paid in settlement by Indemnitee or the
amount of judgments or fines against lndemnitee.

     (g)  Reference to “other enterprise” shall include employee benefit plans;
references to “fines” shall include any excise tax assessed with respect to any
employee benefit plan; references to “serving at the request of the Company”
shall include any service as a director, officer, employee or agent of the
Company which imposes duties on, or involves services by, such director,
officer, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries; and a person who acted in good faith and in a
manner he reasonably believed to be in the best interests of the participants
and beneficiaries of an employee benefit plan shall be deemed to have acted in
a manner “not opposed to the best interests of the Company” as referred to in
this Agreement.

     (h)  The term “Proceeding” shall include any threatened, pending or
completed action, suit, arbitration, alternate dispute resolution mechanism,
investigation, inquiry, administrative hearing or any other actual, threatened
or completed proceeding, including any and all appeals, whether brought in the
right of the Company or otherwise and whether of a civil, criminal,
administrative or

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investigative nature, in which Indemnitee was, or will be involved as a party
or otherwise by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any action taken by him or of any action
on his part while acting as director or officer of the Company, or by reason of
the fact that he is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, in each case whether or not serving in such capacity
at the time any liability or expense is incurred for which indemnification,
reimbursement, or advancement of expenses can be provided under this Agreement;
except one initiated by a Indemnitee to enforce his rights under this
Agreement.

     (i)  “Independent Counsel” means a law firm, or a member of a law firm,
that is experienced in matters of corporation law and neither presently is, nor
in the past five years has been, retained to represent: (i) the Company or
lndemnitee in any matter material to either such party (other than with respect
to matters concerning the Indemnitee under this Agreement, or of other
indemnities under similar indemnification agreements), or (ii) any other party
to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include
any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement. The Company agrees to pay the reasonable fees and expenses of the
Independent Counsel referred to above and to fully indemnify such counsel
against any and all Expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

     3.     Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if lndemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment
in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified
against all Expenses, judgments, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee or on his behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal proceeding had
no reasonable cause to believe that such conduct was unlawful.

     4.     Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4
if Indemnitee is, or is threatened to be made, a party to or a participant in
any Proceeding by or in the right of the Company to procure a judgment in its
favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by him or on his behalf in connection
with such Proceeding or any claim, issue or matter therein, if Indemnitee acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or matter as to which
Indemnitee shall have been finally adjudged by a court to be

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liable to the Company, unless and only to the extent that the Delaware Court of
Chancery or any court in which the Proceeding was brought shall determine upon
application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnification.

     5.     Indemnification for Expenses of a Party Who is Wholly or Partly
Successful. Notwithstanding any other provisions of this Agreement, to the
extent that Indemnitee is a party to (or a participant in) and is successful,
on the merits or otherwise, in any Proceeding or in defense of any claim, issue
or matter therein, in whole or in part, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all
claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or on
his behalf in connection with each successfully resolved claim, issue or
matter. If the Indemnitee is not wholly successful in such Proceeding, the
Company also shall indemnify Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim,
issue, or matter on which the Indemnitee was successful. For purposes of this
Section and without limitation, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall be deemed
to be a successful result as to such claim, issue or matter.

     6.     Indemnification For Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of his
Corporate Status, a witness in any Proceeding to which Indemnitee is not a
party, he shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

     7.     Additional Indemnification.

     (a)  Notwithstanding any limitation in Sections 3, 4, or 5, the Company
shall indemnify lndemnitee to the fullest extent permitted by law if Indemnitee
is a party to or threatened to be made a party to any Proceeding (including a
Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee in connection with the
Proceeding. No indemnity shall be made under this Section 7(a) on account of
Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty
to the Company or its stockholders or is an act or omission not in good faith
or which involves intentional misconduct or a knowing violation of the law.

     (b) Notwithstanding any limitation in Sections 3, 4, 5 or 7(a), the
Company shall indemnify Indemnitee to the fullest extent permitted by law if
Indemnitee is a party to or threatened to be made a party to any Proceeding
(including a Proceeding by or in the right of the Company to procure a judgment
in its favor) against all Expenses, judgments, fines and amounts paid in
settlement actually and reasonably incurred by Indemnitee in connection with
the Proceeding.

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     (c)  For purposes of Sections 7(a) and 7(b), the meaning of the
phrase “to the fullest extent
permitted by law” shall include, but not be limited to:

            i. to the fullest extent permitted by the provision of the DGCL that
authorizes or contemplates additional indemnification by agreement, or the
corresponding provision of any amendment to or replacement of the DGCL, and

            ii. to the fullest extent authorized or permitted by any amendments to
or replacements of the DGCL adopted after the date of this Agreement that
increase the extent to which a corporation may indemnify its officers and
directors.

     8.     Exclusions. Notwithstanding any provision in this Agreement, the
Company shall not be obligated under this Agreement to make any indemnity in
connection with any claim made against lndemnitee:

     (a)  for which payment has actually been made to or on behalf of
Indemnitee under any insurance policy or other indemnity provision, except with
respect to any excess beyond the amount paid under any insurance policy or
other indemnity provision; or

     (b)  for an accounting of profits made from the purchase and sale (or
sale and purchase) by Indemnitee of securities of the Company within the
meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or
similar provisions of state statutory law or common law; or

     (c)  in connection with any Proceeding (or any part of any Proceeding)
initiated or brought voluntarily by Indemnitee, including any Proceeding (or
any part of any Proceeding) initiated by Indemnitee against the Company or its
directors, officers, employees or other indemnitees, unless (i) the Board of
Directors of the Company authorized the Proceeding (or any part of any
Proceeding) prior to its initiation or (ii) the Company provides the
indemnification, in its sole discretion, pursuant to the powers vested in the
Company under applicable law.

     9.     Advances of Expenses. Notwithstanding any provision of this
Agreement to the contrary, the Company shall advance the expenses incurred by
Indemnitee in connection with any Proceeding within 20 days after the receipt
by the Company of a statement or statements requesting such advances from time
to time, whether prior to or after final disposition of any Proceeding.
Advances shall be unsecured and interest free. Advances shall be made without
regard to Indemnitee’s ability to repay the expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement. Advances shall include any and all reasonable Expenses
incurred pursuing an action to enforce this right of advancement, including
Expenses incurred preparing and forwarding statements to the Company to support
the advances claimed. The Indemnitee shall qualify for advances solely upon the
execution and delivery to the Company of an undertaking providing that the
Indemnitee undertakes to repay the advance to the

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extent that it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Company. This Section 9 shall not apply to any claim made by
Indemnitee for which indemnity is excluded pursuant to Section 8.

     10.     Selection of Counsel. In the event the Company shall be obligated
under Section 9 hereof to pay the expenses of any Proceeding against
Indemnitee, the Company, if appropriate, shall be entitled to assume the
defense of such Proceeding, with counsel approved by Indemnitee, which approval
shall not be unreasonably withheld, upon the delivery to Indemnitee of written
notice of its election to do so. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee with respect to the same
Proceeding, provided that (i) Indemnitee shall have the right to employ his
counsel in any such Proceeding at Indemnitee’s expense; and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the
Company, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee in the conduct of any
such defense, or (C) the Company shall not, in fact, have employed counsel to
assume the defense of such Proceeding, then the fees and expenses of
Indemnitee’s counsel shall be at the expense of the Company.

     11.     Procedure for Notification and Defense of Claim.

     (a)  Indemnitee shall, as a condition precedent to his right to be
indemnified under this Agreement, give the Company notice in writing as soon as
practicable of any claim made against Indemnitee for which indemnification will
or could be sought under this Agreement, provided however, that a delay in
giving such notice shall not deprive Indemnitee of any right to be indemnified
under this Agreement unless, and then only to the extent that, such delay is
materially prejudicial to the defense of such claim. The omission to notify the
Company will not relieve the Company from any liability for indemnification
which it may have to Indemnitee otherwise than under this Agreement. The
Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has requested
indemnification.

     (b)  The Company will be entitled to participate in the Proceeding at
its own expense.

     12.     Procedure Upon Application for Indemnification.

     (a)  Upon written request by Indemnitee for indemnification pursuant to
the first sentence of Section 11(a), a determination, if required by applicable
law, with respect to Indemnitee’s entitlement thereto shall be made in the
specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Board of Directors, a copy of which shall
be delivered to Indemnitee; or (ii) if a Change in Control shall not have
occurred, (A) by a majority vote of the Disinterested Directors, even though
less than a quorum of the Board, (B) by a committee of Disinterested Directors
designated by a majority vote of the Disinterested Directors,

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even though less than a quorum of the Board, (C) if there are no such
Disinterested Directors or, if such Disinterested Directors so direct, by
Independent Counsel in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee or (D) if so directed by the Board, by the stockholders
of the Company, and, if it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten (10) days after
such determination. Indemnitee shall cooperate with the person, persons or
entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any
costs or expenses (including attorneys’ fees and disbursements) incurred by
Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination
as to Indemnitee’s entitlement to indemnification) and the Company hereby
indemnifies and agrees to hold lndemnitee harmless therefrom.

     (b)  In the event the determination of entitlement to indemnification is
to be made by Independent Counsel pursuant to Section 12(a) hereof, the
Independent Counsel shall be selected as provided in this Section 12(b). If a
Change in Control shall not have occurred, the Independent Counsel shall be
selected by the Board of Directors, and the Company shall give written notice
to Indemnitee advising him of the identity of the Independent Counsel so
selected. If a Change in Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors, in which event the preceding
sentence shall apply), and Indemnitee shall give written notice to the Company
advising it of the identity of the Independent Counsel so selected. In either
event, Indemnitee or the Company, as the case may be, may, within 10 days after
such written notice of selection shall have been given, deliver to the Company
or to Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that
the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section 2 of this Agreement, and the
objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person so selected shall
act as Independent Counsel. If such written objection is so made and
substantiated, the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined
that such objection is without merit. If, within 20 days after submission by
Indemnitee of a written request for indemnification pursuant to Section 11(a)
hereof, no Independent Counsel shall have been selected and not objected to,
either the Company or lndemnitee may petition a court of competent jurisdiction
for resolution of any objection which shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the
appointment as Independent Counsel of a person selected by the Court or by such
other person as the Court shall designate, and the person with respect to whom
all objections are so resolved or the person so appointed shall act as
Independent Counsel under Section 12(a) hereof. Upon the due commencement of
any judicial proceeding or arbitration pursuant to Section 14(a) of this
Agreement, Independent Counsel shall be discharged and relieved of any further 

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responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing).

     13.     Presumptions and Effect of Certain Proceedings.

     (a)  In making a determination with respect to entitlement to
indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification
under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 11(a) of this Agreement, and the Company shall have
the burden of proof to overcome that presumption in connection with the making
by any person, persons or entity of any determination contrary to that
presumption. Neither the failure of the Company (including by its directors or
independent legal counsel) to have made a determination prior to the
commencement of any action pursuant to this Agreement that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its
directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a
presumption that Indemnitee has not met the applicable standard of conduct.

     (b) If the person, persons or entity empowered or selected under Section
12 of this Agreement to determine whether Indemnitee is entitled to
indemnification shall not have made a determination within sixty (60) days
after receipt by the Company of the request therefore, the requisite
determination of entitlement to indemnification shall be deemed to have been
made and Indemnitee shall be entitled to such indemnification, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification, or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such 60-day
period may be extended for a reasonable time, not to exceed an additional
thirty (30) days, if the person, persons or entity making the determination
with respect to entitlement to indemnification in good faith requires such
additional time for the obtaining or evaluating of documentation and/or
information relating thereto; and provided, further, that the foregoing
provisions of this Section 13(b) shall not apply (i) if the determination of
entitlement to indemnification is to be made by the stockholders pursuant to
Section 12(a) of this Agreement and if (A) within fifteen (15) days after
receipt by the Company of the request for such determination the Board of
Directors has resolved to submit such determination to the stockholders for
their consideration at an annual meeting thereof to be held within seventy five
(75) days after such receipt and such determination is made thereat, or (B) a
special meeting of stockholders is called within fifteen (15) days after such
receipt for the purpose of making such determination, such meeting is held for
such purpose within sixty (60) days after having been so called and such
determination is made thereat, or (ii) if the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 12(a)
of this Agreement.

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     (c)  The termination of any Proceeding or of any claim, issue or matter
therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided
in this Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was unlawful.

     (d)  Reliance as Safe Harbor. For purposes of any determination of
good faith, Indemnitee shall be deemed to have acted in good faith if
Indemnitee’s action is based on the records or books of account of the
Enterprise, including financial statements, or on information supplied to
Indemnitee by the officers of the Enterprise in the course of their duties, or
on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public
accountant or by an appraiser or other expert selected with the reasonable care
by the Enterprise. The provisions of this Section 13 (d) shall not be deemed
to be exclusive or to limit in any way the other circumstances in which the
Indemnitee may be deemed to have met the applicable standard of conduct set
forth in this Agreement.

     (e)  Actions of Others. The knowledge and/or actions, or failure to
act, of any director, officer, agent or employee of the Enterprise shall not be
imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.

     14.     Remedies of Indemnitee.

     (a)  In the event that (i) a determination is made pursuant to Section
12 of this Agreement that Indemnitee is not entitled to indemnification under
this Agreement, (ii) advancement of Expenses is not timely made pursuant to
Section 9 of this Agreement, (iii) no determination of entitlement to
indemnification shall have been made pursuant to Section 12(a) of this
Agreement within 30 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to
Section 5 or 6 or the last sentence of Section 12(a) of this Agreement within
ten (10) days after receipt by the Company of a written request therefore, or
(v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement
is not made within ten (10) days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an
adjudication by a court of his entitlement to such indemnification or
advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an
award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association. The
Company shall not oppose Indemnitee’s right to seek any such adjudication or
award in arbitration.

     (b)  In the event that a determination shall have been made pursuant to
Section 12(a) of this Agreement that Indemnitee is not entitled to
indemnification, any judicial proceeding or arbitration commenced pursuant to
this Section 14 shall be conducted in all respects as a de novo trial, or

11

 

arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 14 the Company shall have the burden of proving
Indemnitee is not entitled to indemnification or advancement of Expenses, as
the case may be.

     (c)  If a determination shall have been made pursuant to Section 12(a)
of this Agreement that Indemnitee is entitled to indemnification, the Company
shall be bound by such determination in any judicial proceeding or arbitration
commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee
of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the
request for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

     (d)  The Company shall be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 14 that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement. The Company
shall indemnify Indemnitee against any and all Expenses and, if requested by
Indemnitee, shall (within ten (10) days after receipt by the Company of a
written request therefore) advance such expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for
indemnification or advance of Expenses from the Company under this Agreement or
under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advancement of Expenses or insurance
recovery, as the case may be.

     15.     Non-exclusivity; Survival of Rights; Insurance; Subrogation.

     (a) The rights of indemnification and to receive advancement of Expenses
as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the
Company’s Certificate of Incorporation, the Company’s Bylaws, any agreement, a
vote of stockholders or a resolution of directors, or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to
such amendment, alteration or repeal. To the extent that a change in Delaware
law, whether by statute or judicial decision, permits greater indemnification
or advancement of Expenses than would be afforded currently under the Company’s
Certificate of Incorporation and this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits so afforded by such change. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right
and remedy shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or
remedy.

12

 

     (b)  The Company shall, from time to time, make the good faith
determination whether or not it is practicable for the Company to obtain and
maintain a policy or policies of insurance with reputable insurance companies
providing the directors, officers, employees, or agents of the Company with
coverage for losses from wrongful acts, or to ensure the Company’s performance
of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. To the extent that
the Company maintains an insurance policy or policies providing liability
insurance for directors, officers, employees or agents of the Company or of any
other corporation, partnership, joint venture, trust, employee benefits plan or
other enterprise which such person serves at the request of the Company,
Indemnitee shall be covered by such policy or policies in accordance with its
or their terms to the maximum extent of the coverage available for any such
director, officer, employee or agent under such policy or policies. If, at the
time of the receipt of a notice of a claim pursuant to the terms hereof, the
Company has director and officer liability insurance in effect, the Company
shall give prompt notice of the commencement of such proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies.

     (c)  In the event of any payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all papers required and take all
action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

     (d)  The Company shall not be liable under this Agreement to make any
payment of amounts otherwise indemnifiable (or for which advancement is
provided hereunder) hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

     (e)  The Company’s obligation to indemnify or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Company as
a director, officer, employee or agent of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification or
advancement of expenses from such other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise.

     16. Duration of Agreement. This Agreement shall continue until and
terminate upon the later of: (a) 10 years after the date that Indemnitee shall
have ceased to serve as a director or officer of the Company or as a director,
officer, employee or agent of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which Indemnitee
served at the request of the Company; or (b) one year after the final
termination of any Proceeding, including any and all appeals, then pending in
respect of which Indemnitee is granted rights of indemnification or advancement
of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to
Section 14 of this Agreement relating thereto.

13

 

     17.     Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns and shall insure to the benefit of
Indemnitee and his heirs, executors and administrators.

     18.     Severability. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, each portion of any
Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby and shall remain
enforceable to the fullest extent permitted by law; (b) such provision or
provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties
hereto; and (c) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any Section of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby.

     19.     Enforcement.

     (a)  The Company expressly confirms and agrees that it has entered into
this Agreement and assumed the obligations imposed on it hereby in order to
induce Indemnitee to serve as a director or officer of the Company, and the
Company acknowledges that Indemnitee is relying upon this Agreement in serving
as a director or officer of the Company.

     (b)  This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, oral, written and implied, between the
parties hereto with respect to the subject matter hereof.

     20.     Effectiveness of Agreement. This Agreement shall be effective as
of the date set forth on the first page and may apply to acts or omissions of
Indemnitee which occurred prior to such date if Indemnitee was an officer,
director, employee or other agent of the Company, or was serving at the request
of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, at the time
such act or omission occurred.

     21. Modification and Waiver. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by the parties
thereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions of this Agreement nor
shall any waiver constitute a continuing waiver.

14

 

     22.     Notice by Indemnitee. Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under
this Agreement or otherwise.

     23.     Notices. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed to have been duly
given (a) if delivered by hand and receipted for by the party to whom said
notice or other communication shall have been directed, or (b) mailed by
certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

     (a)  If to Indemnitee, at the address indicated on the signature page of
this Agreement, or such other address as Indemnitee shall provide to the
Company.

     (b) If to the Company to

	 	Paychex, Inc.

Attn: Legal Department

911 Panorama Trail South

Rochester, NY 14625

or to any other address as may have been furnished to Indemnitee by the
Company.

     24.     Contribution. To the fullest extent permissible under applicable
law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying
Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in
settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair
and reasonable in light of all of the circumstances of such Proceeding in order
to reflect (i) the relative benefits received by the Company and Indemnitee as
a result of the event(s) and/or transaction(s) giving cause to such Proceeding;
and/or (ii) the relative fault of the Company (and its directors, officers,
employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

     25.     Applicable Law and Consent to Jurisdiction. This Agreement and the
legal relations among the parties shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, without regard
to its conflict of laws rules. Except with respect to any arbitration commenced
by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding

15

 

arising out of or in connection with this Agreement shall be brought only in
the Chancery Court of the State of Delaware (the “Delaware Court”), and not in
any other state or federal court in the United States of America or any court
in any other country, (ii) consent to submit to the exclusive jurisdiction of
the Delaware Court for purposes of any action or proceeding arising out of or
in connection with this Agreement, (iii) appoint, to the extent such party is
not otherwise subject to service of process in the State of Delaware,
irrevocably CT Corporation System, 1209 Orange Street, Wilmington, Delaware
19801 as its agent in the State of Delaware as such party’s agent for
acceptance of legal process in connection with any such action or proceeding
against such party with the same legal force and validity as if served upon
such party personally within the State of Delaware, (iv) waive any objection to
the laying of venue of any such action or proceeding in the Delaware Court, and
(v) waive, and agree not to plead or to make, any claim that any such action or
proceeding brought in the Delaware Court has been brought in an improper or
inconvenient forum.

     26.     Identical Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement.

     27.     Miscellaneous. Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate. The headings of the
paragraphs of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction
thereof.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of
the day and year first above written.

	 	 	 
	                                                                         INC.	 	
INDEMNITEE
	 
	By:                                                                          

Name:	 	

                                                                        
Name:
	 	 	
Address:

16exv4w2wa

 

     Exhibit 4.2a

MILACRON CAPITAL HOLDINGS B.V.

€115,000,000

7.625% Guaranteed Bonds due 2005

FISCAL AGENCY AGREEMENT

     THIS AGREEMENT is dated April 6, 2000 and made AMONG:

	(1)	 	MILACRON CAPITAL HOLDINGS B.V. (the “Issuer”);
	 
	(2)	 	MILACRON INC. (the “Guarantor”);
	 
	(3)	 	DEUTSCHE BANK AG LONDON (the “Fiscal Agent”); and
	 
	(4)	 	DEUTSCHE BANK LUXEMBOURG S.A. (a “Paying Agent”).

WHEREAS:

	(A)	 	The Issuer has agreed to issue €115,000,000 aggregate principal amount of
7.625% Guaranteed Fixed Rate Bonds due 2005 (the “Bonds”, which expression
shall, unless the context otherwise requires, include the temporary global
bond and the permanent global bond referred to below).
	 
	(B)	 	The Bonds will be issued in bearer form in denominations of €10,000,
€100,000 and €1,000,000.
	 
	(C)	 	The Bonds will initially be represented by a temporary Global Bond (the
“Temporary Global Bond”) in bearer form, without interest coupons, in or
substantially in the form set out in Part I of Schedule 1 which will be
exchanged in accordance with its terms for a permanent Global Bond (the
“Permanent Global Bond” and, together with the Temporary Global Bond, the
“Global Bonds”) in bearer form, without interest coupons, in or
substantially in the form set out in Part II of Schedule 1.
	 
	(D)	 	The definitive Bonds and their interest coupons (the “Coupons”), if any,
will be in or substantially in the respective forms set out in Part I of
Schedule 2. The Terms and Conditions of the Bonds (the “Conditions”) will
be in or substantially in the form set out in Part III of Schedule 2.
	 
	(E)	 	Payments in respect of the Bonds will be unconditionally and irrevocably
guaranteed by the Guarantor by the guarantees (the “Guarantees”) to be
included on the Bonds substantially in the form set out in Schedule 3.

NOW IT IS HEREBY AGREED as follows:

	1.	 	INTERPRETATION
	 
	(1)	 	Words and expressions defined in the Conditions and not otherwise defined
in this Agreement shall have the same meanings when used in this
Agreement.

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	(2)	 	References in this Agreement to principal and/or interest shall include
any additional amounts payable pursuant to Condition 9.
	 
	2.	 	DEFINITIONS
	 
	 	 	As used in this Agreement and in the Conditions.
	 
	 	 	"Auditors” means the auditors for the time being of the Issuer or the
Guarantor (as the case may be) or, in the event of their being unable or
unwilling promptly to carry out any action requested of them as provided
in this Agreement or the Conditions, such other leading firm of
accountants as may be nominated or approved by the Issuer or the
Guarantor (as the case may be);
	 
	 	 	"Fiscal Agent”, “Paying Agents”, “Replacement Agent” and “Agents” mean
and include each Fiscal Agent, Paying Agent and Replacement Agent and
Agent from time to time appointed to exercise the powers and undertake
the duties conferred and imposed upon it by this Agreement and notified
to the Bondholders under clause 21;
	 
	 	 	“Outstanding” or “outstanding”, when used with reference to Bonds, shall,
subject to the provisions of the next succeeding paragraph, mean all
Bonds theretofore authenticated and delivered by the Fiscal Agent under
this Fiscal Agency Agreement, except:

	 	(i)	 	Bonds theretofore cancelled by the Fiscal Agent or delivered
to the Fiscal Agent for cancellation;
	 
	 	(ii)	 	Bonds, or portions thereof, for the payment or redemption of
which moneys in the necessary amount shall have been deposited in
trust with the Fiscal Agent or with any Paying Agent or shall have
been set aside and segregated in trust by the Issuer or the
Guarantor (if the Issuer or the Guarantor acts as their own paying
agent); provided that if such Bonds are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been given as
in Condition 8 provided, or provision satisfactory to the Fiscal
Agent shall have been made for giving such notice;
	 
	 	(iii)	 	Bonds in lieu of or in exchange and substitution for which
other Bonds shall have been authenticated and delivered, or which
have been paid, pursuant to the terms of Condition 12;
	 
	 	(iv)	 	those Bonds which have become void under Condition 10; and
	 
	 	(v)	 	the Temporary Global Bond to the extent that it has been duly
exchanged for the Permanent Global Bond and the Permanent Global
Bond to the extent that it has been exchanged for the Bonds in
definitive form in each case pursuant to their respective
provisions.

		 	In determining whether the holders of the requisite aggregate principal
amount of Bonds have concurred in any request, demand, authorisation,
notice, direction, consent or waiver under the Conditions, Bonds which
are owned by the Issuer or the Guarantor or any other obligor under the
Bonds or by any person directly or indirectly controlling or controlled
by, or under direct or indirect common control with, the Issuer or the
Guarantor or any other obligor on the Bonds shall be disregarded and
deemed not to be outstanding for the purpose of any such determination;
provided that for the purposes of determining whether the Fiscal Agent
shall

2

 

	 	 	be protected in relying on any such request, demand, authorisation,
notice, direction, consent or waiver, only Bonds which the Fiscal Agent
knows are so owned shall be so disregarded. Bonds so owned which have
been pledged in good faith may be regarded as outstanding for the purpose
of this paragraph if the pledgee shall establish to the satisfaction of
the Fiscal Agent the pledgee’s rights to vote such Bonds and that the
pledgee is not a person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or the
Guarantor or any such other obligor. In the case of a dispute as to such
right, any decision by the Fiscal Agent taken upon the advice of counsel
shall be full protection to the Fiscal Agent.
	 
	 	 	“specified office” means the offices specified in clause 23 or any other
specified offices as may from time to time be duly notified pursuant to
clause 23.
	 
	3.	 	APPOINTMENT OF AGENTS
	 
	(1)	 	The Issuer and the Guarantor appoint, and the Agents (as defined below)
hereby accept such appointment, on the terms and subject to the conditions
of this Agreement:

	 	(a)	 	Deutsche Bank AG London as fiscal and paying agent (the
“Fiscal Agent”) in respect of the Bonds; and
	 
	 	(b)	 	Deutsche Bank Luxembourg S.A. as paying agent (a “Paying
Agent”) for the payment of principal of, and interest in, the Bonds;
in each case acting at its specified office.

	(2)	 	The Fiscal Agent, the Paying Agents, and the Replacement Agent are
together referred to as the “Agents”.
	 
	(3)	 	The obligations and duties of the Agents under this Agreement shall be
several and not joint.
	 
	4.	 	AUTHENTICATION AND DELIVERY OF BONDS
	 
	(1)	 	The Issuer undertakes that the Permanent Global Bond (duly executed on
behalf of the Issuer with the Guarantee thereon duly executed by the
Guarantor) will be available to be exchanged for interests in the
Temporary Global Bond in accordance with the terms of the Temporary Global
Bond.
	 
	(2)	 	The Issuer undertakes that, if required to under the terms of the
Permanent Global Bond, it will deliver to, or to the order of, the Fiscal
Agent, not later than the date required by the Permanent Global Bond,
definitive Bonds (with Coupons attached) in an aggregate principal amount
of €115,000,000 or such lesser amount as is the principal amount of Bonds
represented by the Permanent Global Bond to be issued in exchange for the
Temporary Global Bond. Each definitive Bond and Coupon so delivered shall
be duly executed on behalf of the Issuer and each definitive Bond shall
have the Guarantee executed on behalf of the Guarantor included on it.
	 
	(3)	 	The Issuer authorises and instructs the Fiscal Agent or its designated
agent to, upon receipt of the Global Bonds or definitive Bonds, as
applicable, executed on behalf of the Issuer, authenticate the Global
Bonds and any definitive Bonds delivered pursuant to subclause (2).

3

 

	(4)	 	The Issuer authorises and instructs the Fiscal Agent to cause interests
in the Temporary Global Bond to be exchanged for interests in the
Permanent Global Bond and interests in the Permanent Global Bond to be
exchanged for definitive Bonds in accordance with their respective terms.
Following the exchange of the last interest in a Global Bond, the Fiscal
Agent shall cause the Global Bond to be cancelled and delivered to the
Issuer or as the Issuer may direct.
	 
	(5)	 	The Fiscal Agent shall cause all Bonds delivered to and held by it under
this Agreement to be maintained in safe custody and shall ensure that
interests in the Temporary Global Bond are only exchanged for interests in
the Permanent Global Bond in accordance with the terms of the Temporary
Global Bond and this Agreement and that the definitive Bonds are issued
only in accordance with the terms of the Permanent Global Bond and this
Agreement.
	 
	(6)	 	So long as any of the Bonds is outstanding the Fiscal Agent shall, within
seven days of any request by the Issuer or the Guarantor, certify to the
Issuer or, as the case may be, the Guarantor the number of definitive
Bonds held by it under this Agreement.
	 
	(7)	 	The Temporary Global Bond, the Permanent Global Bond, each definitive
Bond, including the Guarantee endorsed thereon and each Coupon shall be
executed manually or in facsimile by or on behalf of the Issuer or the
Guarantor, as the case may be, and, where relevant, authenticated manually
or in facsimile by or on behalf of the Fiscal Agent. Any signature on a
Bond and on a Guarantee shall be that of the person who is at the time of
the creation and issue of the Bonds and the Guarantee an authorised
signatory for such purpose of the Issuer or the Guarantor, as the case may
be, notwithstanding that such person has for any reason (including death)
ceased to be such an authorised signatory at the time at which such Bond
or Guarantee is delivered.
	 
	5.	 	PAYMENT TO THE FISCAL AGENT
	 
	(1)	 	The Issuer (failing which, the Guarantor) shall, not later than 10:00
a.m. (Central European time) one Business Day prior to each date on which
any payment of principal and/or interest in respect of any of the Bonds
becomes due and payable or if the due date is not a Business Day on the
immediately preceding such Business Day, transfer to an account specified
by the Fiscal Agent such amount of euros as shall be sufficient for the
purposes of the payment of principal and/or interest in same day funds or
in such funds and at such times (being not later than 10:00 a.m. (Central
European time) on the relevant due date or if the due date is not a
Business Day in Brussels on the immediately preceding such Business Day)
as may be determined by the Fiscal Agent to be customary for the
settlement of similar transactions. For the purposes of this clause 5,
“Business Day” means a day on which commercial banks are open for business
and foreign exchange markets settle payments in London, Luxembourg and
where the Fiscal Agent happens to hold its euro account at the time.
	 
	(2)	 	The Issuer or, as the case may be, the Guarantor shall ensure that, not
later than 10:00 a.m. (Central European Time) the second Business Day
immediately preceding the date on which any payment is to be made to the
Fiscal Agent pursuant to subclause (1), the Fiscal Agent shall receive a
copy by tested telex or SWIFT message of an irrevocable payment
instruction to the bank through which the payment is to be made.

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	6.	 	NOTIFICATION OF NON-PAYMENT BY THE ISSUER OR THE GUARANTOR
	 
	 	 	The Fiscal Agent shall notify by telex each of the Issuer, the Guarantor
and the other Paying Agents forthwith:

	 	(a)	 	if it has not by the relevant date specified in clause 5(1)
received unconditionally the full amount in euros required for the
payment; and
	 
	 	(b)	 	if it receives unconditionally the full amount of any sum due
in respect of the Bonds or Coupons after such date.

	 
	 	 	The Fiscal Agent shall, at the expense of the Issuer or the Guarantor,
forthwith upon receipt of any amount as described in subparagraph (b),
cause notice of that receipt to be published under Condition 13.

	7.	 	DUTIES OF THE PAYING AGENTS
	 
	(1)	 	Subject to the payments to the Fiscal Agent provided for by clause 5
being duly made, the Paying Agents shall act as paying agents of the
Issuer and/or the Guarantor in respect of the Bonds and pay or cause to be
paid on behalf of the Issuer and/or the Guarantor, on and after each date
on which any payment becomes due and payable, the amounts of principal
and/or interest then payable on surrender or, in the case of a Global
Bond, endorsement as required pursuant to the terms of the Global Bond, of
Bonds or Coupons under the Conditions and this Agreement. If any payment
provided for by clause 5 is made late but otherwise under the terms of
this Agreement the Paying Agents shall nevertheless act as paying agents.
	 
	(2)	 	If default is made by the Issuer and the Guarantor in respect of any
payment, unless and until the full amount of the payment has been made
under the terms of this Agreement (except as to the time of making the
same) or other arrangements satisfactory to the Fiscal Agent have been
made, neither the Fiscal Agent nor any of the other Paying Agents shall be
bound to act as paying agents.
	 
	(3)	 	If on presentation of a Bond or Coupon the amount payable in respect of
the Bond or Coupon is not paid in full (otherwise than as a result of
withholding or deduction for or on account of any Taxes as permitted by
the Conditions) the Paying Agent to whom the Bond or Coupon is presented
shall procure that the Bond or Coupon is enfaced with a memorandum of the
amount paid and the date of payment.
	 
	(4)	 	Any monies paid by the Issuer or the Guarantor, as the case may be, to a
Paying Agent in respect of a Bond or Coupon, and remaining unclaimed at
the end of two years after such payment shall have become due and payable
(whether at maturity or upon call for redemption, purchase or otherwise),
shall then be repaid to the Issuer, and upon such repayment all liability
of such Paying Agent, with respect thereto shall thereupon cease, without,
however, limiting in any way any obligation the Issuer or the Guarantor
may have to pay such payment in respect of the Bond or Coupon as the same
shall become due. Any such payments that the Issuer or the Guarantor, as
the case may be, shall be obligated to make shall be made at offices or
agencies selected by it outside the United States and its territories and
possessions.

5

 

	8.	 	REIMBURSEMENT OF THE PAYING AGENTS
	 
	8.1	 	 The Fiscal Agent shall charge the account referred to in clause 5 for all
payments made by it under this Agreement and will credit or transfer to
the respective accounts of the Paying Agents the amount of all payments
made by them under clause 7 immediately upon notification from them,
subject in each case to any applicable laws or regulations.
	 
	8.2 	 	If any Paying Agent makes a payment in respect of the Bonds at a time at
which the Fiscal Agent has not received the full amount of the relevant
payment due to it under clause 5 and the Fiscal Agent is not able out of
the funds received by it under clause 5 to reimburse such Paying Agent
therefor, the Issuer failing which the Guarantor shall from time to time
on demand pay to the Fiscal Agent for account of such Paying Agent:

	 	(a)	 	the amount so paid out by such Paying Agent and not so reimbursed to
it; and
	 
	 	(b)	 	interest at a rate to be mutually agreed by the Issuer, the
Guarantor and the relevant Paying Agent on such amount from the date
on which such Paying Agent made such payment until the date of
reimbursement of such amount and an amount sufficient to indemnify
such Paying Agent against any cost, loss or expense which it
reasonably incurs as a result of making such payment and not
receiving reimbursement of such amount;

		 	provided, however, that any payment made under paragraph (a) above shall
satisfy pro tanto the Issuer’s (failing which, the Guarantor’s)
obligations under clause 5.
	 
	9.	 	NOTICE OF ANY WITHHOLDING OR DEDUCTION
	 
	 	 	If the Issuer or the Guarantor is, in respect of any payment in respect
of the Bonds, compelled to withhold or deduct any amount for or on
account of any Taxes as contemplated by Condition 9, the Issuer or, as
the case may be, the Guarantor shall give notice to the Fiscal Agent as
soon as reasonably practicable after it becomes aware of the requirement
to make the withholding or deduction and shall give to the Fiscal Agent
such information as the Fiscal Agent shall reasonably require to enable
it to comply with the requirement.
	 
	10.	 	DUTIES OF THE FISCAL AGENT IN CONNECTION WITH REDEMPTION FOR TAXATION
REASONS
	 
	 	 	If the Issuer decides to redeem all the Bonds for the time being
outstanding under Condition 8(2), it shall give notice of the decision to
the Fiscal Agent at least 30 days before the relevant redemption date.
	 
	11.	 	PUBLICATION OF NOTICES
	 
	 	 	On behalf of and at the request and expense of the Issuer or the
Guarantor, the Fiscal Agent shall cause to be published all notices
required to be given by the Issuer and/or the Guarantor under the
Conditions.
	 
	12.	 	CANCELLATION OF BONDS AND COUPONS
	 
	(1)	 	All Bonds which are surrendered for payment and in connection with
redemption, (together with all unmatured Coupons attached to or delivered
with Bonds) and all Coupons which are paid shall be cancelled by the
Paying Agent to which they are surrendered. Each of the

6

 

	 	 	Paying Agents shall give to the Fiscal Agent details of all payments made
by it and shall deliver all cancelled Bonds and Coupons to the Fiscal
Agent (or as the Fiscal Agent may specify). Where Bonds are purchased by
or on behalf of the Issuer or the Guarantor which in accordance with the
Conditions are to be cancelled after such purchase, the Issuer or, as the
case may be, the Guarantor, shall procure that the Bonds (together with
all unmatured Coupons appertaining to the Bonds) are promptly cancelled
and delivered to the Fiscal Agent or its authorised agent.
	 
	(2)	 	The Fiscal Agent or its authorised agent shall (unless otherwise
instructed by the Issuer in writing and save as provided in clause 14(1)),
destroy all cancelled Bonds and Coupons and furnish the Issuer and the
Guarantor with a certificate of destruction containing written particulars
reasonably requested by the Issuer or the Guarantor including the serial
numbers of the Bonds and the number by maturity date of Coupons so
destroyed.
	 
	13.	 	ISSUE OF REPLACEMENT BONDS AND COUPONS
	 
	(1)	 	From time to time after such time (if ever) as definitive Bonds may be
issued, the Issuer shall cause a sufficient quantity of additional forms
of Bonds and Coupons to be available, upon request, to the Paying Agent in
Luxembourg (the “Replacement Agent”) at its specified office for the
purpose of issuing replacement Bonds or Coupons as provided below.
	 
	(2)	 	The Replacement Agent shall upon receipt of replacement Bonds executed on
behalf of the Issuer, subject to and in accordance with Condition 12 and
the following provisions of this clause, cause to be authenticated (in the
case only of replacement Bonds) and delivered any replacement Bonds or
Coupons which the Issuer may determine to issue in place of Bonds or
Coupons which have been lost, stolen, mutilated, defaced or destroyed. The
Replacement Agent will inform the Issuer upon receiving any request from a
Bondholder for the issue of a replacement Bond or Coupon.
	 
	(3)	 	In the case of a mutilated or defaced Bond, the Replacement Agent shall
ensure that (unless otherwise covered by such indemnity as the Issuer may
require) any replacement Bond only has attached to it Coupons
corresponding to those attached to the mutilated or defaced Bond which is
presented for replacement.
	 
	(4)	 	The Replacement Agent shall obtain verification, in the case of an
allegedly lost, stolen or destroyed Bond or Coupon in respect of which the
serial number is known or believed to be known, that the Bond or Coupon
has not previously been redeemed, cancelled or paid. The Replacement Agent
shall not issue a replacement Bond or Coupon unless and until the
applicant has:

	 	(a)	 	paid such expenses and costs as may be incurred in connection
with the replacement;
	 
	 	(b)	 	furnished it with such evidence and indemnity as the Issuer
may reasonably require; and
	 
	 	(c)	 	in the case of a mutilated or defaced Bond or Coupon,
surrendered it to the Replacement Agent,

7

 

		 	provided, however, that, if, as a result of negligence or wilful
misconduct of the Issuer or any agent of the Issuer, loss, mutilation,
defacement or destruction of a Bond has occurred, the Replacement Agent
will issue a replacement Bond upon the request of the relevant Bondholder
or Accountholder and the expenses and costs that may be incurred in
connection with such replacement will be borne by the Issuer (failing
which, the Guarantor) subject to clause 17.
	 
	(5)	 	The Replacement Agent shall cancel mutilated or defaced Bonds or Coupons
in respect of which replacement Bonds or Coupons have been issued pursuant
to this clause and all Bonds which are so cancelled shall be delivered by
the Replacement Agent to the Fiscal Agent (or as it may specify). The
Fiscal Agent shall furnish the Issuer and the Guarantor with a certificate
stating the serial numbers of the Bonds or Coupons received by it and
cancelled pursuant to this clause and shall, unless otherwise requested by
the Issuer or the Guarantor, destroy all those Bonds and Coupons and
furnish the Issuer and the Guarantor with a destruction certificate
containing the information specified in clause 12(2).
	 
	(6)	 	The Replacement Agent shall, on issuing any replacement Bond or Coupon,
forthwith inform the Issuer and the other Paying Agents of the serial
number of the replacement Bond or Coupon issued and (if known) of the
serial number of the Bond or Coupon in place of which the replacement Bond
or Coupon has been issued. Whenever replacement Coupons are issued under
this clause, the Fiscal Agent shall also notify the other Paying Agents of
the maturity dates of the lost, stolen, mutilated, defaced or destroyed
Coupons and of the replacement Coupons issued.
	 
	(7)	 	Whenever a Bond or Coupon for which a replacement Bond or Coupon has been
issued and the serial number of which is known is presented to a Paying
Agent for payment, the relevant Paying Agent shall immediately send notice
to the Issuer and the Fiscal Agent.
	 
	14.	 	RECORDS AND CERTIFICATES
	 
	(1)	 	The Fiscal Agent shall keep a full and complete record of all Bonds and
Coupons (other than serial numbers of Coupons) and of their redemption,
cancellation, destruction or payment (as the case may be) and of all
replacement Bonds or Coupons issued in substitution for lost, stolen,
mutilated, defaced or destroyed Bonds or Coupons. The Fiscal Agent shall
at all reasonable times make the records and Coupons (if any) available to
the Issuer and the Guarantor.
	 
	(2)	 	The Fiscal Agent shall give to the Issuer and the Guarantor, as soon as
possible and in any event within one month after the end of the fiscal
quarter during which the redemption, purchase, payment or replacement of a
Bond or Coupon (as the case may be) occurred, a certificate stating (a)
the aggregate principal amount of Bonds which have been redeemed and the
aggregate amount in respect of Coupons which have been paid, (b) the
serial numbers of those Bonds in definitive form, (c) the total number of
each denomination by maturity date of those Coupons, (d) the aggregate
principal amounts of Bonds (if any) which have been purchased by or on
behalf of the Issuer or the Guarantor and cancelled (subject to delivery
of the Bonds to the Fiscal Agent) and the serial numbers of such Bonds in
definitive form and the total number of each denomination by maturity date
of the Coupons attached to or surrendered with the purchased Bonds (e) the
aggregate principal amounts of Bonds and the aggregate amounts in respect
of Coupons which have been surrendered and replaced and the

8

 

	 	 	serial numbers of those Bonds in definitive form and the total number of
each denomination by maturity date of those Coupons surrendered therewith
and (f) the total number of each denomination by maturity date of
unmatured Coupons missing from Bonds which have been redeemed or
surrendered and replaced and the serial numbers of the Bonds in
definitive form to which the missing unmatured Coupons appertained.
	 
	15.	 	COPIES OF THIS AGREEMENT AVAILABLE FOR INSPECTIONS
	 
	 	 	The Paying Agents shall hold copies of this Agreement, together with such
other documents as may be specified in the Offering Circular, available
for inspection by Bondholders and Couponholders. For this purpose, the
Issuer and the Guarantor shall furnish the Paying Agents with sufficient
copies of such documents.
	 
	16.	 	COMMISSIONS AND EXPENSES
	 
	(1)	 	The Issuer (failing which, the Guarantor) shall pay to the Fiscal Agent
such commissions in respect of the services of the Paying Agents under
this Agreement as shall be agreed between the Issuer, the Guarantor and
the Fiscal Agent. Neither the Issuer nor the Guarantor shall be concerned
with the apportionment of payment among the Paying Agents.
	 
	(2)	 	The Issuer (failing which, the Guarantor) shall also pay to the Fiscal
Agent an amount equal to any value added tax which may be payable in
respect of the commissions together with all properly incurred expenses
(including, without limitation, legal, advertising, cable and postage
expenses and insurance costs) incurred by the Paying Agents in connection
with their services under this Agreement.
	 
	(3)	 	The Fiscal Agent shall arrange for payment of the commissions due to the
other Paying Agents and arrange for the reimbursement of their expenses
promptly after receipt of the relevant moneys from the Issuer or the
Guarantor.
	 
	(4)	 	At the request of the Fiscal Agent, the parties to this Agreement may
from time to time during the continuance of this Agreement review the
commissions agreed initially pursuant to subclause (1) with a view to
determining whether the parties can mutually agree upon any changes to the
commissions.
	 
	17.	 	INDEMNITY
	 
	 	 	The Issuer (failing which, the Guarantor) undertakes to indemnify each of
the Paying Agents and their directors, officers, employees and
controlling persons against all losses, liabilities, costs, claims,
actions, damages, expenses or demands which any of them may incur or
which may be made against any of them as a result of or in connection
with the appointment of or the exercise of the powers and duties by any
Paying Agent under this Agreement except as may result from its wilful
default, negligence or bad faith or that of its directors, officers,
employees or controlling persons or any of them, or breach by it of the
terms of this Agreement. The Issuer and the Guarantor must be notified as
soon as reasonably practicable of any claims for which indemnity will be
sought under this clause and shall be entitled to assume the defense
thereof.
	 
	 	 	Each Paying Agent shall severally indemnify the Issuer, the Guarantor and
their directors, officers, employees and controlling persons against all
losses, liabilities, costs, claims,

9

 

	 	 	actions, damages, expenses or demands which any of them may incur which
may be made against any of them as a result of or in connection with the
wilful default, negligence or bad faith of such Paying Agent or that of
its directors, officers, employees or controlling persons or any of them,
or breach by it of the terms of this Agreement.
	 
	 	 	This clause 17 shall continue in full force and effect notwithstanding
the payment in full of all sums in respect of the Bonds, the resignation
or removal of any Fiscal Agent, Paying Agent, Replacement Agent or Agent
or any termination or expiry of this Agreement.
	 
	18.	 	REPLACEMENT BY FISCAL AGENT
	 
	 	 	Subject to clause 7(4), sums paid by or by arrangement with the Issuer or
the Guarantor to the Fiscal Agent pursuant to the terms of this Agreement
shall not be required to be repaid to the Issuer or the Guarantor unless
and until any Bond or Coupon becomes void under the provisions of
Condition 10 but in that event the Fiscal Agent shall forthwith repay to
the Issuer or, if so directed by the Issuer, to the Guarantor sums
equivalent to the amounts which would otherwise have been payable in
respect of the relevant Bond or Coupon.
	 
	19.	 	CONDITIONS OF APPOINTMENT
	 
	(1)	 	Subject as provided in subclause (3) of this clause the Fiscal Agent
shall be entitled to deal with money paid to it by the Issuer or the
Guarantor for the purposes of this Agreement in the same manner as other
money paid to a banker by its customers and shall not be liable to account
to the Issuer or the Guarantor for any interest or other amounts in
respect of the money. No money held by any Paying Agent need be segregated
except as required by law.
	 
	(2)	 	In acting under this Agreement and in connection with the Bonds and the
Coupons the Paying Agents shall act solely as agents of the Issuer and the
Guarantor and will not assume any obligations towards or relationship of
agency or trust for or with any of the owners or holders of the Bonds or
the Coupons, except that all funds held for payment to the Bondholders
shall be held on behalf of the Bondholders.
	 
	(3)	 	No Paying Agent shall exercise any right of set-off, lien or similar
claim against the Issuer, the Guarantor or any holders of Bonds or Coupons
in respect of any moneys payable to or by it under the terms of this
Agreement.
	 
	(4)	 	Except as ordered by a court of competent jurisdiction or required by law
or otherwise instructed by the Issuer or the Guarantor, each of the Paying
Agents shall be entitled to treat the holder (as defined in clause 22) of
any Bond or Coupon as the absolute owner for all purposes (whether or not
the Bond or Coupon shall be overdue and notwithstanding any notice of
ownership or other writing on the Bond or Coupon or any notice of previous
loss or theft of the Bond or Coupon).
	 
	(5)	 	The Paying Agents shall be obliged to perform such duties and only such
duties as are set out in this Agreement and the Bonds and no implied
duties or obligations shall be read into this Agreement or the Bonds
against the Paying Agents.
	 
	(6)	 	The Fiscal Agent may, upon giving notice to the Issuer and the Guarantor,
consult with legal and other professional advisers and the opinion of the
advisers shall be full and complete

10

 

	 	 	protection in respect of action taken, omitted or suffered under this
Agreement in good faith and in accordance with the opinion of the
advisers.
	 
	(7)	 	Each of the Paying Agents shall be protected and shall incur no liability
for or in respect of action taken, omitted or suffered in reliance upon
any instruction, request or order from the Issuer, the Guarantor, or any
Bond or Coupon, or any notice, resolution, direction, consent,
certificate, affidavit, statement, facsimile, telex or other paper or
document which it reasonably believes to be genuine and to have been
delivered, signed or sent by the proper party or parties or upon written
instructions from the Issuer or the Guarantor.
	 
	(8)	 	Any of the Paying Agents, their officers, directors, employees or
controlling persons, may become the owner of, or acquire any interest in,
Bonds or Coupons with the same rights that it or he would have if the
Paying Agent concerned were not appointed under this Agreement, and may
engage or be interested in any financial or other transaction with the
Issuer or the Guarantor, and may act on, or as depositary, trustee or
agent for, any committee or body of holders of Bonds or Coupons or other
obligations of the Issuer or the Guarantor, as freely as if the Paying
Agent were not appointed under this Agreement.
	 
	(9)	 	The Fiscal Agent shall not be under any obligation to take any action
under this Agreement which it expects will result in any expense or
liability accruing to it, the payment of which within a reasonable time is
not, in its opinion, assured to it.
	 
	20.	 	COMMUNICATION WITH PAYING AGENTS
	 
	 	 	A copy of all communications relating to the subject matter of this
Agreement between the Issuer or the Guarantor and any of the Paying
Agents other than the Fiscal Agent shall be sent to the Fiscal Agent.
	 
	21.	 	TERMINATION OF APPOINTMENT
	 
	(1)	 	The Issuer and the Guarantor may terminate the appointment of any Paying
Agent at any time and/or appoint additional or other Paying Agents by
giving to the Paying Agent whose appointment is concerned and, where
appropriate, the Fiscal Agent at least 45 days’ prior written notice to
that effect, provided that, so long as any of the Bonds is outstanding, in
the case of a Paying Agent, the notice shall not expire less than 30 days
before any due date for the payment of interest; and notice shall be given
under Condition 13 at least 30 days before the removal or appointment of a
Paying Agent.
	 
	(2)	 	Notwithstanding the provisions of subclause (1), if at any time a Paying
Agent becomes incapable of acting, or is adjudged bankrupt or insolvent,
or files a voluntary petition in bankruptcy or makes an assignment for the
benefit of its creditors or consents to the appointment of an
administrator, liquidator or administrative or other receiver of all or
any substantial part of its property, or if an administrator, liquidator
or administrative or other receiver of it or of all or a substantial part
of its property is appointed, or it admits in writing its inability to pay
or meet its debts as they may mature or suspends payment of its debts, or
if an order of any court is entered approving any petition filed by or
against it under the provisions of any applicable bankruptcy or insolvency
law or if a public officer takes charge or control of the Paying Agent or
of its property or affairs for the purpose of rehabilitation,
administration or liquidation, its appointment will automatically
terminate, in which event notice shall be given to the Bondholders under
Condition 13 as soon as is practicable.

11

 

	(3)	 	The termination of the appointment a Paying Agent under this Agreement
shall not entitle the Paying Agent to any amount by way of compensation
but shall be without prejudice to any amount then accrued due.
	 
	(4)	 	All or any of the Paying Agents may resign their respective appointments
under this Agreement at any time by giving to the Issuer, the Guarantor
and, where appropriate, the Fiscal Agent at least 45 days’ prior written
notice to that effect provided that, so long as any of the Bonds is
outstanding, the notice shall not, in the case of a Paying Agent, expire
less than 30 days before any due date for the payment of interest.
Following receipt of a notice of resignation from a Paying Agent, the
Issuer (failing which, the Guarantor) shall promptly, and in any event not
less than 30 days before the resignation takes effect, give notice to the
Bondholders under Condition 13. If the Fiscal Agent shall resign or be
removed pursuant to subclauses (1) or (2) above or in accordance with this
subclause (4), the Issuer and the Guarantor shall promptly and in any
event within 30 days appoint a successor (being a leading bank acting
through its office in London). If the Issuer and the Guarantor fail to
appoint a successor within such period, the Fiscal Agent may select a
leading bank acting through its office in London to act as Fiscal Agent
hereunder and the Issuer and the Guarantor shall appoint that bank as the
successor Fiscal Agent.
	 
	(5)	 	Notwithstanding the provisions of subclauses (1), (2) and (4), so long as
any of the Bonds is outstanding, the termination of the appointment of a
Paying Agent (whether by the Issuer and the Guarantor or by the
resignation of the Paying Agent) shall not be effective unless upon the
expiry of the relevant notice there is:

	 	(a)	 	a Fiscal Agent;
	 
	 	(b)	 	at least two Paying Agents (one of which may be the Fiscal
Agent) having specified offices in separate European cities one of
which, so long as the Bonds are listed on the Luxembourg Stock
Exchange and the rules of such exchange so require, shall be
Luxembourg; and
	 
	 	(c)	 	so long as the Bonds are listed on the Luxembourg Stock
Exchange, a Replacement Agent in Luxembourg.

	(6)	 	Any successor Paying Agent shall execute and deliver to its predecessor,
the Issuer, the Guarantor and, where appropriate, the Fiscal Agent an
instrument accepting the appointment under this Agreement, and the
successor Paying Agent, without any further act, deed or conveyance, shall
become vested with all the authority, rights, powers, trusts, immunities,
duties and obligations of the predecessor with like effect as if
originally named as a Paying Agent.
	 
	(7)	 	If the appointment of a Paying Agent under this Agreement is terminated
(whether by the Issuer and the Guarantor or by the resignation of the
Paying Agent), the Paying Agent shall on the date on which the termination
takes effect deliver to its successor Paying Agent (or, if none, the
Fiscal Agent) all Bonds and Coupons surrendered to it but not yet
destroyed and all records concerning the Bonds and Coupons maintained by
it (except such documents and records as it is obliged by law or
regulation to retain or not to release) and pay to its successor Paying
Agent (or, if none, to the Fiscal Agent) the amounts (if any) held by it
in respect of Bonds or Coupons which have become due and payable but which
have not been

12

 

	 	 	presented for payment and any other amounts held by it in respect of the
Bonds and Coupons, but shall have no other duties or responsibilities
under this Agreement, other than indemnity obligations pursuant to clause
17.
	 
	(8)	 	If the Fiscal Agent or any of the other Paying Agents shall change its
specified office, it shall give to the Issuer, the Guarantor and, where
appropriate, the Fiscal Agent not less than 45 days’ prior written notice
to that effect giving the address of the new specified office. As soon as
practicable thereafter and in any event at least 30 days before the
change, the Fiscal Agent shall give to the Bondholders on behalf of the
Issuer notice of the change and the address of the new specified office
under Condition 13.
	 
	(9)	 	A corporation into which any Paying Agent for the time being may be
merged or converted or a corporation with which the Paying Agent may be
consolidated or a corporation resulting from a merger, conversion or
consolidation to which the Paying Agent shall be a party shall, to the
extent permitted by applicable law, be the successor Paying Agent under
this Agreement without the execution or filing of any paper or any further
act on the part of any of the parties to this Agreement. Notice of any
merger, conversion or consolidation shall forthwith be given to the
Issuer, the Guarantor and, where appropriate, the Fiscal Agent.
	 
	22.	 	MEETINGS OF BONDHOLDERS
	 
	(1)	 	The provisions of Schedule 4 shall apply to meetings of the Bondholders
and shall have effect in the same manner as if set out in this Agreement
provided that, so long as any of the Bonds are represented by a Global
Bond, the expression “Bondholders” shall include the persons for the time
being shown in the records of Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euroclear System (“Euroclear”) and/or
Clearstream Banking, société anonyme (“Clearstream, Luxembourg”), as the
holders of a particular principal amount of such Bonds (each an
“Accountholder”) (in which regard a certificate or other document issued
by Euroclear or Clearstream, Luxembourg as to the principal amount of such
Bonds standing to the account of any person shall be conclusive and
binding) for all purposes other than with respect to the payment of
principal and interest on such Bonds, the right to which shall be vested
as against the Issuer and Guarantor solely in the bearer of each Global
Bond in accordance with and subject to its terms, and the expressions
“holder” and “holders” shall be construed accordingly and the expression
“Bonds” shall mean units of €10,000 principal amount of Bonds.
	 
	(2)	 	Without prejudice to subclause (1), each of the Paying Agents shall, on
the request of any holder of Bonds, issue Voting Certificates and Block
Voting Instructions (as defined in paragraph 1 of Schedule 4) together, if
so required by the Issuer, with reasonable proof satisfactory to the
Issuer of their due execution on behalf of the Paying Agent under the
provisions of Schedule 4 and shall forthwith give notice to the Issuer
under Schedule 4 of any revocation or amendment of a Voting Certificate or
Block Voting Instruction. Each Paying Agent shall keep a full and complete
record of all Voting Certificates and Block Voting Instructions issued by
it and shall, not less than 24 hours before the time appointed for holding
any meeting or adjourned meeting, deposit at such place as the Fiscal
Agent shall designate or approve, full particulars of all Voting
Certificates and Block Voting Instructions issued by it in respect of any
meeting or adjourned meeting.

13

 

	23.	 	NOTICES
	 
	 	 	Any notice required to be given under this Agreement to any of the
parties shall be delivered in person, sent by pre-paid post (first class
if inland, first class airmail if overseas) or by facsimile addressed to:

	 	 	 
	The Issuer:	 	
Milacron Capital Holdings B.V.

Schiedamsedijk 20

3134 KK Vlaardingen

The Netherlands

Telephone No.: •

Facsimile No.: •

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
(Attention: General Counsel)

	
	
	
	

	 	 	 
	
	
	
	

	The Guarantor:	 	
Milacron Inc.

2090 Florence Avenue

Cincinnati, Ohio, 45206-2425

USA

Telephone No.: •

Facsimile No.: •

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
(Attention: General Counsel)

	
	
	
	

	 	 	 
	
	
	
	

	The Fiscal Agent:	 	
Deutsche Bank AG London

Winchester House

1 Great Winchester Street

London EC2N 2DB

United Kingdom

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
Telephone No: 44 207 545 8000

Facsimile No: 44 207 547 0271

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
(Attention: Corporate Trust and Agency Services)

	
	
	
	

	 	 	 
	
	
	
	

	The Paying Agent:	 	
Deutsche Bank Luxembourg S.A.

2 Boulevard Konrad Adenauer

L-1115 Luxembourg

Telephone No: 352 421 221

Facsimile No: 352 473 136

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
(Attention: Coupon Paying Department)

		 	or such other address of which notice in writing has been given to the
other parties to this Agreement under the provisions of this clause.
	 
	 	 	All such notices shall be given by letter delivered in person, or sent by
fax or communicated by telephone (subject in the case of a communication
by telephone to confirmation by letter or fax within 24 hours). A notice
shall be deemed received (if by fax) when an acknowledgement of receipt
is received, (if by telephone) when made or (if by letter) when
delivered, in each case in the manner required by this clause 23.

14

 

	24.	 	TAXES
	 
	 	 	The Issuer (failing which, the Guarantor) agrees to pay or reimburse any
and all stamp and other documentary taxes or duties which may be payable
in connection with the execution, delivery, performance and enforcement
of this Agreement.
	 
	25.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts, all of
which, taken together, shall constitute one and the same agreement and
any party may enter into this Agreement by executing a counterpart.
	 
	26.	 	DESCRIPTIVE HEADINGS
	 
	 	 	The descriptive headings in this Agreement are for convenience of
reference only and shall not define or limit the provisions of this
Agreement.
	 
	27.	 	GOVERNING LAW
	 
	(1)	 	The provisions of this Agreement are governed by, and shall be construed
in accordance with, the laws of the State of New York (without regard to
any conflict of law rules).
	 
	(2)	 	Each party irrevocably agrees that the courts of the State of New York
and the Federal Courts sitting in New York City are to have non-exclusive
jurisdiction to settle any dispute which may arise out of or in connection
with this Agreement and that accordingly any suit, action or proceedings
arising out of or in connection with this Agreement (together referred to
as “Proceedings”) may be brought in such courts.
	 
	(3)	 	Each party irrevocably and unconditionally waives and agrees not to raise
any objection which it may have now or subsequently to the laying of the
venue of any Proceedings in the courts of the State of New York or the
Federal Courts sitting in New York City and any claim that any Proceedings
have been brought in an inconvenient forum and further irrevocably and
unconditionally agrees that a judgment in any Proceedings brought in these
courts shall be conclusive and binding upon such party and may be enforced
in the courts of any other jurisdiction.
	 
	(4)	 	Nothing in this clause shall limit any right to take Proceedings in any
other court of competent jurisdiction, nor shall the taking of Proceedings
in one or more jurisdictions preclude the taking of Proceedings in any
other jurisdiction, whether concurrently or not.
	 
	(5)	 	Each of the Issuer and the Guarantor irrevocably and unconditionally
appoints CT Corporation System, 111 Eighth Avenue, New York, NY 10011 as
its agent for service of process in New York City in the State of New York
in respect of any Proceedings and undertakes that in the event of it
ceasing so to act it will appoint another person with a registered office
in New York City in the State of New York as its agent for that purpose.
	 
	(6)	 	Each of the Issuer and the Guarantor and the Paying Agents:

15

 

	 	(a)	 	agrees to procure that, so long as any of the Bonds remains
liable to prescription, there shall be in force an appointment of
such a person with an office in New York City in the State of New
York with authority to accept service as aforesaid;
	 
	 	(b)	 	agrees that failure by any such person to give notice of such
service of process to the Issuer or the Guarantor or the relevant
Agent shall not impair the validity of such service or of any
judgment based thereon;
	 
	 	(c)	 	consents to the service of process in respect of any
Proceedings by the airmailing of copies, postage prepaid, to the
Issuer, the Guarantor, the relevant Agent (as the case may be) in
accordance with clause 23; and
	 
	 	(d)	 	agrees that nothing in this Agreement shall affect the right
to serve process in any other manner permitted by law.

	(7)	 	Each party irrevocably and unconditionally waives and agrees not to raise
with respect to this Agreement any right to claim sovereign or other
immunity from jurisdiction or execution and any similar defence, and
irrevocably and unconditionally consents to the giving of any relief or
the issue of any process, including, without limitation, the making,
enforcement or execution against any property whatsoever (irrespective of
its use or intended use) of any order or judgment made or given in
connection with any Proceedings.
	 
	28.	 	AMENDMENTS
	 
	 	 	This Agreement may be amended by all of the parties, without the consent
of any Bondholder or Couponholder, either:
	 
	(1)	 	for the purpose of curing any ambiguity or of curing, correcting or
supplementing any defective provision contained in this Agreement; or
	 
	(2)	 	in any manner which the parties may mutually deem necessary or desirable
and which shall not be inconsistent with the Conditions and shall not be
materially prejudicial to the interests of the Bondholders or
Couponholders.
	 
	 	 	This Agreement may be amended by all the parties with the consent of any
Bondholder or Couponholder, subject to Schedule 4 hereto.

SIGNED by each of the parties (or their duly authorised representatives) on the
date which appears first on page 1.

16

 

SCHEDULE 1

PART I

FORM OF THE TEMPORARY GLOBAL BOND

MILACRON CAPITAL HOLDINGS B.V.

TEMPORARY GLOBAL BOND

€115,000,000

7.625% Guaranteed Bonds due 2005

unconditionally and irrevocably guaranteed by

MILACRON INC.

XS0109896471

This Temporary Global Bond is issued in respect of €115,000,000 aggregate
principal amount of the 7.625% Guaranteed Bonds due 2005 (the “Bonds”) of
Milacron Capital Holdings B.V. (the “Issuer”). The Bonds are issued subject to
and with the benefit of a fiscal agency agreement (the “Fiscal Agency
Agreement”) dated April 6, 2000 between the Issuer, Milacron Inc. (the
“Guarantor”), Deutsche Bank AG London as fiscal and paying agent (the “Fiscal
Agent”) and Deutsche Bank Luxembourg S.A. as paying agent (a “Paying Agent”).
Payments in respect of the Bonds are unconditionally and irrevocably guaranteed
by the Guarantor under the terms of the guarantees of the Guarantor included on
the Bonds. The Bonds are issued subject to and with the benefit of the Terms
and Conditions of the Bonds (the “Conditions”) set out in Part III of Schedule
2 to the Fiscal Agency Agreement.

	1.	 	Promise to Pay
	 
	 	 	Subject as provided in this Temporary Global Bond, the Issuer, for value
received, promises to pay the bearer upon presentation and surrender of
this Temporary Global Bond such sum as is equal to the principal amount
of the Bonds represented by this Temporary Global Bond as shown in the
title of this Temporary Global Bond or such lesser amount as is shown by
the latest entry in the Schedule to this Temporary Global Bond on April
6, 2005, or on such earlier date as the principal or other amounts in
respect of this Temporary Global Bond may become due under the Conditions
and to pay interest on the principal sum for the time being outstanding
at the rate of 7.625% per annum from April 6, 2000 payable annually in
arrears on April 6 in each year until payment of the principal sum has
been made or duly provided for in full together with any other amounts
as may be payable, all subject to and under the Conditions.
	 
	2.	 	Exchange for Permanent Global Bond and Purchases
	 
	 	 	The Permanent Global Bond to be issued in exchange for this Temporary
Global Bond will be substantially in the form set out in Part II of
Schedule 1 to the Fiscal Agency Agreement and will be exchanged on and
subject to the terms and conditions set out below.

17

 

	 	 	On and after May 16, 2000 (the “Exchange Date”) this Temporary Global
Bond may be exchanged in whole or in part at the specified office of the
Fiscal Agent (or such other place as the Fiscal Agent may direct) for the
Permanent Global Bond and the Issuer shall procure that the Fiscal Agent
shall issue and deliver, in full or partial exchange for this Temporary
Global Bond, the Permanent Global Bond (or, as the case may be, endorse
the Permanent Global Bond) in an aggregate principal amount equal to the
principal amount of this Temporary Global Bond submitted for exchange;
Provided that if definitive Bonds (together with the Coupons appertaining
thereto) have already been issued in exchange for all the Bonds
represented for the time being by the Permanent Global Bond, then this
Temporary Global Bond may thereafter be exchanged only for definitive
Bonds (together with the Coupons appertaining thereto) and in such
circumstances references herein to the Permanent Global Bond shall be
construed accordingly; and Provided further that the Permanent Global
Bond shall be issued and delivered (or, as the case may be, endorsed)
only if and to the extent that there shall have been presented to the
Issuer a certificate from Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euroclear System (“Euroclear”) or
from Clearstream Banking, société anonyme (“Clearstream, Luxembourg”),
substantially in the form of the certificate attached as Exhibit A. No
definitive Bonds delivered in exchange for interests in the Temporary
Global Bond will be mailed or otherwise delivered to any location in the
United States or its possessions in connection with the exchange.
	 
	 	 	Any person who would, but for the provisions of this Temporary Global
Bond and the Permanent Global Bond and of the Fiscal Agency Agreement,
otherwise be entitled to receive a definitive Bond or definitive Bonds
shall not be entitled to require the exchange of an appropriate part of
this Temporary Global Bond for a like part of the Permanent Global Bond
unless and until he shall have delivered or caused to be delivered to
Euroclear or Clearstream, Luxembourg a certificate substantially in the
form of the certificate attached as Exhibit B (copies of which form of
certificate will be available at the offices of Euroclear in Brussels and
Clearstream, Luxembourg in Luxembourg and the specified office of each of
the Paying Agents).
	 
	 	 	Upon (i) any exchange of a part of this Temporary Global Bond for a like
part of the Permanent Global Bond or for a definitive Bond or (ii) the
purchase by or on behalf of the Issuer or the Guarantor and cancellation
of a part of this Temporary Global Bond in accordance with the
Conditions, the portion of the principal amount hereof so exchanged or so
purchased and cancelled shall be endorsed by or on behalf of the Fiscal
Agent on behalf of the Issuer on Part I of the Schedule hereto, whereupon
the principal amount hereof shall be reduced for all purposes by the
amount so exchanged or so purchased and cancelled and, in each case,
endorsed.
	 
	3.	 	Payments
	 
	 	 	Until the entire principal amount of this Temporary Global Bond has been
extinguished, this Temporary Global Bond shall in all respects be
entitled to the same benefits as the definitive Bonds for the time being
represented hereby, except that the holder of this Temporary Global Bond
shall not (unless upon due presentation of this Temporary Global Bond for
exchange, issue and delivery (or, as the case may be, endorsement) of the
Permanent Global Bond is improperly withheld or refused and such
withholding or refusal is continuing at the relevant payment date) be
entitled (i) (subject to (ii) below) to receive any payment of interest
on this Temporary Global Bond except upon certification as hereinafter
provided or (ii) on and after the Exchange Date, to receive any payment
on this Temporary Global Bond. Upon any payment of principal or interest
on this Temporary Global Bond the amount so paid shall be

18

 

	 	 	endorsed by or on behalf of the Fiscal Agent on behalf of the Issuer on
Part I of the Schedule hereto.
	 
	 	 	Payments of interest in respect of Bonds for the time being represented
by this Temporary Global Bond shall be made to the bearer only upon
presentation to the Issuer of a certificate from Euroclear or from
Clearstream, Luxembourg substantially in the form of the certificate
attached as Exhibit A. Any person who would, but for the provisions of
this Temporary Global Bond, otherwise be beneficially entitled to a
payment of interest on this Temporary Global Bond shall not be entitled
to require such payment unless and until he shall have delivered or
caused to be delivered to Euroclear or Clearstream, Luxembourg a
certificate substantially in the form of the certificate attached as
Exhibit B (copies of which form of certificate will be available at the
offices of Euroclear in Brussels and Clearstream, Luxembourg in
Luxembourg and the specified office of each of the Paying Agents).
	 
	 	 	Upon any payment of principal and endorsement of such payment on Part II
of the Schedule hereto, the principal amount of this Temporary Global
Bond shall be reduced for all purposes by the principal amount so paid
and endorsed.
	 
	 	 	Any monies paid by the Issuer or the Guarantor, as the case may be, to
the Fiscal or other Paying Agent for the payment of the principal of or
interest on any Bonds, and remaining unclaimed at the end of two years
after such principal or interest shall have become due and payable
(whether at maturity or upon call for redemption, purchase or otherwise),
shall then be repaid to the Issuer, and upon such repayment all liability
of the Fiscal or Paying Agent, as the case may be, with respect thereto
shall thereupon cease, without, however, limiting in any way any
obligation the Issuer or the Guarantor may have to pay the principal of
or interest on this Bond as the same shall become due. Any such payments
that the Issuer or the Guarantor, as the case may be, shall be obligated
to make shall be made at offices or agencies selected by it outside the
United States and its territories and possessions.
	 
	 	 	All payments of any amounts payable and paid to the bearer of this
Temporary Global Bond shall be valid and, to the extent of the sums so
paid, effectual to satisfy and discharge the liability for the moneys
payable hereon, on the Permanent Global Bond and on the relevant
definitive Bonds and Coupons.
	 
	4.	 	Notices
	 
	 	 	For so long as the Bonds are represented by this Temporary Global Bond
and this Temporary Global Bond is held on behalf of Euroclear and/or
Clearstream, Luxembourg, notices to Bondholders may be given by delivery
of the relevant notice to Euroclear and/or Clearstream, Luxembourg (as
the case may be) for communication to the relative Accountholders (as
defined below) rather than by publication as required by Condition 13,
provided that so long as the Bonds are listed on the Luxembourg Stock
Exchange and the rules of the Luxembourg Stock Exchange so require,
notices shall also be published in a leading newspaper having general
circulation in Luxembourg (which is expected to be the Luxemburger Wort).
Any such notice shall be deemed to have been given to the Bondholders on
the seventh day after the date on which such notice is delivered to
Euroclear and/or Clearstream, Luxembourg (as the case may be) as
aforesaid.
	 
	5.	 	Accountholders

19

 

	 	 	For so long as the Bonds are represented by this Temporary Global Bond
and this Temporary Global Bond is held on behalf of Euroclear and/or
Clearstream, Luxembourg, each person who is for the time being shown in
the records of Euroclear or Clearstream, Luxembourg as the holder of a
particular principal amount of the Bonds (each an “Accountholder”) (in
which regard any certificate or other document issued by Euroclear or
Clearstream, Luxembourg as to the principal amount of the Bonds standing
to the account of any person shall be conclusive and binding for all
purposes) shall be treated as the holder of such principal amount of the
Bonds for all purposes (including for the purposes of any quorum
requirements of, or the right to demand a poll at, meetings of the
Bondholders) other than with respect to the payment of principal and
interest on such Bonds, the right to which shall be vested, as against
the Issuer, solely in the bearer of this Temporary Global Bond in
accordance with and subject to its terms and the terms of the Fiscal
Agency Agreement. Each Accountholder must look solely to Euroclear or
Clearstream, Luxembourg, as the case may be, for its share of each
payment made to the bearer of this Temporary Global Bond.
	 
	6.	 	Prescription
	 
	 	 	Claims against the Issuer in respect of principal and interest on the
Bonds represented by this Temporary Global Bond will be void unless it is
presented for payment within a period of 10 years (in the case of
principal) and 5 years (in the case of interest or additional amounts)
from the Relevant Date (as defined in Condition 9).
	 
	7.	 	Authentication
	 
	 	 	This Temporary Global Bond shall not be or become valid or obligatory for
any purpose unless and until authenticated by or on behalf of the Fiscal
Agent.
	 
	8.	 	Guarantee
	 
	 	 	Payments in respect of the Bonds will be unconditionally and irrevocably
guaranteed by the Guarantor by the guarantee which is endorsed on this
Temporary Global Bond.
	 
	9.	 	Governing law
	 
	 	 	This Temporary Global Bond is governed by, and shall be construed in
accordance with, the laws of the State of New York, United States of
America (without reference to any conflict of law rules).
	 
	 	 	Any State or federal courts siting in the Borough of Manhattan, the City
of New York shall have non-exclusive jurisdiction to settle any disputes
which may arise out of or in connection with this Temporary Global Bond,
and accordingly any legal action or proceedings arising out of or in
connection with this Temporary Global Bonds (“Proceedings”) may be
brought in such courts. Each of the Issuer and the Guarantor irrevocably
submits to the non-exclusive jurisdiction of such courts and waives any
objection which it may now or hereafter have to Proceedings in any such
courts whether on the ground of the laying of venue or on the ground that
the Proceedings have been brought in an inconvenient forum and further
agrees that a judgement in any Proceedings brought in such courts shall
be conclusive and binding upon it and may be enforced in the courts of
any other jurisdiction. Nothing in this clause 9 shall limit any right to
take Proceedings against the Issuer and/or the Guarantor in any other
court

20

 

	 	 	of competent jurisdiction, nor shall the taking of Proceedings in one or
more jurisdictions preclude the taking of Proceedings in any other
jurisdiction, whether concurrently or not.
	 
	 	 	To the extent that either the Issuer or the Guarantor has or hereafter
may acquire any immunity from jurisdiction of any court or from any legal
process with respect to itself or its property, the Issuer and the
Guarantor irrevocably waive such immunity in respect of its obligations
under this Temporary Global Bond.
	 
	 	 	The Issuer and the Guarantor agree that the process by which any
Proceedings in New York City are begun may be served on it by being
delivered to it c/o CT Corporation System, 111 Eighth Avenue, New York,
New York 10011. If the appointment of the person appointed to receive
process on behalf of the Issuer or Guarantor ceases to be effective, the
Issuer or Guarantor (as applicable) shall forthwith appoint a further
person to accept service of process on its behalf and notify the name and
address of such person to Euroclear and/or Clearstream, Luxembourg (as
the case may be) pursuant to clause 4 above, rather than by publication
as required by Condition 13 and, failing such appointment within 15 days,
the Fiscal Agent shall be entitled to appoint such a person by written
notice addressed and delivered to the Issuer and the Guarantor.

IN WITNESS whereof this Temporary Global Bond has been executed on behalf of
the Issuer.

21

 

MILACRON CAPITAL HOLDINGS B.V.

By:     ____________________

Name:     __________________

Title:     ___________________

Dated: April 6, 2000

22

 

CERTIFICATE OF AUTHENTICATION

This is the Temporary Global Bond

described in the Fiscal Agency Agreement

By or on behalf of

Deutsche Bank AG London as Fiscal Agent

(without recourse, warranty or liability)

.....................................

23

 

THE SCHEDULE

Part I

EXCHANGES FOR THE PERMANENT GLOBAL BOND AND PURCHASES

AND CANCELLATIONS

The following exchanges of a part of this Temporary Global Bond for a little
part of the Permanent Global Bond and purchases and cancellations of a part of
the aggregate principal amount of this Temporary Global Bond have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Part of the	 	 	 	 	 	 
	 	 	aggregate principal	 	 	 	Remaining principal	 	 
	 	 	amount of this	 	Part of the	 	amount of this	 	 
	 	 	Temporary Global	 	aggregate principal	 	Temporary Global	 	 
	 	 	Bond exchanged for	 	amount of this	 	Bond following	 	 
	 	 	interests in the	 	Temporary Global	 	exchange or	 	Notation made by or
	Date of Exchange or	 	Permanent Global	 	Bond purchased and	 	purchased and	 	on behalf of the
	cancellation	 	Bond	 	cancelled	 	cancellation	 	Fiscal Agent
	 	 	 	 	 	 	 	 	 
		 	€	 	€	 	€	 	
	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

24

 

Part II

PAYMENTS

The following payments in respect of the Bonds represented by this Temporary
Global Bond have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Remaining principal	 	 
	 	 	 	 	 	 	amount of this	 	 
	 	 	 	 	 	 	Temporary Global	 	Notation made by or
	 	 	Amount of interest	 	Amount of principal	 	Bond following	 	on behalf of the
	Date of payment	 	paid	 	paid	 	payment	 	Fiscal Agent
	 	 	 	 	 	 	 	 	 
		 	€	 	€	 	€	 	
	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

25

 

EXHIBIT A

MILACRON CAPITAL HOLDINGS B.V.

€115,000,000

7.625% Guaranteed Bonds due 2005

(the “Bonds”)

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member
organisations appearing in our records as persons being entitled to a portion
of the principal amount set forth below (our “Member Organisations”)
substantially to the effect set forth in the Fiscal Agency Agreement, as of the
date hereof, [ ] principal amount of the above-captioned Bonds (i)
is owned by persons that are not citizens or residents of the United States,
domestic partnerships, domestic corporations or any estate or trust the income
of which is subject to United States federal income taxation regardless of its
source (“United States persons”), (ii) is owned by United States persons that
(a) are foreign branches of United States financial institutions (as defined in
U.S. Treasury Regulations Section 1.165-12(c)(1)(v)) (“financial institutions”)
purchasing for their own account or for resale, or (b) acquired the Bonds
through foreign branches of United States financial institutions and who hold
the Bonds through such United States financial institutions on the date hereof
(and in either case (a) or (b), each such United States financial institution
has agreed, on its own behalf or through its agent, that we may advise the
Issuer or the Issuer’s agent that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) is owned by United States or
foreign financial institutions for purposes of resale during the restricted
period (as defined in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and to the further effect that United States or
foreign financial institutions described in clause (iii) above (whether or not
also described in clause (i) or (ii)) have certified that they have not
acquired the Bonds for purposes of resale directly or indirectly to a United
States person or to a person within the United States or its possessions.

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the Temporary Global Bond excepted in such certifications and (ii)
that as of the date hereof we have not received any notification from any of
our Member Organisations to the effect that the statements made by such Member
Organisations with respect to any portion of the part submitted herewith for
exchange (or, if relevant, exercise of any rights or collection of any
interest) are no longer true and cannot be relied upon as of the date hereof.

We understand that this certification is required in connection with certain
tax laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with which this certification is or would be relevant,
we irrevocably authorise you to produce this certification to any interested
party in such proceedings.

Dated1

[Morgan Guaranty Trust Company of New York,

Brussels office, as operator of the

Euroclear System] [Clearstream, Luxembourg]

	 	 	1 To be dated no earlier than 40 days after the Closing Date.

26

 

By ...................................

Authorised Signatory

27

 

EXHIBIT B

MILACRON CAPITAL HOLDINGS B.V.

€115,000,000

7.625% Guaranteed Bonds due 2005

(the “Bonds”)

This is to certify that as of the date hereof, and except as set forth below,
the above-captioned Bonds held by you for our account (i) are owned by
person(s) that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to United States federal income taxation regardless of its source
(“United States person(s)”), (ii) are owned by United States person(s) that (a)
are foreign branches of United States financial institutions (as defined in
U.S. Treasury Regulations Section 1.165-12(c)(1)(v)) (“financial institutions”)
purchasing for their own account or for resale, or (b) acquired the Bonds
through foreign branches of United States financial institutions and who hold
the Bonds through such United States financial institutions on the date hereof
(and in either case (a) or (b), each such United States financial institution
hereby agrees, on its own behalf or through its agent, that you may advise the
Issuer or the Issuer’s agent that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder), or (iii) are owned by United States
or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and in addition if the owner of the Bonds is a United
States or foreign financial institution described in clause (iii) above
(whether or not also described in clause (i) or (ii)) this is further to
certify that such financial institution has not acquired the Bonds for the
purposes of resale directly or indirectly to a United States person or to a
person within the United States or its possessions.

As used herein, “United States” means the United States of America (including
the States and the District of Columbia); and its “possessions” include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Bonds held by you
for our account in accordance with your documented procedures if any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.

This certification excepts and does not relate to €[ ] of such
interest in the above Bonds in respect of which we are not able to certify and
as to which we understand exchange and delivery of definitive Bonds (or, if
relevant, exercise of any rights or collection of any interest) cannot be made
until we do so certify.

We understand that this certification is required in connection with certain
tax laws and, if applicable, certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with which this certification is or would be relevant,
we irrevocably authorise you to produce this certification to any interested
party in such proceedings.

Dated

28

 

By .........................................

  Qualified Account Holder

29

 

GUARANTEE OF MILACRON INC.

(as set out in Schedule 3 to the Fiscal Agency Agreement)

30

 

SCHEDULE 1

PART II

FORM OF THE PERMANENT GLOBAL BOND

THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN CONTRAVENTION OF THAT
ACT

MILACRON CAPITAL HOLDINGS B.V.

PERMANENT GLOBAL BOND

€115,000,000

7.625% Guaranteed Bonds due 2005

unconditionally and irrevocably guaranteed by

MILACRON INC.

XS0109896471

This Permanent Global Bond is issued in respect of €115,000,000 aggregate
principal amount of the 7.625% Guaranteed Bonds due 2005 (the “Bonds”) of
Milacron Capital Holdings B.V. (the “Issuer”). The Bonds are initially
represented by a Temporary Global Bond interests in which will be exchanged in
accordance with the terms of the Temporary Global Bond for interests in this
Permanent Global Bond and, if applicable, definitive Bonds. The Bonds are
issued subject to and with the benefit of a fiscal agency agreement (the
“Fiscal Agency Agreement”) dated April 6, 2000 between the Issuer, Milacron
Inc. (the “Guarantor”), Deutsche Bank AG London as fiscal and paying agent (the
“Fiscal Agent”) and Deutsche Bank Luxembourg S.A. as paying agent (a “Paying
Agent”). Payments in respect of the Bonds are unconditionally and irrevocably
guaranteed by the Guarantor under the terms of the guarantees of the Guarantor
included on the Bonds.

The Bonds are issued subject to and with the benefit of the Terms and
Conditions of the Bonds (the “Conditions”) set out in Part III of Schedule 2 to
the Fiscal Agency Agreement.

	1.	 	Promise to Pay
	 
	 	 	Subject as provided in this Permanent Global Bond, the Issuer, for value
received, promises to pay the bearer upon presentation and surrender of
this Permanent Global Bond the sum of €115,000,000 or such lesser sum as
is equal to the principal amount of the Bonds represented by this
Permanent Global Bond as shown by the latest entry in Part I, Part II or
Part III of the Schedule to this Permanent Global Bond on April 6, 2005
or on such earlier date as the principal or other amounts in respect of
this Permanent Global Bond may become due under the Conditions and to pay
interest on the principal sum for the time being outstanding at the rate
of 7.625% per annum from April 6, 2000 payable annually in arrears on
April 6 in each year until payment of the principal sum has been made or
duly provided for in full together with any other amounts as may be
payable, all subject to and under the Conditions.

31

 

	2.	 	Exchange of Interests in the Temporary Global Bond for Interests in this
Permanent Global Bond
	 
	 	 	Upon any exchange of an interest in the Temporary Global Bond
representing the Bonds for an interest in this Permanent Global Bond, the
Fiscal Agent shall make the appropriate entry in Part I of the Schedule
to this Permanent Global Bond in order to indicate the principal amount
of Bonds represented by this Permanent Global Bond following such
exchange.
	 
	3.	 	Exchange for Definitive Bonds and Purchases
	 
	 	 	This Permanent Global Bond may be exchanged, in whole but not in part,
for duly executed and authenticated definitive Bonds without charge only
on and subject to the terms and conditions set out below.
	 
	 	 	The definitive Bonds to be issued on such exchange will be in bearer form
in the denomination of €10,000, €100,000 and €1,000,000 each with
interest coupons (“Coupons”) attached.
	 
	 	 	The Permanent Global Bond is exchangeable in whole but not in part for
definitive Bonds if:

	 	(i)	 	this Permanent Global Bond is held on behalf of Morgan
Guaranty Trust Company of New York, Brussels office, as operator of
the Euroclear System (“Euroclear”) and/or Clearstream Banking,
société anonyme (“Clearstream, Luxembourg”) and either such clearing
system is closed for business for a continuous period of 14 days
(other than by reason of holidays, statutory or otherwise) or
announces an intention permanently to cease business or does in fact
do so and no alternative clearing system satisfactory to the Issuer
and the Fiscal Agent is available; or
	 
	 	(ii)	 	a notice following an Event of Default (as defined in the
Conditions) has been given in accordance with Condition 11; or
	 
	 	(iii)	 	either the Issuer or the Guarantor would suffer a material
disadvantage in respect of the relevant Bonds as a result of a
change in the laws or regulations (taxation or otherwise) of any
applicable jurisdiction, or as a result of a change in the practice
of Euroclear and/or Clearstream, Luxembourg which would not be
suffered were the Bonds in definitive form and a certificate to such
effect signed by two duly authorised officers of the Issuer or
Guarantor (as the case may be) is delivered to the Fiscal Agent for
display to the Bondholders.

		 	Thereupon (in the case of (i) and (ii) above) the holder (acting on the
instructions of (an) Accountholder(s)) may give notice to the Fiscal
Agent and (in the case of (iii) above) the Issuer may give at least 45
days’ notice to the Fiscal Agent and the Bondholders of its intention to
exchange this Permanent Global Bond for definitive Bonds on or after the
Exchange Date (as defined below) specified in the notice.
	 
	 	 	In addition, at any time upon request of any holder of an interest in the
Permanent Global Bond including any Accountholder upon 60 days’ prior
written notice to the Fiscal Agent specifying an Exchange Date (as
defined below), such holder’s interest in a Permanent Global Bond will be
exchangeable in whole, but not in part, for Bonds in definitive form, in
which

32

 

	 	 	case all costs involved in such exchange will be borne in accordance with
the terms of the Fiscal Agency Agreement.
	 
	 	 	Upon (a) receipt of instructions from Euroclear and/or Clearstream,
Luxembourg that, following the purchase by or on behalf of the Issuer or
the Guarantor of the whole or a part of this Permanent Global Bond, or
(b) the whole or a part of this Permanent Global Bond being declared
immediately due and repayable following an Event of Default (with notice
to the Fiscal Agent stating the principal amount of the Bonds hereby
represented being declared due and repayable), the portion of the
principal amount of this Permanent Global Bond so cancelled or declared
shall, in the case of (a), be entered by or on behalf of the Fiscal Agent
on Part II of the Schedule to this Permanent Global Bond, whereupon the
principal amount of this Permanent Global Bond shall be reduced for all
purposes by the amount so cancelled or, in the case of (b), upon the
holder’s election, become void as to such portion with the relevant
Accountholder(s) thereby acquiring directly enforceable rights against
the Issuer (or the Guarantor, as the case may be) as though the Bonds
credited to the account of such Accountholder(s) at Euroclear and/or
Clearstream, Luxembourg had been exchanged for definitive Bonds, as
provided for in the Fiscal Agency Agreement.
	 
	 	 	On or after the Exchange Date (as defined below) this Permanent Global
Bond may, or in the case of (iii) above shall, be exchanged in whole but
not in part at the specified office of the Fiscal Agent (or such other
place as the Fiscal Agent may direct) for definitive Bonds in equal
aggregate principal amount and the Issuer shall deliver, or shall procure
that the Fiscal Agent shall issue and deliver, in full exchange for this
Permanent Global Bond, duly executed and authenticated definitive Bonds
(having attached to them all Coupons in respect of interest which has not
already been paid on this Permanent Global Bond), security printed in
accordance with any applicable legal and stock exchange requirements and
in, or substantially in, the form set out in Schedule 2 to the Fiscal
Agency Agreement, in an aggregate principal amount equal to the principal
amount of this Permanent Global Bond submitted for exchange. On exchange
in full of this Permanent Global Bond, the Issuer will procure that it is
cancelled and, if the holder so requests, returned to the holder together
with any relevant definitive Bonds. No definitive Bonds delivered in
exchange for interests in the Permanent Global Bond will be mailed or
otherwise delivered to any location in the United States or its
possessions in connection with the exchange.
	 
	 	 	If for any reason definitive Bonds have not been delivered to the
relevant holder(s) by 5 p.m. (London) on the Exchange Date, then at 5
p.m. (London) on the Exchange Date, such relevant holder(s) of the
Permanent Global Bond will cease to have any rights under the Permanent
Global Bond and Accountholders (as defined below) holding for such
relevant holders will acquire directly against the Issuer and the
Guarantor all those rights that such Accountholders would have had if
they had been in possession of the applicable definitive Bonds that
should have been delivered to them.
	 
	 	 	“Exchange Date” means a day falling not less than 60 days, or in the case
of an exchange following the giving of a default notice 30 days, after
that on which the notice referred to above requiring exchange is given
and on which banks are open for business in the city in which the
specified office of the Fiscal Agent is located and, except in the case
of exchange pursuant to (i) above, in the city in which the relevant
clearing system is located.

33

 

	 	 	Upon the exchange of this Permanent Global Bond for definitive Bonds, the
principal amount hereof so exchanged or the portion thereof so purchased
and cancelled shall be endorsed by or on behalf of the Fiscal Agent on
behalf of the Issuer on Part II of the Schedule hereto, whereupon the
principal amount hereof shall be reduced for all purposes by the amount
so exchanged and, in each case, endorsed.
	 
	4.	 	Payments
	 
	 	 	Until the entire principal amount of this Permanent Global Bond has been
extinguished, this Permanent Global Bond shall in all respects be
entitled to the same benefits as the definitive Bonds. Upon any payment
of principal or interest on this Permanent Global Bond the amount so paid
shall be endorsed by or on behalf of the Fiscal Agent on behalf of the
Issuer on Part III of the Schedule hereto.
	 
	 	 	Upon any payment of principal and endorsement of such payment on Part III
of the Schedule hereto, the principal amount of this Permanent Global
Bond shall be reduced for all purposes by the principal amount so paid
and endorsed.
	 
	 	 	Any monies paid by the Issuer or the Guarantor, as the case may be, to
the Fiscal or other Paying Agent for the payment of the principal of or
interest on any Bonds, and remaining unclaimed at the end of two years
after such principal or interest shall have become due and payable
(whether at maturity or upon call for redemption, purchase or otherwise),
shall then be repaid to the Issuer, and upon such repayment all
liability of the Fiscal or Paying Agent, as the case may be, with respect
thereto shall thereupon cease, without, however, limiting in any way any
obligation the Issuer or the Guarantor may have to pay the principal of
or interest on this Bond as the same shall become due. Any such payments
that the Issuer or the Guarantor, as the case may be, shall be obligated
to make shall be made at offices or agencies selected by it outside the
United States and its territories and possessions.
	 
	 	 	All payments of any amounts payable and paid to the bearer of this
Permanent Global Bond shall be valid and, to the extent of the sums so
paid, effectual to satisfy and discharge the liability for the moneys
payable hereon and on the relevant definitive Bonds and Coupons.
	 
	5.	 	Notices
	 
	 	 	For so long as the Bonds are represented by this Permanent Global Bond
and this Permanent Global Bond is held on behalf of Euroclear and/or
Clearstream, Luxembourg, notices to Bondholders may be given by delivery
of the relevant notice to Euroclear and/or Clearstream, Luxembourg (as
the case may be) for communication to the relative Accountholders (as
defined below) rather than by publication as required by Condition 13,
provided, that so long as the Bonds are listed on the Luxembourg Stock
Exchange and the rules of the Luxembourg Stock Exchange so require,
notices shall also be published in a leading newspaper having general
circulation in Luxembourg (which is expected to be the Luxemburger Wort).
Any such notice shall be deemed to have been given to the Bondholders on
the seventh day after the date on which such notice is delivered to
Euroclear and/or Clearstream, Luxembourg (as the case may be) as
aforesaid.
	 
	6.	 	Accountholders
	 
	 	 	For so long as the Bonds are represented by this Permanent Global Bond
and this Permanent Global Bond is held on behalf of Euroclear and/or
Clearstream, Luxembourg, each person who is for the time being shown in
the records of Euroclear or Clearstream, Luxembourg as

34

 

	 	 	the holder of a particular principal amount of the Bonds (each an
“Accountholder”) (in which regard any certificate or other document
issued by Euroclear or Clearstream, Luxembourg as to the principal amount
of the Bonds standing to the account of any person shall be conclusive
and binding for all purposes) shall be treated as the holder of such
principal amount of the Bonds for all purposes (including for the
purposes of any quorum requirements of, or the right to demand a poll at,
meetings of the Bondholders) other than with respect to the payment of
principal and interest on the Bonds, the right to which shall be vested,
as against the Issuer solely in the bearer of this Permanent Global Bond
in accordance with and subject to its terms and the terms of the Fiscal
Agency Agreement. Each Accountholder must look solely to Euroclear or
Clearstream, Luxembourg, as the case may be, for its share of each
payment made to the bearer of this Permanent Global Bond.
	 
	7.	 	Prescription
	 
	 	 	Claims against the Issuer in respect of principal and interest on the
Bonds represented by this Permanent Global Bond will be void unless it is
presented for payment within a period of 10 years (in the case of
principal) and 5 years (in the case of interest) from the Relevant Date
(as defined in Condition 9).
	 
	8.	 	Authentication
	 
	 	 	This Permanent Global Bond shall not be or become valid or obligatory for
any purpose unless and until authenticated by or on behalf of the Fiscal
Agent.
	 
	9.	 	Guarantee
	 
	 	 	Payments in respect of the Bonds will be unconditionally and irrevocably
guaranteed by the Guarantor by the guarantee which is endorsed on this
Permanent Global Bond.
	 
	10.	 	Governing law
	 
	 	 	This Permanent Global Bond is governed by, and shall be construed in
accordance with, the law of the State of New York, United States of
America (without reference to any conflict of law rules).
	 
	 	 	Any State or federal courts siting in the Borough of Manhattan, the City
of New York shall have non-exclusive jurisdiction to settle any disputes
which may arise out of or in connection with this Permanent Global Bond,
and accordingly any legal action or proceedings arising out of or in
connection with this Permanent Global Bonds (“Proceedings”) may be
brought in such courts. Each of the Issuer and the Guarantor irrevocably
submits to the non-exclusive jurisdiction of such courts and waives any
objection which it may now or hereafter have to Proceedings in any such
courts whether on the ground of the laying of venue or on the ground that
the Proceedings have been brought in an inconvenient forum and further
agrees that a judgement in any Proceedings brought in such courts shall
be conclusive and binding upon it and may be enforced in the courts of
any other jurisdiction. Nothing in this clause 10 shall limit any right
to take Proceedings against the Issuer and/or the Guarantor in any other
court of competent jurisdiction, nor shall the taking of Proceedings in
one or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction, whether concurrently or not.
	 
	 	 	To the extent that either the Issuer or the Guarantor has or hereafter
may acquire any immunity from jurisdiction of any court or from any legal
process with respect to itself or its

35

 

	 	 	property, the Issuer and the Guarantor irrevocably waive such immunity in
respect of its obligations under this Permanent Global Bond.
	 
	 	 	The Issuer and the Guarantor agree that the process by which any
Proceedings in New York City are begun may be served on it by being
delivered to it c/o CT Corporation System, 111 Eighth Avenue, New York,
New York 10011. If the appointment of the person appointed to receive
process on behalf of the Issuer or Guarantor ceases to be effective, the
Issuer or Guarantor (as applicable) shall forthwith appoint a further
person to accept service of process on its behalf and notify the name and
address of such person to Euroclear and/or Clearstream, Luxembourg (as
the case may be) pursuant to clause 5 above, rather than by publication
as required by Condition 13 and, failing such appointment within 15 days,
the Fiscal Agent shall be entitled to appoint such a person by written
notice addressed and delivered to the Issuer and the Guarantor.

IN WITNESS whereof this Permanent Global Bond has been executed as a deed poll
on behalf of the Issuer.

MILACRON CAPITAL HOLDINGS B.V.

By:     ______________

Name:     ____________

Title:     _____________

Dated:

36

 

CERTIFICATE OF AUTHENTICATION

This is the Permanent Global Bond

described in the Fiscal Agency Agreement

By or on behalf of

Deutsche Bank AG London

(without recourse, warranty or liability)

......................................

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO
LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS
PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

37

 

THE SCHEDULE

Part I

EXCHANGES OF THE TEMPORARY GLOBAL BOND

The following exchanges of part of the Temporary Global Bond for interests in
this Permanent Global Bond have been made.

	 	 	 	 	 	 	 
	 	 	Part of aggregate	 	 	 	 
	 	 	principal amount of	 	Aggregate principal	 	 
	 	 	the Temporary	 	amount of Bonds	 	 
	 	 	Global Bond	 	represented by this	 	 
	 	 	exchanged for this	 	Permanent Global	 	Notation made by or
	 	 	Permanent Global	 	Bond following	 	on behalf of the
	Date of Exchange	 	Bond	 	Exchange	 	Fiscal Agent
	 	 	 	 	 	 	 
		 	€	 	€	 	
	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	 	 	 	 	 	 
	
	 	

	 	

	 	

38

 

Part II

EXCHANGES FOR DEFINITIVE BONDS AND CANCELLATIONS

The following exchanges of a part of this Permanent Global Bond for definitive
Bonds and cancellations of a part of the aggregate principal amount of this
Permanent Global Bond have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Part of the	 	 	 	 	 	 
	 	 	aggregate principal	 	 	 	 	 	 
	 	 	amount of this	 	Part of the	 	 	 	 
	 	 	Permanent Global	 	Aggregate principal	 	Remaining principal	 	 
	 	 	Bond exchanged for	 	of this Permanent	 	amount of this	 	Notation made by or
	Date of exchange or	 	definitive Bonds	 	Global Bond	 	Permanent Global	 	on behalf of the
	cancellation	 	cancellation	 	cancelled	 	Bond following	 	Fiscal Agent
	 	 	 	 	 	 	 	 	 
		 	€	 	€	 	€	 	
	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

39

 

Part III

PAYMENTS

The following payments in respect of the Bonds represented by this Permanent
Global Bond have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Remaining principal	 	 
	 	 	 	 	 	 	amount of this	 	 
	 	 	 	 	 	 	Permanent Global	 	Notation made by or
	 	 	Amount of interest	 	Amount of Principal	 	Bond following	 	on behalf of the
	Date of payment	 	paid	 	Paid	 	payment	 	Fiscal Agent
	 	 	 	 	 	 	 	 	 
		 	€	 	€	 	€	 	
	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 
	
	 	

	 	

	 	

	 	

40

 

GUARANTEE OF MILACRON INC.

[as set out in Schedule 3 to the Fiscal Agency Agreement]

41

 

SCHEDULE 2

PART I

- FORM OF DEFINITIVE BOND -

(Face of Bond)

THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN CONTRAVENTION OF THAT
ACT

							
	000000	 	
XS0109896471
	 	 	00 00000

MILACRON CAPITAL HOLDINGS B.V.

(incorporated under the laws of the Netherlands)

7.625% Guaranteed Bonds due 2005

unconditionally and irrevocably guaranteed

as to payment of principal and interest by

MILACRON INC.

(incorporated under the laws of the State of Delaware)

The issue of the Bonds was authorised by a resolution of the Board of Directors
of Milacron Capital Holdings B.V. (the “Issuer”) passed on March 27, 2000 and
the giving of the guarantee in respect of the Bonds was authorised by a
resolution of the Board of Directors of Milacron Inc. (the “Guarantor”) passed
on July 29, 1999.

This Bond forms one of a series of Bonds in an aggregate principal amount of
€115,000,000 issued as bearer Bonds in the denomination of
€[10,000/100,000/1,000,000].

The Issuer for value received and subject to and in accordance with the
Conditions endorsed hereon hereby promises to pay to the bearer on April 6,
2005 (or on such earlier date as the principal sum may become repayable under
the said Conditions) the principal sum of:

€[10,000/100,000/1,000,000]

together with interest on the principal sum of €[10,000/100,000/1,000,000] at
the rate of 7.625% per annum and together with such other amounts as may be
payable, all subject to and under the Conditions.

The Bonds are issued pursuant to a fiscal agency agreement (the “Fiscal Agency
Agreement”) dated April 6, 2000 between the Issuer, the Guarantor, Deutsche
Bank AG London as fiscal and paying agent and Deutsche Bank Luxembourg S.A. as
paying agent (a “Paying Agent”). Payments of principal and interest in respect
of the Bonds are unconditionally and irrevocably guaranteed by the Guarantor as
provided in the guarantees of the Guarantor included on the Bonds. The Bonds
have the

42

 

benefit of, and are subject to, the provisions contained in the Fiscal Agency
Agreement and the Conditions.

Neither this Bond nor any of the Coupons relating to this Bond shall become
valid or enforceable for any purpose unless and until this Bond has been
authenticated by or on behalf of the Fiscal Agent.

IN WITNESS WHEREOF this Bond and the Coupons relating to this Bond have been
executed on behalf of the Issuer.

Dated as of •

Issued in •

MILACRON CAPITAL HOLDINGS B.V.

By:     _____________

Name:     ___________

Title:     ____________

CERTIFICATE OF AUTHENTICATION

This is one of the Bonds described

in the Fiscal Agency Agreement.

By or on behalf of

Deutsche Bank AG London as Fiscal Agent

(without recourse, warranty or liability)

 

 

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO
LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS
PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

43

 

(Reverse of Bond)

CONDITIONS OF THE BONDS

(as set out in Part III of this Schedule 2)

FISCAL AGENT

Deutsche Bank AG London

Winchester House

1 Great Winchester Street

London EC2N 2DB

United Kingdom

PAYING AGENT

Deutsche Bank Luxembourg S.A.

2 Boulevard Konrad Adenauer

L-1115 Luxembourg

and/or such other or further Fiscal Agent or Paying Agents and/or specified
offices as may from time to time be appointed by the Issuer and notice of which
has been given to the Bondholders.

44

 

GUARANTEE OF MILACRON INC.

(as set out in Schedule 3 to the Fiscal Agency Agreement)

45

 

SCHEDULE 2

PART II

- FORM OF COUPON -

THIS OBLIGATION HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN CONTRAVENTION OF THAT
ACT

(Face of Coupon)

MILACRON CAPITAL HOLDINGS B.V.

€115,000,000 7.625% Guaranteed Bonds due 2005

unconditionally and irrevocably guaranteed by

MILACRON INC

	 	 	 
	This Coupon relating to a Bond

Payable in the denomination

of €[10,000/100,000/1,000,000]

is payable to bearer, separately

negotiable and subject to the

conditions of the Bonds, under

which it may become void before

its due date
	 	
Coupon for

€[762.50/7,625/76,250]

due on

April 6, 2001/2002/2003/2004/2005

MILACRON CAPITAL HOLDINGS B.V.

By:     ______________

Name:     ____________

Title:     _____________

ANY UNITED STATES PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT TO
LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAWS, INCLUDING THE LIMITATIONS
PROVIDED IN SECTIONS 165(j) AND 1287(a) OF THE INTERNAL REVENUE CODE.

46

 

	 	 	 	 	 	 	 
	00 000000	 	
XS0109896471
	 	 	000000	 

(Reverse of Coupon)

FISCAL AND PAYING AGENT:

Deutsche Bank AG London

OTHER PAYING AGENT:

Deutsche Bank Luxembourg S.A.

47

 

GUARANTEE OF MILACRON INC.

(as set out in Schedule 3 to the Fiscal Agency Agreement)

48

 

SCHEDULE 2

PART III

TERMS AND CONDITIONS OF THE BONDS

The following is the text of the Terms and Conditions of the Bonds which
(subject to modification) will be endorsed on each Bond in definitive form (if
issued):

The 7.625% Guaranteed Bonds due 2005 (the “Bonds”, which expression shall in
these Conditions, unless the context otherwise requires, include any further
bonds issued pursuant to Condition 15 and forming a single series with the
Bonds) of Milacron Capital Holdings B.V. (the “Issuer”) are issued subject to
and with the benefit of a Fiscal Agency Agreement to be dated April 6, 2000
(the “Fiscal Agency Agreement”) made between the Issuer, Milacron Inc., as
guarantor, (the “Guarantor”). Deutsche Bank AG London as fiscal and paying
agent (the “Fiscal Agent”) and Deutsche Bank Luxembourg S.A. as the initial
paying agent (a “Paying Agent” and collectively with any additional or
successor paying agents which may be appointed from time to time pursuant to
the Fiscal Agency Agreement, the “Paying Agents”). The issue of the Bonds was
authorised by a resolution of the Board of Directors of the Issuer passed on
March 27, 2000 and the guarantee in respect of the Bonds (the “Guarantee”) is
given in accordance with a resolution of the Board of Directors of the
Guarantor passed on July 29,1999. The statements in these Conditions include
summaries of, and are subject to, the detailed provisions of and definitions in
the Fiscal Agency Agreement. Copies of the Fiscal Agency Agreement are
available for inspection during normal business hours by the holders of the
Bonds (the “Bondholders”) and the holders of the interest coupons appertaining
to the Bonds (the “Couponholders” and the
“Coupons” respectively) at the
specified office of each of the Paying Agents. The Bondholders and the
Couponholders are entitled to the benefit of, are bound by, and are deemed to
have notice of, all the provisions of the Fiscal Agency Agreement applicable to
them. References in these Conditions to the Fiscal Agent and the other Paying
Agents shall include any successor appointed under the Fiscal Agency Agreement.

	1.	 	FORM, DENOMINATION AND TITLE
	 
	(1)	 	The Bonds are in bearer form, serially numbered in denominations of
€10,000, €100,000 and €1,000,000 each with coupons attached on the issue.
	 
	(2)	 	Title to the Bonds and to the Coupons will pass by delivery.
	 
	(3)	 	The Issuer, the Guarantor and any Paying Agent may (to the fullest extent
permitted by applicable laws) deem and treat the holder of any Bond and
the holder of any Coupon as the absolute owner for all purposes (whether
or not the Bond or Coupon shall be overdue and notwithstanding any notice
of ownership or writing on the Bond or Coupon or any notice of previous
loss or theft of the Bond or Coupon).
	 
	(4)	 	All Bonds and Coupons will carry a legend substantially to the following
effect: “Any United States person who holds this obligation will be
subject to limitations under the United States income tax laws, including
the limitations provided in sections 165(j) and 1287(a) of the Internal
Revenue Code.” The aforementioned sections provide that, with certain
exceptions, a United States person (as defined in the Internal Revenue
Code of 1986, as amended (the “Code”)), will not be entitled to deduct any
loss, and will not be entitled to capital gains

49

 

	 	 	treatment in respect of any gain realized, on any sale, disposition or
payment of a Bond or Coupon for United States federal income tax
purposes.
	 
	2.	 	STATUS

The Bonds and the Coupons are direct, unconditional and unsecured obligations
of the Issuer and (subject as provided above) rank and will rank
pari passu,
without any preference among themselves, with all other outstanding unsecured
and unsubordinated obligations of the Issuer, present and future, but, in the
event of insolvency, only to the extent permitted by applicable laws relating
to creditors’ rights.

	3.	 	GUARANTEE

The payment of principal and interest in respect of the Bonds has been
unconditionally and irrevocably guaranteed by the Guarantor. The obligations of
the Guarantor under the Guarantee constitute direct, unconditional and (subject
to the provisions of Condition 4) unsecured obligations of the Guarantor and
(subject as aforesaid) rank and will rank pari passu with all other outstanding
unsecured and unsubordinated obligations of the Guarantor, present and future,
but, in the event of insolvency, only to the extent permitted by applicable
laws relating to creditors’ rights.

	4.	 	CERTAIN COVENANTS
	 
	(A)	 	NEGATIVE PLEDGES
	 
	(1)	 	So long as any of the Bonds remains outstanding:

	 	(a)	 	the Guarantor will not itself, and will not permit any
Restricted Subsidiary to, incur, issue, assume, guarantee or create
any Secured Funded Debt, without effectively providing concurrently
with the incurrence, issuance, assumption, guaranty or creation of
any such Secured Funded Debt that the Bonds (together with, if the
Guarantor shall so determine, any other indebtedness of the
Guarantor or such Restricted Subsidiary then existing or thereafter
created which is not subordinated to the Bonds) shall be secured
equally and ratably with (or prior to) such Secured Funded Debt, so
long as such Secured Funded Debt shall be secured by a Lien, unless,
after giving effect thereto, the sum of the aggregate amount of all
outstanding Secured Funded Debt of the Guarantor and its Restricted
Subsidiaries together with all Attributable Debt in respect of sale
and leaseback transactions relating to a Principal Property (with
the exception of Attributable Debt which is excluded pursuant to
clauses (b)(i) to (vi) below), would not exceed 10% of Consolidated
Net Tangible Assets of the Guarantor and its Restricted
Subsidiaries; provided, however, that this paragraph shall not apply
to, and there shall be excluded from Secured Funded Debt in any
computation under this clause (a), Funded Debt secured by:

	 	 	 
	(i)	 	
Liens on property of any corporation existing at
the time such corporation becomes a Subsidiary;
	
	
	
	

	 	 	 
	
	
	
	

	(ii)	 	
Liens on property existing at the time of
acquisition thereof or incurred within 180 days of the time of
acquisition thereof (including, without

50

 

	 	 	 
	
	
	
	

	 	 	
limitation, acquisition through merger or consolidation) by
the Guarantor or any Restricted Subsidiary;
	
	
	
	

	 	 	 
	
	
	
	

	(iii)	 	
Liens on property hereafter acquired (or
constructed) by the Guarantor or any Restricted Subsidiary and
created prior to, at the time of, or within 270 days after
such acquisition through merger or consolidation (or the
completion of such construction or commencement of commercial
operation of such property, whichever is later) to secure or
provide for the payment of all or any part of the purchase
price (or the construction price) thereof;
	
	
	
	

	 	 	 
	
	
	
	

	(iv)	 	
Liens in favour of the Guarantor or any
Restricted Subsidiary;
	
	
	
	

	 	 	 
	
	
	
	

	(v)	 	
Liens in favour of the United States of America,
any State or possession thereof or the District of Columbia,
or any agency, department or other instrumentality thereof, to
secure partial, progress, advance or other payments pursuant
to any contract or provision of any statute;
	
	
	
	

	 	 	 
	
	
	
	

	(vi)	 	
Liens incurred or assumed in connection with an
issuance of revenue bonds the interest on which is exempt from
Federal income taxation pursuant to Section 103(b) of the
United States Internal Revenue Code of 1954, as amended;
	
	
	
	

	 	 	 
	
	
	
	

	(vii)	 	
Liens securing the performance of any contract
or undertaking not directly or indirectly in connection with
the borrowing of money, the obtaining of advances or credit or
the securing of Funded Debt, if made and continuing in the
ordinary course of business;
	
	
	
	

	 	 	 
	
	
	
	

	(viii)	 	
Liens incurred (no matter when created) in connection with
the Guarantor’s or a Restricted Subsidiary’s engaging in
leveraged or single-investor lease transactions, provided that
the instrument creating or evidencing any borrowings secured
by such Lien shall provide that such borrowings are payable
solely out of the income and proceeds of the property subject
to such Lien and are not a general obligation of the Guarantor
or such Restricted Subsidiary;
	
	
	
	

	 	 	 
	
	
	
	

	(ix)	 	
Liens held by banks to secure amounts due to such
banks in the ordinary course of business or Liens under
workers’ compensation laws, unemployment insurance law or
similar legislation, or good faith deposits in connection with
bids, tenders, contracts or deposits to secure public or
statutory obligations of the Guarantor or any Restricted
Subsidiary, or deposits of cash or obligations of the United
States of America to secure surety and appeal bonds to which
the Guarantor or any Restricted Subsidiary is a party or in
lieu of such bonds, or pledges or deposits for similar
purposes in the ordinary course of business, or Liens imposed
by law, such as labourers’ or other employees’, carriers’,
warehousemen’s, mechanics’, materialmen’s and vendors’ Liens
and Liens arising out of judgments or awards against the
Guarantor or any Restricted Subsidiary with respect to which
the Guarantor or such Restricted Subsidiary at the time shall
be prosecuting an appeal or proceedings for review and with
respect to which it

51

 

	 	 	 
	
	
	
	

	 	 	
shall have secured a stay of execution pending such appeal
or proceedings for review, or Liens for taxes not yet
subject to penalties for nonpayment or the amount or
validity of which is being in good faith contested by
appropriate proceedings by the Guarantor or any Restricted
Subsidiary, as the case may be, or minor survey exceptions,
minor encumbrances, easements or reservations of, rights of
others for, rights of way, sewers, electric lines, telegraph
and telephone lines and other similar purposes, or zoning or
other restrictions or Liens as to the use of real
properties, which Liens, exceptions, encumbrances,
easements, reservations, rights and restrictions do not, in
the opinion of the Guarantor, in the aggregate materially
detract from the value of said properties or materially
impair their use in the operation of the business of the
Guarantor and its Restricted Subsidiaries;
	
	
	
	

	 	 	 
	
	
	
	

	(x)	 	
Liens incurred to finance construction,
alteration or repair of any Principal Property and
improvements thereto prior to or within 270 days after
completion of such construction, alteration or repair; or
	
	
	
	

	 	 	 
	
	
	
	

	(xi)	 	
any extension, renewal, refunding or replacement
(or successive extensions, renewals, refundings or
replacements), as a whole or in part, of any Lien referred to
in the foregoing clauses (i) to (x), inclusive; provided,
however, that (I) such extension, renewal, refunding or
replacement Lien shall be limited to all or a part of the same
property that secured the Lien extended, renewed, refunded or
replaced (plus improvements on such property) and (II) the
Funded Debt secured by such Lien at such time is not
increased.

	 	(b)	 	The Guarantor will not, nor will it permit any Restricted
Subsidiary to, enter into any arrangement with any person providing
for the leasing by the Guarantor or any Restricted Subsidiary of any
Principal Property of the Guarantor or any Restricted Subsidiary,
which Principal Property has been or is to be sold or transferred by
the Guarantor or such Restricted Subsidiary to such person (herein
referred to as a “sale and leaseback transaction”) unless, after
giving effect thereto, the aggregate amount of all Attributable Debt
with respect to all such sale and leaseback transactions plus all
Secured Funded Debt (with the exception of Funded Debt secured by
Liens which is excluded pursuant to clauses (A)(1)(a)(i) to (xi)
above) would not exceed 10% of Consolidated Net Tangible Assets of
the Guarantor and its Restricted Subsidiaries. This covenant shall
not apply to, and there shall be excluded from Attributable Debt in
any computation under clause (a) or this clause (b), Attributable
Debt with respect to, any sale and leaseback transaction if:

	 	 	 
	(i)	 	
the Guarantor or a Restricted Subsidiary is
permitted to create Funded Debt secured by a Lien pursuant to
clauses (A)(1)(a)(i) to (xi) above on the Principal Property
to be leased, in an amount equal to the Attributable Debt with
respect to such sale and leaseback transaction, without
equally and rateably securing the Bonds;
	
	
	
	

	 	 	 
	
	
	
	

	(ii)	 	
the Guarantor or a Restricted Subsidiary within
270 days after the sale or transfer shall have been made by
the Guarantor or a Restricted Subsidiary shall apply an amount
in cash equal to the greater of (I) the net proceeds of

52

 

	 	 	 
	
	
	
	

	 	 	
the sale or transfer of the Principal Property leased
pursuant to such arrangement or (II) the fair market value
of the Principal Property so leased at the time of entering
into such arrangement (as determined by any two of the
following officers of the Guarantor: the chairman or vice
chairman of the Board of Directors, the president, any
executive vice president or vice president, the treasurer
and the controller) to the retirement of Secured Funded Debt
of the Guarantor or any Restricted Subsidiary (other than
Secured Funded Debt owned by the Guarantor or any Restricted
Subsidiary); provided, that the amount to be applied to such
retirement shall be reduced by the aggregate principal
amount of other Secured Funded Debt voluntarily retired by
the Guarantor within 270 days after such sale or transfer
(notwithstanding the foregoing, no retirement referred to in
this item (ii) may be effected by payment at maturity or
pursuant to any mandatory sinking fund payment or any
mandatory prepayment provision);
	
	
	
	

	 	 	 
	
	
	
	

	(iii)	 	
the Guarantor or a Restricted Subsidiary applies
the net proceeds of the sale or transfer of the Principal
Property leased pursuant to such transaction to investment in
another Principal Property within 270 days prior or subsequent
to such sale or transfer; provided that this exception shall
apply only if such proceeds invested in such other Principal
Property shall not exceed the total acquisition, repair,
alteration and construction cost of the Guarantor or any
Restricted Subsidiary in such other Principal Property less
amounts secured by any purchase money or construction
mortgages on such Principal Property;
	
	
	
	

	 	 	 
	
	
	
	

	(iv)	 	
the effective date of any such arrangement is
within 270 days of the acquisition of the Principal Property
(including, without limitation, acquisition by merger or
consolidation) or the completion of construction and
commencement of operation thereof, whichever is later;
	
	
	
	

	 	 	 
	
	
	
	

	(v)	 	
the lease in such sale and leaseback transaction
is for a term, including renewals, of not more than three
years; or
	
	
	
	

	 	 	 
	
	
	
	

	(vi)	 	
such sale and leaseback transaction is entered
into between the Guarantor and a Restricted Subsidiary or
between Restricted Subsidiaries.

	(B)	 	LIMITATION ON RESTRICTED SUBSIDIARY INDEBTEDNESS

     So long as any of the Bonds remains outstanding:

	 	(1)	 	The Guarantor will not permit any of its Restricted
Subsidiaries to contract, create, incur, assume or suffer to exist
any Indebtedness, except:

	 	 	 
	(i)	 	
The Bonds and any other Indebtedness of the
Issuer whether now existing or incurred hereafter;
	
	
	
	

	 	 	 
	
	
	
	

	(ii)	 	
Existing Indebtedness of Restricted Subsidiaries (other than
the Issuer);

53

 

	 	 	 
	
	
	
	

	 	 	 
	
	
	
	

	(iii)	 	
Indebtedness of a Restricted Subsidiary (other
than the Issuer) owing to and held by the Guarantor or another
Restricted Subsidiary;
	
	
	
	

	 	 	 
	
	
	
	

	(iv)	 	
Any undrawn amounts under the Amended and
Restated Revolving Credit Agreement, dated as of November 30,
1998, among the Guarantor, Milacron Kunststoffmaschinen Europe
GmbH, Cincinnati Grundstucksverwaltung GmbH, the lenders
listed therein and Bankers Trust Company, as agent, as amended
by Amendment No. One, dated as of March 31, 1999, and
Amendment No. Two, dated as of January 31, 2000;
	
	
	
	

	 	 	 
	
	
	
	

	(v)	 	
Indebtedness of a Restricted Subsidiary (other
than the Issuer) acquired as a result of a Permitted
Acquisition (or Indebtedness assumed at the time of a
Permitted Acquisition of an asset securing such Indebtedness);
provided that (i) such Indebtedness was not incurred in
connection with, or in anticipation or contemplation of, such
Permitted Acquisition, (ii) at the time of such Permitted
Acquisition, such Indebtedness does not exceed 50% of the then
total Fair Market Value of the Subsidiary, or of the asset so
acquired, as the case may be, (iii) so long as, before and
after giving effect to such Permitted Acquisition, no Default
or Event of Default shall have occurred or would result
therefrom and (iv) such Indebtedness is not recourse to any
assets of the Guarantor or its Subsidiaries other than the
Subsidiary and assets so acquired;
	
	
	
	

	 	 	 
	
	
	
	

	(vi)	 	
additional Indebtedness of the Restricted
Subsidiaries (other than the Issuer) not otherwise permitted
hereunder not exceeding $150,000,000 in aggregate principal
amount at any time outstanding; (vii) Indebtedness incurred by
a Restricted Subsidiary (other than the Issuer) in connection
with any cash management credit facility agreements entered
into between the Restricted Subsidiaries and banks providing
for the zero-balancing between cash accounts held by any of
the Restricted Subsidiaries and any rights of set-off of
credits and debits of any of the Restricted Subsidiaries with
the bank, provided that the debt outstanding at any one time
does not exceed $20,000,000.
	
	
	
	

	 	 	 
	
	
	
	

	(viii)	 	
Indebtedness incurred by a Restricted Subsidiary (other than
the Issuer) under interest rate agreements, currency exchange
agreements, commodity price protection agreements or other
similar agreements entered into for the purpose of limiting
risk in the ordinary course of the financial management of the
Restricted Subsidiary and not for speculative purposes:
	
	
	
	

	 	 	 
	
	
	
	

	(ix)	 	
Permitted Refinancing Indebtedness incurred in
respect of Debt incurred pursuant to clauses (i), (ii), (iv),
(v) and (vi).

	(C)	 	For the purposes of this Condition 4:

	 	(a)	 	“Attributable Debt” means as to any particular lease under
which either the Guarantor or any Restricted Subsidiary is at any
time liable as lessee and at any date as of which the amount thereof
is to be determined, the total net obligations of the lessee for
rental payments during the remaining term of the lease (including
any

54

 

	 	 	 	period for which such lease has been extended or may, at the option
of the lessor, be extended) discounted from the respective due
dates thereof to such date at a rate per annum equivalent to the
greater of (i) the average Yield to Maturity of the outstanding
Bonds hereunder and (ii) the interest rate inherent in such lease
(as determined in good faith by the Guarantor), both to be
compounded semiannually.
	 
	 	(b)	 	“Capital Lease Obligations” of either the Guarantor or any
Restricted Subsidiary means the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement
conveying the right to use) real property, the term of which extends
beyond twelve months, which obligations are required to be
classified and accounted for as a capital lease on a balance sheet
of such person under generally accepted accounting principles
(including Statement No. 13 of Financial Accounting Standards Board
and, for the purposes of this Terms and Conditions, the amount of
such obligation shall be the capitalised amount thereof, determined
in accordance with generally accepted accounting principles
(including such Statement No. 13).
	 
	 	(c)	 	“Consolidated Net Tangible Assets” means, at any date, the
total assets appearing on the most recent consolidated balance sheet
of the Guarantor and its Restricted Subsidiaries as at the end of a
fiscal quarter of the Guarantor, prepared in accordance with
generally accepted accounting principles, less (i) all current
liabilities (due within one year) as shown on such balance sheet,
(ii) applicable reserves, (iii) investments in and advances to
Unrestricted Subsidiaries but which are not Subsidiaries at the time
of such balance sheet or other entities accounted for on the equity
method of accounting, and (iv) Intangible Assets and liabilities
relating thereto. “Intangible Assets” shall mean the value (net of
any applicable reserves), as shown on or reflected in such balance
sheet, of: (i) all trade names, trademarks, licenses, patents,
copyrights, service marks, goodwill and other like intangibles; (ii)
organisational and development costs; (iii) deferred charges (other
than prepaid items such as insurance, taxes, interest, commissions,
rents and similar items and tangible assets being amortised); and
(iv) unamortised debt discount and expense, less unamortised
premium.
	 
	 	(d)	 	“Default” means any event, act or condition which with notice
or lapse of time or both would constitute an Event of Default if
that condition or event were not cured or removed within any
applicable grace or cure period.
	 
	 	(e)	 	“Existing Indebtedness” means all Indebtedness in existence
on date of the issue of the Temporary Global Bond.
	 
	 	(f)	 	“Fair Market Value” means, in respect of property of the
Guarantor and its Subsidiaries, the fair market value thereof,
determined in the good faith judgment of the chief financial officer
of the Guarantor on the basis of an assumed arms-length sale of such
property to an independent Person not affiliated with the Guarantor
or its Subsidiaries, assuming neither party is under any compulsion
to buy or sell and that each has knowledge of all relevant facts and
circumstances.
	 
	 	(g)	 	“Funded Debt” means any indebtedness maturing more than
twelve months after the time of computation thereof, guarantees of
Funded Debt or of dividends of others (except guarantees in
connection with the sale or discount of accounts receivable,

55

 

	 	 	 	trade acceptances and other paper arising in the ordinary course of
business), and in the case of any Restricted Subsidiary all
preferred stock of such Restricted Subsidiary, and all Capital
Lease Obligations.
	 
	 	(h)	 	“Indebtedness” means at any time, without duplication, (i)
all obligations for borrowed money, evidenced by bonds, debentures,
notes, or other similar instruments, including bank loans, letters
of credit and banker’s acceptances, and (ii) Funded Debt.
	 
	 	(i)	 	(i) “Outstanding” or “outstanding”, when used with reference
to Bonds, shall, subject to the provisions of (ii) below, mean all
Bonds theretofore authenticated and delivered by the Fiscal Agent
under these Conditions, except:
	 

	 	(I)	 	Bonds theretofore cancelled by the Fiscal Agent
or delivered to the Fiscal Agent for cancellation;
	 
	 	(II)	 	Bonds, or portions thereof, for the payment or
redemption of which moneys in the necessary amount shall have
been deposited in trust with the Fiscal Agent or with any
Paying Agent or shall have been set aside and segregated in
trust by the Issuer or the Guarantor (if the Issuer or the
Guarantor acts as their own paying agent); provided that if
such Bonds are to be redeemed prior to the maturity thereof,
notice of such redemption shall have been given as in
Condition 8 provided, or provision satisfactory to the Fiscal
Agent shall have been made for giving such notice;
	 
	 	(III)	 	Bonds in lieu of or in exchange and substitution
for which other Bonds shall have been authenticated and
delivered, or which have been paid, pursuant to the terms of
Condition 12;
	 
	 	(IV)	 	Those Bonds which have become void under
Condition 10; and
	 
	 	(V)	 	The Temporary Global Bond to the extent that it
has been duly exchanged for the Permanent Global Bond and the
Permanent Global Bond to the extent that it has been exchanged
for the Bonds in definitive form in each case pursuant to
their respective provisions.

		
	 	(ii) In determining whether the holders of the requisite aggregate
principal amount of Bonds have concurred in any request, demand,
authorisation, notice, direction, consent or waiver under these
Conditions, Bonds, which are owned by the Issuer or the Guarantor
or any other obligor under the Bonds or by any person directly or
indirectly controlling or controlled by or under direct or indirect
common control with the Issuer or the Guarantor or any other
obligor on the Bonds shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided
that for the purposes of determining whether the Fiscal Agent shall
be protected in relying on any such request, demand, authorisation,
notice, direction, consent or waiver, only Bonds which the Fiscal
Agent knows are so owned shall be so disregarded. Bonds so owned
which have been pledged in good faith may be regarded as
outstanding for the purpose of this clause 4(C)(i)(ii) if the
pledgee shall establish to the satisfaction of the Fiscal Agent the
pledgee’s rights to

56

 

		
	 	vote such Bonds and that the pledgee is not a person directly or
indirectly controlling or controlled by or under direct or indirect
common control with the Issuer or the Guarantor or any such other
obligor. In the case of a dispute as to such right, any decision by
the Fiscal Agent taken upon the advice of counsel shall be full
protection to the Fiscal Agent.

	 	(j)	 	“Permitted Acquisition” means (a) the merger or consolidation
of any Person into or with the Guarantor or into or with any
wholly-owned Subsidiary of the Guarantor or (b) the acquisition by
the Guarantor or any of its wholly-owned Subsidiaries of all or
substantially all of the assets of any Person (or all or
substantially all of the assets of a product line or division of any
Person) not already a Subsidiary of the Guarantor or 90% or more of
the capital stock of any such Person; provided that any such merger,
consolidation or acquisition shall only be a Permitted Acquisition
so long as no Default or Event of Default exists (or will result
from such acquisition).
	 
	 	(k)	 	“Permitted Refinancing Debt” means any Indebtedness that
refinances any other Indebtedness, including any successive
refinancings, so long as (a) such Indebtedness is in an aggregate
principal amount (or if incurred with original issue discount, an
aggregate issue price) not in excess of the sum of (i) the aggregate
principal amount (or if incurred with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being
refinanced, and (ii) an amount necessary to pay any fees and
expenses, including premiums and defeasance costs, related to such
refinancing, (b) the stated maturity of such Indebtedness is no
earlier than the stated maturity of the Indebtedness being
refinanced and (c) the new Indebtedness shall not be senior in right
of payment to the Indebtedness that is being refinanced.
	 
	 	(l)	 	“Person” means and includes any person, firm, corporation,
association, trust or other enterprise or any governmental or
political subdivision or agency, department or instrumentality
thereof.
	 
	 	(m)	 	“Principal Property” shall mean any manufacturing plant
located in the United States of America and owned and operated by
the Guarantor or any Restricted Subsidiary on or after the date
hereof, and any manufacturing equipment owned by the Guarantor or
any Restricted Subsidiary on or after the date hereof in such
manufacturing plant. “Manufacturing equipment” is understood to be
manufacturing equipment in such manufacturing plant directly used in
the production of the Guarantor’s products and parts and components
thereof, and not to include office equipment, computer equipment,
rolling stock and other equipment not directly used in the
production of the Guarantor’s products.
	 
	 	(n)	 	“Restricted Subsidiary” means each Subsidiary other than
Unrestricted Subsidiaries.
	 
	 	(o)	 	“Secured Funded Debt” means Funded Debt which is secured by
any pledge of, or mortgage, security interest or other lien on any
Principal Property of the Guarantor or any Restricted Subsidiary,
and “Liens” shall mean such pledges, mortgages, security interests
and other liens.

57

 

	 	(p)	 	“Subsidiary” means any corporation at least a majority of the
outstanding voting stock of which is owned directly or indirectly by
the Guarantor or by one or more Subsidiaries of the Guarantor, or by
the Guarantor and one or more Subsidiaries.
	 
	 	(q)	 	“Unrestricted Subsidiary” means Milacron Commercial Corp.,
Milacron Assurance Ltd., Amertool Services, Inc., Subsidiaries of
the foregoing, and other Subsidiaries designated as Unrestricted
Subsidiaries from time to time by the Board of Directors of the
Guarantor.
	 
	 	(r)	 	“Yield to Maturity” means the yield to maturity, calculated
at the time of issuance of the Bonds or, if applicable, at the most
recent redetermination of interest on the Bonds and calculated in
accordance with generally accepted financial practice.

	5.	 	CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
	 
	(1)	 	The Issuer and/or the Guarantor shall not consolidate with or merge with
another corporation or convey or transfer its properties and assets
substantially as an entirety to any person, unless

	 	(a)	 	either the Issuer and/or the Guarantor shall be the
continuing corporation, or the corporation formed by such
consolidation or into which the Issuer and/or the Guarantor is
merged or the person which acquires by conveyance or transfer the
properties and assets of the Issuer and/or the Guarantor
substantially as an entirety shall be a corporation organised and
existing under the laws of the United States of America or any State
or the District of Columbia or of the Netherlands, as the case may
be, and shall expressly assume by a supplemental instrument,
executed and delivered to the Fiscal Agent, in form satisfactory to
the Fiscal Agent, the due and punctual payment of the principal of,
premium, if any, and interest on all the Bonds and the performance
or observance of every covenant of these Conditions on the part of
the Issuer and/or the Guarantor, as applicable, to be performed or
observed; and
	 
	 	(b)	 	immediately after giving effect to such transaction, no Event
of Default, and no event which, after notice or lapse of time, or
both, would become an Event of Default, shall have happened and be
continuing.

	(2)	 	Upon any consolidation or merger, or any conveyance or transfer of the
properties and assets of the Issuer and/or the Guarantor substantially as
an entirety in accordance with (1) above, the successor corporation formed
by such consolidation or into which the Issuer and/or the Guarantor is
merged or to which such conveyance or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the
Issuer and/or the Guarantor under these Conditions with the same effect as
if such successor corporation had been named as the Issuer and/or the
Guarantor herein and the Issuer and/or the Guarantor (which term shall for
this purpose mean the person named as the “Issuer” or the “Guarantor” in
the first paragraph of these Conditions or any successor corporation which
shall have theretofore become such in the manner prescribed in (1) above)
shall be discharged from all liability under these Conditions and in
respect of the Bonds and may be dissolved and liquidated.
	 
	6.	 	INTEREST

58

 

	(1)	 	The Bonds bear interest from and including April 6, 2000 at the rate of
7.625% per annum, payable annually in arrears on each April 6 thereafter
(each an “Interest Payment Date”). The first payment for the period from
and including April 6, 2000 to but excluding April 6, 2001 and amounting
to €762.50, €7,625 and €76,250 per €10,000, €100,000 and €1,000,000
respectively principal amount of Bonds, shall be made on April 6, 2001.
	 
	 	 	Each Bond will cease to bear interest from and including its due date for
redemption unless, upon due presentation, payment of the principal in
respect of the Bond is improperly withheld or refused or unless default
is otherwise made in respect of payment.
	 
	(2)	 	When interest is required to be calculated in respect of a period of less
than a full year, it shall be calculated on the basis of the actual number
of days in the period, from and including the date from which interest
begins to accrue to but excluding the date on which it falls due, and the
actual number of days in the full year.
	 
	7.	 	PAYMENTS
	 
	(1)	 	Payments of principal and interest in respect of each Bond will be made
against presentation and surrender (or, in the case of part payment only,
endorsement) of the Bond, except that payments of interest due on an
Interest Payment Date will be made against presentation and surrender (or,
in the case of part payment only, endorsement) of the relevant Coupons, in
each case at the specified office outside the United States and its
possessions of any of the Paying Agents.
	 
	(2)	 	Payments will be made at the specified office of any Paying Agent outside
the United States and its possessions, at the option of the holder, by
transfer to a designated euro account maintained by the payee with, or by
cheque drawn in euro on, a bank located outside the United States and its
possessions, subject in all cases to any fiscal or other laws and
regulations applicable in the place of payment, but without prejudice to
the provisions of Condition 9. No payment on the Bonds or Coupons will be
made by mail to an address in the United States or its possessions or by
transfer to an account maintained by the holder in the United States or
its possessions.
	 
	(3)	 	Each Bond should be presented for payment together with all relative
unmatured Coupons, failing which the full amount of any relative missing
unmatured Coupon (or, in the case of payment not being made in full, that
proportion of the full amount of the missing unmatured Coupon which the
amount so paid bears to the total amount due) will be deducted from the
amount due for payment. Each amount so deducted will be paid in the manner
mentioned above against presentation and surrender (or, in the case of
part payment only, endorsement) of the relative missing Coupon at any time
before the expiry of 10 years after the Relevant Date (as defined in
Condition 9) in respect of the relevant Bond (whether or not the Coupon
would otherwise have become void pursuant to Condition 10) or, if later, 5
years after the date on which the Coupon would have become due, but not
thereafter. Any money held by a Paying Agent for the payment of the
principal of or interest on any Bond, which money remains unclaimed for
two years after such payment is first due and payable, will be paid over
by the relevant Paying Agent to the Issuer and, to the extent permitted by
law, the holder of such Bond or any unpaid Coupon must thereafter look
solely to the Issuer (or Guarantor) for payment as a general unsecured
creditor. Any such payment with respect to a Bond or Coupon will be made
outside the United States as contemplated above.

59

 

	(4)	 	A holder shall be entitled to present a Bond or Coupon for payment only
on a Presentation Date and shall not, except as provided in Condition 6,
be entitled to any further interest or other payment if a Presentation
Date is after the due date.
	 
	 	 	“Presentation Date” means a day which (subject to Condition 10):

	 	(a)	 	is or falls after the relevant due date;
	 
	 	(b)	 	is a Business Day in the place of the specified office of the
Paying Agent at which the Bond or Coupon is presented for payment;
and
	 
	 	(c)	 	in the case of payment by credit or transfer to a euro
account as referred to above, is a TARGET Settlement Day, as defined
below.

		 	“Business Day” means, in relation to any place, a day on which commercial
banks and foreign exchange markets settle payments in that place.
	 
		 	“TARGET Settlement Day” means any day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET) System is
open.
	 
		 	If a Bond or Coupon is presented for payment at a time when, as a result
of differences in time zones, it is not practicable to transfer the
relevant amount to an account as referred to above for value on the
relevant Presentation Date, the Issuer shall not be obliged so to do but
shall be obliged to transfer the relevant amount to the account for value
on the first practicable date after the Presentation Date.

	(5)	 	The Issuer and the Guarantor reserve the right at any time to vary or
terminate the appointment of any Paying Agent and to appoint additional or
other Paying Agents provided that so long as the Bonds are listed on the
Luxembourg Stock Exchange, and the rules of such exchange shall so
require, they will at all times maintain a Paying Agent having a specified
office in Luxembourg. Notice of any termination or appointment and of any
changes in specified offices will be given to the Bondholders promptly by
the Issuer in accordance with Condition 13.
	 
	8.	 	REDEMPTION AND PURCHASE
	 
	(1)	 	Final Redemption

Unless previously redeemed or purchased and cancelled as provided below, the
Bonds will be repaid at their principal amount on April 6, 2005.

	(2)	 	Redemption or Purchase for Taxation Reasons

	 	(a)	 	If (i) as a result of any change in, or amendment to, the
laws or regulations of the United States, the European Union, or the
Netherlands or any political subdivision of, or any authority in, or
of, the United States, the European Union or the Netherlands having
power to tax, or any change in the application or official
interpretation of such laws or regulations, which change or
amendment becomes

60

 

	 	 	 	effective after the date the Bonds are first issued, on the
occasion of the next Interest Payment Date in respect of the Bonds,
the Issuer (or, where payment is required to be made under the
Guarantee, the Guarantor) would be required to pay additional
amounts as provided or referred to in Condition 9 and (ii) the
requirement cannot be avoided by the Issuer or Guarantor taking
reasonable measures available to it (which measures shall not
result in the incurrence by the Issuer or Guarantor of substantial
costs or expenses), the Issuer or the Guarantor, as the case may
be, may at its option, having given not less than 30 nor more than
60 days’ notice to the Bondholders in accordance with Condition 13
(which notice shall be irrevocable and shall specify the date fixed
for redemption), redeem all the Bonds, but not some only, at any
time at their principal amount together with interest accrued to
but excluding the date of redemption, provided that no notice of
redemption shall be given earlier than 90 days before the earliest
date on which the Issuer (or the Guarantor, as the case may be)
would be required to pay the additional amounts were a payment in
respect of the Bonds then due. Prior to the publication of any
notice of redemption pursuant to this paragraph, the Issuer or the
Guarantor, as the case may be, shall deliver to the Fiscal Agent a
certificate signed by either the Chief Financial Officer or the
Chief Executive Officer of the Guarantor stating that the
requirement referred to in (i) above will apply on the occasion of
the next Interest Payment Date and cannot be avoided by the Issuer
or Guarantor (as applicable) taking reasonable measures available
to it and an opinion of independent legal advisers of recognised
standing to the effect that the Issuer or the Guarantor, as the
case may be, has or will become obliged to pay such additional
amounts as a result of the change or amendment.
	 
	 	(b)	 	If the Issuer or Guarantor determines that any payment made
outside the United States and its possessions by the Issuer or the
Guarantor, as the case may be, or any Paying Agent in respect of any
Bonds or Coupons or, in the case of the Guarantor, under the
Guarantee, would, under any present or future laws or regulations of
the United States, be subject to any certification, documentation,
information or other reporting requirement of any kind, the effect
of which requirement is the disclosure to the Issuer, the Guarantor,
any Paying Agent or any governmental authority of the nationality,
residence or identity of a beneficial owner of such Bond or Coupon
who is a United States Alien (other than a requirement that (i)
would not be applicable to a payment by the Issuer, the Guarantor,
or any Paying Agent (I) directly to the beneficial owner or (II) to
a custodian, nominee or other agent of the beneficial owner, (ii) is
applicable only to a payment by a custodian, nominee or other agent
of the beneficial owner to such beneficial owner, or (iii) can only
be satisfied by such custodian, nominee or other agent certifying to
the effect that the beneficial owner is a United States Alien,
provided that, in any case referred to in clauses (i)(I), (ii) or
(iii) above, payment by the custodian, nominee or agent to the
beneficial owner is not otherwise subject to any such requirement),
the Issuer or Guarantor (as applicable) shall at its option either
(x) redeem all the Bonds, but not some only, at their principal
amount together with interest accrued to but excluding the date of
redemption or (y) if the conditions of the next succeeding paragraph
are satisfied, pay the additional amounts specified in such
paragraph. The Issuer or Guarantor (as applicable) shall make such
determination as soon as practicable and publish prompt notice
thereof (the “Determination Notice”) stating the effective date of
such certification, documentation, information or other reporting
requirement, whether the Issuer or Guarantor will redeem the Bonds
or, if the conditions of the next

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	 	 	 	succeeding paragraph are satisfied, pay the additional amounts
specified in the next succeeding paragraph, and (if applicable) the
last date by which the redemption of the Bonds must take place, as
provided in the next succeeding sentence. If the Bonds are to be
redeemed pursuant to this paragraph, such redemption shall take
place on such date, not later than one year after the publication
of the Determination Notice, as the Issuer or the Guarantor, as the
case may be, shall, subject as provided herein, elect by notice to
the Fiscal Agent at least 45 days before the date fixed for
redemption. Notice of such redemption of the Bonds will be given to
holders of the Bonds not more than 60 nor less than 30 days prior
to the date fixed for redemption in accordance with Condition 13.
Notwithstanding the foregoing, the Issuer or the Guarantor, as the
case may be, shall not so redeem the Bonds if the Issuer or
Guarantor (as applicable) shall, based upon a written opinion of
independent legal counsel of recognised standing, subsequently
determine not less than 30 days prior to the date affixed for
redemption, that subsequent payments on the Bonds and Coupons (or

under the Guarantee, as the case may be) would not be subject to
any such certification, documentation, information or other
reporting requirement, in which case the Issuer or Guarantor (as
applicable) shall give prompt notice of such subsequent
determination by publication in accordance with Condition 13 and
any earlier redemption notice shall be revoked and of no further
effect.
	 
	 	 	 	Notwithstanding the foregoing, and so long as the certification,
documentation, information or other reporting requirement referred
to in the preceding paragraph would be fully satisfied by payment
of back-up withholding tax or similar charge, the Issuer or
Guarantor (as applicable) may elect to pay as additional interest
such additional amounts as may be necessary so that every net
payment made outside the United States and its possessions
following the effective date of such requirement by the Issuer, the
Guarantor or any of the Paying Agents in respect of any Bond or any
Coupon of which the beneficial owner is a United States Alien (but
without any requirement that the nationality, residence or
identity, other than status as United States Alien, of such
beneficial owner be disclosed to the Issuer, the Guarantor, any
Paying Agent or any governmental authority) after deduction or
withholding, for or on account of such back-up withholding tax or
similar charge (other than a back-up withholding tax or similar
charge) that (i) would not be applicable in the circumstances
referred to in the parenthetical clause of the first sentence of
the preceding paragraph, or (ii) is imposed as a result of the
presentation of such Bond or Coupon for payment more than 15 days
after the date on which such payment became due and payable or on
which payment thereof was duly provided for, whichever occurred
later), will not be less than the amount provided for in such Bond
or Coupon to be then due and payable. If the Issuer or Guarantor
(as applicable) elects to pay additional amounts pursuant to this
paragraph, and as long as the Issuer or Guarantor is obligated to
pay such additional amounts, the Issuer or Guarantor (as
applicable) shall have the right to redeem the Bonds at any time in
whole but not in part at their principal amount together with
interest accrued to but excluding the date of redemption and notice
of such redemption of the Bonds will be given to the holders of the
Bonds not more than 60 nor less than 30 days prior to the date
fixed for redemption in accordance with Condition 13. If the Issuer
or Guarantor (as applicable) elects to pay additional amounts
pursuant to this paragraph and the condition specified in the first
sentence of this paragraph should no longer be

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	 	 	 	satisfied, then the Issuer or Guarantor (as applicable) shall
redeem the Bonds pursuant to the provisions of the immediately
preceding paragraph.
	 
	 	 	 	For the purposes of this Condition 8(2)(b), the term “United States
Alien” has the meaning as defined in Condition 9.
	 
	 	(3)	 	The Issuer, Guarantor or any of their respective Subsidiaries
may at any time purchase Bonds (provided that all unmatured Coupons
appertaining to the Bonds are purchased with the Bonds) in any
manner and at any price. If purchases are made by tender, tenders
must be available to all Bondholders alike.
	 
	 	(4)	 	All Bonds which are (a) redeemed or (b) purchased by or on
behalf of the Issuer, Guarantor or any of their respective
Subsidiaries will forthwith be cancelled, together with all relative
unmatured Coupons attached to the Bonds or surrendered with the
Bonds and accordingly may not be reissued or resold.
	 
	 	(5)	 	Upon the expiry of any notice as is referred to in paragraph
(2)(a) above the Issuer or the Guarantor (as the case may be) shall
be bound to redeem the Bonds in whole but not in part at their
principal amount together with interest accrued to but excluding the
redemption date.

	9.	 	TAXATION
	 
	(1)	 	The Issuer or the Guarantor (if payment is required under the Guarantee)
will pay to a Bondholder or a Couponholder who is a United States Alien
(as defined below) such additional amounts as may be necessary in order
that every net payment of the principal of and interest on such Bonds or
Coupon, after deduction or withholding for or on account of any present or
future tax, assessment or governmental charge (“Taxes”) imposed by the
United States or the Netherlands or any political subdivision or taxing
authority thereof or therein upon or as a result of such payment, will not
be less than the amount provided for in the Bonds or the Coupons to be
then due and payable; provided, however, that the foregoing obligation to
pay additional amounts shall not apply to any one or more of the
following:

	 	(i)	 	any tax, assessment or governmental charge which would not
have been so imposed but for the existence of any present or former
connection between such holder (or between a fiduciary, settlor or
beneficiary of, or possessor of a power over, such holder if such
holder is an estate or trust, or between a member or shareholder of
such holder if such holder is a partnership or corporation) and the
United States or the Netherlands, including, without limitation, (x)
such holder (or such fiduciary, settlor, beneficiary, possessor,
member or shareholder) being or having been a citizen or resident or
treated as a resident thereof, or being or having been engaged in
trade or business or present therein or having or having had a
permanent establishment therein, or (y) such holder’s present or
former status as personal holding company, a controlled foreign
corporation, foreign personal holding company, passive foreign
investment company or foreign private foundation or other tax-exempt
organization for United States tax purposes or a corporation which
accumulates earnings to avoid United States federal income tax; or

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	 	(ii)	 	any tax, assessment or other governmental charge which would
not have been so imposed but for the presentation by the holder of a
Bond or Coupon for payment on a date more than 15 days after the
date on which such payment became due and payable or the date on
which payment thereof is duly provided for, whichever occurs later
(such date, the “Relevant Date”); or
	 
	 	(iii)	 	any estate, inheritance, gift, sales, transfer, personal
property or any similar tax, assessment or other governmental
charge; or
	 
	 	(iv)	 	any tax, assessment or other governmental charge which would
not have been imposed but for the failure to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the United States or the Netherlands (or another European Union
Member State) of the holder or beneficial owner of a Bond or a
Coupon, if compliance is required by statute or by regulation of the
United States Treasury Department or the Netherlands Ministry of
Finance or Netherlands tax authorities (or any European Union
authority) as a precondition to exemption from such tax, assessment
or other governmental charge; or
	 
	 	(v)	 	any tax, assessment or other governmental charge which is
payable otherwise than by deduction or withholding from payments of
principal of or interest on the Bonds; or
	 
	 	(vi)	 	any tax, assessment or other governmental charge required to
be withheld by any Paying Agent from any payment on a Bond or Coupon
if such payment can be made without such withholding by any other
Paying Agent; or
	 
	 	(vii)	 	any tax, assessment or other governmental charge imposed on
interest received by a person described in Section 871(h)(3)(B) or
Section 881(c)(3)(A) of the U.S. Internal Revenue Code of 1986 as
amended (or any successor provision thereto),

		 	nor will additional amounts be paid with respect to any payment of
principal of or interest in respect of any Bond to any United States
Alien who is a fiduciary or partnership or other than the sole
beneficial owner of any such payment to the extent that a beneficiary or
settlor with respect to such fiduciary, a member of such a partnership or
the beneficial owner of such payment would not have been entitled to the
additional amounts had such beneficiary, settlor, member or beneficial
owner been the holder of the Bond.
	 
	 	 	The term “United States Alien” means any person who, for United States
federal income tax purposes, is a foreign corporation, a non-resident
alien individual, a non-resident alien fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is,
for United States federal income tax purposes, a foreign corporation, a
non-resident alien individual or a non-resident alien fiduciary of a
foreign estate or trust; the term “United States” means the United States
of America (including the States thereof and the District of Columbia);
and the term “possessions” means Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.
	 
	(2)	 	Any reference in these Conditions to any amounts in respect of the Bonds
shall be deemed also to refer to any additional amounts which may be
payable under this Condition.

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	10.	 	PRESCRIPTION

Bonds and Coupons will become void unless presented for payment within periods
of 10 years (in the case of principal) and 5 years (in the case of interest)
from the Relevant Date, as defined above, in respect of the Bonds or, as the
case may be, the Coupons, subject to the provisions of Condition 6, and
thereafter no claim may be made in respect thereof.

	 
	11.	 	EVENTS OF DEFAULT
	 
	(1)	 	The holder of any Bond may give notice to the Issuer that the Bond is,
and it shall, accordingly forthwith become, immediately due and repayable
at its principal amount, together with interest accrued to the date of
repayment, in case one or more of the following events (each an “Event of
Default”) shall have occurred and be continuing:

	 	(a)	 	default in the payment of any installment of interest upon
any of the Bonds, as and when the same shall become due and payable,
and continuance of such default for a period of 30 days; or
	 
	 	(b)	 	default in the payment of the principal of or premium, if
any, on any of the Bonds, as and when the same shall become due and
payable either at maturity, upon redemption, by declaration or
otherwise; or
	 
	 	(c)	 	failure on the part of the Issuer and/or the Guarantor duly
to observe or perform any other of the covenants or agreements on
the part of the Issuer and/or the Guarantor in respect of the Bonds,
or in these Conditions contained with respect to the Bonds for a
period of 60 days after the date on which written notice of such
failure, requiring the Issuer and/or the Guarantor to remedy the
same, shall have been given to the Issuer and/or the Guarantor by
the Fiscal Agent, or to the Issuer and/or the Guarantor and the
Fiscal Agent by the holders of at least 25% in aggregate principal
amount of the Bonds at the time outstanding; or
	 
	 	(d)	 	default in the making of any payment for a mandatory sinking,
purchase or analogous fund provided for in respect of the Bonds, as
and when the same shall become due and payable; or
	 
	 	(e)	 	the entry of an order for relief in respect of any petition
filed against the Issuer and/or the Guarantor under the Federal
Bankruptcy Act or any other applicable bankruptcy laws or the entry
of a decree or order by a court having competent jurisdiction in the
premises in respect of any petition filed or action taken against
the Issuer and/or the Guarantor looking to reorganisation,
arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any other present or future U.S. Federal or
state statute, law or regulation, or any other applicable statute,
law or regulation, resulting in the appointment of a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Issuer and/or the Guarantor or of any
substantial part of its property, or resulting in the winding-up or
liquidation of its affairs, all without the consent or acquiescence
of the Issuer and/or the Guarantor, and the continuance of any such
decree or order is unstayed and in effect for a period of 60
consecutive days; or

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	 	(f)	 	 the filing of a petition for relief under the Federal
Bankruptcy Act or any other applicable bankruptcy laws by the Issuer
and/or the Guarantor, or the consent, acquiescence or taking of any
action by the Issuer and/or the Guarantor in support of a petition
filed by or against it looking to reorganisation, arrangement,
composition, readjustment, liquidation, dissolution or similar
relief under any other present or future U.S. Federal or State
statute, law or regulation, or any other applicable statute, law or
regulation or the appointment, with the consent of the Issuer and/or
the Guarantor of any receiver, liquidator, custodian, assignee,
trustee, sequestrator or other similar official of the Issuer and/or
the Guarantor or of any substantial part of its property, or the
making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of the corporate action
by the Issuer and/or the Guarantor in furtherance of any such
action; or
	 
	 	(g)	 	a default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Issuer, the
Guarantor or a Restricted Subsidiary (including these Bonds),
whether such Indebtedness now exists or shall hereafter be created,
which default shall have resulted in such Indebtedness, in an
aggregate principal amount exceeding $2,000,000, having been
declared due and payable prior to the date on which it would
otherwise have become due and payable, without such Indebtedness
having been discharged, or such acceleration having been rescinded
or annulled, or there having been deposited in trust a sum of money
sufficient to discharge in full such Indebtedness, within a period
of 30 days after there shall have been given, by registered mail, to
the Issuer and/or the Guarantor and the Fiscal Agent, or, if it is
not an Indebtedness of the Issuer, to the Guarantor and the Fiscal
Agent by the holders of at least 25% in aggregate principal amount
of the Outstanding Bonds a written notice specifying such default
and requiring the Issuer and/or the Guarantor, or, if it is not an
Indebtedness of the Issuer, the Guarantor, to cause such
Indebtedness to be discharged, cause to be deposited in trust a sum
sufficient to discharge in full such Indebtedness or cause such
acceleration to be rescinded or annulled and stating that such
notice is a “Notice of Default” hereunder; provided,
however, that
the Fiscal Agent shall not be deemed to have knowledge of such
default unless either (i) a Responsible Officer of the Fiscal Agent
shall have actual knowledge of such default or (ii) the Fiscal Agent
shall have received written notice thereof from the Issuer and/or
the Guarantor, from the holder of any such Indebtedness or from any
trustee under any such mortgage, indenture or other instrument,

		 	then and in each and every such case, unless the principal of the Bonds
shall have already become due and payable, either the Fiscal Agent or the
holders of not less than 25% in aggregate principal amount of the Bonds
then outstanding hereunder, by notice in writing to the Issuer and/or the
Guarantor and the Fiscal Agent, may declare the principal of and the
accrued interest, if any, on the Bonds to be due and payable immediately
and upon any such declaration the same shall become and shall be
immediately due and payable, anything in these Conditions or in the Bonds
contained to the contrary notwithstanding. Any declaration pursuant to
this Condition 11 is, however, subject to the condition that if, at any
time after the principal of the Bonds shall have been so declared due and
payable and before any judgement or decree for the payment of the moneys
due shall have been obtained or entered as hereinafter provided, the
Issuer and/or the Guarantor shall pay or shall deposit with the Fiscal
Agent a sum sufficient to pay all matured installments of interest upon
all of the Bonds and

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	 	 	the principal of and premium, if any, on any and all Bonds which shall
have become due otherwise than by acceleration, with interest on overdue
installments of interest (to the extent that payment of such interest is
enforceable under applicable law) and on such principal and premium, if
any, at the rate borne by the Bonds, to the date of such payment or
deposit, and all sums paid or advances made by the Fiscal Agent hereunder
and the reasonable compensation, expenses, costs, liabilities, and
advances of the Fiscal Agent, its agents and counsel, and any and all
defaults under these Conditions with respect to the Bonds, other than the
nonpayment of principal of and accrued interest on the Bonds which shall
have become due by acceleration, shall have been remedied, then and in
every such case the holders of not less than fifty percent (50%) in
aggregate principal amount of the Bonds then outstanding, by written
notice to the Issuer and/or the Guarantor and to the Fiscal Agent, may
waive all defaults related to such Bonds and rescind and annul such
declaration and its consequences; but no such waiver or rescission and
annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon.
	 
	 	 	In case the Fiscal Agent shall have proceeded to enforce any right under
these Conditions or the Fiscal Agency Agreement and such proceedings
shall have been discontinued or abandoned because of such waiver,
rescission or annulment or for any other reason or shall have been
determined adversely to the Fiscal Agent, then and in every such case the
Issuer and/or the Guarantor and the Fiscal Agent shall be restored
respectively to their several positions and rights hereunder, and all
rights, remedies and powers of the Issuer and/or the Guarantor and the
Fiscal Agent shall continue as though no such proceedings had been taken.
	 
	(2)	 	For the purposes of this Condition 11:

	 	(a)	 	“Indebtedness” has the meaning assigned thereto in Condition
4 above;
	 
	 	(b)	 	“Outstanding” has the meaning assigned thereto in Condition 4
above;
	 
	 	(c)	 	“Responsible Officer”, when used in respect to the Fiscal
Agent, means the chairman and any vice chairman of the board of
directors, the chairman of the executive committee of the board of
directors, the president, any executive vice president, any senior
vice president, any vice president, any second vice president, the
controller, any assistant controller, the secretary, any assistant
secretary, the treasurer, any assistant treasurer, any trust
officer, any assistant trust officer, or any other officer or
assistant officer of the Fiscal Agent customarily performing
functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with
the particular subject; and
	 
	 	(d)	 	“Restricted Subsidiary” has the meaning assigned thereto in
Condition 4 above.

	12.	 	REPLACEMENT OF BONDS AND COUPONS
	 
	 	 	Should any Bond or Coupon be lost, stolen, mutilated, defaced or destroyed it
may be replaced at the specified office of the Fiscal Agent or the Paying Agent
in Luxembourg upon payment by the claimant of the expenses incurred in
connection with the replacement and on such terms as to evidence and indemnity
as the Issuer may reasonably require. Mutilated or defaced Bonds or Coupons
must be surrendered before replacements will be issued.

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	13.	 	NOTICES

All notices to the Bondholders will be valid if published in a leading English
language daily newspaper published in London or such other English language
daily newspaper with general circulation in Europe as the Issuer may decide
and, so long as the Bonds are listed on the Luxembourg Stock Exchange and the
rules of such exchange shall so require, in one daily newspaper published in
Luxembourg. The Issuer shall also ensure that the notices are duly published in
a manner which complies with the rules and regulations of any stock exchange on
which the Bonds are for the time being listed. Any notice shall be deemed to
have been given on the date of publication or, if so published more than once
or on different dates, on the date of the first publication. It is expected
that publication will normally be made in the Financial Times and the
Luxemburger Wort.

	14.	 	MEETINGS OF BONDHOLDERS AND MODIFICATION
	 
	(1)	 	The Fiscal Agency Agreement contains provisions for convening meetings of
the Bondholders to consider any matter affecting their interests,
including the modification by Extraordinary Resolution of these Conditions
or the Guarantee or the provisions of the Fiscal Agency Agreement. The
quorum at any meeting for passing an Extraordinary Resolution will be one
or more persons present holding or representing a clear majority in
principal amount of the Bonds for the time being Outstanding (as defined
in Condition 4 above), or at any adjourned meeting one or more persons
present whatever the principal amount of the Bonds held or represented by
him or them, except that at any meeting, the business of which includes
the modification of certain of these Conditions (including, without
limitation, modifying the date of maturity of the Bonds or any date for
payment of interest thereon, reducing or cancelling the amount of
principal or the rate of interest payable in respect of the Bonds, or
altering the currency of payment of the Bonds or Coupon) the necessary
quorum for passing an Extraordinary Resolution will be one or more persons
present holding or representing not less than two-thirds, or at any
adjourned meeting not less than one-third, of the principal amount of the
Bonds for the time being Outstanding. An Extraordinary Resolution passed
at any meeting of the Bondholders will be binding on all Bondholders,
whether or not they are present at the meeting, and on all Couponholders.
	 
	 	 	For the purpose of this Condition 14 “Extraordinary Resolution” shall
mean a resolution passed at a meeting of the Bondholders duly convened
and held in accordance with the provisions contained in the Fiscal Agency
Agreement by a clear majority of the votes given on a poll or a show of
hands, except that in the case of any meeting, the business of which
includes the modification of certain of these Conditions (including,
without limitation, modifying the date of maturity of the Bonds or any
date for payment of interest thereon, reducing or cancelling the amount
of principal or the rate of interest payable in respect of the Bonds, or
altering the currency of payment of the Bonds or Coupon), the majority
shall consist of not less than 75% of the votes given on a poll or a show
of hands, as the case may be.
	 
	(2)	 	The Fiscal Agent may agree, without the consent of the Bondholders or
Couponholders, to any modification of any of the terms and conditions of
the Bonds, the Coupons or the Guarantee or any of the provisions of the
Fiscal Agency Agreement which is not, in the opinion of the Fiscal Agent,
materially prejudicial to the interests of the Bondholders or to any
modification which is of a formal, minor or technical nature or to correct
a manifest error.

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	(3)	 	Any modification shall be binding on the Bondholders and the
Couponholders and, unless the Fiscal Agent agrees otherwise, any
modification shall be notified by the Issuer to the Bondholders as soon as
practicable thereafter in accordance with Condition 13.
	 
	15.	 	FURTHER ISSUES

The Issuer may from time to time without the consent of the Bondholders or
Couponholders create and issue further bonds, having terms and conditions the
same as those of the Bonds, or the same except for the amount of the first
payment of interest, which may be consolidated and form a single series with
the outstanding Bonds.

	 
	16.	 	GOVERNING LAW AND SUBMISSION TO JURISDICTION
	 
	(1)	 	The Fiscal Agency Agreement, the Guarantee, the Bonds and the Coupons are
governed by, and will be constructed in accordance with the laws of the
State of New York.
	 
	(2)	 	Any State or federal courts siting in the Borough of Manhattan, the City
of New York shall have non-exclusive jurisdiction to settle any disputes
which may arise out of or in connection with the Bonds, the Coupons, the
Guarantee, or the Fiscal Agency Agreement, and accordingly any legal
action or proceedings arising out of or in connection with the Bonds, the
Coupons or the Fiscal Agency Agreement (“Proceedings”) may be brought in
such courts. Each of the Issuer and the Guarantor irrevocably submits to
the non- exclusive jurisdiction of such courts and waives any objection
which it may now or hereafter have to Proceedings in any such courts
whether on the ground of the laying of venue or on the ground that the
Proceedings have been brought in an inconvenient forum and further agrees
that a judgment in any Proceedings brought in such courts shall be
conclusive and binding upon it and may be enforced in the courts of any
other jurisdiction. Nothing in this Condition shall limit any right to
take Proceedings against the Issuer and/or the Guarantor in any other
court of competent jurisdiction, nor shall the taking of Proceedings in
one or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction, whether concurrently or not.
	 
	(3)	 	To the extent that either the Issuer or the Guarantor has or hereafter
may acquire any immunity from jurisdiction of any court or from any legal
process with respect to itself or its property, the Issuer and the
Guarantor irrevocably waive such immunity in respect of its obligations
under the Guarantee or under any Bond or Coupon.
	 
	(4)	 	The Issuer and the Guarantor agree that the process by which any
Proceedings in New York City are begun may be served on it by being
delivered to it c/o CT Corporation System, 111 Eighth Avenue, New York,
New York 10011. If the appointment of the person appointed to receive
process on behalf of the Issuer or Guarantor ceases to be effective, the
Issuer or Guarantor (as applicable) shall forthwith appoint a further
person to accept service of process on its behalf and notify the name and
address of such person to the Bondholders pursuant to Condition 13 and,
failing such appointment within 15 days, the Fiscal Agent shall be
entitled to appoint such a person by written notice addressed and
delivered to the Issuer and the Guarantor.

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SCHEDULE 3

- FORM OF GUARANTEE TO BE ENDORSED ON THE GLOBAL BONDS, THE BONDS

IN DEFINITIVE FORM AND THE COUPONS

GUARANTEE OF MILACRON INC.

	1.	 	Milacron Inc. (the “Guarantor”) as primary obligor unconditionally and
irrevocably:

	 	(a)	 	guarantees to the holder from time to time of each Bond or
Coupon by way of continuing guarantee the due and punctual payment
of all amounts payable by the Issuer in respect of the Bond or
Coupon (including any additional amounts which may become payable
under Condition 9) as and when the same shall become due according
to the conditions; and
	 
	 	(b)	 	agrees that, if and each time that the Issuer shall fail to
make any payments as and when the same become due, the Guarantor
will on demand (without requiring the relevant Bondholder or
Couponholder first to take steps against the Issuer or any other
person) pay to the relevant Bondholder or Couponholder the amounts
otherwise due under the terms of the Fiscal Agency Agreement in the
currency in which the amounts are payable by the Issuer.

	2.	 	All payments by the Guarantor under this Guarantee to a Bondholder or
Couponholder who is a United States Alien (as defined below) will be made
without withholding or deduction for, or on account of, any present or
future taxes, duties, assessments or governmental charges of whatever
nature (“Taxes”) imposed or levied by or on behalf of the Netherlands, the
United States of America or any political subdivision or authority or any
State thereof or therein, as the case may be, having power to tax, unless
the withholding or deduction of the Taxes is required by law. In that
event, the Guarantor will pay to a Bondholder who is a United States Alien
such additional amounts as may be necessary in order that the net amounts
received by the holders of the Bonds and Coupons after the withholding or
deduction shall equal the respective amounts then due and payable which
would have been receivable in respect of the Bonds or, as the case may be,
Coupons, in the absence of the withholding or deduction; except that the
foregoing obligation to pay additional amounts shall not apply to any one
or more of the following:

	 	(a)	 	any tax, assessment or governmental charge which would not
have been so imposed but for the existence of any present or former
connection between such holder (or between a fiduciary, settlor or
beneficiary of, or possessor of a power over, such holder if such
holder is an estate or trust, or between a member or shareholder of
such holder if such holder is a partnership or corporation) and the
United States or the Netherlands, including, without limitation, (x)
such holder (or such fiduciary, settlor, beneficiary, possessor,
member or shareholder) being or having been a citizen or resident or
treated as a resident thereof, or being or having been engaged in
trade or business or present therein or having or having had a
permanent establishment therein, or (y) such holder’s present or
former status as personal holding company, a controlled foreign
corporation, foreign personal holding company, passive foreign
investment company or foreign private foundation or other tax-exempt
organization

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	 	 	 	for United States tax purposes or a corporation which accumulates
earnings to avoid United States federal income tax; or
	 
	 	(b)	 	any tax, assessment or other governmental charge which would
not have been so imposed but for the presentation by the holder of a
Bond or Coupon for payment on a date more than 15 days after the
date on which such payment became due and payable or the date on
which payment thereof is duly provided for, whichever occurs later
(such date, the “Relevant Date”); or
	 
	 	(c)	 	any estate, inheritance, gift, sales, transfer, personal
property or any similar tax, assessment or other governmental
charge; or
	 
	 	(d)	 	any tax, assessment or other governmental charge which would
not have been imposed but for the failure to comply with any
certification, identification or other reporting requirements
concerning the nationality, residence, identity or connection with
the United States or the Netherlands (or another European Union
Member State) of the holder or beneficial owner of a Bond or a
Coupon, if compliance is required by statute or by regulation of the
United States Treasury Department or the Netherlands Ministry of
Finance or Netherlands tax authorities (or any European Union
authority) as a precondition to exemption from such tax, assessment
or other governmental charge; or
	 
	 	(e)	 	any tax, assessment or other governmental charge which is
payable otherwise than by deduction or withholding from payments of
principal of or interest on the Bonds; or
	 
	 	(f)	 	any tax, assessment or other governmental charge required to
be withheld by any Paying Agent from any payment on a Bond or Coupon
if such payment can be made without such withholding by any other
Paying Agent; or
	 
	 	(g)	 	any tax, assessment or other governmental charge imposed on
interest received by a person described in Section 871(h)(3)(B) or
Section 881(c)(3)(A) of the U.S. Internal Revenue Code of 1986 as
amended (or any successor provision thereto),

		 	nor will additional amounts be paid with respect to any payment of
principal of or interest in respect of any Bond to any United States
Alien who is a fiduciary or partnership or other than the sole beneficial
owner of any such payment to the extent that a beneficiary or settlor
with respect to such fiduciary, a member of such a partnership or the
beneficial owner of such payment would not have been entitled to the
additional amounts had such beneficiary, settlor, member or beneficial
owner been the holder of the Bond.
	 
	 	 	The term “United States Alien” means any person who, for United States
federal income tax purposes, is a foreign corporation, a non-resident
alien individual, a non-resident alien fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is,
for United States federal income tax purposes, a foreign corporation, a
non-resident alien individual or a non-resident alien fiduciary of a
foreign estate or trust; the term “United States” means the United States
of America (including the States thereof and the District of Columbia);
and the term “possessions” means Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands.

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	3.	 	The obligations of the Guarantor under this Guarantee shall not be
affected by any matter or thing which but for this provision might operate
to affect the obligations including, without limitation:

	 	(a)	 	any time or indulgence granted to or composition with the
Issuer or any other person;
	 
	 	(b)	 	the taking, variation, renewal or release of remedies or
securities against the Issuer or any other person;
	 
	 	(c)	 	any unenforceability, invalidity or irregularity.

	4.	 	Where any discharge of the Guarantor’s obligations under the Guarantee
(whether in respect of the obligations of the Issuer or any security for
the obligations of the Issuer or otherwise) is made in whole or in part or
any arrangement is made on the faith of any payment, security or other
disposition which is avoided or must be repaid on bankruptcy, liquidation
or otherwise without limitation, the liability of the Guarantor under this
Guarantee shall continue as if there had been no discharge or arrangement.
	 
	5.	 	the Guarantor will not itself, and will not permit any Restricted
Subsidiary to, incur, issue, assume, guarantee or create any Secured
Funded Debt, without effectively providing concurrently with the
incurrence, issuance, assumption, guaranty or creation of any such Secured
Funded Debt that the Bonds (together with, if the Guarantor shall so
determine, any other indebtedness of the Guarantor or such Restricted
Subsidiary then existing or thereafter created which is not subordinated
to the Bonds) shall be secured equally and ratably with (or prior to) such
Secured Funded Debt, so long as such Secured Funded Debt shall be secured
by a Lien, unless, after giving effect thereto, the sum of the aggregate
amount of all outstanding Secured Funded Debt of the Guarantor and its
Restricted Subsidiaries together with all Attributable Debt in respect of
sale and leaseback transactions relating to a Principal Property (with the
exception of Attributable Debt which is excluded pursuant to clauses 6(a)
to (f) below), would not exceed 10% of Consolidated Net Tangible Assets of
the Guarantor and its Restricted Subsidiaries; provided, however, that
this paragraph shall not apply to, and there shall be excluded from
Secured Funded Debt in any computation under this clause 5, Funded Debt
secured by:

	 	(a)	 	Liens on property of any corporation existing at the time
such corporation becomes a Subsidiary;
	 
	 	(b)	 	Liens on property existing at the time of acquisition thereof
or incurred within 180 days of the time of acquisition thereof
(including, without limitation, acquisition through merger or
consolidation) by the Guarantor or any Restricted Subsidiary;
	 
	 	(c)	 	Liens on property hereafter acquired (or constructed) by the
Guarantor or any Restricted Subsidiary and created prior to, at the
time of, or within 270 days after such acquisition through merger or
consolidation (or the completion of such construction or
commencement of commercial operation of such property, whichever is
later) to secure or provide for the payment of all or any part of
the purchase price (or the construction price) thereof;
	 
	 	(d)	 	Liens in favour of the Guarantor or any Restricted
Subsidiary;

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	 	(e)	 	Liens in favour of the United States of America, any State or
possession thereof or the District of Columbia, or any agency,
department or other instrumentality thereof, to secure partial,
progress, advance or other payments pursuant to any contract or
provision of any statute;
	 
	 	(f)	 	Liens incurred or assumed in connection with an issuance of
revenue bonds the interest on which is exempt from Federal income
taxation pursuant to Section 103(b) of the United States Internal
Revenue Code of 1954, as amended;
	 
	 	(g)	 	Liens securing the performance of any contract or undertaking
not directly or indirectly in connection with the borrowing of
money, the obtaining of advances or credit or the securing of Funded
Debt, if made and continuing in the ordinary course of business;
	 
	 	(h)	 	Liens incurred (no matter when created) in connection with
the Guarantor’s or a Restricted Subsidiary’s engaging in leveraged
or single-investor lease transactions, provided that the instrument
creating or evidencing any borrowings secured by such Lien shall
provide that such borrowings are payable solely out of the income
and proceeds of the property subject to such Lien and are not a
general obligation of the Guarantor or such Restricted Subsidiary;
	 
	 	(i)	 	Liens held by banks to secure amounts due to such banks in
the ordinary course of business or Liens under workers’ compensation
laws, unemployment insurance law or similar legislation, or good
faith deposits in connection with bids, tenders, contracts or
deposits to secure public or statutory obligations of the Guarantor
or any Restricted Subsidiary, or deposits of cash or obligations of
the United States of America to secure surety and appeal bonds to
which the Guarantor or any Restricted Subsidiary is a party or in
lieu of such bonds, or pledges or deposits for similar purposes in
the ordinary course of business, or Liens imposed by law, such as
labourers’ or other employees’, carriers’, warehousemen’s,
mechanics’, materialmen’s and vendors’ Liens and Liens arising out
of judgments or awards against the Guarantor or any Restricted
Subsidiary with respect to which the Guarantor or such Restricted
Subsidiary at the time shall be prosecuting an appeal or proceedings
for review and with respect to which it shall have secured a stay of
execution pending such appeal or proceedings for review, or Liens
for taxes not yet subject to penalties for nonpayment or the amount
or validity of which is being in good faith contested by appropriate
proceedings by the Guarantor or any Restricted Subsidiary, as the
case may be, or minor survey exceptions, minor encumbrances,
easements or reservations of, rights of others for, rights of way,
sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions or Liens as to the
use of real properties, which Liens, exceptions, encumbrances,
easements, reservations, rights and restrictions do not, in the
opinion of the Guarantor, in the aggregate materially detract from
the value of said properties or materially impair their use in the
operation of the business of the Guarantor and its Restricted
Subsidiaries;
	 
	 	(j)	 	Liens incurred to finance construction, alteration or repair
of any Principal Property and improvements thereto prior to or
within 270 days after completion of such construction, alteration or
repair; or

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	 	(k)	 	any extension, renewal, refunding or replacement (or
successive extensions, renewals, refundings or replacements), as a
whole or in part, of any Lien referred to in the foregoing clauses
(a) to (j), inclusive; provided, however, that (I) such extension,
renewal, refunding or replacement Lien shall be limited to all or a
part of the same property that secured the Lien extended, renewed,
refunded or replaced (plus improvements on such property) and (II)
the Funded Debt secured by such Lien at such time is not increased.

	6.	 	The Guarantor will not, nor will it permit any Restricted Subsidiary to,
enter into any arrangement with any person providing for the leasing by
the Guarantor or any Restricted Subsidiary of any Principal Property of
the Guarantor or any Restricted Subsidiary, which Principal Property has
been or is to be sold or transferred by the Guarantor or such Restricted
Subsidiary to such person (herein referred to as a “sale and leaseback
transaction”) unless, after giving effect thereto, the aggregate amount of
all Attributable Debt with respect to all such sale and leaseback
transactions plus all Secured Funded Debt (with the exception of Funded
Debt secured by Liens which is excluded pursuant to clauses 5(a) to (k)
above) would not exceed 10% of Consolidated Net Tangible Assets of the
Guarantor and its Restricted Subsidiaries. This covenant shall not apply
to, and there shall be excluded from Attributable Debt in any computation
under clause 5 or this clause 6, Attributable Debt with respect to, any
sale and leaseback transaction if:

	 	(a)	 	the Guarantor or a Restricted Subsidiary is permitted to
create Funded Debt secured by a Lien pursuant to clauses 5 (a) to
(k) above on the Principal Property to be leased, in an amount equal
to the Attributable Debt with respect to such sale and leaseback
transaction, without equally and rateably securing the Bonds;
	 
	 	(b)	 	the Guarantor or a Restricted Subsidiary within 270 days
after the sale or transfer shall have been made by the Guarantor or
a Restricted Subsidiary shall apply an amount in cash equal to the
greater of (I) the net proceeds of the sale or transfer of the
Principal Property leased pursuant to such arrangement or (II) the
fair market value of the Principal Property so leased at the time of
entering into such arrangement (as determined by any two of the
following officers of the Guarantor: the chairman or vice chairman
of the Board of Directors, the president, any executive vice
president or vice president, the treasurer and the controller) to
the retirement of Secured Funded Debt of the Guarantor or any
Restricted Subsidiary (other than Secured Funded Debt owned by the
Guarantor or any Restricted Subsidiary); provided, that the amount
to be applied to such retirement shall be reduced by the aggregate
principal amount of other Secured Funded Debt voluntarily retired by
the Guarantor within 270 days after such sale or transfer
(notwithstanding the foregoing, no retirement referred to in this
item (b) may be effected by payment at maturity or pursuant to any
mandatory sinking fund payment or any mandatory prepayment
provision);
	 
	 	(c)	 	the Guarantor or a Restricted Subsidiary applies the net
proceeds of the sale or transfer of the Principal Property leased
pursuant to such transaction to investment in another Principal
Property within 270 days prior or subsequent to such sale or
transfer; provided that this exception shall apply only if such
proceeds invested in such other Principal Property shall not exceed
the total acquisition, repair, alteration and construction cost of
the Guarantor or any Restricted Subsidiary in such other

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	 	 	 	Principal Property less amounts secured by any purchase money or
construction mortgages on such Principal Property;
	 
	 	(d)	 	the effective date of any such arrangement is within 270 days
of the acquisition of the Principal Property (including, without
limitation, acquisition by merger or consolidation) or the
completion of construction and commencement of operation thereof,
whichever is later;
	 
	 	(e)	 	the lease in such sale and leaseback transaction is for a
term, including renewals, of not more than three years; or
	 
	 	(f)	 	such sale and leaseback transaction is entered into between
the Guarantor and a Restricted Subsidiary or between Restricted
Subsidiaries.

	7.	 	So long as any of the Bonds remains outstanding, the Guarantor will not
permit any of its Restricted Subsidiaries to contract, create, incur,
assume or suffer to exist any Indebtedness, except:

	 	(a)	 	The Bonds and any other Indebtedness of the Issuer whether
now existing or incurred hereafter;
	 
	 	(b)	 	Existing Indebtedness of Restricted Subsidiaries (other than
the Issuer);
	 
	 	(c)	 	Indebtedness of a Restricted Subsidiary (other than the
Issuer) owing to and held by the Guarantor or another Restricted
Subsidiary;
	 
	 	(d)	 	Any undrawn amounts under the Amended and Restated Revolving
Credit Agreement, dated as of November 30, 1998, among the
Guarantor, Milacron Kunststoffmaschinen Europe GmbH, Cincinnati
Grundstucksverwaltung GmbH, the lenders listed therein and Bankers
Trust Company, as agent, as amended by Amendment No. One, dated as
of March 31, 1999, and Amendment No. Two, dated as of January 31,
2000;
	 
	 	(e)	 	Indebtedness of a Restricted Subsidiary (other than the
Issuer) acquired as a result of a Permitted Acquisition (or
Indebtedness assumed at the time of a Permitted Acquisition of an
asset securing such Indebtedness); provided that (i) such
Indebtedness was not incurred in connection with, or in anticipation
or contemplation of, such Permitted Acquisition, (ii) at the time of
such Permitted Acquisition, such Indebtedness does not exceed 50% of
the then total Fair Market Value of the Subsidiary, or of the asset
so acquired, as the case may be, (iii) so long as, before and after
giving effect to such Permitted Acquisition, no Default or Event of
Default shall have occurred or would result therefrom and (iv) such
Indebtedness is not recourse to any assets of the Guarantor or its
Subsidiaries other than the Subsidiary and assets so acquired;
	 
	 	(f)	 	additional Indebtedness of the Restricted Subsidiaries (other
than the Issuer) not otherwise permitted hereunder not exceeding
$150,000,000 in aggregate principal amount at any time outstanding;

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	 	(g)	 	Indebtedness incurred by a Restricted Subsidiary (other than
the Issuer) in connection with any cash management credit facility
agreements entered into between the Restricted Subsidiaries and
banks providing for the zero-balancing between cash accounts held by
any of the Restricted Subsidiaries and any rights of set-off of
credits and debits of any of the Restricted Subsidiaries with the
bank, provided that the debt outstanding at any one time does not
exceed $20,000,000;
	 
	 	(h)	 	(viii) Indebtedness incurred by a Restricted Subsidiary
(other than the Issuer) under interest rate agreements, currency
exchange agreements, commodity price protection agreements or other
similar agreements entered into for the purpose of limiting risk in
the ordinary course of the financial management of the Restricted
Subsidiary and not for speculative purposes:
	 
	 	(i)	 	Permitted Refinancing Indebtedness incurred in respect of
Debt incurred pursuant to clauses (a), (b), (d), (e) and (f).

	8.	 	For the purposes of clauses 5, 6 and 7:

	 	(a)	 	“Attributable Debt” means as to any particular lease under
which either the Guarantor or any Restricted Subsidiary is at any
time liable as lessee and at any date as of which the amount thereof
is to be determined, the total net obligations of the lessee for
rental payments during the remaining term of the lease (including
any period for which such lease has been extended or may, at the
option of the lessor, be extended) discounted from the respective
due dates thereof to such date at a rate per annum equivalent to the
greater of (i) the average Yield to Maturity of the outstanding
Bonds hereunder and (ii) the interest rate inherent in such lease
(as determined in good faith by the Guarantor), both to be
compounded semiannually.
	 
	 	(b)	 	“Capital Lease Obligations” of either the Guarantor or any
Restricted Subsidiary means the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement
conveying the right to use) real property, the term of which extends
beyond twelve months, which obligations are required to be
classified and accounted for as a capital lease on a balance sheet
of such person under generally accepted accounting principles
(including Statement No. 13 of Financial Accounting Standards Board
and, for the purposes of this Terms and Conditions, the amount of
such obligation shall be the capitalised amount thereof, determined
in accordance with generally accepted accounting principles
(including such Statement No. 13).
	 
	 	(c)	 	“Consolidated Net Tangible Assets” means, at any date, the
total assets appearing on the most recent consolidated balance sheet
of the Guarantor and its Restricted Subsidiaries as at the end of a
fiscal quarter of the Guarantor, prepared in accordance with
generally accepted accounting principles, less (i) all current
liabilities (due within one year) as shown on such balance sheet,
(ii) applicable reserves, (iii) investments in and advances to
Unrestricted Subsidiaries but which are not Subsidiaries at the time
of such balance sheet or other entities accounted for on the equity
method of accounting, and (iv) Intangible Assets and liabilities
relating thereto. “Intangible Assets” shall mean the value (net of
any applicable reserves), as shown on or reflected in such balance
sheet, of: (i) all trade names, trademarks, licenses, patents,
copyrights, service marks, goodwill and other like intangibles; (ii)

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	 	 	 	organisational and development costs; (iii) deferred charges (other
than prepaid items such as insurance, taxes, interest, commissions,
rents and similar items and tangible assets being amortised); and
(iv) unamortised debt discount and expense, less unamortised
premium.
	 
	 	(d)	 	“Default” means any event, act or condition which with notice
or lapse of time or both would constitute an Event of Default if
that condition or event were not cured or removed within any
applicable grace or cure period.
	 
	 	(e)	 	“Existing Indebtedness” means all Indebtedness in existence
on date of the issue of the Temporary Global Bond.
	 
	 	(f)	 	“Fair Market Value” means, in respect of property of the
Guarantor and its Subsidiaries, the fair market value thereof,
determined in the good faith judgment of the chief financial officer
of the Guarantor on the basis of an assumed arms-length sale of such
property to an independent Person not affiliated with the Guarantor
or its Subsidiaries, assuming neither party is under any compulsion
to buy or sell and that each has knowledge of all relevant facts and
circumstances.
	 
	 	(g)	 	“Funded Debt” means any indebtedness maturing more than
twelve months after the time of computation thereof, guarantees of
Funded Debt or of dividends of others (except guarantees in
connection with the sale or discount of accounts receivable, trade
acceptances and other paper arising in the ordinary course of
business), and in the case of any Restricted Subsidiary all
preferred stock of such Restricted Subsidiary, and all Capital Lease
Obligations.
	 
	 	(h)	 	“Indebtedness” means at any time, without duplication, (i)
all obligations for borrowed money, evidenced by bonds, debentures,
notes, or other similar instruments, including bank loans, letters
of credit and banker’s acceptance, and (ii) Funded Debt.
	 
	 	(i)	 	(i) “Outstanding” or “outstanding”, when used with reference
to Bonds, shall, subject to the provisions of (ii) below, mean all
Bonds theretofore authenticated and delivered by the Fiscal Agent
under these Conditions, except: (I) Bonds theretofore cancelled by
the Fiscal Agent or delivered to the Fiscal Agent for cancellation;
(II) Bonds, or portions thereof, for the payment or redemption of
which moneys in the necessary amount shall have been deposited in
trust with the Fiscal Agent or with any Paying Agent or shall have
been set aside and segregated in trust by the Issuer or the
Guarantor (if the Issuer or the Guarantor acts as their own paying
agent); provided that if such Bonds are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been given as
in Condition 8 provided, or provision satisfactory to the Fiscal
Agent shall have been made for giving such notice; (III) Bonds in
lieu of or in exchange and substitution for which other Bonds shall
have been authenticated and delivered, or which have been paid,
pursuant to the terms of Condition 12; (IV) Those Bonds which have
become void under Condition 10; and (V) The Temporary Global Bond to
the extent that it has been duly exchanged for the Permanent Global
Bond and the Permanent Global Bond to the extent that it has been
exchanged for the Bonds in definitive form in each case pursuant to
their respective provisions.

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	 	(ii) In determining whether the holders of the requisite
aggregate principal amount of Bonds have concurred in any request,
demand, authorisation, notice, direction, consent or waiver under
these Conditions, Bonds, which are owned by the Issuer or the
Guarantor or any other obligor under the Bonds or by any person
directly or indirectly controlling or controlled by or under direct
or indirect common control with the Issuer or the Guarantor or any
other obligor on the Bonds shall be disregarded and deemed not to
be outstanding for the purpose of any such determination; provided
that for the purposes of determining whether the Fiscal Agent shall
be protected in relying on any such request, demand, authorisation,
notice, direction, consent or waiver, only Bonds which the Fiscal
Agent knows are so owned shall be so disregarded. Bonds so owned
which have been pledged in good faith may be regarded as
outstanding for the purpose of this clause 8(i)(ii) if the pledgee
shall establish to the satisfaction of the Fiscal Agent the
pledgee’s rights to vote such Bonds and that the pledgee is not a
person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer or the Guarantor
or any such other obligor. In the case of a dispute as to such
right, any decision by the Fiscal Agent taken upon the advice of
counsel shall be full protection to the Fiscal Agent.

	 	(j)	 	“Permitted Acquisition’’ means (a) the merger or
consolidation of any Person into or with the Guarantor or into or
with any wholly-owned Subsidiary of the Guarantor or (b) the
acquisition by the Guarantor or any of its wholly-owned Subsidiaries
of all or substantially all of the assets of any Person (or all or
substantially all of the assets of a product line or division of any
Person) not already a Subsidiary of the Guarantor or 90% or more of
the capital stock of any such Person; provided that any such merger,
consolidation or acquisition shall only be a Permitted Acquisition
so long as no Default or Event of Default exists (or will result
from such acquisition).
	 
	 	(k)	 	“Permitted Refinancing Debt” means any Indebtedness that
refinances any other Indebtedness, including any successive
refinancings, so long as (a) such Indebtedness is in an aggregate
principal amount (or if incurred with original issue discount, an
aggregate issue price) not in excess of the sum of (i) the aggregate
principal amount (or if incurred with original issue discount, the
aggregate accreted value) then outstanding of the Indebtedness being
refinanced, and (ii) an amount necessary to pay any fees and
expenses, including premiums and defeasance costs, related to such
refinancing, (b) the stated maturity of such Indebtedness is no
earlier than the stated maturity of the Indebtedness being
refinanced and (c) the new Indebtedness shall not be senior in right
of payment to the Indebtedness that is being refinanced.
	 
	 	(l)	 	“Person” means and includes any person, firm, corporation,
association, trust or other enterprise or any governmental or
political subdivision or agency, department or instrumentality
thereof.
	 
	 	(m)	 	“Principal Property” shall mean any manufacturing plant
located in the United States of America and owned and operated by
the Guarantor or any Restricted Subsidiary on or after the date
hereof, and any manufacturing equipment owned by the Guarantor or
any Restricted Subsidiary on or after the date hereof in such
manufacturing plant. “Manufacturing equipment” is understood to be

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	 	 	 	manufacturing equipment in such manufacturing plant directly used
in the production of the Guarantor’s products and parts and
components thereof, and not to include office equipment, computer
equipment, rolling stock and other equipment not directly used in
the production of the Guarantor’s products.
	 
	 	(n)	 	“Restricted Subsidiary” means each Subsidiary other than
Unrestricted Subsidiaries.
	 
	 	(o)	 	“Secured Funded Debt” means Funded Debt which is secured by
any pledge of, or mortgage, security interest or other lien on any
Principal Property of the Guarantor or any Restricted Subsidiary,
and “Liens” shall mean such pledges, mortgages, security interests
and other liens.
	 
	 	(p)	 	“Subsidiary” means any corporation at least a majority of the
outstanding voting stock of which is owned directly or indirectly by
the Guarantor or by one or more Subsidiaries of the Guarantor, or by
the Guarantor and one or more Subsidiaries.
	 
	 	(q)	 	“Unrestricted Subsidiary” means Milacron Commercial Corp.,
Milacron Assurance Ltd., Amertool Services, Inc., Subsidiaries of
the foregoing, and other Subsidiaries designated as Unrestricted
Subsidiaries from time to time by the Board of Directors of the
Guarantor.
	 
	 	(r)	 	“Yield to Maturity” means the yield to maturity, calculated
at the time of issuance of the Bonds or, if applicable, at the most
recent redetermination of interest on the Bonds and calculated in
accordance with generally accepted financial practice.

	9.	 	The Guarantor represents and warrants that:

	 	(a)	 	the obligations of the Guarantor under this Guarantee
constitute direct, unconditional and (subject to the provisions of
clauses 5, 6 and 7) unsecured obligations of the Guarantor and
(subject as aforesaid) rank and will rank pari passu with all other
outstanding unsecured and unsubordinated obligations of the
Guarantor, present and future, but, in the event of insolvency, only
to the extent permitted by applicable laws relating to creditors’
rights; and
	 
	 	(b)	 	all necessary governmental consents and authorisations for
the giving and implementation of this Guarantee have been obtained.

	10.	 	Until all amounts which may be or become payable under the Bonds and the
Coupons have been irrevocably paid in full, the Guarantor shall not by
virtue of this Guarantee be subrogated to any rights of any holder of any
Bond or Coupon or claim in competition with the holders against the
Issuer.
	 
	11.	 	This Guarantee shall enure for the benefit of the Bondholders and
Couponholders. The Guarantor covenants in favour of each Accountholder (as
defined in the Bond on which this Guarantee is endorsed) that it will
perform all the obligations expressed to be performed by it in this
Guarantee and acknowledges that each Accountholder, subject to Clause
22.1, may take proceedings to enforce this covenant directly against the
Guarantor.
	 
	12.	 	(a) This Guarantee is governed by, and will be constructed in accordance with the laws of the State of New York.

79

 

	 	(b)	 	Any State or federal courts siting in the Borough of
Manhattan, the City of New York shall have non-exclusive
jurisdiction to settle any disputes which may arise out of or in
connection with the Bonds, the Coupons, the Guarantee, or the Fiscal
Agency Agreement, and accordingly any legal action or proceedings
arising out of or in connection this Guarantee (“Proceedings”) may
be brought in such courts. The Guarantor irrevocably submits to the
non-exclusive jurisdiction of such courts and waives any objection
which it may now or hereafter have to Proceedings in any such courts
whether on the ground of the laying of venue or on the ground that
the Proceedings have been brought in an inconvenient forum and
further agrees that a judgement in any Proceedings brought in such
courts shall be conclusive and binding upon it and may be enforced
in the courts of any other jurisdiction. Nothing in this Condition
shall limit any right to take Proceedings against the Guarantor in
any other court of competent jurisdiction, nor shall the taking of
Proceedings in one or more jurisdictions preclude the taking of
Proceedings in any other jurisdiction, whether concurrently or not.
	 
	 	(c)	 	To the extent that the Guarantor has or hereafter may acquire
any immunity from jurisdiction of any court or from any legal
process with respect to itself or its property, the Guarantor
irrevocably waives such immunity in respect of its obligations under
the Guarantee.
	 
	 	(d)	 	The Guarantor agrees that the process by which any
Proceedings in New York City are begun may be served on it by being
delivered to it c/o CT Corporation System, 111 Eighth Avenue, New
York, New York 10011. If the appointment of the person appointed to
receive process on behalf of the Guarantor ceases to be effective,
the Guarantor (as applicable) shall forthwith appoint a further
person to accept service of process on its behalf and notify the
name and address of such person to the Bondholders pursuant to
Condition 13 and, failing such appointment within 15 days, the
Fiscal Agent shall be entitled to appoint such a person by written
notice addressed and delivered to the Issuer and the Guarantor.
	 
	 	(e)	 	Nothing in this Guarantee shall affect the right to serve
process in any other manner permitted by law.
	 
	 	(f)	 	The Guarantor waives with respect to this Guarantee any right
to claim sovereign or other immunity from jurisdiction or execution
and any similar defence, and irrevocably consents to the giving of
any relief or the issue of any process, including, without
limitation, the making, enforcement or execution against any
property whatsoever (irrespective of its use or intended use) of any
order or judgment made or given in connection with any Proceedings.

80

 

Dated: April 6, 2000

MILACRON INC.

By:     ____________

Name:     __________

Title:     ___________

81

 

SCHEDULE 4

PROVISIONS FOR MEETINGS OF BONDHOLDERS

	1.	 	As used in this schedule the following expressions shall have the
following meanings unless the context otherwise requires:

	 	(a)	 	“Voting Certificate” shall mean an English language
certificate issued by a Paying Agent and dated in which it is
stated:

	 	 	 
	(i)	 	
that on the date of the Voting Certificate Bonds
(not being Bonds in respect of which a Block Voting
Instruction has been issued and is outstanding in respect of
the meeting specified in the Voting Certificate and any
adjourned meeting) were deposited with the Paying Agent or (to
the satisfaction of the Paying Agent) were held to its order
or under its control and that the Bonds will not cease to be
so deposited or held until the first to occur of:

	 	 	 	 	 
	 	 	
(A)
	 	the conclusion of the meeting
specified in the Voting Certificate or, if applicable,
any adjourned meeting; and
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
(B)
	 	the surrender of the Voting
Certificate to the Paying Agent who issued the same;
and

	 	 	 
	(ii)	 	
that the bearer of the Voting Certificate is
entitled to attend and vote at the meeting and any adjourned
meeting in respect of the Bonds represented by the Voting
Certificate;

	 	(b)	 	“Block Voting Instruction” shall mean an English language
document issued by a Paying Agent and dated in which:

	 	 	 
	(i)	 	
it is certified that Bonds (not being Bonds in
respect of which a Voting Certificate has been issued and is
outstanding in respect of the meeting specified in the Block
Voting Instruction and any adjourned meeting) have been
deposited with the Paying Agent or (to the satisfaction of the
Paying Agent) were held to its order or under its control and
that the Bonds will not cease to be so deposited or held until
the first to occur of:

	 	 	 	 	 
	 	 	
(A)
	 	the conclusion of the meeting
specified in the document or, if applicable, any
adjourned meeting; and
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
(B)
	 	the surrender to the Paying Agent
not less than 48 hours before the time for which the
meeting or any adjourned meeting is convened of the
receipt issued by the Paying Agent in respect of each
deposited Bond which is to be released or (as the case
may require) the Bond ceasing with the agreement of the
Paying Agent to be held to its order or under its
control and the giving of notice by the Paying Agent to
the Issuer under paragraph 17 of the necessary
amendment to the Block Voting Instruction;

	 	 	 

82

 

	 	 	 
	 	(ii)	
it is certified that each holder of the Bonds has
instructed the Paying Agent that the vote(s) attributable to
the Bonds so deposited or held should be cast in a particular
way in relation to the resolution to be put to the meeting or
any adjourned meeting and that all the instructions are,
during the period commencing 48 hours before the time for
which the meeting or any adjourned meeting is convened and
ending at the conclusion or adjournment, neither revocable nor
capable of amendment;
	
	
	
	

	 	 	 
	
	
	
	

	 	(iii)	
the total number, total principal amount and the
serial numbers (if available) of the Bonds so deposited or
held are listed distinguishing, with regard to each
resolution, between those in respect of which instructions
have been correctly given that the attributable votes should
be cast in favour of the resolution and those in respect of
which instructions have been so given that the attributable
votes should be cast against the resolution; and
	
	
	
	

	 	 	 
	
	
	
	

	 	(iv)	
one or more persons named in the Block Voting
Instruction (a “proxy”) is or are authorised and instructed by
the Paying Agent to cast the votes attributable to the Bonds
so listed in accordance with the instructions referred to in
subparagraph (iii) as set out in the Block Voting Instruction.

		 	The holder of any Voting Certificate or the proxies named in any Block
Voting Instruction shall for all purposes in connection with the relevant
meeting or adjourned meeting of Bondholders be deemed to be the holder of
the Bonds to which the Voting Certificate or Block Voting Instruction
relates and the Paying Agent with which the Bonds have been deposited or
the person holding the same to the order or under the control of the
Paying Agent shall be deemed for such purpose not to be the holder of
those Bonds.
	 
	2.	 	The Issuer or the Guarantor may at any time and the Issuer shall upon a
requisition in writing signed by the holders of not less than 25% in
principal amount of the Bonds for the time being outstanding convene a
meeting of the Bondholders and if the Issuer makes default for a period of
seven days in convening a meeting the same may be convened by the
requisitionists. Every meeting shall be held at such place as the Fiscal
Agent may approve.
	 
	3.	 	At least 21 days’ notice (exclusive of the day on which the notice is
given and the day on which the meeting is held) specifying the place, day
and hour of meeting shall be given to the Bondholders before any meeting
of the Bondholders in the manner provided by Condition 13. The notice
shall state generally the nature of the business to be transacted at the
meeting but (except for an Extraordinary Resolution) it shall not be
necessary to specify in the notice the terms of any resolution to be
proposed. Such notice shall include a statement to the effect that Bonds
may be deposited with Paying Agents for the purpose of obtaining Voting
Certificates or appointing proxies. A copy of the notice shall be sent by
post to the Issuer (unless the meeting is convened by the Issuer) and to
the Guarantor (unless the meeting is convened by the Guarantor).
	 
	4.	 	Some person (who may but need not be a Bondholder) nominated in writing
by the Issuer shall be entitled to take the chair at every meeting but if
no nomination is made or if at any meeting the person nominated shall not
be present within fifteen minutes after the time appointed for holding the
meeting the Bondholders present shall choose one of their number to be
Chairman.
	 
	5.	 	At any meeting one or more persons present holding Bonds or Voting
Certificates or being proxies and holding or representing in the aggregate
not less than one-twentieth of the principal amount of the Bonds for the
time being outstanding shall (except for the purpose of

83

 

	 	 	passing an Extraordinary Resolution) form a quorum for the transaction of
business and no business (other than the choosing of a Chairman) shall be
transacted at any meeting unless the requisite quorum be present at the
commencement of business. The quorum at any meeting for passing an
Extraordinary Resolution shall (subject as provided below) be one or more
persons present holding Bonds or Voting Certificates or being proxies and
holding or representing in the aggregate not less than a clear majority
of the principal amount of the Bonds for the time being outstanding,
provided that at any meeting the business of which includes any of the
following matters (each of which shall only be capable of being effected
after having been approved by Extraordinary Resolution) namely:

	 	(a)	 	modification of the date fixed for final maturity of the
Bonds or reduction of the amount of principal payable;
	 
	 	(b)	 	reduction or cancellation of the principal payable on the
Bonds;
	 
	 	(c)	 	reduction of the amount payable or, where applicable,
modification of the method of calculating the amount payable or
modification of the date of payment in respect of any interest;
	 
	 	(d)	 	alteration of the currency in which payments under the Bonds
and Coupons are to be made;
	 
	 	(e)	 	alteration of the majority required to pass an Extraordinary
Resolution;
	 
	 	(f)	 	the sanctioning of any scheme or proposal as is described in
paragraph 18(f);
	 
	 	(g)	 	alteration of this proviso or the proviso to paragraph 6;

		 	the quorum shall be one or more persons present holding Bonds or Voting
Certificates or being proxies and holding or representing in the
aggregate not less than two-thirds of the principal amount of the Bonds
for the time being outstanding, provided there are no provisions
requiring higher quorums in any circumstances.
	 
	6.	 	If within fifteen minutes after the time appointed for any meeting a
quorum is not present the meeting shall if convened upon the requisition
of Bondholders be dissolved. In any other case it shall stand adjourned to
the same day in the next week (or if the day is a public holiday the next
succeeding business day) at the same time and place (except in the case of
a meeting at which an Extraordinary Resolution is to be proposed in which
case it shall stand adjourned for the period being not less than 14 days
nor more than 42 days, and at such place as may be appointed by the
Chairman and approved by the Fiscal Agent) and at the adjourned meeting
one or more persons present holding Bonds or Voting Certificates or being
proxies (whatever the principal amount of the Bonds so held or represented
by them) shall (subject as provided below) form a quorum and shall
(subject as provided below) have power to pass any Extraordinary or other
resolution and to decide upon all matters which could properly have been
dealt with at the meeting from which the adjournment took place had the
requisite quorum been present, provided that at any adjourned meeting the
business of which includes any of the matters specified in the proviso to
paragraph 5, the quorum shall be one or more persons present holding Bonds
or Voting Certificates or being proxies and holding or representing in the
aggregate not less than one-third of the principal amount of the Bonds for
the time being outstanding.
	 
	7.	 	Notice of any adjourned meeting at which an Extraordinary Resolution is
to be submitted shall be given in the same manner as notice of an original
meeting but as if 10 were

84

 

	 	 	substituted for 21 in paragraph 3 and the notice shall (except in cases
where the proviso to paragraph 6 shall apply when it shall state the
relevant quorum) state that the persons present holding Bonds or Voting
Certificates or being proxies at the adjourned meeting whatever the
principal amount of the Bonds held or represented by them will form a
quorum. Subject as provided above it shall not be necessary to give any
notice of an adjourned meeting.
	 
	8.	 	Every question submitted to a meeting shall be decided in the first
instance by a show of hands and in case of equality of votes the Chairman
shall both on a show of hands and on a poll have a casting vote in
addition to any votes to which he may be entitled as a Bondholder or as a
holder of a Voting Certificate or as a proxy.
	 
	9.	 	At any meeting unless a poll is (before or on the declaration of the
result of the show of hands) demanded by the Chairman or the Issuer or the
Guarantor or by one or more persons present holding Bonds or Voting
Certificates or being proxies and holding or representing in the aggregate
not less than one-fiftieth part of the principal amount of the Bonds then
outstanding a declaration by the Chairman that a resolution has been
carried or carried by a particular majority or lost or not carried by a
particular majority shall be conclusive evidence of the fact without proof
of the number or proportion of the votes recorded in favour of or against
the resolution.
	 
	10.	 	Subject to paragraph 12, if at any meeting a poll is demanded it shall be
taken in such manner and, subject as provided below, either at once or
after an adjournment, as the Chairman may direct and the result of the
poll shall be deemed to be the resolution of the meeting at which the poll
was demanded as at the date of the taking of the poll. The demand for a
poll shall not prevent the continuance of the meeting for the transaction
of any business other than the motion on which the poll has been demanded.
	 
	11.	 	The Chairman may with the consent of (and shall if directed by) any
meeting adjourn the same from time to time and from place to place but no
business shall be transacted at any adjourned meeting except business
which might lawfully (but for lack of required quorum) have been
transacted at the meeting from which the adjournment took place.
	 
	12.	 	Any poll demanded at any meeting on the election of a Chairman or on any
question of adjournment shall be taken at the meeting without adjournment.
	 
	13.	 	Any director or officer of the Issuer or the Guarantor and the lawyers
and financial advisers of either of them may attend and speak at any
meeting. Save as provided above but without prejudice to the proviso to
the definition of “outstanding” in clause 2 no person shall be entitled to
attend and speak nor shall any person be entitled to vote at any meeting
of the Bondholders or join with others in requesting the convening of a
meeting unless he either produces the Bond of which he is the holder or a
Voting Certificate or is a proxy. Neither the Issuer nor any Subsidiary,
nor the Guarantor nor any other Subsidiary shall be entitled to vote at
any meeting in respect of Bonds held by it for the benefit of any such
company. Nothing contained in this Agreement shall prevent any of the
proxies named in any Block Voting Instruction from being a director,
officer of or otherwise connected with the Issuer or the Guarantor.
	 
	14.	 	Subject as provided in paragraph 13 at any meeting:

	 	(a)	 	on a show of hands every person who is present in person and
produces a Bond or Voting Certificate or is a proxy shall have one
vote; and

85

 

	 	(b)	 	on a poll every person who is so present shall have one vote
in respect of each €1,000 in principal amount of the Bonds so
produced or represented by the Voting Certificate so produced or in
respect of which he is a proxy or in respect of which he is the
Bondholder.

		 	Without prejudice to the obligations of the proxies named in any Block
Voting Instruction any person entitled to more than one vote need not use
all his votes or cast all the votes to which he is entitled in the same
way.
	 
	15.	 	The proxies named in any Block Voting Instruction need not be
Bondholders.
	 
	16.	 	Each Block Voting Instruction together (if so requested by the Issuer)
with reasonable proof satisfactory to the Issuer of its due execution on
behalf of the relevant Paying Agent shall be deposited at such place as
the Fiscal Agent shall approve not less than 24 hours before the time
appointed for holding the meeting or adjourned meeting at which the
proxies named in the Block Voting Instruction propose to vote and in
default the Block Voting Instruction shall not be treated as valid unless
the Chairman of the meeting decides otherwise before the meeting or
adjourned meeting proceeds to business. A notarially certified copy of
each Block Voting Instruction shall (if so requested by the Issuer) be
deposited with the Fiscal Agent before the commencement of the meeting or
adjourned meeting but the Fiscal Agent shall not be obliged to investigate
or be concerned with the validity of or the authority of the proxies named
in any Block Voting Instruction.
	 
	17.	 	Any vote given in accordance with the terms of a Block Voting Instruction
shall be valid notwithstanding the previous revocation or amendment of the
Block Voting Instruction or of any of the Bondholders’ instructions
pursuant to which it was executed, provided that no intimation in writing
of the revocation or amendment shall have been received from the relevant
Paying Agent by the Issuer at its registered office (or such other place
as may have been approved by the Fiscal Agent for the purpose) by the time
being 24 hours before the time appointed for holding the meeting or
adjourned meeting at which the Block Voting Instruction is to be used.
	 
	18.	 	A meeting of the Bondholders shall in addition to the powers provided
above have the following powers exercisable by Extraordinary Resolution
(subject to the provisions relating to quorum contained in paragraphs 5
and 6) only namely:

	 	(a)	 	power to sanction any compromise or arrangement proposed to
be made between the Issuer, the Guarantor and the Bondholders and
Couponholders or any of them;
	 
	 	(b)	 	power to sanction any abrogation, modification, compromise or
arrangement in respect of the rights of the Bondholders and
Couponholders against the Issuer or the Guarantor or against any of
their property whether the rights shall arise hereunder or
otherwise;
	 
	 	(c)	 	power to assent to any modification of the provisions
contained in the Conditions, the Bonds or the Coupons which shall be
proposed by the Issuer, the Guarantor or (with the agreement of the
issuer and the Guarantor) any Bondholder;
	 
	 	(d)	 	power to give any authority or sanction which under the Bonds
or hereunder is required to be given by Extraordinary Resolution;
	 
	 	(e)	 	power to appoint any persons (whether Bondholders or not) as
a committee to represent the interests of the Bondholders and to
confer upon the committee any

86

 

	 	 	 	powers or discretions which the Bondholders could themselves
exercise by Extraordinary Resolution; and
	 
	 	(f)	 	power to sanction any scheme or proposal for the exchange or
sale of the Bonds for or the conversion of the Bonds into or the
cancellation of the Bonds in consideration of shares, stock, Bonds,
bonds, debentures, debenture stock and/or other obligations and/or
securities of the Issuer or the Guarantor or any other company
formed or to be formed, or for or into or in consideration of cash,
or partly for or into or in consideration of the shares, stock,
Bonds, bonds, debentures, debenture stock and/or other obligations
and/or securities as provided above and partly for or into or in
consideration of cash.

	19.	 	Any resolution passed at a meeting of the Bondholders duly convened and
held hereunder shall be binding upon all the Bondholders whether present
or not present at the meeting and whether or not voting and upon all
Couponholders and each of them shall be bound to give effect to the
resolution accordingly and the passing of any resolution shall be
conclusive evidence that the circumstances justify the passing of the
resolution. Notice of any resolution duly passed by the Bondholders shall
be published under Condition 13 by the Issuer within 14 days of the
passing of the resolution, provided that the non-publication of the notice
shall not invalidate the resolution.
	 
	20.	 	The expression “Extraordinary Resolution” when used in this Schedule and
in the Conditions means a resolution passed at a meeting of the
Bondholders duly convened and held in accordance with the provisions
contained in this Agreement by a clear majority of the persons voting
thereat upon a show of hands or if a poll shall be duly demanded then by a
clear majority of the votes given on the poll, except that in the case of
any meeting the business of which includes any of the matters described in
clause 5(a) to (g) above, the majority shall consist of not less than 75%
of the votes given on a poll or a show of hands, as the case may be.
	 
	21.	 	Minutes of all resolutions and proceedings at every meeting shall be made
and duly entered in books to be from time to time provided for that
purpose by the Issuer and any Minutes purporting to be signed by the
Chairman of the meeting at which the resolutions were passed or
proceedings had shall be conclusive evidence of the matters contained in
the Minutes and until the contrary is proved every meeting in respect of
the proceedings of which Minutes have been made shall be deemed to have
been duly held and convened and all resolutions passed or proceedings had
to have been duly passed or had.

87

 

MILACRON CAPITAL HOLDINGS B.V.

By:

Name:

Title:

MILACRON INC.

By:

Name:

Title:

DEUTSCHE BANK AG LONDON

By:

Name:

Title:

DEUTSCHE BANK LUXEMBOURG S.A.

By:

Name:

Title:

Without prejudice to the foregoing execution of the Agreement by the parties to
this Agreement, Deutsche Bank Luxembourg S.A. expressly and specifically
confirms its agreement with the provisions of clause 27 of this Agreement.

By:

Name:

Title:

88

 

Dated April 6, 2000

 

MILACRON CAPITAL HOLDINGS B.V.

€115,000,000

7.625% Guaranteed Bonds due 2005

     

FISCAL AGENCY AGREEMENT

     

ALLEN & OVERY

New York

 

 

INDEX

	 	 	 	 	 	 	 	 	 
	Clause	 	Page No.
	 	1.	 	 	Interpretation
	 	 	1	 
	
	
	
	

	 	2.	 	 	Definitions
	 	 	2	 
	
	
	
	

	 	3.	 	 	Appointment of Paying Agents
	 	 	3	 
	
	
	
	

	 	4.	 	 	Authentication and Delivery of Bonds
	 	 	3	 
	
	
	
	

	 	5.	 	 	Payment to the Fiscal Agent
	 	 	4	 
	
	
	
	

	 	6.	 	 	Notification of Non-Payment by the Issuer or the Guarantor
	 	 	5	 
	
	
	
	

	 	7.	 	 	Duties of the Paying Agents
	 	 	5	 
	
	
	
	

	 	8.	 	 	Reimbursement of the Paying Agents
	 	 	6	 
	
	
	
	

	 	9.	 	 	Notice of any Withholding or Deduction
	 	 	6	 
	
	
	
	

	 	10.	 	 	Duties of the Fiscal Agent in Connection with Redemption for
Taxation Reasons
	 	 	6	 
	
	
	
	

	 	11.	 	 	Publication of Notices
	 	 	6	 
	
	
	
	

	 	12.	 	 	Cancellation of Bonds and Coupons
	 	 	6	 
	
	
	
	

	 	13.	 	 	Issue of Replacement Bonds and Coupons
	 	 	7	 
	
	
	
	

	 	14.	 	 	Records and Certificates
	 	 	8	 
	
	
	
	

	 	15.	 	 	Copies of this Agreement available for Inspections
	 	 	9	 
	
	
	
	

	 	16.	 	 	Commissions and Expenses
	 	 	9	 
	
	
	
	

	 	17.	 	 	Indemnity
	 	 	9	 
	
	
	
	

	 	18.	 	 	Replacement by Fiscal Agent
	 	 	10	 
	
	
	
	

	 	19.	 	 	Conditions of Appointment
	 	 	10	 
	
	
	
	

	 	20.	 	 	Communication with Paying Agents
	 	 	11	 
	
	
	
	

	 	21.	 	 	Termination of Appointment
	 	 	11	 
	
	
	
	

	 	22.	 	 	Meetings of Bondholders
	 	 	13	 
	
	
	
	

	 	23.	 	 	Notices
	 	 	13	 
	
	
	
	

	 	24.	 	 	Taxes
	 	 	14	 
	
	
	
	

	 	25.	 	 	Counterparts
	 	 	15	 
	
	
	
	

	 	26.	 	 	Descriptive Headings
	 	 	15	 
	
	
	
	

	 	27.	 	 	Governing Law
	 	 	15	 
	
	
	
	

	 	28.	 	 	Amendments
	 	 	16	 

	 	 	 	 	 	 	 	 	 
	Schedules	 	 	 	 
	 	1.	 	 	Part I — Form of the Temporary Global Bond
	 	 	17	 
	
	
	
	

	 	 	 	 	Part II — Form of the Permanent Global Bond
	 	 	31	 
	
	
	
	

	 	2.	 	 	Part I — Form of Definitive Bond
	 	 	42	 
	
	
	
	

	 	 	 	 	Part II — Form of Coupon
	 	 	46	 
	
	
	
	

	 	 	 	 	Part III — Terms and Conditions of the Bonds
	 	 	49	 
	
	
	
	

	 	3.	 	 	Part I — Form of Guarantee to be Endorsed on Global Bonds, Bonds in
definitive form and Coupons
	 	 	61	 
	
	
	
	

	 	4.	 	 	Provisions for Meetings of Bondholders
	 	 	82

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