Document:

Exhibit 10.2

 

EXECUTION
COPY

 

$105,000,000

 

Edgen Corporation

 

9.875% of Senior Secured Notes due 2011

 

 

REGISTRATION RIGHTS
AGREEMENT

 

February 1, 2005

 

Jefferies &
Company, Inc.

520 Madison Avenue

12th
Floor

New York, NY 10022

 

Ladies and
Gentlemen:

 

Pursuant to a purchase
agreement dated January 25, 2005 (the “Purchase Agreement”) by and
among Edgen Acquisition Corporation, a Nevada corporation (the “Acquired
Corporation”), Edgen Corporation, a Nevada corporation (the “Company”),
the subsidiary guarantors named therein and Jefferies and Company, Inc. as
initial purchaser (the “Initial Purchaser”) (the “Purchase Agreement”),
the Acquired Corporation issued and sold to the Initial Purchaser, on the date
hereof, upon the terms set forth in the Purchase Agreement, $105,000,000
aggregate principal amount of 9 7/8% Senior Secured Notes due 2011 (each, a “Note”
and collectively, the “Notes”). 
In connection with the acquisition of the Acquired Corporation by the
Company and the merger of the Acquired Corporation with and into the Company
(the “Merger”), the Company has (a) assumed all obligations of the
Acquired Corporation under the Purchase Agreement and (b) entered into a
supplemental indenture to the Indenture (as defined below), by and among the
Company, the subsidiary guarantors named therein and the Trustee (as defined
below) (the “Supplemental Indenture”), pursuant to which the Company
assumed all the obligations of the Acquired Corporation under the Indenture. As
consideration for the purchase of the Notes and the Guarantees by the Initial
Purchaser, the Company and the subsidiary guarantors listed on the signature pages hereto
agree with the Initial Purchaser, for the benefit of the Holders (as defined
below) of the Notes (including, without limitation, the Initial Purchaser), as
follows:

 

1.                 Definitions

 

Capitalized terms that are used herein without definition and are
defined in the Purchase Agreement shall have the respective meanings ascribed
to them in the Purchase Agreement.  As
used in this Agreement, the following terms shall have the following meanings:

 

Additional
Interest:  See Section 4(a).

 

Advice:  See Section 6(v).

 

 

Agreement: 
This Registration Rights Agreement.

 

Applicable Period: 
See Section 2(e).

 

Business Day: 
A day that is not a Saturday, a Sunday or a day on which banking
institutions in the City of New York are authorized or required by law or
executive order to be closed.

 

Closing Date: February 1, 2005.

 

Collateral Agreements: 
Shall have the meaning set forth in the Indenture.

 

Company:  See the introductory
paragraph to this Agreement.

 

Day:  Unless otherwise
expressly provided, a calendar day.

 

Effectiveness Date: 
The 210th day
after the Issue Date; provided, however, that if the Effectiveness Date would
otherwise fall on a day that is not a Business Day, then the Effectiveness Date
shall be the next succeeding Business Day.

 

Effectiveness Period: 
See Section 3(a).

 

Event Date: 
See Section 4(b).

 

Exchange Act: 
The Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

Exchange
Notes:  Senior Secured Notes due
2011 of the Company, identical in
all material respects to the Notes, including the guarantees endorsed thereon,
except (i) that such
securities shall have been registered pursuant to an effective registration
statement under the Securities Act, (ii) that such securities shall not
contain a restrictive legend thereon, (iii) that such securities shall not
contain provisions relating to the accrual or payment of Additional Interest
(except with respect to Additional Interest, if any, accrued and unpaid as of
the issuance of such Exchange Notes) and (iv) as described in the first
sentence of Section 2(c).

 

Exchange Offer: 
See Section 2(a).

 

Exchange Registration Statement: 
See Section 2(a).

 

Filing Date: 
The 120th day
after the Issue Date; provided, however, that if the Filing Date would
otherwise fall on a day that is not a Business Day, then the Filing Date shall
be the next succeeding Business Day.

 

Holder:  Any registered holder of
Registrable Notes.

 

Indemnified Party: 
See Section 8(c).

 

Indemnifying Party: 
See Section 8(c).

 

2

 

Indenture:  The Indenture, dated as
of the Closing Date, among the Acquired Corporation and The Bank of New York,
as trustee, pursuant to which the Notes are being issued, as amended or
supplemented from time to time in accordance with the terms hereof.

 

Initial Purchaser: 
See the introductory paragraph to this Agreement.

 

Initial Shelf Registration: 
See Section 3(a).

 

Inspectors: 
See Section 6(n).

 

Issue Date:  February 1, 2005.

 

Lien: Shall have the meaning set forth in the Indenture.

 

Losses:  See Section 8(a).

 

NASD:  National Association of
Securities Dealers, Inc.

 

Notes:  See the introductory
paragraph to this Agreement.

 

Participating Broker-Dealer: 
See Section 2(e).

 

Person:  An individual, trustee,
corporation, partnership, limited liability company, joint stock company,
trust, unincorporated association, union, business association, firm,
government or agency or political subdivision thereof, or other legal entity.

 

Private Exchange: 
See Section 2(f).

 

Private Exchange Notes: 
See Section 2(f).

 

Prospectus: 
The prospectus included in any Registration Statement at the time that
such Registration Statement is declared effective (including, without
limitation, a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance
upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Notes covered by such Registration
Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

Purchase Agreement: 
See the introductory paragraph to this Agreement.

 

Records:  See Section 6(n).

 

Registrable Notes:  (i) Notes, (ii) Private Exchange
Notes and (iii) Exchange Notes received in the Exchange Offer, in each
case, that may not be sold without restriction under federal or state
securities laws; provided, that for the avoidance of doubt, a Security
shall cease to be a Registrable Note when (w) a Shelf Registration Statement
covering such Security has been declared effective by the SEC and such Security
has been disposed of in accordance with

 

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and in a manner contemplated by such
effective Shelf Registration Statement, (x) in the case of a Note, such Note
has been exchanged pursuant to the Exchange Offer as contemplated in Section 2(a) (provided, that any Exchange Note that is
included in a Prospectus for use in connection with resales by Participating
Broker-Dealers shall be deemed to be a Registrable Note with respect to
Sections 8 and 11 until resale of such Registrable Note has been effected
pursuant to a “Plan of Distribution” within the Applicable Period), for an
Exchange Note or Exchange Notes that may be resold without restriction under
state and federal securities laws, (y) such Security ceases to be outstanding
for purposes of the Indenture or (z) such Security has been sold in compliance
with Rule 144 under circumstances in which any legend borne by such
Security relating to restrictions on transferability thereof, under the
Securities Act or otherwise, is removed by the Company or is eligible to be
sold by the holders thereof pursuant to Rule 144(k).

 

Registration Statement: 
Any registration statement of the Company and the Subsidiary Guarantors
filed with the SEC under the Securities Act (including, but not limited to, the
Exchange Registration Statement, the Shelf Registration and any subsequent
Shelf Registration) that covers any of the Registrable Notes pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective
amendments, all exhibits and all material incorporated by reference or deemed
to be incorporated by reference in such registration statement.

 

Rule 144: 
Rule 144 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule (other than Rule 144A)
or regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer or such securities
being free of the registration and prospectus delivery requirements of the
Securities Act.

 

Rule 144A: 
Rule 144A promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule (other than Rule 144)
or regulation hereafter adopted by the SEC.

 

Rule 415: 
Rule 415 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

 

Rule 430A: 
Rule 430A promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

 

SEC:  The Securities and
Exchange Commission.

 

Securities: 
The Notes, the Exchange Notes and the Private Exchange Notes.

 

Securities Act: 
The Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

Shelf Notice: 
See Section 2(j).

 

Shelf Registration: 
See Section 3(b).

 

4

 

Subsequent Shelf Registration: 
See Section 3(b).

 

Subsidiary Guarantor: 
Each subsidiary of the Company that guarantees the obligations of the
Company under the Notes and Indenture.

 

Supplemental Indenture: See the introductory paragraph to
this Agreement.

 

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

 

Trustee:  The trustee under the
Indenture and, if existent, the trustee under any indenture governing the
Exchange Notes and Private Exchange Notes (if any).

 

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

 

2.                  Exchange
Offer

 

(a)             Unless the Exchange Offer would not
be permitted by applicable laws or a policy or currently prevailing applicable
interpretations of the staff of the SEC, the Company shall (and shall cause
each Subsidiary Guarantor to) (i) prepare and file with the SEC after the
date hereof, but in no event later than the Filing Date, a registration
statement (the “Exchange Registration Statement”) on an appropriate form
under the Securities Act with respect to a proposed offer (the “Exchange
Offer”) to the Holders of Notes who are not prohibited by law or a policy
or currently prevailing applicable interpretations of the SEC from
participating in the Exchange Offer to issue and deliver to such Holders, in
exchange for the Notes, a like principal amount of Exchange Notes, (ii) use
its commercially reasonable efforts to cause the Exchange Registration
Statement to become effective no later than the Effectiveness Date, (iii) use
its commercially reasonable efforts to keep the Exchange Registration Statement
effective until the consummation of the Exchange Offer in accordance with its
terms, and (iv) use its commercially reasonable efforts to commence the
Exchange Offer and issue on or prior to 30 Business Days after the date on
which the Exchange Registration Statement is declared effective, Exchange Notes
in exchange for all Notes validly tendered and not withdrawn prior thereto in
the Exchange Offer.  The Exchange Offer
shall not be subject to any conditions, other than that (i) the Exchange
Offer does not violate applicable law or any applicable policy or currently
prevailing applicable interpretations of the staff of the SEC, (ii) no
action or proceeding shall have been instituted in any court or by any
governmental agency which might materially impair the ability of the Company
and the Subsidiary Guarantors to proceed with the Exchange Offer and (iii) all
necessary governmental approvals shall have been obtained for the consummation
of the Exchange Offer.

 

(b)            The Exchange Notes shall be issued
under, and entitled to the benefits of, (i) the Indenture or a trust
indenture that is identical to the Indenture (other than such changes as are
necessary to comply with any requirements of the SEC to effect or maintain the
qualifications thereof under the TIA) and (ii) the Collateral Agreements.

 

5

 

(c)             Interest on the Exchange Notes and
Private Exchange Notes will accrue from the last interest payment due date on
which interest was paid on the Notes surrendered in exchange therefor or, if no
interest has been paid on the Notes, from the date of original issue of the
Notes.  Each Exchange Note and Private
Exchange Note shall bear interest at the rate set forth thereon; provided,
that interest with respect to the period prior to the issuance thereof shall
accrue at the rate or rates borne by the Notes from time to time during such
period.

 

(d)            The Company may require each Holder
as a condition to participation in the Exchange Offer to represent in writing
to the Company and the Subsidiary Guarantors, prior to the time of the
consummation of the Exchange Offer, (i) that any Exchange Notes received
by it will be acquired in the ordinary course of its business, (ii) that
at the time of the commencement and consummation of the Exchange Offer, such
Holder has not entered into any arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Notes in violation of the provisions of the Securities Act, (iii) that
such Holder is not an “affiliate” (as defined in Rule 405 of the
Securities Act) of the Company and, if such Holder is an “affiliate” of the
Company, it will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable to it, (iv) if
such Holder is not a broker-dealer, it is not engaged in, and does not intend
to engage in, the distribution of the Notes and (v) if such Holder is a
Participating Broker-Dealer, that it will comply with the applicable prospectus
delivery requirements of the Securities Act in connection with any resale of
the Exchange Notes.

 

(e)             The Company shall (and shall cause
each Subsidiary Guarantor to) include within the Prospectus contained in the
Exchange Registration Statement a section entitled “Plan of Distribution”
reasonably acceptable to the Initial Purchaser which shall contain (i) a
summary statement of the positions taken or policies made by the staff of the
SEC with respect to the potential “underwriter” status of any broker-dealer
that is the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act) of Exchange Notes received by such broker-dealer in the Exchange
Offer for its own account in exchange for Notes that were acquired by it as a
result of market-making or other trading activity (a “Participating
Broker-Dealer”) and (ii) all other information with respect to
such sales by such Participating Broker-Dealers that the SEC may require in
order to permit such sales pursuant thereto. Such “Plan of Distribution” section shall also allow, to the
extent and in the manner permitted by applicable policies and regulations of
the SEC, the use of the Prospectus by all Persons subject to the prospectus
delivery requirements of the Securities Act, including, to the extent so
permitted, all Participating Broker-Dealers, and include a statement describing
the manner in which Participating Broker-Dealers may resell the Exchange Notes.  The Company shall use its commercially
reasonable efforts to keep the Exchange Registration Statement effective and to
amend and supplement the Prospectus contained therein, in order to permit such
Prospectus to be lawfully delivered by all Persons subject to the prospectus
delivery requirements of the Securities Act

 

6

 

for such period of
time as such Persons must comply with such requirements in order to resell the
Exchange Notes; provided that such period shall not exceed the lesser of
180 days and the date on which all Persons subject to the prospectus delivery
requirements of the Securities Act have sold all Exchange Notes held by them
(the “Applicable Period”).

 

(f)               If, upon consummation of the
Exchange Offer, the Initial Purchaser holds any Notes acquired by it and having
the status of an unsold allotment in the initial distribution of the Notes, the
Company (upon the written request from the Initial Purchaser) shall, no later
than the earlier of (i) 30 days after the delivery of the Exchange Notes
in the Exchange Offer and (ii) the declaration of effectiveness by the SEC
of a Registration Statement covering the resale of all Private Exchange Notes
to be issued and delivered as described in this sentence, issue and deliver to
the Initial Purchaser, in exchange (the “Private Exchange”) for the
Notes held by the Initial Purchaser, a like principal amount of Senior Secured
Notes that are substantially identical to the Exchange Notes except for the
existence of restrictions on transfer thereof under the Securities Act and
securities laws of the several states of the United States (the “Private
Exchange Notes”).  The Company shall
use all reasonable efforts to cause the Private Exchange Notes to bear the same
CUSIP number as the Exchange Notes.

 

(g)            In connection with the Exchange
Offer, the Company shall (and shall cause each Subsidiary Guarantor to):

 

(i)            Mail, or cause to be mailed to each
Holder of record a copy of the Prospectus forming part of the Exchange
Registration Statement, together with an appropriate letter of transmittal that
is an exhibit to the Exchange Offer Registration Statement, and any related
documents;

 

(ii)           keep the Exchange Offer open for
not less than 20 Business Days after the date notice thereof is mailed to the
Holders (or longer if required by applicable law)

 

(iii)          utilize the services of a
depository for the Exchange Offer with an address in the Borough of Manhattan,
the City of New York, which may be the Trustee or an affiliate thereof;

 

(iv)          permit Holders to withdraw tendered
Registrable Notes at any time prior to the close of business, New York time, on
the last Business Day on which the Exchange Offer shall remain open; and

 

(v)           otherwise comply in all material
respects with all applicable laws.

 

(h)            As soon as practicable after the
close of the Exchange Offer or the Private Exchange, as the case may be, the
Company shall (and shall cause each Subsidiary Guarantor to):

 

7

 

(i)            accept for exchange all Registrable
Notes validly tendered pursuant to the Exchange Offer or the Private Exchange,
as the case may be, and not validly withdrawn;

 

(ii)           deliver to the Trustee for
cancellation all Registrable Notes so accepted for exchange; and

 

(iii)          cause the Trustee to authenticate
and deliver promptly to each Holder validly tendering such Registrable
Notes,  Exchange Notes or Private
Exchange Notes, as the case may be, equal in principal amount to the Notes of
such Holder so accepted for exchange; provided, that, in the case
of any Notes held in global form by a depositary,
authentication and delivery to such depositary of one or more replacement
Exchange Notes in global form in an equivalent principal amount thereto for the
account of such Holders in accordance with the Indenture shall satisfy such
authentication and delivery requirement.

 

(i)     The Exchange Notes and the Private
Exchange Notes may be issued under (i) the Indenture or (ii) an
indenture identical to the Indenture (other than such changes as are necessary
to comply with any requirements of the SEC to effect or maintain the
qualification thereof under the TIA), which in either event will provide that
the Exchange Notes will not be subject to the transfer restrictions set forth
in the Indenture, that the Private Exchange Notes will be subject to the
transfer restrictions set forth in the Indenture, and that the Exchange Notes,
the Private Exchange Notes and the Notes, if any, will be deemed one class of
security (subject to the provisions of the Indenture) and entitled to
participate in all the security granted by the Company pursuant to the
Collateral Agreements and in any Subsidiary Guarantee (as such terms are
defined in the Indenture) on an equal and ratable basis.

 

(j)     If:  (i) prior to the consummation of the
Exchange Offer, the Holders of a majority in aggregate principal amount of
Registrable Notes determines in its or their reasonable judgment that the
Exchange Notes would not, upon receipt, be tradeable by the Holders thereof
without restriction under the Securities Act and the Exchange Act and without
material restrictions
under applicable Blue Sky or state securities laws; (ii) because of any
change in law or currently prevailing applicable interpretations of the staff
of the SEC the Company determines upon advice of outside counsel that it is not
permitted to consummate the Exchange Offer prior to the Effectiveness Date; (iii) subsequent
to the consummation of the Private Exchange, any Holder of Private Exchange
Notes so requests; (iv) the Exchange Offer is not consummated within 30
Business Days from the date the Exchange Registration Statement was declared
effective; or (v) in the case of (A) any Holder not permitted by
applicable law or SEC policy to participate in the Exchange Offer, (B) any
Holder participating in the Exchange Offer that receives Exchange Notes that
may not be sold without restriction under state and federal securities laws
(other than due solely to the status of such Holder as an affiliate of the
Company within the meaning of the Securities Act) or (C) any broker-dealer

 

8

 

that holds Notes acquired directly from the Company or
any of its affiliates and, in each such case contemplated by this clause (v),
such Holder notifies the Company (1) within six months of consummation of
the Exchange Offer in the case of a Holder described in subsection (C) of
this clause (v) or (2) as soon as is reasonably practicable and in
any event within 120 days of consummation of the Exchange Offer in the case of
a Holder described in subsection (A) or (B) of this clause (v),
then the Company shall promptly (and in any event within ten Business Days)
deliver to the Holders (or in the case of an occurrence of any event described
in clause (iii) or (v) of this Section 2(j), to any such Holder)
and the Trustee notice thereof (the “Shelf Notice”) and shall as
promptly as possible thereafter (but in no event later than 30 days after
delivery of the Shelf Notice) file an Initial Shelf Registration pursuant to Section 3.

 

3.                  Shelf
Registration

 

If a Shelf Notice is required to be delivered pursuant to clause
(i), (ii) or (iv) of Section 2(j), then this Section 3
shall apply to all Registrable Notes and if a Shelf Notice is required to be
delivered pursuant to clause (iii) of Section 2(j), then this Section 3
shall apply to all Private Exchange Notes. Otherwise, upon consummation of the
Exchange Offer in accordance with Section 2, the provisions of Section 3
shall apply solely with respect to (i) Notes held by any Holder thereof
not permitted to participate in the Exchange Offer, (ii) Notes held by any
broker-dealer that acquired such Notes directly from the Company or any of its
affiliates and (iii) Exchange Notes that are not freely tradeable as
contemplated by Section 2(j)(v) hereof, provided in each case that
the relevant Holder has duly notified the Company within the time period
required by Section 2(j)(v).

 

(a)             Initial Shelf Registration. 
The Company shall (and shall cause each Subsidiary Guarantor to), as
promptly as practicable, file with the SEC a Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415 covering
all of the Registrable Notes (the “Initial Shelf Registration”).  If the Company (and any Subsidiary Guarantor)
has not yet filed an Exchange Registration Statement, the Company shall (and
shall cause each Subsidiary Guarantor to) file with the SEC the Initial Shelf
Registration on or prior to the Filing Date and shall use its commercially
reasonable efforts to cause such Initial Shelf Registration to be declared
effective under the Securities Act on or prior to the Effectiveness Date.  Otherwise, the Company shall (and shall cause
each Subsidiary Guarantor to) use its commercially reasonable efforts to file with
the SEC the Initial Shelf Registration within 30 days of the delivery of the
Shelf Notice and shall use its commercially reasonable efforts to cause such
Shelf Registration to be declared effective under the Securities Act as
promptly as practicable thereafter (but in no event more than 60 days after the
date on which such Initial Shelf Registration Statement was required to be
filed).  The Initial Shelf Registration
shall be on Form S-1 or another appropriate form permitting
registration of such Registrable Notes for resale by Holders in the manner or
manners reasonably designated by them (including, without limitation, one or
more Underwritten Offerings).  The
Company and Subsidiary Guarantors shall not permit any securities other than
the Registrable Notes to be included in any

 

9

 

Shelf
Registration.  The Company shall (and
shall cause each Subsidiary Guarantor to) use its commercially reasonable
efforts to keep the Initial Shelf Registration continuously effective under the
Securities Act until the date which is 24 months from the Closing Date (subject
to extension pursuant to the last paragraph of Section 6(v) (the “Effectiveness
Period”), or such shorter period ending when (i) all Registrable Notes
covered by the Initial Shelf Registration have been sold in the manner set
forth and as contemplated in the Initial Shelf Registration (ii) a
Subsequent Shelf Registration covering all of the Registrable Notes covered by
and not sold under the Initial Shelf Registration or an earlier Subsequent
Shelf Registration has been declared effective under the Securities Act or (iii) there
cease to be any outstanding Registrable Notes.

 

(b)            Subsequent Shelf Registrations. 
If the Initial Shelf Registration or any Subsequent Shelf Registration
(as defined below) ceases to be effective for any reason at any time during the
Effectiveness Period (other than because of the sale of all of the securities
registered thereunder), the Company shall (and shall cause each Subsidiary
Guarantor to) use its commercially reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within 30 days of such cessation of effectiveness amend such Shelf
Registration in a manner necessary to obtain the withdrawal of the order
suspending the effectiveness thereof, or file (and cause each Subsidiary
Guarantor to file) an additional “shelf” Registration Statement pursuant to Rule 415
covering all of the Registrable Notes (a “Subsequent Shelf Registration”).  If a Subsequent Shelf Registration is filed,
the Company shall (and shall cause each Subsidiary Guarantor to) use its
commercially reasonable efforts to cause the Subsequent Shelf Registration to
be declared effective as soon as practicable after such filing and to keep such
Subsequent Shelf Registration continuously effective for a period equal to the
number of days in the Effectiveness Period less the aggregate number of days
during which the Initial Shelf Registration or any Subsequent Shelf
Registration was previously continuously effective.  As used herein the term “Shelf Registration”
means the Initial Shelf Registration and any Subsequent Shelf Registrations.

 

(c)             Supplements and Amendments. 
The Company shall promptly supplement and amend any Shelf Registration (i) if
required by the rules, regulations or instructions applicable to the
registration form used for such Shelf Registration, if required by the
Securities Act, or (ii) if reasonably requested in writing by the Holders of
a majority in aggregate principal amount of the Registrable Notes covered by
such Shelf Registration or by any underwriter of such Registrable Notes and if
upon the advice of counsel the Company deems such supplement or amendment to be
advisable or necessary.

 

(d)            Provision of Information.   
No Holder of Registrable Notes shall be entitled to include any of its
Registrable Notes in any Shelf Registration pursuant to this Agreement unless
such Holder furnishes to the Company and the Trustee in writing, within 20 days
after receipt of a written request therefor, such information as the Company
and the Trustee after conferring with counsel with

 

10

 

regard to
information relating to Holders that would be required by the SEC to be
included in such Shelf Registration or Prospectus included therein (including
the information specified in Item 507 or Item 508 of Regulation S-K, as
applicable), may, from time to time, reasonably request for inclusion in any
Shelf Registration or Prospectus included therein, and no such Holder shall be
entitled to Additional Interest pursuant to Section 4 hereof unless and
until such Holder shall have provided such information. Each Holder
whose Registrable Notes are to be included in a Shelf Registration Statement
agrees to promptly furnish to the Company and the Subsidiary Guarantors any
additional information required to be disclosed in order to make the
information previously furnished to the Company and the Subsidiary Guarantors by
such Holder not materially misleading.

 

4.                  Additional
Interest

 

(a)             The Company and each Subsidiary
Guarantor acknowledges and agrees that the Holders of Registrable Notes will
suffer damages if the Company or any Subsidiary Guarantor fails to fulfill its
material obligations under Section 2 or Section 3 hereof and that it
would not be feasible to ascertain the extent of such damages with precision.
Accordingly, the Company and the Subsidiary Guarantors agree to pay additional
cash interest on the Notes (“Additional Interest”) under the
circumstances and to the extent set forth below:

 

(i)                                     if (A) neither the Exchange
Registration Statement nor the Initial Shelf Registration has been filed with
the SEC on or prior to the Filing Date or (B) notwithstanding that
the Company has consummated or will consummate an Exchange Offer, the Company
is required to file a Shelf Registration Statement and such Shelf Registration
Statement is not filed on or prior to the date required by this Agreement, Additional Interest shall accrue
on the Notes over and above any stated interest at a rate of 0.25% per annum of
the principal amount of such Notes for the first 90 days immediately following
either such required filing date, such Additional Interest rate increasing by
an additional 0.25% per annum at the beginning of each subsequent 90-day
period;

 

(ii)                                  if (A) neither the Exchange
Registration Statement nor the Initial Shelf Registration is declared effective
on or prior to the Effectiveness Date or (B) notwithstanding that the
Company has consummated or will consummate an Exchange Offer, the Company is
required to file a Shelf Registration Statement and such Shelf Registration
Statement is not declared effective by the SEC on or prior to the 60th
day following the date such Shelf Registration Statement was filed, Additional Interest shall accrue
on the Notes over and above any stated interest at a rate of 0.25% per annum of
the principal amount of such Notes for the first 90 days immediately following
either such required effectiveness dates, such Additional Interest rate
increasing by an additional 0.25% per annum at the beginning of each subsequent
90-day period; or

 

11

 

(iii)                               if (A) the Company (and any
Subsidiary Guarantor) has not exchanged Exchange Notes for all Notes validly
tendered and not withdrawn in accordance with the terms of the Exchange Offer
on or prior to the 30 Business Days after the Effectiveness Date, (B) if
applicable, a Shelf Registration has been declared effective and such Shelf
Registration ceases to be effective at any time prior to the second anniversary
of the Closing Date (other than such time as all Notes have been disposed of
thereunder) and is not declared effective again within 30 days, or (C) (x)
pending the announcement of a material corporate transaction or (y) the Company
is required to include financial statements and other information of any
acquired business in any Registration Statement and related Prospectus as a
result of a material acquisition and, despite the best efforts of the Company,
such required financial statements or other information is not available for
inclusion in such Registration Statement or related Prospectus, the Company
issues a written notice pursuant to Section 6(e)(2)(v) or (vi) that
a Shelf Registration Statement or Exchange Registration Statement is unusable
and the aggregate number of days in any 365-day period for which all such
notices issued or required to be issued, have been, or were required to be, in
effect exceeds 120 days in the aggregate or 45 days consecutively, in the case
of a Shelf Registration statement, or 30 days in the aggregate in the case of
an Exchange Registration Statement, then Additional Interest shall accrue on
the Notes, over and above any stated interest, at a rate of 0.25% per annum of
the principal amount of such Notes commencing on (x) the 31st Business Day
after the Effectiveness Date, in the case of (A) above, or (y) the day
such Shelf Registration ceases to be effective in the case of (B) above,
or (z) the day the Exchange Registration Statement or Shelf Registration ceases
to be usable in case of clause (C) above, such Additional Interest rate
increasing by an additional 0.25% per annum at the beginning of each such
subsequent 90-day period;

 

provided, however, that Additional Interest will not
accrue under more than one of the foregoing clauses (i), (ii) or (iii) at
any time; provided  further, however, that the maximum
Additional Interest rate on the Notes may not exceed at any one time in the
aggregate 1.00% per annum; and provided further, that (1) upon the filing of the Exchange
Registration Statement or Initial Shelf Registration (in the case of (i) above),
(2) upon the effectiveness of the Exchange Registration Statement or
Initial Shelf Registration (in the case of (ii) above), or (3) upon
the exchange of Exchange Notes for all Notes tendered (in the case of (iii)(A) above)
or upon the effectiveness of a Shelf Registration which had ceased to remain
effective (in the case of (iii)(B) above), Additional Interest on the
Notes as a result of such clause (or the relevant subclause thereof) or upon
the effectiveness of such Registration Statement or Exchange Registration
Statement (in the case of clause (iii)(C) above), as the case may be,
shall cease to accrue.

 

(b)            The Company shall notify the
Trustee within 3 Business Days after each and every date on which an event
occurs in respect of which Additional Interest is

 

12

 

required to be paid
(an “Event Date”).  Any amounts of
Additional Interest due pursuant to clause (a)(i), (a)(ii) or (a)(iii) of
this Section 4 will be payable in cash,
on the dates and in the manner provided in the Indenture, commencing with the
first such semi-annual interest payment date occurring after any such
Additional Interest commences to accrue. 
The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Notes,
multiplied by a fraction, the numerator of which is the number of days such
Additional Interest rate was applicable during such period (determined on the
basis of a 360-day year comprised of twelve 30-day months and, in
the case of a partial month, the actual number of days elapsed), and the
denominator of which is 360.

 

(c)    The parties hereto agree that the Additional Interest provided
for in this Section 4 constitutes the sole damages that will be suffered
by, and an adequate remedy for, Holders of Registrable Notes by reason of the
occurrence of any of the events described in Section 4(a) above.

 

5.                  Hold-Back
Agreements

 

The Company agrees that it will not effect any public or private
sale or distribution (including a sale pursuant to Regulation D under the
Securities Act) of any securities the same as or similar (it being understood
that debt securities secured on a junior lien basis to the Notes shall not be
deemed similar unless the Company and the managing underwriter (referred to
below) agree otherwise) to those covered by a Registration Statement filed
pursuant to Section 2 or 3 hereof (other than Additional Notes (as defined
in the Indenture) issued under the Indenture), or any securities convertible
into or exchangeable or exercisable for such securities, during the 10 days
prior to, and during the 90-day period beginning on, the effective date
of any Registration Statement filed pursuant to Sections 2 and 3 hereof unless
the Holders of a majority in the aggregate principal amount of the Registrable
Notes to be included in such Registration Statement consent, if the managing
underwriter thereof so requests in writing.

 

6.                  Registration
Procedures

 

In connection with the filing of any Registration Statement
pursuant to Sections 2 or 3 hereof, the Company shall (and shall cause
each Subsidiary Guarantor to) effect such registrations to permit the sale of
such securities covered thereby in accordance with the intended method or
methods of disposition thereof, and pursuant thereto and in connection with any
Registration Statement filed by the Company hereunder, the Company shall (and
shall cause each Subsidiary Guarantor to):

 

(a)             Prepare and file with the SEC on or
prior to the Filing Date, the Exchange Registration Statement or if the
Exchange Registration Statement is not filed because of the circumstances
contemplated by Section 2(j), on or prior to the date required by this
Agreement, a Shelf Registration as prescribed by Section 3, and use its
commercially reasonable efforts to cause each such Registration Statement to
become effective and remain effective as provided herein; provided that, if (1) a Shelf Registration is
filed pursuant to Section 3 or (2) a Prospectus contained in

 

13

 

an Exchange
Registration Statement filed pursuant to Section 2 is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks
to sell Exchange Notes during the Applicable Period relating thereto, before
filing any Registration Statement or Prospectus or any amendments or
supplements thereto the Company shall (and shall cause each Subsidiary
Guarantor to), if requested in writing, furnish to and afford the Holders of
the Registrable Notes to be registered pursuant to such Shelf Registration
Statement, each Participating Broker-Dealer, the managing underwriters, if any,
and each of their respective counsel, a reasonable opportunity to review copies
of all such documents (including copies of any documents to be incorporated by
reference therein and all exhibits thereto) proposed to be filed (in each case
at least 5 Business Days prior to such filing). 
The Company and each Subsidiary Guarantor shall not file any such
Registration Statement or Prospectus or any amendments or supplements thereto
in respect of which the Holders must provide information for the inclusion
therein without the Holders being afforded an opportunity to review such
documentation if the holders of a majority in aggregate principal amount of the
Registrable Notes covered by such Registration Statement, or any such
Participating Broker-Dealer, as the case may be, the managing underwriters, if
any, or any of their respective counsel shall reasonably object in writing on a
timely basis.

 

(b)            Provide an indenture trustee for
the Registrable Notes, the Exchange Notes or the Private Exchange Notes, as the
case may be, and cause the Indenture (or other indenture relating to the
Registrable Notes) to be qualified under the TIA not later than the effective
date of the first Registration Statement; and in connection therewith, to use
its commercially reasonable efforts to effect such changes to such indenture as
may be required for such indenture to be so qualified in accordance with the
terms of the TIA; and execute, and use its commercially reasonable efforts to
cause such trustee to execute, all documents as may be required to effect such
changes, and all other forms and documents required to be filed with the SEC to
enable such indenture to be so qualified in a timely manner.

 

(c)             Prepare and file with the SEC such
pre-effective amendments and post-effective amendments to each Shelf
Registration or Exchange Registration Statement, as the case may be, as may be
necessary to keep such Registration Statement continuously effective for the
Effectiveness Period or the Applicable Period, as the case may be; cause the
related Prospectus to be supplemented by any Prospectus supplement required by
applicable law, and as so supplemented to be filed pursuant to Rule 424
(or any similar provisions then in force) promulgated under the Securities Act;
and comply with the provisions of the Securities Act and the Exchange Act
applicable to them with respect to the disposition of all securities covered by
such Registration Statement as so amended or in such Prospectus as so supplemented
and with respect to the subsequent resale of any securities being sold by a
Participating Broker-Dealer covered by any such Prospectus.  The Company and each Subsidiary Guarantor
shall not, during the Applicable Period, voluntarily take any action that would
result in selling Holders of the Registrable Notes covered by a Registration
Statement or Participating

 

14

 

Broker-Dealers
seeking to sell Exchange Notes not being able to sell such Registrable Notes or
such Exchange Notes during that period, unless such action is required by
applicable law, rule or regulation required or permitted by this
Agreement, the Indenture or the Indenture Documents (as such term is defined in
the Indenture).

 

(d)            If (1) a Shelf Registration is
filed pursuant to Section 3, or (2) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto, (i) upon
the Company’s receipt, a copy of the order of the SEC declaring such
Registration Statement and any post effective amendment thereto effective, (ii) such
reasonable number of copies of such Registration Statement and of each
amendment and supplement thereto (in each case including any documents
incorporated therein by reference and all exhibits) and (iii) such
reasonable number of copies of the Prospectus included in such Registration
Statement (including each preliminary Prospectus) and each amendment and
supplement thereto, and such reasonable number of copies of the final
Prospectus as filed by the Company and each Subsidiary Guarantor pursuant to Rule 424(b) under
the Securities Act, in conformity with the requirements of the Securities Act
and each amendment and supplement thereto. The Company and the Subsidiary
Guarantors hereby consent, subject to the terms of this Agreement, to the use
of the Prospectus by each of the selling Holders of Registrable Notes or each
such Participating Broker-Dealer, as the case may be, and the underwriters or
agents, if any, and dealers, if any, in connection with the offering and sale
of the Registrable Notes covered by, or the sale by Participating Broker-Dealers
of the Exchange Notes pursuant to, such Prospectus and any amendment or
supplement thereto.

 

(e)             If (1) a Shelf Registration is
filed pursuant to Section 3, or (2) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto, the
Company shall notify in writing the selling Holders of Registrable Notes, or each
such Participating Broker-Dealer, as the case may be, the managing
underwriters, if any, and each of their respective counsel promptly (but in any
event within 3 Business Days) (i) when a Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to a
Registration Statement or any post-effective amendment, when the same has
become effective (including in such notice a written statement that any Holder
may, upon request, obtain, without charge, one conformed copy of such
Registration Statement or post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of the issuance by the SEC of any stop
order suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any Prospectus or the initiation of any
proceedings for that purpose, (iii) if at any time when a Prospectus is
required by

 

15

 

the Securities Act
to be delivered in connection with sales of the Registrable Notes, the
representations and warranties of the Company and any Subsidiary Guarantor
contained in any agreement (including any underwriting agreement) contemplated
by Section 6(m) hereof cease to be true and correct in any material
respect, (iv) of the receipt by the Company or any Subsidiary Guarantor of
any notification with respect to the suspension of the qualification or
exemption from qualification of a Registration Statement or any of the
Registrable Notes or the Exchange Notes to be sold by any Participating
Broker-Dealer for offer or sale in any jurisdiction, or the initiation or
threatening of any proceeding for such purpose, (v) of the happening of
any event, the existence of any condition or any information becoming known
that makes any statement made in such Registration Statement or related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any
changes in, or amendments or supplements to, such Registration Statement,
Prospectus or documents so that, in the case of the Registration Statement and
the Prospectus, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading, (vi) of any reasonable determination by the
Company or any Subsidiary Guarantor that a post-effective amendment to a
Registration Statement would be appropriate and (vii) of any request by
the SEC for post-effective amendments to the Registration Statement or
supplements to the Prospectus or for additional information relating thereto.

 

(f)               Use its commercially reasonable
efforts to prevent the issuance of any order suspending the effectiveness of a
Registration Statement or of any order preventing or suspending the use of a
Prospectus or suspending the qualification (or exemption from qualification) of
any of the Registrable Notes or the Exchange Notes to be sold by any
Participating Broker-Dealer, for sale in any jurisdiction, and, if any such
order is issued, to use its commercially reasonable efforts to obtain the
withdrawal of any such order at the earliest possible date.

 

(g)            If (A) a Shelf Registration is
filed pursuant to Section 3, (B) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period or (C) reasonably
requested in writing by the managing underwriters, if any, or the Holders of a
majority in aggregate principal amount of the Registrable Notes being sold in
connection with an Underwritten Offering, (i) use all reasonable efforts
to promptly incorporate in a Prospectus supplement or post-effective amendment
such information or revisions to information therein relating to such underwriters
or selling Holders as the managing underwriters, if any, or such Holders
reasonably request in writing to be included or made therein and (ii) make
all required filings of such Prospectus supplement or such post-effective
amendment as soon as practicable after the Company has received notification of
the matters to be incorporated in such Prospectus supplements or post-effective
amendment.

 

16

 

(h)            Prior to any public offering of
Registrable Notes or any delivery of a Prospectus contained in the Exchange
Registration Statement by any Participating Broker-Dealer who seeks to sell
Exchange Notes during the Applicable Period, use its commercially reasonable
efforts to register or qualify, and to cooperate with the selling Holders of
Registrable Notes or each such Participating Broker-Dealer, as the case may be,
the underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes or Exchange Notes, as the case may be,
for offer and sale under the securities or Blue Sky laws of such jurisdictions
within the United States as any selling Holder, Participating Broker-Dealer or
any managing underwriter or underwriters, if any, reasonably request in
writing; provided that where Exchange Notes held by Participating
Broker-Dealers or Registrable Notes are offered other than through an
Underwritten Offering, the Company and each Subsidiary Guarantor agree to cause
its counsel to perform Blue Sky investigations and file any registrations and
qualifications required to be filed pursuant to this Section 6(h), keep
each such registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept effective
and do any and all other acts or things reasonably necessary or advisable to
enable the disposition in such jurisdictions of the Exchange Notes held by
Participating Broker-Dealers or the Registrable Notes covered by the applicable
Registration Statement; provided that neither the Company nor any
Subsidiary Guarantor shall be required to (A) qualify generally to do
business in any jurisdiction where it is not then so qualified, (B) take
any action that would subject it to general service of process in any such
jurisdiction where it is not then so subject or (C) subject itself to
taxation in any such jurisdiction where it is not then so subject.

 

(i)                If (A) a Shelf Registration is
filed pursuant to Section 3 or (B) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is requested
to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, cooperate with the
selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Notes to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository Trust Company, and enable such Registrable Notes to
be in such denominations and registered in such names as the managing
underwriter or underwriters, if any, or Holders may reasonably request.

 

(j)                If (1) a Shelf Registration is
filed pursuant to Section 3, or (2) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, upon the occurrence
of any event contemplated by paragraph 6(e)(2)(v) or 6(e)(2)(vi) hereof,
as promptly as practicable, prepare and file with the SEC, at the expense of the
Company and the Subsidiary Guarantors, a supplement or post-effective amendment
to the Registration Statement or a supplement to the related

 

17

 

Prospectus or any
document incorporated or deemed to be incorporated therein by reference, or
file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Notes being sold thereunder or to the purchasers
of the Exchange Notes to whom such Prospectus will be delivered by a
Participating Broker-Dealer, such Prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and, if SEC review is
required, use all reasonable efforts to cause such post-effective amendment to
be declared effective as soon as possible.

 

(k)    Use its commercially reasonable
efforts to cause the Registrable Notes covered by a Registration Statement to
be rated with such appropriate rating agencies, if so requested in writing by
the Holders of a majority in aggregate principal amount of the Registrable
Notes covered by such Registration Statement or the managing underwriter or
underwriters, if any.

 

(l)                Prior to the initial issuance of
the Exchange Notes, (i) provide the Trustee with one or more certificates
for the Registrable Notes in a form eligible for deposit with The Depository
Trust Company and (ii) provide a CUSIP number for the Exchange Notes.

 

(m)          If a Shelf Registration is filed pursuant to Section 3, enter
into such customary agreements (including an underwriting agreement in form,
scope and substance as is customary in Underwritten Offerings of debt
securities similar to the Notes, as may be appropriate in the circumstances)
and take all such other actions in connection therewith (including those
reasonably requested in writing by the managing underwriters, if any, or the
Holders of a majority in aggregate principal amount of the Registrable Notes
being sold) in order to expedite or facilitate the registration or the
disposition of such Registrable Notes (provided that the Company shall
have no obligation to enter into an underwriting agreement or permit an Underwritten
Offering unless a request therefor shall have been received by Holders of not
less than a majority of Registrable Notes outstanding), and in such connection,
whether or not an underwriting agreement is entered into and whether or not the
registration is an Underwritten Registration, (i) make such
representations and warranties to the Holders and the underwriters, if any,
with respect to the business of the Company and its subsidiaries as then
conducted, and the Registration Statement, Prospectus and documents, if any,
incorporated or deemed to be incorporated by reference therein, in each case,
in form, substance and scope as are customarily made by issuers to underwriters
in Underwritten Offerings of debt securities similar to the Notes, as may be appropriate
in the circumstances, and confirm the same if and when reasonably required; (ii) obtain
an opinion of counsel to the Company and the Subsidiary Guarantors and updates
thereof which counsel and opinions (in form and substance) shall be reasonably
satisfactory to the managing underwriters, if any, addressed to each of the
underwriters, if any, covering the matters customarily covered in opinions of
counsel to the Company and the Subsidiary Guarantors requested in Underwritten

 

18

 

Offerings of debt
securities similar to the Notes, as may be appropriate in the circumstances; (iii) obtain
“cold comfort” letters and updates thereof (which letters and updates (in form
and substance) shall be reasonably satisfactory to the managing underwriters)
from the independent certified public accountants of the Company and the
Subsidiary Guarantors (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters in connection with
Underwritten Offerings of debt securities similar to the Notes, as may be
appropriate in the circumstances, and such other matters as reasonably
requested in writing by the underwriters; and (iv) deliver such documents
and certificates as may be reasonably requested in writing by the Holders of a
majority in aggregate principal amount of the Registrable Notes being sold and
the managing underwriters, if any, to evidence the continued validity of the
representations and warranties of the Company and its subsidiaries made
pursuant to clause (i) above and to evidence compliance with any
conditions contained in the underwriting agreement or other similar agreement
entered into by the Company or any Subsidiary Guarantor.

 

(n)            If (1) a Shelf Registration is
filed pursuant to Section 3, or (2) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is required to
be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, make available for
inspection by any selling Holder of such Registrable Notes being sold, or each
such Participating Broker-Dealer, as the case may be, any underwriter
participating in any such disposition of Registrable Notes, if any, and any
attorney or accountant or other agent retained (in connection with due
diligence responsibilities) by any such selling Holder or each such
Participating Broker-Dealer, as the case may be, or underwriter (collectively,
the “Inspectors”), at the offices where normally kept, during reasonable
business hours, all financial and other records and pertinent corporate
documents of the Company and its subsidiaries (collectively, the “Records”)
as shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the officers, directors and employees of
the Company and its subsidiaries to supply all information reasonably requested
in writing by any such Inspector in connection with such Registration
Statement; provided, that the foregoing inspection and information
gathering shall be coordinated on behalf of all of the selling Holders and each
such Participating Broker-Dealer by one counsel as may be chosen by the Holders
of a majority in principal amount of Registrable Notes and, if reasonably
requested by the underwriters, if any, by one counsel on behalf of the
underwriters.  Each Inspector shall agree
in writing that it will keep the Records confidential and not disclose any of
the Records unless (i) the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in such Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction, (iii) the

 

19

 

information in
such Records is public or has been made generally available to the public other
than as a result of a disclosure or failure to safeguard by such Inspector or (iv) disclosure
of such information is, in the reasonable written opinion of counsel for any
Inspector, necessary or advisable in connection with any action, claim, suit or
proceeding, directly or indirectly, involving or potentially involving such
Inspector and arising out of, based upon, related to, or involving this
Agreement, or any transaction contemplated hereby or arising hereunder.  Each selling Holder of such Registrable Notes
and each such Participating Broker-Dealer will be required to agree that
information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market
transactions in the securities of the Company unless and until such is made
generally available to the public.  Each
Inspector, each selling Holder of such Registrable Notes and each such
Participating Broker-Dealer will be required to further agree that it will,
upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and, to the extent practicable, use
its commercially reasonable efforts to allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of the Records deemed
confidential at its expense.

 

(o)            Comply with all applicable rules and
regulations of the SEC and make generally available to the security holders of
the Company with regard to any applicable Registration Statement earning
statements satisfying the provisions of section 11(a) of the
Securities Act and Rule 158 thereunder (or any similar rule promulgated
under the Securities Act) no later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is
a fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Notes are sold to underwriters in a firm commitment or best efforts
Underwritten Offering and (ii) if not sold to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of the Company
after the effective date of a Registration Statement, which statements shall
cover said 12-month periods.

 

(p)            Upon consummation of an Exchange
Offer or Private Exchange, obtain an opinion of counsel to the Company and the
Subsidiary Guarantors (in form and substance reasonably satisfactory to the
Initial Purchaser), addressed to the Trustee for the benefit of all Holders
participating in the Exchange Offer or Private Exchange, as the case may be, to
the effect that (i) the Company and the Subsidiary Guarantors have duly
authorized, executed and delivered the Exchange Notes or the Private Exchange
Notes, as the case may be, and the Indenture, (ii) the Exchange Notes or
the Private Exchange Notes, as the case may be, and the Indenture constitute
legal, valid and binding obligations of the Company and the Subsidiary
Guarantors, enforceable against the Company and the Subsidiary Guarantors in
accordance with their respective terms, except as such enforcement may be
subject to customary United States and foreign exceptions and (iii) all
obligations of the Company and the Subsidiary Guarantors under the Exchange
Notes or the Private Exchange Notes, as the case may be, and the Indenture are

 

20

 

secured by Liens (as
defined in the Indenture) on the assets securing the obligations of the Company
and the Subsidiary Guarantors under the Notes, Indenture and Collateral
Agreements to the extent and as discussed in the Registration Statement.

 

(q)            If the Exchange Offer or a Private
Exchange is to be consummated, upon delivery of the Registrable Notes by the
Holders to the Company and the Subsidiary Guarantors (or to such other Person
as directed by the Company and the Subsidiary Guarantors) in exchange for the
Exchange Notes or the Private Exchange Notes, as the case may be, the Company
and the Subsidiary Guarantors shall mark, or caused to be marked, on such
Registrable Notes that the Exchange Notes or the Private Exchange Notes, as the
case may be, are being issued as substitute evidence of the indebtedness
originally evidenced by the Registrable Notes; provided that in no event
shall such Registrable Notes be marked as paid or otherwise satisfied.

 

(r)               Cooperate with each seller of
Registrable Notes covered by any Registration Statement and each underwriter,
if any, participating in the disposition of such Registrable Notes and their
respective counsel in connection with any filings required to be made with the
NASD.

 

(s)             Use its commercially
reasonable efforts to cause all Securities covered by a Registration Statement
to be listed on each securities exchange, if any, on which similar debt
securities issued by the Company are then listed.

 

(t)               Use its commercially reasonable
efforts to take all other steps reasonably necessary to effect the registration
of the Registrable Notes covered by a Registration Statement contemplated
hereby.

 

(u)            The Company may require each seller
of Registrable Notes or Participating Broker-Dealer as to which any
registration is being effected to furnish to the Company such information
regarding such seller or Participating Broker-Dealer and the distribution of
such Registrable Notes as the Company may, from time to time, reasonably
request in writing.  The Company may
exclude from such registration the Registrable Notes of any seller who fails to
furnish such information within a reasonable time (which time in no event shall
exceed 45 days, subject to Section 3(d)) hereof) after receiving such
request.  Each seller of Registrable
Notes or Participating Broker-Dealer as to which any registration is being
effected agrees to furnish promptly to the Company all information required to
be disclosed in order to make the information previously furnished by such
seller not materially misleading.

 

(v)            Each Holder of Registrable Notes
and each Participating Broker-Dealer agrees by acquisition of such Registrable
Notes or Exchange Notes to be sold by such Participating Broker-Dealer, as the
case may be, that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 6(e)(2)(ii), 6(e)(2)(iii),
6(e)(2)(iv), 6(e)(2)(v), or 6(e)(2)(vi), such Holder will

 

21

 

forthwith
discontinue disposition of such Registrable Notes covered by a Registration
Statement and such Participating Broker-Dealer will forthwith discontinue
disposition of such Exchange Notes pursuant to any Prospectus and, in each
case, forthwith discontinue dissemination of such Prospectus until such Holder’s
or Participating Broker-Dealer’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(j), or until it is advised in
writing (the “Advice”) by the Company and the Subsidiary Guarantors that
the use of the applicable Prospectus may be resumed, and has received copies of
any amendments or supplements thereto and, if so directed by the Company and
the Subsidiary Guarantors, such Holder or Participating Broker-Dealer, as the
case may be, will deliver to the Company all copies, other than permanent file
copies, then in such Holder’s or Participating Broker-Dealer’s possession, of
the Prospectus covering such Registrable Notes current at the time of the
receipt of such notice.  In the event the
Company and the Subsidiary Guarantors shall give any such notice, the
Applicable Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the
date when each Participating Broker-Dealer shall have received (x) the copies
of the supplemented or amended Prospectus contemplated by Section 6(j) or
(y) the Advice.

 

7.                  Registration
Expenses

 

(a)             All fees and expenses incident to
the performance of or compliance with this Agreement by the Company and the
Subsidiary Guarantors shall be borne by the Company and the Subsidiary
Guarantors, whether or not the Exchange Offer or a Shelf Registration is filed
or becomes effective, including, without limitation, (i) all registration
and filing fees, including, without limitation, (A) fees with respect to
filings required to be made with the NASD in connection with any Underwritten
Offering and (B) fees and expenses of compliance with state securities or
Blue Sky laws as provided in Section 6(h) hereof (including,
without limitation, reasonable fees and disbursements of counsel in connection
with Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions (x) where the Holders are
located, in the case of the Exchange Notes, or (y) as provided in Section 6(h),
in the case of Registrable Notes or Exchange Notes to be sold by a
Participating Broker-Dealer during the Applicable Period)), (ii) printing expenses,
including, without limitation, expenses of printing Prospectuses if the
printing of Prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or by
any Participating Broker-Dealer during the Applicable Period, as the case may
be, (iii) messenger, telephone and delivery expenses incurred in
connection with the performance of their obligations hereunder, (iv) fees
and disbursements of counsel for the Company, the Subsidiary Guarantors and,
subject to 7(b), the Holders, (v) fees and disbursements of all
independent certified public accountants referred to in Section 6
(including, without limitation, the expenses of any special audit and “cold
comfort” letters required by or

 

22

 

incident to such
performance), (vi) rating agency fees and the fees and expenses
incurred in connection with the listing (if any) of the Securities to be
registered on any securities exchange, (vii) Securities Act liability insurance, if the Company
and the Subsidiary Guarantors desire such insurance, (viii) fees and
expenses of all other Persons retained by the Company and the Subsidiary
Guarantors, (ix) fees and expenses of any “qualified independent
underwriter” or other independent appraiser participating in an offering
pursuant to Section 3 of Schedule E to the By-laws of the NASD, but
only where the need for such a “qualified independent underwriter” arises due
to a relationship with the Company and the Subsidiary Guarantors, (x) internal expenses of the
Company and the Subsidiary Guarantors (including, without limitation, all
salaries and expenses of officers and employees of the Company or the
Subsidiary Guarantors performing legal or accounting duties), (xi) the expense
of any annual audit, (xii) the fees and expenses of the Trustee and the
Exchange Agent and (xiii) the expenses relating to printing, word processing
and distributing all Registration Statements, underwriting agreements,
securities sales agreements, indentures and any other documents necessary in
order to comply with this Agreement.

 

(b)            The Company and the Subsidiary
Guarantors shall reimburse the Holders for the reasonable fees and
disbursements of not more than one counsel (in addition to appropriate legal
counsel) chosen by the Holders of a majority in aggregate principal amount of
the Registrable Notes to be included in any Registration Statement.  The Company and the Subsidiary Guarantors
shall pay all documentary, stamp, transfer or other transactional taxes
attributable to the issuance or delivery of the Exchange Notes or Private
Exchange Notes in exchange for the Notes; provided that the Company
shall not be required to pay taxes payable in respect of any transfer involved
in the issuance or delivery of any Exchange Note or Private Exchange Note in a
name other than that of the Holder of the Note in respect of which such
Exchange Note or Private Exchange Note is being issued.

 

8.                  Indemnification

 

(a)             Indemnification by the Company and
the Subsidiary Guarantors.  The Company and the Subsidiary Guarantors
jointly and severally agree to indemnify and hold harmless each Holder and each
Participating Broker-Dealer selling Exchange Notes during the Applicable
Period, each Person, if any, who controls each such Holder (within the meaning
of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act) and the officers, directors and partners of each such Holder,
Participating Broker-Dealer and controlling person, to the fullest extent
lawful, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable costs of preparation and
reasonable attorneys’ fees as provided in this Section 8) and expenses
(including, without limitation, reasonable costs and expenses incurred in
connection with investigating, preparing, pursuing or defending against any of
the foregoing) (collectively,

 

23

 

“Losses”),
as incurred, arising out of or based upon any untrue or alleged untrue
statement of a material fact contained in any Registration Statement,
Prospectus or form of prospectus, or in any amendment or supplement thereto, or
in any preliminary prospectus, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, but only to the extent, that such Losses are finally judicially
determined by a court of competent jurisdiction in a final, unappealable order,
except insofar as such Losses are solely based upon information relating to
such Holder or Participating Broker-Dealer and furnished in writing to the
Company and the Subsidiary Guarantors (or reviewed and approved in writing) by
such Holder or Participating Broker-Dealer or their counsel expressly for use
therein; provided, however, that the Company and the Subsidiary
Guarantors will not be liable to any Indemnified Party (as defined below) under
this Section 8 to the extent Losses were primarily caused by an untrue
statement or omission or alleged untrue statement or omission that was
contained or made in any preliminary prospectus and corrected in the Prospectus
or any amendment or supplement thereto if (i) any such Losses resulted
from an action, claim or suit by any Person who purchased Registrable Notes or
Exchange Notes which are the subject thereof from such Indemnified Party and (ii) it
is established in the proceeding related to the Loss that such Indemnified
Party failed to deliver or provide a copy of the Prospectus (as amended or
supplemented) to such Person with or prior to the confirmation of the sale of
such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the
Prospectus (as amended or supplemented) was a result of noncompliance by the
Company with Section 6 of this Agreement. 
The Company and the Subsidiary Guarantors also agree to indemnify
underwriters, their officers and directors and each person who controls such
underwriters within the meaning of the Securities Act or Exchange Act to the
same extent as provided above with respect to the indemnification of the
Holders or the Participating Broker-Dealer, if requested by such Holders or
Participating Broker-Dealer.

 

(b)            Indemnification by Holder.  In connection with any Registration
Statement, Prospectus or form of prospectus, any amendment or supplement
thereto, or any preliminary prospectus in which a Holder is participating, such
Holder shall furnish to the Company and the Subsidiary Guarantors in writing
such information as the Company and the Subsidiary Guarantors reasonably
request for use in connection with any Registration Statement, Prospectus or
form of prospectus, any amendment or supplement thereto, or any preliminary
prospectus, and shall indemnify and hold harmless the Company, the Subsidiary
Guarantors, their respective directors and each Person, if any, who controls
the Company and the Subsidiary Guarantors (within the meaning of Section 15
of the Securities Act and Section 20(a) of the Exchange Act), and the
directors, officers and partners of such controlling persons, to the fullest
extent lawful, from and against all Losses arising out of or based upon any
untrue or alleged untrue statement of a material fact contained in any
Registration Statement, Prospectus or form of prospectus or

 

24

 

in any amendment
or supplement thereto or in any preliminary prospectus, or any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading to the extent, but only to the
extent that such losses are finally judicially determined by a court of
competent jurisdiction in a final, unappealable order to have resulted solely
from an untrue statement or alleged untrue statement of a material fact or
omission or alleged omission of a material fact contained in or omitted from
any information so furnished in writing by or on behalf of such Holder to the
Company and the Subsidiary Guarantors expressly for use therein.  Notwithstanding the foregoing, in no event
shall the liability of any selling Holder be greater in amount than such Holder’s
Maximum Contribution Amount (as defined below).

 

(c)             Conduct of Indemnification
Proceedings.  If any proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the party or parties
from which such indemnity is sought (the “Indemnifying Party” or “Indemnifying
Parties”, as applicable) in writing; provided, that the failure to
so notify the Indemnifying Parties shall not relieve the Indemnifying Parties
from any obligation or liability except to the extent (but only to the extent)
that it shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal) that the Indemnifying Parties have been
prejudiced materially by such failure.

 

The Indemnifying Party shall have the right, exercisable by giving
written notice to an Indemnified Party, within 20 Business Days after receipt
of written notice from such Indemnified Party of such proceeding, to assume, at
its expense, the defense of any such proceeding, provided, that an
Indemnified Party shall have the right to employ separate counsel in any such
proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or parties
unless:  (1) the Indemnifying Party
has agreed to pay such fees and expenses; or (2) the Indemnifying Party
shall have failed promptly to assume the defense of such proceeding or shall
have failed to employ counsel reasonably satisfactory to such Indemnified
Party; or (3) the named parties to any such proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying
Party or any of its controlling persons, and such Indemnified Party shall have
been advised by counsel that there may be one or more defenses available to
such Indemnified Party that are in addition to, or in conflict with, those
defenses available to the Indemnifying Party or such controlling person (in
which case, if such Indemnified Party notifies the Indemnifying Parties in
writing that it elects to employ separate counsel at the expense of the
Indemnifying Parties, the Indemnifying Parties shall not have the right to
assume the defense thereof on behalf of the Indemnified Party and the
reasonable fees and expenses of such counsel shall be at the expense of the
Indemnifying Party; it being understood, however, that, the Indemnifying Party
shall not, in connection with any one such proceeding or separate but
substantially similar or related proceedings in the same jurisdiction, arising
out of the same general allegations or circumstances, be liable for the fees
and expenses of more than one separate firm of attorneys (together with
appropriate local counsel) at any time for such Indemnified Party).

 

25

 

No Indemnifying Party shall be liable for any settlement of any
such proceeding effected without its written consent, which shall not be
unreasonably withheld, but if settled with its written consent, or if there be
a final judgment for the plaintiff in any such proceeding, each Indemnifying
Party jointly and severally agrees, subject to the exceptions and limitations
set forth above, to indemnify and hold harmless each Indemnified Party from and
against any and all Losses by reason of such settlement or judgment.  The Indemnifying Party shall not consent to
the entry of any judgment or enter into any settlement that does not include as
an unconditional term thereof the giving by the claimant or plaintiff to each
Indemnified Party of a release, in form and substance reasonably satisfactory
to the Indemnified Party, from all Losses in respect of such proceeding for
which such Indemnified Party would be entitled to indemnification hereunder
(whether or not any Indemnified Party is a party thereto).

 

(d)            Contribution. 
If the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless for any Losses in respect of which this Section 8 would
otherwise apply by its terms (other than by reason of exceptions provided in
this Section 8), then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall have a joint and several obligation
to contribute to the amount paid or payable by such Indemnified Party as a
result of such Losses, (i) in such proportion as is appropriate to
reflect the relative benefits received by the indemnifying party, on the one
hand, and such indemnified party, on the other hand, from the sale of
Registrable Notes, or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party, on the one hand, and such indemnified
party, on the other hand, in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative
fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the
other hand, shall be determined by reference to, among other things, whether
any untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent any such
statement or omission.  The amount paid
or payable by an Indemnified Party as a result of any Losses shall be deemed to
include any legal or other fees or expenses incurred by such party in
connection with any proceeding, to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in Section 8(a) or
8(b) was available to such party.

 

The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 8(d) were determined by pro
rata allocation or by other method of allocation that does not take account of
the equitable considerations referred to in the immediately preceding
paragraph.  Notwithstanding the
provisions of this Section 8(d), a selling Holder shall not be required to
contribute, in the aggregate, any amount in excess of such Holder’s Maximum
Contribution Amount.  A selling Holder’s “Maximum
Contribution Amount” shall equal the excess of (i) the aggregate
proceeds received by such Holder pursuant to the sale of such

 

26

 

Registrable Notes or Exchange Notes over (ii) the aggregate amount
of damages that such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 8(d) are several in proportion to
the respective principal amount of the Registrable Securities held by each
Holder hereunder and not joint.  The
Company’s and Subsidiary Guarantors’ obligations to contribute pursuant to this
Section 8(d) are joint and several.

 

The indemnity and contribution agreements contained in this Section 8
are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

 

9.                  Rules 144
and 144A

 

The Company covenants that it shall (a) file the reports
required to be filed by it (if so required) under the Securities Act and the
Exchange Act in a timely manner and, if at any time the Company is not required
to file such reports, it will, upon the written request of any Holder of
Registrable Notes, make publicly available other information necessary to
permit sales pursuant to Rule 144 and 144A and (b) take such further
action as any Holder may reasonably request in writing, all to the extent
required from time to time to enable such Holder to sell Registrable Notes
without registration under the Securities Act pursuant to the exemptions
provided by Rule 144 and Rule 144A. 
Upon the request of any Holder, the Company shall deliver to such Holder
a written statement as to whether it has complied with such information and
requirements.

 

10.            Underwritten Registrations of
Registrable Notes

 

If any of the Registrable Notes covered by any Shelf Registration
is to be sold in an Underwritten Offering, the investment banker or investment
bankers and manager or managers that will manage the offering will be selected
by the Holders of a majority in aggregate principal amount of such Registrable
Notes included in such offering; provided, however, that such
investment banker or investment bankers and manager or managers must be
reasonably acceptable to the Company.

 

No Holder of Registrable Notes may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s
Registrable Notes on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

 

11.            Miscellaneous

 

(a)             Remedies. In
the event of a breach by either the Company or any of the Subsidiary Guarantors
of any of their respective obligations under this Agreement, each Holder, in
addition to being entitled to exercise all rights provided herein, in the
Indenture or, in the case of the Initial Purchaser, in the

 

27

 

Purchase Agreement, or granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Agreement.  The Company and
the Subsidiary Guarantors agree that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by either the Company
or any of the Subsidiary Guarantors of any of the provisions of this Agreement
and hereby further agree that, in the event of any action for specific
performance in respect of such breach, the Company shall (and shall cause each Subsidiary
Guarantor to) waive the defense that a remedy at law would be adequate.

 

(b)            No Inconsistent Agreements. 
The Company and each of the Subsidiary Guarantors have not entered, as
of the date hereof, and the Company and each of the Subsidiary Guarantors shall
not enter, after the date of this Agreement, into any agreement with respect to
any of its securities that is inconsistent with the rights granted to the
Holders of Securities in this Agreement or otherwise conflicts with the
provisions hereof.  The Company and each
of the Subsidiary Guarantors have not entered and will not enter into any
agreement with respect to any of its securities that will grant to any Person
piggy-back rights with respect to a Registration Statement.

 

(c)             Adjustments Affecting Registrable
Notes.  The Company shall not, directly or
indirectly, take any action with respect to the Registrable Notes as a class
that would adversely affect the ability of the Holders to include such
Registrable Notes in a registration undertaken pursuant to this Agreement.

 

(d)            Amendments and Waivers. 
The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, otherwise than with the prior written consent of the Holders
of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes in circumstances that would adversely affect any
Holders of Registrable Notes; provided, however, that Section 8
and this Section 11(d) may not be amended, modified or supplemented
without the prior written consent of each Holder.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Notes whose
securities are being tendered pursuant to the Exchange Offer or sold pursuant
to a Notes Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable
Notes may be given by Holders of at least a majority in aggregate principal
amount of the Registrable Notes being tendered or being sold by such Holders
pursuant to such Notes Registration Statement.

 

(e)             Notices. 
All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail,
next-day air courier or telecopier:

 

28

 

(i)                                     if to a Holder of Securities or to
any Participating Broker-Dealer, at the most current address of such Holder or
Participating Broker-Dealer, as the case may be, set forth on the records of
the registrar of the Notes, with a copy in like manner to the Initial Purchaser
as follows:

 

Jefferies & Company, Inc.

520 Madison Avenue

12th Floor

New York, New York 10022

Attention: Lloyd H. Feller, Esq.

 

 

with a copy to:

 

Mayer, Brown, Rowe &
Maw LLP

1675 Broadway

New York, New York 10019

Facsimile No.:  (212) 262-1910

Attention:  Ronald S. Brody, Esq.

 

(ii)                                  if to the Initial Purchaser, at the
address specified in Section 11(e)(1);

 

(iii)                               if to the Company or any Subsidiary
Guarantor, as follows:

 

Edgen Corporation

18444 Highland Road

Baton Rouge, Louisiana 70809

Attention: David Laxton, Chief Financial Officer

 

with a copy to:

 

Dechert LLP

30 Rockefeller
Plaza

New York, New York
10112-2200

Attention: Bonnie
A. Barsamian, Esq.

 

All such notices and communications shall be deemed to have been
duly given:  when delivered by hand, if
personally delivered; five Business Days after being deposited in the United
States mail, postage prepaid, if mailed, one business day after being deposited
in the United States mail, postage prepaid, if mailed; one Business Day after
being timely delivered to a next-day air courier guaranteeing overnight
delivery; and when receipt is acknowledged by the addressee, if telecopied.

 

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

 

29

 

(f)               Successors and Assigns. 
This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties hereto, including, without
limitation and without the need for an express assignment, subsequent Holders.

 

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

 

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

 

(i)                Governing Law. 
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAW.  THE COMPANY HEREBY IRREVOCABLY
SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH
OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE
BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY
ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
JURISDICTION OF THE AFORESAID COURTS. 
THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  THE COMPANY IRREVOCABLY CONSENTS, TO THE
FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE
SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO THE COMPANY AT ITS SAID ADDRESS, SUCH SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING. 
NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST THE COMPANY IN ANY OTHER JURISDICTION.

 

(j)                Severability. 
If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions

 

30

 

set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant
or restriction.  It is hereby stipulated
and declared to be the intention of the parties that they would have executed
the remaining terms, provisions, covenants and restrictions without including
any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(k)             Securities Held by the Company or
Its Affiliates.  Whenever the consent or approval of Holders
of a specified percentage of Securities is required hereunder, Securities held
by the Company or its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

(l)                Third Party Beneficiaries. 
Holders and Participating Broker-Dealers are intended third party
beneficiaries of this Agreement and this Agreement may be enforced by such
Persons.

 

(m)          Entire Agreement. 
This Agreement, together with the Purchase Agreement, the Indenture and
the Collateral Agreements, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect
of the subject matter contained herein and therein and any and all prior oral
or written agreements, representations, or warranties, contracts, understanding,
correspondence, conversations and memoranda between the Initial Purchaser on
the one hand and the Company and the Subsidiary Guarantors on the other, or
between or among any agents, representatives, parents, subsidiaries,
affiliates, predecessors in interest or successors in interest with respect to
the subject matter hereof and thereof are merged herein and replaced hereby.

 

31

 

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

 

 

	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Senior Vice President, Chief Financial 

  
	
   

  	
   

  	
           Officer and
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN LOUISIANA
  CORPORATION, as

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN CARBON PRODUCTS GROUP,

  LLC, as Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN ALLOY PRODUCTS GROUP,

  LLC, as Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  
	
   

  	
   

  	
  Title: Treasurer and Secretary

  

 

 

Registration Rights Agreement

 

32

 

	
  ACCEPTED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  JEFFERIES & COMPANY,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Rich Goldenberg

  	
   

  
	
  Name:

  	
  Rich Goldenberg

  	
   

  
	
  Title:

  	
  Managing Director

  	
   

  
				

 

33Exhibit 10.3

 

Execution Version

 

INTERCREDITOR
AGREEMENT

 

THIS INTERCREDITOR AGREEMENT (“Intercreditor
Agreement”) dated as of February 1, 2005, is by and between GMAC
COMMERCIAL FINANCE LLC, a Delaware limited liability company (“GMAC CF”),
as agent for the GMAC Facility Lenders defined below (in such capacity, along
with any successors and assigns acting as agent for the GMAC Facility Debt (as
defined below), the ”GMAC Facility Agent”) and THE BANK OF NEW YORK,
a New York banking corporation, as trustee under the Note Agreement (as defined
below) (in such capacity, the “Trustee”) and collateral agent for the
Noteholders (as defined below) (in such capacity, along with any successors and
assigns acting as agent for the Note Debt (as defined below), the ”Note
Agent”).

 

R E C I T A L S:

 

A.                                   GMAC Facility Agent
and GMAC Facility Lenders have entered into financing arrangements with the GMAC
Borrowers and GMAC Guarantors (as each term is hereinafter defined), pursuant
to which GMAC Facility Lenders have made revolving credit loans to the GMAC Borrowers
and may, upon certain terms and conditions, continue to make revolving credit
loans and provide other financial accommodations to the GMAC Borrowers secured
by a security interest in the Working Capital Collateral (as such term is
hereinafter defined). GMAC Borrowers and GMAC Guarantors may also, in the
future, grant security interests in the Note Collateral (as such term is
hereinafter defined) to GMAC Facility Agent.

 

B.                                     Pursuant to the
Note Agreement (as defined below), the Noteholders have purchased the Notes (as
defined below) issued by Edgen Acquisition Corporation, the obligations for
which were immediately assumed by Edgen Corporation (“Edgen”), as
successor by merger.  The Notes have been
guaranteed by the Note Guarantors and secured by a security interest in the
Collateral.

 

C.                                     GMAC Facility
Agent, on behalf of GMAC Facility Lenders, and Note Agent, on behalf of itself,
the Trustee and the Noteholders, desire to enter into this Intercreditor
Agreement to (i) confirm the relative priorities of the security interests
of GMAC Facility Agent, on behalf of GMAC Facility Lenders, and Note Agent, on
behalf of itself, the Trustee and the Noteholders, in the assets and properties
of the Obligors, and (ii) provide for the orderly sharing among them, in
accordance with such priorities, of the proceeds of such assets and properties
upon any foreclosure thereon or other disposition thereof.

 

In consideration of the mutual benefits
accruing to GMAC Facility Lenders and Noteholders hereunder and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

 

1.                                       DEFINITIONS

 

As used above and in this Intercreditor
Agreement, the following terms shall have the meanings ascribed to them below:

 

 

1.1.                              “Additional
Notes” means any Notes issued under the Indenture after the date of the
Indenture, as part of the same series as the Initial Notes.

 

1.2.                              “Agent”
shall mean each of the GMAC Facility Agent and the Note Agent.

 

1.3.                              “Agreements”
shall mean, collectively, the GMAC Facility Loan Documents and the Note Documents.

 

1.4.                              “Collateral”
shall mean all assets and properties of any kind whatsoever, real or personal,
tangible or intangible and wherever located, of each Obligor, except assets and
properties expressly excluded pursuant to the GMAC Facility Loan Documents or
the Note Documents.

 

1.5.                              “GMAC
Borrowers” shall mean Edgen Carbon Products Group, L.L.C. and Edgen Alloy
Products Group, L.L.C., together with each of their permitted successors and
assigns, including, without limitation, any receiver, trustee or
debtor-in-possession on behalf of such Person or on behalf of any such
permitted successor or assign.

 

1.6.                              “GMAC
Facility Debt” shall mean any and all obligations, liabilities and
indebtedness of every kind, nature and description owing by any Obligor to GMAC
Facility Agent and the GMAC Facility Lenders evidenced by or arising under the
GMAC Facility Loan Documents, whether direct or indirect, absolute or
contingent, joint or several, due or not due, primary or secondary, liquidated
or unliquidated, including principal, interest, charges, fees, costs,
indemnities and expenses, however evidenced, whether as principal, surety,
endorser, guarantor or otherwise, whether now existing or hereafter arising,
whether arising before, during or after the initial or any renewal term of the
GMAC Facility Loan Agreement or after the commencement of any Insolvency
Proceeding with respect to any Obligor (and including, without limitation, the
payment of interest which would accrue and become due but for the commencement
of such Insolvency Proceeding whether or not such interest is allowed or
allowable in whole or in part in any such Insolvency Proceeding).

 

1.7.                              “GMAC
Facility Lenders” shall mean GMAC CF, each of the other lenders now or
hereafter party to the GMAC Facility Loan Agreement, and their successors and
assigns (including any other lender or group of lenders that at any time
succeeds to or refinances, replaces or substitutes for all or any portion of
the GMAC Facility Debt at any time and from time to time).

 

1.8.                              “GMAC
Facility Loan Agreement” shall mean the Amended and Restated Loan and
Security Agreement, dated as of February 1, 2005, among the GMAC Facility
Agent, the GMAC Facility Lenders, the GMAC Borrowers and the GMAC Guarantors,
as the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed or restated.

 

1.9.                              “GMAC
Facility Loan Documents” shall mean the GMAC Facility Loan Agreement and
all agreements, documents and instruments at any time executed and/or delivered
by any Obligor or any other Person with, to or in favor of GMAC Facility Agent
and the GMAC Facility Lenders in connection therewith or related thereto, as
all of the foregoing now exist or may hereafter be amended, modified,
supplemented, extended, renewed or restated.

 

2

 

1.10.                        “GMAC Guarantors”
shall mean any guarantor of the GMAC Facility Debt from time to time, together
with each of their permitted successors and assigns, including, without
limitation, any receiver, trustee or debtor-in-possession on behalf of such
Person or on behalf of any such permitted successor or assign.

 

1.11.                        “Initial Notes” means
the first $105.0 million aggregate principal amount of Notes issued under the Note
Agreement on the date of the Note Agreement.

 

1.12.                        “Insolvency
Proceeding” shall mean, as to any Person, any of the following: (i) any
case or proceeding with respect to such Person under the U.S. Bankruptcy Code
or any other Federal, State or foreign bankruptcy, insolvency, reorganization
or other law affecting creditors’ rights or any other or similar proceedings
seeking any stay, reorganization, arrangement, composition or readjustment of
the obligations and indebtedness of such Person, or (ii) any proceeding
seeking the appointment of any trustee, receiver, liquidator, custodian or
other insolvency official with similar powers with respect to such Person or
any of its assets, or (iii) any proceeding for liquidation, dissolution or
other winding up of the business of such Person, or (iv) any assignment
for the benefit of creditors or any marshalling of assets of such Person.

 

1.13.                        “Insurance
Proceeds” shall mean proceeds or payments from insurance with respect to
any loss, casualty or damage to the Collateral.

 

1.14.                        “Inventory”
shall mean and include as to each Person all of such Person’s now owned or
hereafter acquired goods, merchandise and other personal property, wherever
located, to be furnished under any contract of service or held for sale or
lease, all raw materials, work in process, finished goods and materials and
supplies of any kind, nature or description which are or might be used or
consumed in such Person’s business or used in selling or furnishing such goods,
merchandise and other personal property, all other inventory of such Person,
and all documents of title or other documents representing them.

 

1.15.                        “Lenders”
shall mean, collectively, GMAC Facility Agent, GMAC Facility Lenders, Note
Agent and Noteholders, and their respective successors and assigns, being
sometimes referred to herein individually as a “Lender”.

 

1.16.                        “Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment,
deposit arrangement, security interest, encumbrance (including, but not limited
to, easements, rights of way and the like), lien (statutory or other), security
agreement or transfer intended as security, including without limitation, any
conditional sale or other title retention agreement, the interest of a lessor
under a capital lease or any financing lease having substantially the same
economic effect as any of the foregoing.

 

1.17.                        “Lien
Enforcement Action” means (a) any action by any Lender to foreclose on
the Lien of such Person in any Collateral, (b) any action by any Lender to
take possession of, sell or otherwise realize (judicially or non-judicially)
upon any Collateral (including, without limitation, by setoff or notification
of account debtors but excluding all remittance of collections to blocked
accounts established by or for the benefit of the GMAC Facility Agent and/or
the GMAC Facility Lenders), and/or (c) the commencement by any Lender

 

3

 

of any legal proceedings against any Obligor or with respect to any
Collateral to facilitate the actions described in (a) and (b) above.

 

1.18.                        “Maximum
GMAC Facility Debt” shall mean $25,000,000.

 

1.19.                        “Note
Agreement” shall mean the Indenture dated as of February 1, 2005,
among the Note Agent, the Trustee, the Noteholders, Edgen and the guarantors
party thereto from time to time, as the same now exists or may hereafter be
amended, modified, supplemented, extended, renewed or restated.

 

1.20.                        “Note
Collateral” shall mean all Collateral, excluding the Working Capital
Collateral.

 

1.21.                        “Note
Debt” shall mean all obligations, liabilities and indebtedness of every
kind, nature and description owing by any Obligor to the Note Agent, the
Trustee or any Noteholder evidenced by or arising under the Note Documents,
whether direct or indirect, absolute or contingent, joint or several, due or
not due, primary or secondary, liquidated or unliquidated, including principal,
interest, charges, fees, costs, indemnities and expenses, however evidenced,
whether as principal, surety, endorser, guarantor or otherwise, whether now
existing or hereafter arising, whether arising before, during or after the
initial or any renewal term of the Note Documents or after the commencement of
any Insolvency Proceeding with respect to any Obligor (and including, without
limitation, the payment of interest which would accrue and become due but for
the commencement of such Insolvency Proceeding, whether or not such interest is
allowed or allowable in whole or in part in any such Insolvency Proceeding).

 

1.22.                        “Note
Documents” shall mean the Note Agreement and all agreements, documents and
instruments at any time executed and/or delivered by any Obligor or any other
Person with, to or in favor of the Note Agent, the Trustee or any Noteholder in
connection therewith or related thereto, as all of the foregoing now exist or
may hereafter be amended, modified, supplemented, extended, renewed or
restated.

 

1.23.                        “Noteholders”
shall mean each Person in whose name a Note is registered on the books of the
Registrar (as defined in the Note Agreement).

 

1.24.                        “Note
Guarantors” shall mean any guarantor of the Note Debt from time to time,
together with each of their permitted successors and assigns, including,
without limitation, any receiver, trustee or debtor-in-possession on behalf of
such Person or on behalf of any such permitted successor or assign.

 

1.25.                        “Notes”
means the 9 7/8% Senior Secured Notes due 2011 (including without limitation,
Additional Notes).

 

1.26.                        “Obligors” shall mean,
collectively, the GMAC Borrowers, GMAC Guarantors, Edgen and Note Guarantors, and
shall include each of their permitted successors and assigns, including,
without limitation, a receiver, trustee or debtor-in-possession on behalf of
such Person or on behalf of any such permitted successor or assign (each
individually, an “Obligor”).

 

4

 

1.27.                        “Person”
or “person” shall mean any individual, sole proprietorship, partnership,
corporation (including without imitation, any corporation which elects
subchapter S status under the Internal Revenue Code of 1986, as amended),
limited liability company, limited liability partnership, business trust,
unincorporated association, joint stock company, trust, joint venture, or other
entity or any government or any agency or instrumentality or political
subdivision thereof.

 

1.28.                        “Receivables” shall mean
and include, as to any Person, all accounts (including, without limitation, all
health-care insurance receivables), contract rights, instruments (including
promissory notes and other instruments evidencing indebtedness owed to such
Person by any Affiliate (as defined in the GMAC Facility Loan Agreement) of
such Person), documents, chattel paper (whether tangible or electronic),
general intangibles relating to accounts, drafts and acceptances, and all other
forms of obligations owing to such Person, each of which is arising out of or
in connection with the sale, lease or other disposition of Inventory or the
rendition of services, and all guarantees and other security therefor, whether
secured or unsecured, now existing or hereafter created, and whether or not
specifically sold or assigned to GMAC Facility Agent under the GMAC Facility
Loan Documents.

 

1.29.                        “Release Event” means,
individually and collectively, a Release Event (GMAC) and/or a Release Event
(Note).

 

1.30.                        “Release Event (GMAC)”
means (a) prior to the occurrence of an Insolvency Proceeding by or
against any Obligor: the occurrence and continuance of an Event of Default (as
such term is defined in the GMAC Facility Loan Agreement) or the taking of any
Lien Enforcement Action with respect to the Working Capital Collateral by the
GMAC Facility Agent or the GMAC Facility Lenders, provided that any
Release Event (GMAC) occurring prior to an Insolvency Proceeding by or against
any Obligor shall cease to constitute a Release Event (GMAC) as of the
occurrence of such Insolvency Proceeding if the GMAC Facility Lenders continue
making loans or providing letter of credit accommodations (whether pursuant to
the GMAC Facility Loan Documents or otherwise) or consent to the use of cash
collateral after the occurrence of such Insolvency Proceeding, or (b) after
the occurrence of an Insolvency Proceeding by or against any Obligor: the
occurrence of any of the following: (i) the entry of an order of a
Bankruptcy Court pursuant to Section 363 of the U.S. Bankruptcy Code
authorizing the sale of any portion of any Obligor’s assets or (ii) the
taking of any Lien Enforcement Action described in clauses (a) and (b) of
the definition of such term with respect to Working Capital Collateral by the
GMAC Facility Agent or the GMAC Facility Lenders or the entry of an order of a
Bankruptcy Court pursuant to Section 362 of the U.S. Bankruptcy Code
vacating the automatic stay and authorizing the GMAC Facility Agent or the GMAC
Facility Lenders to take any Lien Enforcement Action with respect to Working
Capital Collateral.

 

1.31.                        “Release Event (Note)”
means (a) prior to the occurrence of an Insolvency Proceeding by or
against any Obligor: the occurrence and continuance of an Event of Default (as
such term is defined in the Note Agreement) or the taking of any Lien
Enforcement Action with respect to the Note Collateral by the Note Agent or the
Noteholders, provided that any Release Event (Note) occurring prior to
an Insolvency Proceeding by or against any Obligor shall cease to constitute a
Release Event (Note) as of the occurrence of such Insolvency Proceeding if the
Noteholders consent to the use of cash collateral after the occurrence of such
Insolvency

 

5

 

Proceeding, or
(b) after the occurrence of an Insolvency Proceeding by or against any
Obligor: the occurrence of any of the following: (i) the entry of an order
of a Bankruptcy Court pursuant to Section 363 of the U.S. Bankruptcy Code
authorizing the sale of any portion of any Obligor’s assets or (ii) the
taking of any Lien Enforcement Action described in clauses (a) and (b) of
the definition of such term with respect to Note Collateral by the Note Agent
or the Noteholders or the entry of an order of a Bankruptcy Court pursuant to Section 362
of the U.S. Bankruptcy Code vacating the automatic stay and authorizing the
Note Agent or the Noteholders to take any Lien Enforcement Action with respect
to Note Collateral.

 

1.32.                        “Stock
Purchase Agreement” shall mean the Stock Purchase Agreement, dated as of December 31,
2004, among Edgen Acquisition Corporation, as Purchaser, Edgen, the
stockholders party thereto as Sellers, and the Sellers’ Representative (as
defined therein).

 

1.33.                        “Working Capital Collateral”
shall mean all Receivables and Inventory of the Obligors, wherever located and whether now in existence or hereafter
arising, together with all of each Obligor’s right, title and interest in and
to (i) all merchandise returned or rejected by Customers (as defined in
the GMAC Facility Loan Agreement), relating to or securing any of the
Receivables; (ii) all of each Obligor’s rights as a consignor, a
consignee, an unpaid vendor, mechanic, artisan, or other lienor, including stoppage in
transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all
supporting obligations and all additional amounts due to any Obligor from any
Customer relating to the Receivables; (iv) all supply agreements and
agreements with Customers with respect to Receivables and Inventory,
indemnification claims under the Acquisition Documents (as defined in the GMAC
Facility Loan Agreement) solely to the extent relating to Receivables and
Inventory, and warranty claims relating to any Inventory; (v) if and when
obtained by any Obligor, all real and personal property of third parties in
which such Obligor has been granted a lien or security interest as security for
the payment or enforcement of Receivables; (vi) commercial tort claims
solely to the extent related to any of the foregoing; and (vii) all Term
Intercompany Notes (as defined in the GMAC Facility Loan Agreement) required
under the terms of Section 6.11(ii) of the GMAC Facility Loan
Agreement to be secured by the security agreement described in such Section;
all of each Obligor’s ledger sheets, ledger cards, files, correspondence,
records, books of account, business papers, computer software (owned by any
Obligor or in which it has an interest), computer programs, tapes, disks and
documents relating to any of the foregoing; and all proceeds and products of
all of the foregoing in whatever form, including, but not limited to: cash,
deposit accounts (whether or not comprised solely of proceeds), certificates of
deposit, Insurance Proceeds (including hazard, flood and credit insurance),
negotiable instruments and other instruments for the payment of money, chattel
paper, security agreements, documents, eminent domain proceeds, condemnation
proceeds and tort claim proceeds.

 

1.34.                        All terms
defined in the Uniform Commercial Code as in effect in the State of New York,
unless otherwise defined herein shall have the meanings set forth therein.  All references to any term in the plural
shall include the singular and all references to any term in the singular shall
include the plural.

 

6

 

2.                                       SECURITY
INTERESTS; PRIORITIES; REMEDIES

 

2.1.                              GMAC
Facility Agent hereby acknowledges that Note Agent, for the benefit of itself,
the Trustee and the Noteholders, has been granted Liens upon all of the
Collateral pursuant to the Note Documents to secure the Note Debt.  Note Agent hereby acknowledges that GMAC
Facility Agent, for the benefit of the GMAC Facility Lenders, (a) has been
granted Liens upon all of the Working Capital Collateral pursuant to the GMAC
Facility Loan Documents to secure the GMAC Facility Debt and (b) may, at
the option of one or more Obligors, be granted Liens upon the Note Collateral
pursuant to the GMAC Facility Loan Documents to secure the GMAC Facility Debt.

 

2.2.                              Notwithstanding
the order or time of attachment, or the order, time or manner of perfection, or
the order or time of filing or recordation of any document or instrument, or
other method of perfecting a Lien in favor of each Agent in any Collateral, and
notwithstanding any conflicting terms or conditions which may be contained in
any of the Agreements, the Liens of GMAC Facility Agent with respect to the
Working Capital Collateral to the extent that such Liens secure the GMAC
Facility Debt have and shall have priority over the Liens of Note Agent with
respect to the Working Capital Collateral and such Liens are and shall be
junior and subordinate to the Liens of GMAC Facility Agent with respect to the
Working Capital Collateral to the extent that such Liens secure the GMAC
Facility Debt, in each case to the extent such Liens of GMAC Facility Agent are
valid, perfected and enforceable.  Notwithstanding
the order or time of attachment, or the order, time or manner of perfection, or
the order or time of filing or recordation of any document or instrument, or
other method of perfecting a Lien in favor of each Agent in any Collateral, and
notwithstanding any conflicting terms or conditions which may be contained in
any of the Agreements, the Liens of Note Agent with respect to the Note
Collateral to the extent that such Liens secure the Note Debt have and shall
have priority over the Liens of GMAC Facility Agent with respect to the Note Collateral
and such Liens are and shall be junior and subordinate to the Liens of Note
Agent with respect to the Note Collateral to the extent that such Liens secure
the Note Debt, in each case to the extent such Liens of Note Agent are valid,
perfected and enforceable.

 

2.3.                              The
priorities of the Liens provided in Section 2.2 shall not be altered or
otherwise affected by any amendment, modification, supplement, extension,
renewal, restatement, replacement or refinancing of the GMAC Facility Debt or
the Note Debt, nor by any action or inaction which any of the Lenders may take
or fail to take in respect of the Collateral. 
GMAC Facility Agent agrees not to subordinate, or otherwise voluntarily
relinquish the benefits of, its Lien in any Working Capital Collateral to the
Lien, indebtedness or claim of any other creditor of any Obligor without the
prior written consent of Note Agent. 
Note Agent agrees not to subordinate, or otherwise voluntarily
relinquish the benefits of, its Lien in any Note Collateral to the Lien,
indebtedness or claim of any other creditor of any Obligor without the prior
written consent of GMAC Facility Agent.

 

2.4.                              Subject
to Sections 2.2 and 2.9, (w) after the occurrence and during the continuance of
an Event of Default (as defined in the GMAC Facility Loan Documents) of which
GMAC Facility Agent has provided written notice to the Note Agent in accordance
with Section 4.7 (provided that the foregoing notice shall be deemed to
have been given automatically upon Edgen’s issuance of a Change of Control
Offer (as defined in Section 4.10 of the Note

 

7

 

Agreement)), (x) after the occurrence and during the continuance of an
Event of Default (as defined in the Note Documents) of which Note Agent has
provided written notice to GMAC Facility Agent in accordance with Section 4.7,
(y) after the exercise of remedies by GMAC Facility Agent and/or Note Agent
and/or (z) after the acceleration by the GMAC Facility Agent of any GMAC
Facility Debt or the acceleration by Note Agent or any Noteholder of any Note
Debt,(A) (i) all proceeds of Working Capital Collateral and (ii) all
Insurance Proceeds in connection with a casualty event with respect to Working
Capital Collateral shall each be applied to the GMAC Facility Debt prior to the
application of any such proceeds to the Note Debt; and (B) (i) all
proceeds of Note Collateral and (ii) Insurance Proceeds in connection with
a casualty event with respect to Note Collateral shall each be applied to the
Note Debt prior to the application of any such proceeds to the GMAC Facility
Debt; provided, however, that in all other cases such proceeds
shall be applied (I) with respect to Working Capital Collateral, as set forth
in the GMAC Facility Loan Agreement, and (II) with respect to Note Collateral,
as set forth in the Note Agreement.  All
proceeds of (x) the Working Capital Collateral received by GMAC Facility Agent
or the GMAC Facility Lenders after the GMAC Facility Debt has been paid in full
in cash and the GMAC Facility Loan Documents have been irrevocably terminated shall
be forthwith paid over, in the funds and currency received, to the Note Agent
for application to the Note Debt (unless otherwise required by law) and (y) the
Note Collateral received by Note Agent after the Note Debt has been paid in
full in cash shall be forthwith paid over, in the funds and currency received,
to the GMAC Facility Agent for application to the GMAC Facility Debt (but only
to the extent that the GMAC Facility Agent has a Lien therein and unless
otherwise required by law).  For purposes
of this Section 2.4, payments made by the Obligors to Note Agent and the Noteholders
in respect of the Note Debt with proceeds of loans by GMAC Facility Lenders to GMAC
Borrowers shall not be construed to constitute proceeds of Working Capital Collateral.

 

2.5.                              Neither
Agent shall be responsible to the other Agent for perfecting or maintaining the
perfection of any Lien in and to any item constituting the Collateral in which the
other Agent has been granted a Lien.  The
foregoing provisions of this Intercreditor Agreement are intended solely to
govern the respective Lien priorities as between the Agents and shall not
impose on either Agent any obligations in respect of the disposition of
proceeds of any Collateral which would conflict with prior perfected claims
therein in favor of any other Person or any order or decree of any court or
governmental authority or any applicable law. 
Subject to the terms of this Intercreditor Agreement, Note Agent agrees
that it will not contest (and will not support any other Person in contesting) the
validity, perfection, priority or enforceability of the Liens of GMAC Facility
Agent in the Collateral and GMAC Facility Agent agrees that it will not contest
(and will not support any other Person in contesting) the validity, perfection,
priority or enforceability of the Liens of Note Agent in the Collateral.

 

2.6.                              In
the event that either Agent shall, in the exercise of its rights under its
Agreements or otherwise, receive possession or control of any books and records
of any Obligor which contain information identifying or pertaining to any
Collateral in which the other Agent has been granted a Lien, the Agent shall
notify the other Agent that it has received such books and records and shall,
as promptly as practicable thereafter, make available to the Agent such books
and records for inspection and duplication, provided that all reasonable
out-of-pocket expenses incurred by the Agent in connection with making such
books and records available to the other Agent shall be paid by the recipient Agent.

 

8

 

2.7.                              Subject
to the terms and conditions set forth in this Intercreditor Agreement, GMAC
Facility Agent shall have the exclusive right to manage, perform and enforce its
rights and remedies with respect to the Working Capital Collateral, to exercise
and enforce all privileges and rights with respect thereto according to its
discretion and the exercise of its business judgment, including, without
limitation, the exclusive right to take or retake control or possession of such
Working Capital Collateral and to hold, prepare for sale, process, sell, lease,
dispose of, or liquidate such Working Capital Collateral. Subject to the terms
and conditions set forth in this Intercreditor Agreement, Note Agent shall have
the exclusive right to manage, perform and enforce its rights and remedies with
respect to the Note Collateral, to exercise and enforce all privileges and
rights with respect thereto according to its discretion and the exercise of its
business judgment, including, without limitation, the exclusive right to take
or retake control or possession of such Note Collateral and to hold, prepare
for sale, process, sell, lease, dispose of, or liquidate such Note Collateral.

 

2.8.                              (A)                              Notwithstanding
anything to the contrary contained in any of the Agreements but subject to
Sections 2.9 and 2.10, prior to the time when GMAC Facility Lenders shall
have received payment in full of all GMAC Facility Debt in cash and the GMAC
Facility Loan Documents shall have been irrevocably terminated, during the
continuance of a Release Event (GMAC) only the GMAC Facility Agent and the GMAC
Facility Lenders shall have the right to restrict or permit, or approve or
disapprove, the sale, transfer or other disposition of the Working Capital Collateral.
In addition, the Obligors and the Lenders agree that any Asset Sale (as such
term is defined in the Note Agreement) with respect to the sale, casualty or
other disposition of Working Capital Collateral requiring a mandatory redemption
of the Note Debt under Section 4.11 of the Note Agreement shall also
require a mandatory prepayment under Section 2.13 of the GMAC Facility
Loan Agreement.

 

(B)                                Notwithstanding
anything to the contrary contained in any of the Agreements but subject to
Sections 2.9 and 2.10, prior to the time when Noteholders shall have
received payment in full of all Note Debt in cash, during the continuance of a
Release Event (Note) only the Note Agent and the Noteholders shall have the
right to restrict or permit, or approve or disapprove, the sale, transfer or
other disposition of the Note Collateral.

 

2.9.                              (A) Note
Agent shall, at any time during the continuance of a Release Event (GMAC):

 

(a)                                  upon the request of
the GMAC Facility Agent with respect to the Working Capital Collateral
identified in such request as set forth below (which request shall specify the
proposed terms of the sale and the type and amount of consideration to be
received in connection therewith), release or cause to be released, or
otherwise terminate or cause to be terminated, its Liens on such Working
Capital Collateral, to the extent such Working Capital Collateral is to be sold
or otherwise disposed of either by (i) the GMAC Facility Agent or its
agents, or (ii) any Obligor with the consent of the GMAC Facility Agent or
the GMAC Facility Lenders;

 

9

 

(b)                                 deliver
such release documents as the GMAC Facility Agent may reasonably require (which
shall be prepared by the GMAC Facility Agent at its expense) in connection
therewith; provided that:

 

(i)                                     such release shall
not extend to or otherwise affect any of the rights of the Note Agent and the
Noteholders to the proceeds from any such sale or other disposition of Working
Capital Collateral, except to the extent such proceeds are applied in
accordance with Section 2.9(A)(b)(ii),

 

(ii)                                  the GMAC Facility
Agent and the GMAC Facility Lenders Lender shall promptly apply such proceeds
as specified in the GMAC Facility Loan Agreement,

 

(iii)                               if any such sale or
disposition results in a surplus after application of the proceeds to the GMAC
Facility Debt, such surplus shall be paid to the Note Agent, the Trustee and
the Noteholders, and

 

(iv)                              no such release documents
shall be delivered (A) to any Obligor or (B) more than two (2) business
days prior to the date of the closing of the sale or disposition of such
Working Capital Collateral; provided, further, that if the
closing of the sale or disposition of such Working Capital Collateral is not
consummated within five (5) business days of the proposed date of the
closing of the sale or disposition of the Working Capital Collateral, the GMAC
Facility Agent shall promptly return all release documents to the Note Agent;
and

 

(c)                                  be deemed to have
consented under the Agreements to which the Note Agent is a party to such sale
or other disposition.

 

(B)                                GMAC Facility Agent
shall, at any time during the continuance of a Release Event (Notes):

 

(a)                                  upon the request of
the Note Agent with respect to the Note Collateral identified in such request
as set forth below (which request shall specify the proposed terms of the sale
and the type and amount of consideration to be received in connection
therewith), release or cause to be released, or otherwise terminate or cause to
be terminated, its Liens on such Note Collateral, to the extent such Note Collateral
is to be sold or otherwise disposed of either by (i) the Note Agent or its
agents, or (ii) any Obligor with the consent of the Note Agent or the
Noteholders;

 

(b)                                 deliver
such release documents as the Note Agent may reasonably require (which shall be
prepared by the Note Agent at its expense) in connection therewith; provided
that:

 

(i)                                     such release shall
not extend to or otherwise affect any of the rights of the GMAC Facility Agent
and the GMAC Facility Lenders to the proceeds from any such sale or other
disposition of Note Collateral, except to the extent such proceeds are applied in
accordance with Section 2.9(B)(b)(ii),

 

10

 

(ii)                                  the Note Agent and
the Noteholders shall promptly apply such proceeds as specified in the Note
Documents,

 

(iii)                               if any such sale or
disposition results in a surplus after application of the proceeds to redeem the
Note Debt in full in cash, such surplus shall be paid to the GMAC Facility Agent
and the GMAC Facility Lenders, and

 

(iv)                              no such release documents
shall be delivered (A) to any Obligor or (B) more than two (2) business
days prior to the date of the closing of the sale or disposition of such Note Collateral;
provided, further, that if the closing of the sale or disposition
of such Note Collateral is not consummated within five (5) business days
of the proposed date of the closing of the sale or disposition of the Note Collateral,
the Note Agent shall promptly return all release documents to the GMAC Facility
Agent; and

 

(c)                                  be deemed to have
consented under the Agreements to which the GMAC Facility Agent is a party to
such sale or other disposition.

 

The effectiveness of any such release or termination by the GMAC
Facility Agent and/or the Note Agent shall be subject to the sale or other
disposition of the Collateral described in such request and on the terms
described in such request or on substantially similar terms and shall lapse in
the event such sale or other disposition does not occur within five (5) business
days of the anticipated closing date.  In
any sale or other disposition of any of the Collateral by an Agent, such Agent
shall conduct such sale or other disposition in a commercially reasonable
manner.  Subject to the immediately
preceding sentence, each Agent waives any and all rights to affect the method
or challenge the appropriateness of any such action by the other Agent.  Each Agent hereby irrevocably appoints the
other Agent as its attorney-in-fact (coupled with an interest) to execute and
deliver (at the appointing Agent’s sole cost and expense) all instruments,
releases and other agreements that are, in the other Agent’s good faith
judgment, necessary or appropriate to effect the appointing Agent’s compliance
with this Section 2.9; provided, however, that each Agent
agrees not to exercise any of its rights under the foregoing appointment unless
and until such Agent shall have requested in writing the delivery of the
subject release documents pursuant to the terms and conditions of this Section 2.9
and the appointing Agent shall not have complied promptly with its obligations
under this Section 2.9 (with promptness to be measured given the
circumstances of the subject sale or disposition transaction).

 

2.10.                        (A)                              Except
as specifically provided in this Section 2.10 and subject to the
provisions of Section 2.2, notwithstanding any rights or remedies
available to Note Agent under any of the Note Documents, applicable law or
otherwise, prior to the time that GMAC Facility Lenders shall have received the
payment in full of all GMAC Facility Debt in cash and the GMAC Facility Loan
Documents shall have been irrevocably terminated, Note Agent shall not,
directly or indirectly, take any Lien Enforcement Action with respect to any of
the Collateral.  In the event of any
Event of Default (as defined in the Note Agreement), commencing on the date
which is (x) ninety (90) days after the date the Collateral Agent gives notice
to the GMAC Facility Agent of the occurrence of such Event of Default under the
Note Documents and/or (y) ninety (90) days after (I) the Collateral Agent gives
notice to the GMAC Facility Agent of the occurrence of such Event of Default
under the Note Documents and (II) the

 

11

 

Note Agent delivers a written declaration to the GMAC Facility Agent
that the Note Agent and/or the Noteholders intend to take Lien Enforcement
Action with respect to such Event of Default (unless any Obligor is subject to
an Insolvency Proceeding by reason of which any Lien Enforcement Action is
stayed, in which case, commencing on the date of the commencement of such
Insolvency Proceeding),

 

then, upon five (5) business days prior written notice to GMAC
Facility Agent (which notice may be given by Note Agent separately from, but at
any time after the delivery by Note Agent of, the written declaration and
written demand referred to above), the Note Agent and/or the Noteholders may
take action to enforce their Liens (i) on the Note Collateral in the event
that the declaration set forth in clause (x) above has been delivered and (ii) on
any Collateral in the event that the declaration set forth in clause (y) above
has been delivered, but (with respect to the enforcement of Liens on the
Working Capital Collateral) only so long as GMAC Facility Agent is not
diligently pursuing in good faith the exercise of its enforcement rights or
remedies against, or diligently attempting to vacate any stay or enforcement of
its Liens on, the Working Capital Collateral (including, without limitation,
any of the following: commencement of a Lien Enforcement Action with respect to
the Working Capital Collateral, solicitation of bids from third parties to
conduct the liquidation of the Working Capital Collateral, the engagement or
retention of sales brokers, marketing agents, investment bankers, accountants,
auctioneers or other third parties for the purpose of valuing, marketing,
promoting and selling the Working Capital Collateral, notification of accounts
debtors to make payments to GMAC Facility Agent or its agents, any action to
take possession of the Working Capital Collateral or commencement of any legal
proceedings or actions against or with respect to the Working Capital Collateral).  In any sale or other disposition of any of
the Collateral by the Note Agent, the Note Agent shall conduct such sale or
other disposition in a commercially reasonable manner.  Subject to the immediately preceding
sentence, the GMAC Facility Agent waives any and all rights to affect the
method or challenge the appropriateness of any such action by the Note
Agent.  Subject to the provisions of Section 2.2,
all proceeds from any sale or other disposition of the Working Capital Collateral
under this Section 2.10 shall be applied as specified in Section 2.4
hereof.  The GMAC Facility Agent does not
hereby waive its right to foreclose its Lien after any sale by the Note Agent
under its Lien.  The Note Agent shall
hold any proceeds of the Lien in the Working Capital Collateral in trust for
the GMAC Facility Agent and shall turn over such proceeds to be applied as
provided in the GMAC Facility Loan Documents.  In the event Note Agent has commenced any
actions to enforce its Lien on any Collateral to the extent permitted hereunder
and is diligently pursuing such actions, GMAC Facility Agent shall not take any
action of a similar nature with respect to such Collateral, subject to the
rights of GMAC Facility Agent under Section 2.11.

 

(B)                                Except as specifically
provided in this Section 2.10 and subject to the provisions of Section 2.2,
notwithstanding any rights or remedies available to GMAC Facility Agent under
any of the GMAC Facility Loan Documents, applicable law or otherwise, prior to
the time that Noteholders shall have received the payment in full of all Note Debt
in cash, GMAC Facility Agent shall not, directly or indirectly, take any Lien
Enforcement Action with respect to any of the Note Collateral.  In the event of any Event of Default (as
defined in the GMAC Facility Loan Agreement), commencing on the date which is one
hundred and fifty (150) days after the date the GMAC Facility Agent gives
notice to the Note Agent of such Event of Default under the GMAC Facility Loan Documents
(unless any Obligor is subject to an

 

12

 

Insolvency Proceeding by reason of which any Lien Enforcement Action is
stayed, in which case, commencing on the date of the commencement of such
Insolvency Proceeding),

 

then, upon five (5) business days prior written notice to Note
Agent (which notice may be given by GMAC Facility Agent separately from, but at
any time after the delivery by GMAC Facility Agent of, the written notice
referred to above), the GMAC Facility Agent and/or the GMAC Facility Lenders may
take action to enforce their Liens on the Note Collateral but only so long as Note
Agent is not diligently pursuing in good faith the exercise of its enforcement
rights or remedies against, or diligently attempting to vacate any stay or
enforcement of its Liens on, the Note Collateral (including, without
limitation, any of the following: 
commencement of a Lien Enforcement Action with respect to the Note Collateral,
solicitation of bids from third parties to conduct the liquidation of the Note Collateral,
the engagement or retention of sales brokers, marketing agents, investment
bankers, accountants, auctioneers or other third parties for the purpose of
valuing, marketing, promoting and selling the Note Collateral, any action to
take possession of the Note Collateral or commencement of any legal proceedings
or actions against or with respect to the Note Collateral).  In the event GMAC Facility Agent has
commenced any actions to enforce its Lien on any Note Collateral to the extent
permitted hereunder and is diligently pursuing such actions, Note Agent shall
not take any action of a similar nature with respect to such Collateral.  In any sale or other disposition of any of
the Note Collateral by the GMAC Facility Agent, the GMAC Facility Agent shall
conduct such sale or other disposition in a commercially reasonable
manner.  Subject to the immediately
preceding sentence, the Note Agent waives any and all rights to affect the
method or challenge the appropriateness of any such action by the GMAC Facility
Agent.  Subject to the provisions of Section 2.2,
all proceeds from any sale or other disposition of the Note Collateral under
this Section 2.10 shall be applied as specified in Section 2.4
hereof.  The Note Agent does not hereby
waive its right to foreclose its Lien after any sale by the GMAC Facility Agent
under its Lien.  The GMAC Facility Agent
shall hold any proceeds of the Lien in the Note Collateral in trust for the Note
Agent and shall turn over such proceeds to be applied as provided in the Note Documents.  Except as set forth in the last sentence of Section 2.10(A),
nothing in this Section 2.10 shall limit or affect the exercise of rights
and remedies by the GMAC Facility Agent against the Working Capital Collateral.

 

2.11.                        In
the event Note Agent or any Noteholder shall acquire control or possession of
any Collateral consisting of real property (the “Premises”) or shall,
through the exercise of remedies under the Note Documents or otherwise, sell
any of the Premises to any third party (a “Third Party Purchaser”), such
Note Agent and/or Noteholder shall permit GMAC Facility Agent (or use its
commercially reasonable efforts to require as a condition of such sale to the
Third Party Purchaser that the Third Party Purchaser agree to permit GMAC
Facility Agent) at its option to enter any of the Premises under such control
or possession (or sold to a Third Party Purchaser) in order to inspect, remove
or take any action with respect to the Working Capital Collateral (including
manufacturing or processing raw materials or work-in-process into finished
inventory) or to enforce GMAC Facility Agent’s rights with respect thereto,
including, but not limited to, the examination and removal of Working Capital
Collateral and the examination and duplication of any Collateral under such
control or possession (or sold to a Third Party Purchaser) consisting of books
and records of Obligors related to the Working Capital Collateral or to
otherwise handle, deal with or dispose of any Working Capital Collateral, such
right to include, without limiting the generality of the foregoing, the right
to conduct one or

 

13

 

more public or private sales or auctions on any premises included as
part of the Collateral.  Without limiting
the foregoing, Note Agent will not interfere with, or prevent GMAC Facility
Agent from entering the Premises of any Obligor as permitted under the GMAC
Facility Agreement at any time
prior to Note Agent acquiring control or possession of any of the Collateral.

 

2.12.                        The
rights of GMAC Facility Agent set forth in Section 2.11 above with respect
to any Premises shall continue until the date one hundred and twenty (120) days
after the date GMAC Facility Agent receives written notice from Note Agent that
Note Agent has control or possession of such Premises (except, that such
one hundred twenty (120) day period shall be reduced to ninety (90) days to the
extent that such Premises are the subject of an executed bona  fide
contract of sale pursuant to which possession of such Premises is required to
be delivered to the purchaser thereof prior to the expiration of such 120 day
period).  The time periods set forth
herein shall be tolled during the pendency of any proceeding of Obligor under
the U.S. Bankruptcy Code or other proceedings pursuant to which both GMAC
Facility Agent and the Note Agent are effectively stayed from enforcing their
rights against the Collateral.  In no
event shall Note Agent take any action
to interfere, limit or restrict the rights of GMAC Facility Agent, or the
exercise of such rights by GMAC Facility Agent to have access to such Premises
under such possession or control prior to the expiration of such periods.

 

2.13.                        Solely
for the period of actual occupation and control by GMAC Facility Agent, its
agents or representatives, of the Premises during the access and use period
permitted by Section 2.12 above, GMAC Facility Agent shall (a) repair
at its expense any physical damage to such Premises resulting from any act or
omission of GMAC Facility Agent or its agents or representatives pursuant to
such access, occupancy, use or control of such Premises and (b) leave the Premises
in a condition substantially
similar to the condition of such Premises prior to the date of the commencement
of the use thereof by GMAC Facility Agent.

 

2.14.                        (a)                                  GMAC
Facility Agent shall indemnify and hold harmless Note Agent from and against (a) any
loss, liability, claim, damage or expense (including reasonable fees and
expenses of legal counsel) arising out of any claim asserted by any third party
as a result of any acts or omissions by GMAC Facility Agent, or any of its
agents or representatives, in connection with the exercise by GMAC Facility
Agent of the rights of access set forth in Section 2.12 above, (b) any
damage to any Collateral caused by any act of GMAC Facility Agent or its agents
or representatives (other than employees of any Obligor unless any such employee
of the Obligor is acting on behalf of GMAC Facility Agent) and (c) any
injury resulting from any release of hazardous materials on such Premises or
arising in connection with the investigation, removal, clean-up and/or
remediation of any hazardous material at such Premises caused by the access,
occupancy, use or control of such Premises by GMAC Facility Agent, or any of
its agents or representatives.  In no
event shall GMAC Facility Agent have any liability to Note Agent or any Third
Party Purchaser pursuant to this Section 2.14 or otherwise as a result of
any condition on or with respect to such Premises existing prior to the date of
the exercise by GMAC Facility Agent of its rights under Section 2.12 and GMAC
Facility Agent shall have no duty or liability to maintain such Premises in a
condition or manner better than that in which it was maintained prior to the access
and/or use thereof by GMAC Facility Agent.

 

14

 

(b)                                 For any period during
which Note Agent controls or possesses any of the Premises in which any Working
Capital Collateral is located, Note Agent shall indemnify and hold harmless
GMAC Facility Agent from and against any damage to any Working Capital
Collateral solely to the extent of any damage caused by the gross negligence or
willful misconduct of Note Agent or its agents or representatives (other than
employees of the Obligor unless any such employee is acting on behalf of Note
Agent).

 

2.15.                        Notwithstanding
any contrary provision of any of the GMAC Facility Loan Documents or Note Documents,
the Lenders agree as follows with respect to any insurance on the Collateral:

 

(a)                                  Each
Lender agrees that the other Lender shall be entitled to obtain loss payee
endorsements and additional insured status with respect to all policies of
insurance now or hereafter obtained by any Obligor insuring casualty or other
loss to any property of the Obligors in which either Lender may have a Lien,
and, in connection therewith, to file claims, settle disputes, make adjustments
and take any and all other actions otherwise then permitted to each party
hereto in regard thereto which it may then deem advisable with respect to any
Collateral in which it has a Lien. The rights and priorities of the Lenders to
any Insurance Proceeds shall be as provided in this Agreement.

 

(b)                                 Any
Insurance Proceeds with respect to the Working Capital Collateral shall be
deemed part of the Working Capital Collateral, and the rights and priorities of
the Lenders to any Insurance Proceeds with respect to the Working Capital Collateral
shall be the same as with respect to the Working Capital Collateral.

 

(c)                                  Any
Insurance Proceeds with respect to the Note Collateral shall be deemed part of
the Note Collateral, and the rights and priorities of the Lenders to any
Insurance Proceeds with respect to the Note Collateral shall be the same as
with respect to the Note Collateral.

 

2.16.                        Section 2.10
shall not be construed to in any way limit or impair the right of: (i) any
Lender to bid for (but not, credit bid if the making of such credit bid or the
consummation of such credit bid would result in the Lien of the GMAC Facility
Agent or the Note Agent, as the case may be, being terminated, released or subordinated
to any Person) or purchase Collateral at any private or judicial foreclosure
upon such Collateral initiated by any Lender, (ii) Note Agent to join (but
not control) any foreclosure or other judicial lien enforcement proceeding with
respect to the Working Capital Collateral initiated by GMAC Facility Agent, so
long as it does not delay or interfere with the exercise by GMAC Facility Agent
of its rights as provided in this Intercreditor Agreement, (iii) Note Agent’s
and Noteholders’ right to receive any remaining proceeds of Working Capital Collateral
after satisfaction and payment in full in cash of all GMAC Facility Debt and
the irrevocable termination of the GMAC Facility Loan Documents, (iv) GMAC
Facility Agent to join (but not control) any foreclosure or other judicial lien
enforcement proceeding with respect to the Note Collateral initiated by Note
Agent, so long as it does not delay or interfere with the exercise by Note
Agent of its rights as provided in this Intercreditor Agreement, and (v) GMAC
Facility

 

15

 

Agent’s and GMAC Facility Lenders’ right to receive any remaining
proceeds of Note Collateral after satisfaction and payment in full in cash of
all Note Debt.

 

2.17.                        If
GMAC Facility Lenders should honor a request by any GMAC Borrower for a loan,
advance or other financial accommodation under the GMAC Facility Loan
Documents, whether or not GMAC Facility Lenders have knowledge that such loan,
advance or other financial accommodation will be used for a purpose which would
result in an event of default, or act, condition or event which with notice or
passage of time or both would constitute an event of default under the Note Documents,
in no event shall GMAC Facility Lenders have any liability to Note Agent and/or
the Noteholders as a result of such breach, and without limiting the generality
of the foregoing, Note Agent, on behalf of itself and the Noteholders, agrees
that GMAC Facility Lenders shall not have any liability for tortious
interference with contractual relations or for inducement by GMAC Facility
Lenders of any Borrower to breach of contract or otherwise.  Nothing contained in this Section 2.17
shall limit or waive any right that Note Agent has to enforce any of the
provisions of the Note Documents against any Obligor.

 

2.18.                        Each Agent
shall give to the other Agent concurrently with the giving thereof to any
Obligor, a copy of any written notice by such Agent of (x) an event of
default under its Agreements, (y) demand of payment, or (z) at any time an
event of default under such Agent’s Agreements exists stating such Agent’s
intention to exercise any of its enforcement rights or remedies, including
written notice pertaining to any foreclosure on any of the Collateral or other
judicial or non-judicial remedy in respect thereof to the extent permitted
hereunder, and any legal process served or filed in connection therewith; provided
that the failure of either Agent to give notice as required hereby shall not
affect the relative priorities of the Agents’ respective Liens as provided herein
or the validity or effectiveness of any such notice as against any Obligor.

 

3.                                       NOTEHOLDERS’
PURCHASE OPTION

 

3.1.                              Upon
the occurrence and during the continuance of (i) an acceleration of the
GMAC Facility Debt under the GMAC Facility Loan Agreement; or (ii) a Lien
Enforcement Action on the part of the GMAC Facility Agent, any or all of the
Noteholders, acting as a single purchaser group, shall have the option at any
time upon five (5) business days prior written notice (each such notice, a
“Note Agent Notice”) from Note Agent to GMAC Facility Agent to purchase all of
the GMAC Facility Debt from the GMAC Facility Lenders.  Such Note Agent Notice to GMAC Facility Agent
shall be irrevocable.

 

3.2.                              On
the date specified by Note Agent in such Note Agent Notice (which shall not be less
than five (5) business days, nor more than ten (10) business days, after
the receipt by GMAC Facility Agent of the Note Agent Notice from Note Agent of
the election by the Noteholders to exercise such option), GMAC Facility Lenders
shall sell to Noteholders, and Noteholders shall purchase from GMAC Facility
Lenders, the GMAC Facility Debt.  The
GMAC Facility Agent hereby represents and warrants that, as of the date hereof,
no approval of any court or other regulatory or governmental authority is
required for such sale.

 

3.3.                              Upon
the date of such purchase and sale, Noteholders shall (i) pay to GMAC
Facility Agent as the purchase price therefor (the “Purchase Price”) the full
amount of

 

16

 

the GMAC Facility Debt then outstanding and unpaid (including
principal, interest, fees and expenses, including reasonable attorneys’ fees
and legal expenses but excluding any early termination fee or prepayment fee), (ii) furnish
cash collateral to GMAC Facility Agent in such amounts as GMAC Facility Agent
determines is reasonably necessary to secure GMAC Facility Lenders in
connection with any issued and outstanding letters of credit provided by GMAC
Facility Agent (or letters of credit that GMAC Facility Agent has arranged to
be provided by third parties pursuant to the financing arrangements of GMAC
Facility Lenders with any Obligor) to any Obligor (but not in any event in an
amount greater than 105% of the aggregate undrawn face amount of such letters
of credit), (iii) agree to reimburse GMAC Facility Lenders for any loss,
cost, damage or expense (including reasonable attorneys’ fees and legal
expenses) in connection with any commissions, fees, costs or expenses related
to any issued and outstanding letters of credit as described above and any
checks or other payments provisionally credited to the GMAC Facility Debt,
and/or as to which GMAC Facility Lenders have not yet received final
payment,  (iv) agree to pay to GMAC
Facility Lenders any early termination fee or prepayment fee payable in
connection with the GMAC Facility Loan Document within three (3) business
days of the receipt of same by the Note Agent and/or Noteholders, after the
payment in full in cash to Noteholders of the Note Debt and the GMAC Facility
Debt purchased by Noteholders pursuant to this Section 3, including
principal, interest and fees thereon and costs and expense of collection
thereof (including reasonable attorneys’ fees and legal expenses, but excluding
any early termination fee (whether owing under the GMAC Facility Loan Documents
or the Note Documents) or prepayment fee (whether owing under the GMAC Facility
Loan Documents or the Note Documents)), provided that (x) the notice of
termination is received by the Note Agent or (y) the effective date of
termination occurs, within ninety (90) days after the effective date of the
purchase of the GMAC Facility Debt by the Noteholders.  Such purchase price and cash collateral shall
be remitted by wire transfer in federal funds to such bank account of GMAC
Facility Agent, as GMAC Facility Agent may designate in writing to Note Agent
for such purpose.  Interest shall be
calculated to but excluding the business day on which such purchase and sale
shall occur if the amounts so paid by Noteholders to the bank account
designated by GMAC Facility Agent are received in such bank account no later
than 1:00 p.m., New York City time and interest shall be calculated to and
including such business day if the amounts so paid to the bank account
designated by GMAC Facility Agent are received in such bank account later than
1:00 p.m., New York City time.

 

3.4.                              Such
purchase shall be expressly made without representation or warranty of any kind
by GMAC Facility Lenders as to the GMAC Facility Debt or otherwise and without
recourse to GMAC Facility Lenders, except that GMAC Facility Lenders shall
represent and warrant: (i) the amount of the GMAC Facility Debt being
purchased, (ii) that GMAC Facility Lenders will transfer the GMAC Facility
Debt to the Noteholders Lenders free and clear of any Liens or encumbrances and
(iii) GMAC Facility Lenders have the right to assign the GMAC Facility
Debt and the assignment is duly authorized.

 

17

 

4.                                       MISCELLANEOUS

 

4.1                                 Representations.

 

(a)                                  Note Agent represents
and warrants to GMAC Facility Agent and GMAC Facility Lenders that:

 

(i)                                     the
execution, delivery and performance of this Intercreditor Agreement by Note Agent
is within the powers of Note Agent pursuant to the Note Agreement, has been
duly authorized by Note Agent, and, to its knowledge without independent
investigation, does not contravene any law or any provision of any of the Note Documents;

 

(ii)                                  this
Intercreditor Agreement constitutes the legal, valid and binding obligations of
Note Agent, enforceable in accordance with its terms and shall be binding on
it; and

 

(iii)                               the Note Agent is
authorized by and has been directed by the Noteholders to enter into this
Intercreditor Agreement on behalf of the Noteholders.

 

(b)                                 GMAC Facility Agent
hereby represents and warrants to Note Agent and Noteholders that:

 

(i)                                     the
execution, delivery and performance of this Intercreditor Agreement by GMAC
Facility Agent is within the powers of GMAC Facility Agent, has been duly
authorized by GMAC Facility Agent and does not contravene any law, any
provision of the GMAC Facility Loan Documents or any agreement to which GMAC
Facility Agent is a party or by which it is bound;

 

(ii)                                  this
Intercreditor Agreement constitutes the legal, valid and binding obligations of
GMAC Facility Agent, enforceable in accordance with its terms and shall be
binding on it; and

 

(iii)                               the
GMAC Facility Agent is authorized by the GMAC Facility Lenders to enter into
this Intercreditor Agreement on behalf of the GMAC Facility Lenders.

 

4.2                                 Amendments.  Any waiver, permit, consent or approval by
either Agent of or under any provision, condition or covenant to this
Intercreditor Agreement must be in writing and shall be effective only to the
extent it is set forth in writing and as to the specific facts or circumstances
covered thereby.  Any amendment of this
Intercreditor Agreement must be in writing and signed by GMAC Facility Agent
and Note Agent.  Promptly after the
execution of any amendment to any of the Agreements, the applicable Agent
signatory to such amendment agrees to use commercially reasonable efforts to
notify the other Agent of such amendment.

 

18

 

4.3                                 Successors and
Assigns.

 

(a)                                  This Intercreditor
Agreement shall be binding upon each of the Agents and its respective
successors and assigns and shall inure to the benefit of each of the Agents and
its respective successors, participants and assigns.

 

(b)                                 To the extent permitted
in their respective Agreements, each of the Lenders reserves the right to grant
participations in, or otherwise sell, assign, transfer or negotiate all or any
part of, or any interest in, the GMAC Facility Debt or the Note Debt, as the
case may be; provided that neither Agent shall be obligated to give any
notices to or otherwise in any manner deal directly with any participant in the
GMAC Facility Debt or the Note Debt, as the case may be, and no participant
shall be entitled to any rights or benefits under this Intercreditor Agreement
except through the Lender with which it is a participant, and any sale of a
participation in either the GMAC Facility Debt or the Note Debt shall be
expressly made subject to the provisions of this Intercreditor Agreement
(including, without limitation, Section 3).

 

(c)                                  In connection with
any participation or other transfer or assignment, a Lender (i) may,
subject to its respective Agreement, disclose to such assignee, participant or
other transferee or assignee all documents and information which such Lender
now or hereafter may have relating to any Obligor or the Collateral and (ii) shall
disclose to such participant or other transferee or assignee the existence and
terms and conditions of this Intercreditor Agreement.

 

(d)                                 In the case of an
assignment or transfer, the assignee or transferee acquiring any interest in
the Note Debt or the GMAC Facility Debt, as the case may be, shall execute and
deliver to each of the Agents, at the request of the Agents, a written
acknowledgment of receipt of a copy of this Intercreditor Agreement and the
written agreement by such Person to be bound by the terms of this Intercreditor
Agreement.

 

(e)                                  In connection with
any assignment or transfer of any or all of the rights of GMAC Facility Agent
or any refinancing of the GMAC Facility Debt, Note Agent agrees to execute and
deliver an agreement identical to this Intercreditor Agreement (subject to
changing names of parties, documents and addresses, and the modification of
defined terms and section references, in each case as appropriate) in
favor of any such assignee or transferee and, in addition, will execute and
deliver an agreement identical to this Intercreditor Agreement (subject to
changing names of parties, documents and addresses, as appropriate) in favor of
any third Person who succeeds to or refinances, replaces or substitutes for any
or all of GMAC Facility Agent’s rights whether such successor or replacement
financing occurs by transfer, assignment, “takeout” or any other means or
vehicle.  In connection with any
assignment or transfer of any or all of the rights of Note Agent, GMAC Facility
Agent agrees to execute and deliver an agreement identical to this
Intercreditor Agreement (subject to changing names of parties, documents and
addresses, as appropriate) in favor of any such assignee or transferee and, in
addition, will execute and deliver an agreement identical to this Intercreditor
Agreement (subject to changing names of parties, documents and addresses, as
appropriate) in favor of any third Person who succeeds to or refinances,
replaces or substitutes for any or all of Note Agent’s rights

 

19

 

whether such successor or replacement financing occurs by transfer,
assignment, “takeout” or any other means or vehicle.

 

4.4                                 Insolvency.  (a) This Intercreditor Agreement shall
be applicable both before and after any Insolvency Proceeding, to include the
filing of any petition by or against any Obligor under the U.S. Bankruptcy Code
and all converted or succeeding cases in respect thereof, and all references
herein to an Obligor shall be deemed to apply to the trustee for such Obligor
and such Obligor as debtor-in-possession. 
The relative rights of GMAC Facility Agent and the GMAC Facility
Lenders, on the one hand, and Note Agent and the Noteholders, on the other
hand, in or to any distributions from or in respect of any Collateral or
proceeds of Collateral, shall continue after the filing thereof on the same
basis as prior to the date of the petition, subject to any court order
approving the financing of, or use of cash collateral by, the Obligors, or any
of them, as debtor(s)-in-possession.

 

(b)                                 If, in any Insolvency
Proceeding, debt obligations of any reorganized Obligor secured by Liens upon
any property of the reorganized Obligor are distributed, both on account of the
GMAC Facility Debt and the Note Debt, then, to the extent the debt obligations
distributed on account of the GMAC Facility Debt and the Note Debt are secured
by Liens upon the same property or type of property, the provisions of this
Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such
obligations.

 

(c)                                  Neither the Note
Agent nor any Noteholders will assert or enforce, until the GMAC Facility Debt
is paid in full in cash (and any commitments under the GMAC Facility Loan
Agreement are terminated), any claim under §506(c) of the United States
Bankruptcy Code senior to or on a parity with the Liens of the GMAC Facility
Agent on the Working Capital Collateral for costs or expenses of preserving or
disposing of any Collateral.

 

4.5                                 Bankruptcy
Financing.

 

(a)                                  If any Obligor shall
become subject to any Insolvency Proceeding, to include a case under the U.S.
Bankruptcy Code and if as debtor(s)-in-possession move for approval of
financing to be provided in good faith by GMAC Facility Agent and/or any of the
GMAC Facility Lenders (collectively, the “DIP Lender”) under Section 364
of the U.S. Bankruptcy Code or the use of cash collateral with the consent of
the DIP Lender under Section 363 of the U.S. Bankruptcy Code, Note Agent,
on behalf of Noteholders, agrees that no objection will be raised by Noteholders
to any such financing on the grounds of a failure to provide “adequate
protection” for the Liens of Note Agent so long as (A) the interest rate,
fees, advance rates, lending sublimits and limits and other terms are
commercially reasonable under the circumstances, (B) Note Agent retains a
Lien on the Collateral (including proceeds thereof arising after the
commencement of such proceeding) with the same priority as existed prior to the
commencement of the case under the U.S. Bankruptcy Code, which for avoidance of
doubt is a subordinate Lien to the Lien of the GMAC Facility Agent in the
Working Capital Collateral securing the GMAC Facility Debt, including any
debtor-in-possession financing which complies with this Section 4.5, (C) Note
Agent receives a replacement Lien on post-petition assets to the same extent
granted to the DIP Lender, with the same priority as existed prior to the
commencement of the case under the U.S. Bankruptcy Code, which for avoidance of
doubt is a

 

20

 

subordinate Lien to the Lien of the GMAC Facility Agent in the Working
Capital Collateral  securing the GMAC
Facility Debt, including any debtor-in-possession financing which complies with
this Section 4.5, (D) neither the GMAC Facility Agent or any Lender
(including the DIP Lender) shall receive any Liens (including replacement
Liens) on any post-petition assets constituting Note Collateral (including
proceeds of any assets constituting Note Collateral arising after the
commencement of the proceeding in connection with such Insolvency or
Liquidation Proceedings) unless such Liens are subordinated to the Liens
(including replacement Liens) of the Agent with the same priority as existed
prior to the commencement of the proceeding in connection with such Insolvency
or Liquidation Proceedings pursuant to the terms of this Intercreditor
Agreement, (E) the aggregate principal amount of loans and letter of
credit accommodations outstanding under such post-petition financing, together
with the aggregate principal amount of the pre-petition GMAC Facility Debt
shall not exceed the Maximum GMAC Facility Debt, and (F) as between the
GMAC Facility Agent and the GMAC Facility Lenders, on the one hand, and the Note
Agent and the Noteholders, on the other hand, such financing or use of cash
collateral is subject to the terms of this Intercreditor Agreement.

 

(b)                                 Nothing contained
herein shall be deemed to limit the rights of the Noteholders to object to
post-petition financing or use of cash collateral on any grounds other than the
failure to provide “adequate protection” for the Liens of the Note Agent.

 

(c)                                  For purposes of this Section 4.5,
notice of a proposed financing or use of cash collateral shall be deemed given
when given in accordance with Section 4.7.

 

4.6                                 Agent for
Perfection.  Each Agent hereby
appoints the other Agent as agent for the purposes of perfecting such Agent’s
Liens in and on any of the Collateral in the possession or control of the other
Agent and each other Agent hereby agrees to such appointment; provided
that the Agent in the possession or control of any Collateral shall not have
any duty or liability to protect or preserve any rights pertaining to any of
the Collateral and, except for gross negligence or willful misconduct as
determined pursuant to a final non-appealable order of a court of competent
jurisdiction, the non-possessing or non-controlling Agent hereby waives and
releases the other Agent from, all claims and liabilities arising pursuant to
the possessing or controlling Agent’s role as agent with respect to the
Collateral, so long as the possessing or controlling Agent shall use the same
degree of care with respect thereto as the possessing or controlling Agent uses
for similar property pledged to the possessing or controlling Agent as
collateral for indebtedness of others to the possessing or controlling Agent.  After GMAC Facility Lenders have received
final payment in full of all of the GMAC Facility Debt and the GMAC Facility
Loan Documents have been irrevocably terminated, GMAC Facility Agent shall
deliver the remainder of the Collateral, if any, in its possession to Note Agent,
except as may otherwise be required by applicable law or court order. After
Noteholders have received final payment in full of all of the Note Debt, Note
Agent shall (to the extent that GMAC Facility Agent has a Lien therein) deliver
the remainder of the Collateral, if any, in its possession to GMAC Facility
Agent, except as may otherwise be required by applicable law or court order.

 

4.7                                 Notices.  All notices, requests and demands to or upon
the respective parties hereto shall be in writing and shall be deemed duly
given, made or received:  if delivered in
person, immediately upon delivery; if by facsimile transmission, immediately
upon sending and upon confirmation of receipt; if by nationally recognized
overnight courier service with

 

21

 

instructions to deliver the next business day, one (1) business
day after sending; and if mailed by certified mail, return receipt requested five
(5) days after mailing to the parties at their addresses set forth below
(or to such other addresses as the parties may designate in accordance with the
provisions of this Section 4.7):

 

	
  To GMAC Facility Agent:

  	
   

  	
  GMAC Commercial Finance LLC

  1290 Avenue of the Americas, 3rd Floor

  New York, NY 10104

  Attention:Portfolio Manager/Edgen

  Facsimile:  (212) 884-7692

  Telephone: (212) 884-7000

  
	
   

  	
   

  	
   

  
	
  With copies to:

  	
   

  	
  GMAC Commercial Finance LLC

  1290 Avenue of the Americas, 3rd Floor

  New York, NY 10104

  Attention:Scott Yablonowitz, Esq.

  Facsimile:  (212) 884-7693

  Telephone: (212) 884-7187

  
	
   

  	
   

  	
   

  
	
  And:

  	
   

  	
  Hahn & Hessen LLP

  488 Madison Avenue

  New York, NY 10022

  Attention:Leonard Lee Podair, Esq.

  Facsimile:  (212) 478-7400

  Telephone: (212) 478-7200

  
	
   

  	
   

  	
   

  
	
  To Note Agent or the Trustee:

  	
   

  	
  The Bank of New York

  101 Barclay Street

  Floor 8W

  New York, New York 10286

  Attn: Corporate Trust Administration

  Facsimile:  (212) 815-5707

  Telephone: (212) 815-4770

  
	
   

  	
   

  	
   

  
	
  With copies to:

  	
   

  	
  Jefferies & Company, Inc.

  520 Madison Avenue, 12th Floor

  New York, New York 10022

  Attn: Lloyd H. Feller, Esq.

  Facsimile: (212)

  
	
   

  	
   

  	
   

  
	
  And:

  	
   

  	
  Mayer, Brown, Rowe & Maw LLP

  1675 Broadway

  New York, New York 10019-5820

  Attn: Ronald S. Brody, Esq.

  Facsimile: (212) 262-1910

  

 

22

 

Either Agent may change the address(es) to which all notices, requests
and other communications are to be sent by giving written notice of such
address change to the other Agent in conformity with this Section 4.7, but
such change shall not be effective until notice of such change has been received
by the other Agent.

 

4.8                                 Waiver of
Marshalling. Each Lender hereby waives any right to require the other
Lender to marshal any security or collateral or otherwise to compel the other
Lender to seek recourse against or satisfaction of the indebtedness and
obligations owed to it from one source before seeking recourse or satisfaction
from another source.

 

4.9                                 Counterparts.  This Intercreditor Agreement may be executed
in any number of counterparts, each of which shall be an original with the same
force and effect as if the signatures thereto and hereto were upon the same
instrument.

 

4.10                           Governing Law.  The validity, construction and effect of this
Intercreditor Agreement shall be governed by the internal laws of the State of
New York (without giving effect to principles of conflicts of law).

 

4.11                           Consent to Jurisdiction;
Waiver of Jury Trial.  EACH PARTY
HERETO HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF THE SUPREME COURT
OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY (INCLUDING ITS APPELLATE
DIVISION), AND OF ANY OTHER APPELLATE COURT IN THE STATE OF NEW YORK, FOR THE
PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
INTERCREDITOR AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. 
EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS INTERCREDITOR AGREEMENT OR
IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO IN RESPECT OF THIS INTERCREDITOR AGREEMENT, WHETHER NOW EXISTING
OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.

 

4.12                           Complete Agreement.  This written Intercreditor Agreement is
intended by the parties as a final expression of their agreement and is
intended as a complete statement of the terms and conditions of their agreement
with respect to the subject matter hereof.

 

4.13                           No Third Parties
Benefited.  Except as expressly
provided in Section 4.3 and consents which are deemed to have been given
under Section 2.9, this Intercreditor Agreement is solely for the benefit
of the Agents and their respective successors, participants and assigns, and no
other Person shall have any right, benefit, priority or interest under, or
because of the existence of, this Intercreditor Agreement.

 

23

 

4.14                           Disclosures; Non-Reliance.  Each Agent has the means to, and shall in the
future remain, fully informed as to the financial condition and other affairs
of the Obligors and neither Agent shall have any obligation or duty to disclose
any such information to the other Agent. 
Except as expressly set forth in this Intercreditor Agreement, the
parties hereto have not otherwise made to each other nor do they hereby make to
each other any warranties, express or implied, nor do they assume any liability
to each other with respect to: (a) the enforceability, validity, value or
collectability of any of the Note Debt or the GMAC Facility Debt or any
guarantee or security which may have been granted to any of them in connection
therewith, (b) any Obligor’s title to or right to transfer any of the
Collateral, or (c) any other matter except as expressly set forth in this
Intercreditor Agreement.

 

4.15                           Terms.  This Intercreditor Agreement is a continuing
agreement and shall remain in full force and effect until the payment in full
of the GMAC Facility Debt and Note Debt and the irrevocable termination of the respective
Agreements.

 

[THE REMAINDER OF THIS PAGE HAS
INTENTIONALLY BEEN LEFT BLANK.]

 

24

 

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

 

	
   

  	
  GMAC COMMERCIAL FINANCE LLC,

  
	
   

  	
  as GMAC Facility Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank DiCeglie

  	
   

  
	
   

  	
   

  	
  Name: Frank DiCeglie

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  not in its individual capacity, but solely
  as

  
	
   

  	
  Trustee and Note Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  Geovanni Barris

  	
   

  
	
   

  	
   

  	
  Name: Geovanni Barris

  
	
   

  	
   

  	
  Title: Vice President

  
						

 

25

 

Each of the undersigned hereby acknowledges
and agrees to the foregoing terms and provisions.  By its signature below, each of the
undersigned agrees that it will, together with its successors and assigns, be
bound by the provisions hereof.

 

Each of the undersigned agrees that either
Agent holding Collateral does so as agent (under the UCC) for the other Agent
which has a Lien on such Collateral and is hereby authorized to and may turn
over to such other Agent upon request therefor any such Collateral, after all
obligations and indebtedness of the undersigned to such Agent have been fully
paid and performed.

 

Each of the undersigned acknowledges and
agrees that: (i) although it may sign this Intercreditor Agreement it is
not a party hereto and does not and will not receive any right, benefit,
priority or interest under or because of the existence of this Intercreditor
Agreement (except for a consent which is deemed to have been given by Note Agent
under Section 2.9), and (ii) it will execute and deliver such
additional documents and take such additional action as may be necessary or
desirable in the reasonable opinion of either Agent to effectuate the
provisions and purposes of this Intercreditor Agreement.

 

	
   

  	
  EDGEN CARBON PRODUCTS GROUP, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Title: Secretary and Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EDGEN ALLOY PRODUCTS GROUP, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Title: Secretary and Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Secretary, Chief Financial Officer and
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EDGEN LOUISIANA CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Name: David L. Laxton, III

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Secretary, Chief Financial Officer and
  Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

26

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