Document:

EXHIBIT
10.1

 

EXECUTION
COPY

 

ROCKWOOD
SPECIALTIES GROUP, INC.

 

Company

 

ADVANTIS TECHNOLOGIES, INC.

ALPHAGARY
CORPORATION

CERAMTEC NORTH AMERICA INNOVATIVE CERAMIC ENGINEERING CORPORATION

CHEMETALL
CORPORATION

CHEMETALL CHEMICAL
PRODUCTS INC.

CHEMETALL FOOTE
CORP.

CHEMICAL
SPECIALTIES, INC.

COMPUGRAPHICS U.S.A. INC.

CYANTEK
CORPORATION

ELECTROCHEMICALS INC.

EXSIL, INC. 

FOOTE CHILE HOLDING COMPANY

LUREX, INC.

OAKITE PRODUCTS,
INC.

ROCKWOOD AMERICA
INC.

ROCKWOOD PIGMENTS NA, INC.

ROCKWOOD
SPECIALTIES INC.

RS FUNDING CORPORATION

RW HOLDING CORP.

SACHTLEBEN
CORPORATION

SOUTHERN CLAY
PRODUCTS, INC.

SOUTHERN COLOR N.A., INC.

 

Guarantors

 

and

 

THE BANK OF NEW
YORK

 

Trustee

 

Indenture

 

Dated as of
November 10, 2004

 

 

€375,000,000
7.625% Senior Subordinated Notes due 2014

 

$200,000,000
7.500% Senior Subordinated Notes due 2014

 

 

ROCKWOOD
SPECIALTIES GROUP, INC.*

 

Reconciliation
and tie between Trust Indenture Act

of 1939 and Indenture, dated as of July 23, 2003

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310(a)(1)

  	
   

  	
  608

  	
   

  
	
  (a)(2)

  	
   

  	
  608

  	
   

  
	
  (b)

  	
   

  	
  609

  	
   

  
	
  § 312(a)

  	
   

  	
  701

  	
   

  
	
  § 312(c)

  	
   

  	
  702

  	
   

  
	
  § 313(a)

  	
   

  	
  703

  	
   

  
	
  (a)(4)

  	
   

  	
  1008

  	
   

  
	
  (c)(1)

  	
   

  	
  102

  	
   

  
	
  (c)(2)

  	
   

  	
  102

  	
   

  
	
  (e)

  	
   

  	
  102

  	
   

  
	
  § 315(b)

  	
   

  	
  602

  	
   

  
	
  § 316(a)(last sentence)

  	
   

  	
  101 (“Outstanding”)

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  502, 512

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  513

  	
   

  
	
  (b)

  	
   

  	
  508

  	
   

  
	
  (c)

  	
   

  	
  104(d)

  	
   

  
	
  § 317(a)(1)

  	
   

  	
  503

  	
   

  
	
  (a)(2)

  	
   

  	
  504

  	
   

  
	
  (b)

  	
   

  	
  1003

  	
   

  
	
  § 318(a)

  	
   

  	
  111

  	
   

  

 

*              This reconciliation and tie shall not, for any purpose,
be deemed to be a part of this Indenture.

 

i

 

TABLE OF
CONTENTS*

 

	
  ARTICLE ONE

  
	
   

  
	
  DEFINITIONS AND OTHER
  PROVISIONS

  
	
  OF GENERAL APPLICATION

  
	
   

  
	
  SECTION 101. Definitions

  	
   

  
	
  “Acquired
  Indebtedness”

  	
   

  
	
  “Acquisition”

  	
   

  
	
  “Act”

  	
   

  
	
  “Additional
  Interest”

  	
   

  
	
  “Additional
  Dollar Notes”

  	
   

  
	
  “Additional
  Euro Notes”

  	
   

  
	
  “Additional
  Notes”

  	
   

  
	
  “Adjusted
  Net Assets”

  	
   

  
	
  “Affiliate”

  	
   

  
	
  “Affiliate
  Transaction”

  	
   

  
	
  “Agent”

  	
   

  
	
  “Applicable
  Premium”

  	
   

  
	
  “Asset Sale”

  	
   

  
	
  “Asset Sale
  Offer”

  	
   

  
	
  “Bank
  of New York London”

  	
   

  
	
  “Bankruptcy
  Law”

  	
   

  
	
  “Banks”

  	
   

  
	
  “Board
  of Directors”

  	
   

  
	
  “Board
  Resolution”

  	
   

  
	
  “Bund Rate”

  	
   

  
	
  “Business Day”

  	
   

  
	
  “Capital Stock”

  	
   

  
	
  “Capitalized Lease
  Obligation”

  	
   

  
	
  “Cash
  Equivalents”

  	
   

  
	
  “Change of
  Control”

  	
   

  
	
  “Change
  of Control Offer”

  	
   

  
	
  “Change of Control Payment”

  	
   

  
	
  “Change of Control
  Payment Date”

  	
   

  
	
  “Clearstream”

  	
   

  
	
  “Commission”

  	
   

  
	
  “Common
  Depository”

  	
   

  
	
  “Common Stock”

  	
   

  
	
  “Company”

  	
   

  
	
  “Company Request” or
  “Company Order”

  	
   

  
	
  “consolidated” or
  “Consolidated”

  	
   

  

 

*              This table of
contents shall not, for any purpose, be deemed to be a part of this Indenture.

 

ii

 

	
  “Consolidated
  Depreciation and Amortization Expense”

  	
   

  
	
  “Consolidated Interest
  Expense”

  	
   

  
	
  “Consolidated
  Net Income”

  	
   

  
	
  “Contingent
  Obligations”

  	
   

  
	
  “Corporate
  Trust Office”

  	
   

  
	
  “Corporation”

  	
   

  
	
  “Covenant
  Defeasance”

  	
   

  
	
  “Credit
  Facilities”

  	
   

  
	
  “Default”

  	
   

  
	
  “Defaulted
  Interest”

  	
   

  
	
  “Depository”

  	
   

  
	
  “Designated Non-cash
  Consideration”

  	
   

  
	
  “Designated
  Non-Guarantor Joint Venture”

  	
   

  
	
  “Designated Preferred Stock”

  	
   

  
	
  “Designated Senior
  Indebtedness”

  	
   

  
	
  “Disqualified
  Stock”

  	
   

  
	
  “Dollar Notes”

  	
   

  
	
  “Dollar Notes Paying Agent”

  	
   

  
	
  “Dollar
  Notes Register”

  	
   

  
	
  “Dollar
  Notes Registrar”

  	
   

  
	
  “Domestic
  Subsidiary”

  	
   

  
	
  “EBITDA”

  	
   

  
	
  “EMU”

  	
   

  
	
  “Equity
  Interests”

  	
   

  
	
  “Equity
  Offering”

  	
   

  
	
  “euro”

  	
   

  
	
  “Euro Notes”

  	
   

  
	
  “Euroclear”

  	
   

  
	
  “Euro
  Notes Paying Agent”

  	
   

  
	
  “Euro
  Notes Register”

  	
   

  
	
  “Euro
  Notes Registrar”

  	
   

  
	
  “European
  Union”

  	
   

  
	
  “Event of
  Default”

  	
   

  
	
  “Excess
  Proceeds”

  	
   

  
	
  “Exchange Act”

  	
   

  
	
  “Exchange
  Dollar Notes”

  	
   

  
	
  “Exchange
  Euro Notes”

  	
   

  
	
  “Exchange
  Notes”

  	
   

  
	
  “Exchange
  Offer”

  	
   

  
	
  “Exchange Offer
  Registration Statement”

  	
   

  
	
  “Excluded
  Contribution”

  	
   

  
	
  “Existing
  Indebtedness”

  	
   

  
	
  “Fixed Charge Coverage
  Ratio”

  	
   

  
	
  “Fixed Charges”

  	
   

  
	
  “Foreign
  Subsidiary”

  	
   

  
	
  “Funding
  Guarantor”

  	
   

  

iii

 

	
  “GAAP”

  	
   

  
	
  “Global Notes”

  	
   

  
	
  “Government
  Securities”

  	
   

  
	
  “guarantee”

  	
   

  
	
  “Guarantee”

  	
   

  
	
  “Guarantors”

  	
   

  
	
  “Hedging
  Obligations”

  	
   

  
	
  “Holder”

  	
   

  
	
  “incur”

  	
   

  
	
  “incurrence”

  	
   

  
	
  “Indebtedness”

  	
   

  
	
  “Indenture”

  	
   

  
	
  “Independent Financial Advisor”

  	
   

  
	
  “Initial
  Dollar Notes”

  	
   

  
	
  “Initial
  Euro Notes”

  	
   

  
	
  “Initial Notes”

  	
   

  
	
  “Interest
  Payment Date”

  	
   

  
	
  “Investment Grade
  Securities”

  	
   

  
	
  “Investments”

  	
   

  
	
  “Irish
  Paying Agent”

  	
   

  
	
  “Issue Date”

  	
   

  
	
  “Legal
  Defeasance”

  	
   

  
	
  “Letter of Credit
  Obligations”

  	
   

  
	
  “Lien”

  	
   

  
	
  “Management
  Group”

  	
   

  
	
  “Maturity”

  	
   

  
	
  “Moody’s”

  	
   

  
	
  “Net Income”

  	
   

  
	
  “Net Proceeds”

  	
   

  
	
  “Non-payment
  Default”

  	
   

  
	
  “Non-Registration
  Opinion and Supporting Evidence”

  	
   

  
	
  “Note Register”

  	
   

  
	
  “Note
  Registrar”

  	
   

  
	
  “Notes”

  	
   

  
	
  “Obligations”

  	
   

  
	
  “Offering
  Circular”

  	
   

  
	
  “Officer”

  	
   

  
	
  “Officers’
  Certificate”

  	
   

  
	
  “Offshore
  Global Notes”

  	
   

  
	
  “Offshore
  Physical Notes”

  	
   

  
	
  “Opinion
  of Counsel”

  	
   

  
	
  “Outstanding”

  	
   

  
	
  “Parent
  Companies”

  	
   

  
	
  “Pari
  Passu Indebtedness”

  	
   

  
	
  “Paying Agent”

  	
   

  
	
  “Payment
  Blockage Period”

  	
   

  

 

iv

 

	
  “Payment
  Default”

  	
   

  
	
  “Permitted
  Asset Swap”

  	
   

  
	
  “Permitted
  Holders”

  	
   

  
	
  “Permitted
  Investments”

  	
   

  
	
  “Permitted
  Junior Notes”

  	
   

  
	
  “Permitted
  Liens”

  	
   

  
	
  “Person”

  	
   

  
	
  “Physical Notes”

  	
   

  
	
  “Predecessor
  Note”

  	
   

  
	
  “preferred
  stock”

  	
   

  
	
  “Private Placement Legend”

  	
   

  
	
  “QIB”

  	
   

  
	
  “Qualified
  Proceeds”

  	
   

  
	
  “Receivables
  Facility”

  	
   

  
	
  “Receivables
  Fees”

  	
   

  
	
  “Redemption
  Date”

  	
   

  
	
  “Redemption
  Price”

  	
   

  
	
  “Refinancing Indebtedness”

  	
   

  
	
  “Refunding
  Capital Stock”

  	
   

  
	
  “Registration Rights
  Agreement”

  	
   

  
	
  “Regular
  Record Date”

  	
   

  
	
  “Regulation S”

  	
   

  
	
  “Regulation S Certificate”

  	
   

  
	
  “Related
  Business Assets”

  	
   

  
	
  “Resale Restriction
  Termination Date”

  	
   

  
	
  “Responsible
  Officer”

  	
   

  
	
  “Restricted
  Investment”

  	
   

  
	
  “Restricted
  Payments”

  	
   

  
	
  “Restricted
  Subsidiary”

  	
   

  
	
  “Retired
  Capital Stock”

  	
   

  
	
  “Rule 144A”

  	
   

  
	
  “Rule
  144A Certificate”

  	
   

  
	
  “S&P”

  	
   

  
	
  “Securities
  Act”

  	
   

  
	
  “Senior Credit Facilities”

  	
   

  
	
  “Senior
  Discount Notes”

  	
   

  
	
  “Senior
  Indebtedness”

  	
   

  
	
  “Senior
  Indebtedness”

  	
   

  
	
  “Senior Subordinated
  Indebtedness”

  	
   

  
	
  “Senior Subordinated Loans”

  	
   

  
	
  “Shelf Registration
  Statement”

  	
   

  
	
  “Significant
  Subsidiary”

  	
   

  
	
  “Similar
  Business”

  	
   

  
	
  “Special
  Record Date”

  	
   

  
	
  “Stated
  Maturity”

  	
   

  
	
  “Subordinated Indebtedness”

  	
   

  

 

v

 

	
  “Subordinated Note
  Obligations”

  	
   

  
	
  “Subsidiary”

  	
   

  
	
  “Successor
  Person”

  	
   

  
	
  “Systems/Organizational
  Establishment Expenses”

  	
   

  
	
  “Total Assets”

  	
   

  
	
  “Transactions”

  	
   

  
	
  “Treasury Rate”

  	
   

  
	
  “Trust Indenture Act” or
  “TIA”

  	
   

  
	
  “Trustee”

  	
   

  
	
  “Unrestricted Subsidiary”

  	
   

  
	
  “U.S. Global
  Notes”

  	
   

  
	
  “U.S.
  Physical Notes”

  	
   

  
	
  “Vice
  President”

  	
   

  
	
  “Voting Stock”

  	
   

  
	
  “Weighted Average
  Life to Maturity”

  	
   

  
	
  “Wholly Owned
  Restricted Subsidiary”

  	
   

  
	
  “Wholly-Owned
  Subsidiary”

  	
   

  
	
  “2011 Notes”

  	
   

  
	
  SECTION 102. Compliance Certificates
  and Opinions

  	
   

  
	
  SECTION 103. Form of Documents
  Delivered to Trustee

  	
   

  
	
  SECTION 104. Acts of Holders

  	
   

  
	
  SECTION 105. Notices, Etc., to
  Trustee, Company, any Guarantor and Agent

  	
   

  
	
  SECTION 106. Notice to Holders; Waiver

  	
   

  
	
  SECTION 107. Effect of Headings and
  Table of Contents

  	
   

  
	
  SECTION 108. Successors and Assigns

  	
   

  
	
  SECTION 109. Separability Clause

  	
   

  
	
  SECTION 110. Benefits of Indenture

  	
   

  
	
  SECTION 111. Governing Law

  	
   

  
	
  SECTION 112. [INTENTIONALLY DELETED]

  	
   

  
	
  SECTION 113. Legal Holidays

  	
   

  
	
  SECTION 114. No Personal Liability of
  Directors, Officers, Employees and Stockholders

  	
   

  
	
  SECTION 115. Trust Indenture Act
  Controls

  	
   

  
	
  SECTION 116. Counterparts

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
   

  	
   

  
	
  NOTE FORMS

  	
   

  
	
   

  	
   

  
	
  SECTION 201. Forms Generally

  	
   

  
	
  SECTION 202. Form of Trustee’s
  Certificate of Authentication

  	
   

  
	
  SECTION 203. Restrictive Legends

  	
   

  

 

vi

 

	
  ARTICLE THREE

  	
   

  
	
   

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  
	
  SECTION 301. Title and Terms

  	
   

  
	
  SECTION 302. Denominations

  	
   

  
	
  SECTION 303. Execution,
  Authentication, Delivery and Dating

  	
   

  
	
  SECTION 304. Temporary Notes

  	
   

  
	
  SECTION 305. Paying Agent,
  Registration, Registration of Transfer and Exchange

  	
   

  
	
  SECTION 306. Mutilated, Destroyed,
  Lost and Stolen Notes

  	
   

  
	
  SECTION 307. Payment of Interest;
  Interest Rights Preserved

  	
   

  
	
  SECTION 308. Persons Deemed Owners

  	
   

  
	
  SECTION 309. Cancellation

  	
   

  
	
  SECTION 310. Computation of Interest

  	
   

  
	
  SECTION 311. Book-Entry Provisions for
  Global Notes

  	
   

  
	
  SECTION 312. Transfer Provisions

  	
   

  
	
  SECTION 313. Form of Regulation S
  Certificate

  	
   

  
	
  SECTION 314. Form of Rule 144A
  Certificate

  	
   

  
	
  SECTION 315. Common Codes, ISINs and
  CUSIP Numbers

  	
   

  
	
  SECTION 316. Issuance of Additional
  Notes

  	
   

  
	
   

  	
   

  
	
  ARTICLE FOUR

  	
   

  
	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  
	
  SECTION 401. Satisfaction and
  Discharge of Indenture

  	
   

  
	
  SECTION 402. Application of Trust
  Money

  	
   

  
	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
   

  	
   

  
	
  REMEDIES

  	
   

  
	
   

  	
   

  
	
  SECTION 501. Events of Default

  	
   

  
	
  SECTION 502. Acceleration of Maturity;
  Rescission and Annulment

  	
   

  
	
  SECTION 503. Collection of
  Indebtedness and Suits for Enforcement by Trustee

  	
   

  
	
  SECTION 504. Trustee May File Proofs
  of Claim

  	
   

  
	
  SECTION 505. Trustee May Enforce
  Claims Without Possession of Notes

  	
   

  
	
  SECTION 506. Application of Money
  Collected

  	
   

  
	
  SECTION 507. Limitation on Suits

  	
   

  
	
  SECTION 508. Unconditional Right of
  Holders to Receive Principal, Premium and Interest

  	
   

  
	
  SECTION 509. Restoration of Rights and
  Remedies

  	
   

  
	
  SECTION 510. Rights and Remedies
  Cumulative

  	
   

  
	
  SECTION 511. Delay or Omission Not
  Waiver

  	
   

  
	
  SECTION 512. Control by Holders

  	
   

  
	
  SECTION 513. Waiver of Past Defaults

  	
   

  
	
  SECTION
  514. Waiver of Stay or Extension Laws

  	
   

  

 

vii

 

	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  
	
  THE
  TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 601. Duties of the Trustee

  	
   

  
	
  SECTION 602. Notice of Defaults

  	
   

  
	
  SECTION 603. Certain Rights of Trustee

  	
   

  
	
  SECTION 604. Trustee Not Responsible for
  Recitals or Issuance of Notes

  	
   

  
	
  SECTION 605. May Hold Notes

  	
   

  
	
  SECTION 606. Money Held in Trust

  	
   

  
	
  SECTION 607. Compensation and Reimbursement

  	
   

  
	
  SECTION 608. Corporate Trustee Required;
  Eligibility

  	
   

  
	
  SECTION 609. Resignation and Removal;
  Appointment of Successor

  	
   

  
	
  SECTION 610. Acceptance of Appointment by
  Successor

  	
   

  
	
  SECTION 611. Merger, Conversion,
  Consolidation or Succession to Business

  	
   

  
	
  SECTION 612. Appointment of Authenticating
  Agent

  	
   

  
	
   

  	
   

  
	
  ARTICLE SEVEN

  	
   

  
	
   

  	
   

  
	
  HOLDERS
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
   

  
	
   

  	
   

  
	
  SECTION 701. Company to Furnish Trustee
  Names and Addresses

  	
   

  
	
  SECTION 702. Disclosure of Names and
  Addresses of Holders

  	
   

  
	
  SECTION 703. Reports by Trustee

  	
   

  
	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  
	
   

  	
   

  
	
  MERGER,
  CONSOLIDATION OR SALE OF ALL OR SUBSTANTIALLY ALL ASSETS

  	
   

  
	
   

  	
   

  
	
  SECTION 801. Company May Consolidate, Etc.,
  Only on Certain Terms

  	
   

  
	
  SECTION 802. Subsidiary Guarantors May
  Consolidate, Etc., Only on Certain Terms

  	
   

  
	
  SECTION 803. Successor Substituted

  	
   

  
	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  
	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  	
   

  
	
   

  	
   

  
	
  SECTION 901. Amendments or Supplements
  Without Consent of Holders

  	
   

  
	
  SECTION 902. Amendments, Supplements or
  Waivers with Consent of Holders

  	
   

  
	
  SECTION 903. Execution of Amendments,
  Supplements or Waivers

  	
   

  
	
  SECTION 904. Effect of Amendments,
  Supplements or Waivers

  	
   

  
	
  SECTION 905. Conformity with Trust
  Indenture Act

  	
   

  
	
  SECTION 906. Reference in Notes to
  Supplemental Indentures

  	
   

  
	
  SECTION 907. Notice of Supplemental
  Indentures

  	
   

  
	
  SECTION 908. Effect on Senior Indebtedness

  	
   

  

 

viii

 

	
  ARTICLE TEN

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 1001. Payment of Principal,
  Premium, if Any, and Interest

  	
   

  
	
  SECTION 1002. Maintenance of Office or
  Agency

  	
   

  
	
  SECTION 1003. Money for Notes Payments to
  Be Held in Trust

  	
   

  
	
  SECTION 1004. Corporate Existence

  	
   

  
	
  SECTION 1005. Payment of Taxes and Other
  Claims

  	
   

  
	
  SECTION 1006. Maintenance of Properties

  	
   

  
	
  SECTION 1007. Insurance

  	
   

  
	
  SECTION 1008. Statement by Officers as to
  Default

  	
   

  
	
  SECTION 1009. Reports and Other
  Information

  	
   

  
	
  SECTION 1010. Limitation on Restricted
  Payments

  	
   

  
	
  SECTION 1011. Limitation on Incurrence of
  Indebtedness and Issuance of  Disqualified
  Stock

  	
   

  
	
  SECTION 1012. Limitation on Liens

  	
   

  
	
  SECTION 1013. Limitations on Transactions
  with Affiliates

  	
   

  
	
  SECTION 1014. Limitations on Dividend and
  Other Payment Restrictions Affecting Restricted Subsidiaries

  	
   

  
	
  SECTION 1015. Limitation on Guarantees of
  Indebtedness by Restricted Subsidiaries

  	
   

  
	
  SECTION 1016. Limitation on Layering

  	
   

  
	
  SECTION 1017. Change of Control

  	
   

  
	
  SECTION 1018. Asset Sales

  	
   

  
	
  SECTION 1019. Waiver of Certain Covenants

  	
   

  
	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  
	
   

  	
   

  
	
  REDEMPTION OF NOTES

  	
   

  
	
   

  	
   

  
	
  SECTION 1101. Right of Redemption

  	
   

  
	
  SECTION 1102. Applicability of Article

  	
   

  
	
  SECTION 1103. Election to Redeem; Notice
  to Trustee

  	
   

  
	
  SECTION 1104. Selection by Trustee of
  Notes to Be Redeemed

  	
   

  
	
  SECTION 1105. Notice of Redemption

  	
   

  
	
  SECTION 1106. Deposit of Redemption Price

  	
   

  
	
  SECTION 1107. Notes Payable on Redemption
  Date

  	
   

  
	
  SECTION 1108. Notes Redeemed in Part

  	
   

  
	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
   

  	
   

  
	
  GUARANTEES

  	
   

  
	
   

  	
   

  
	
  SECTION 1201. Guarantees

  	
   

  
	
  SECTION 1202. Severability

  	
   

  
	
  SECTION 1203. Restricted Subsidiaries

  	
   

  
	
  SECTION 1204. Subordination of Guarantees

  	
   

  

 

ix

 

	
  SECTION 1205. Limitation of Guarantors’
  Liability

  	
   

  
	
  SECTION 1206. Contribution

  	
   

  
	
  SECTION 1207. Subrogation

  	
   

  
	
  SECTION 1208. Reinstatement

  	
   

  
	
  SECTION 1209. Release of a Guarantor

  	
   

  
	
  SECTION 1210. Benefits Acknowledged

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  THIRTEEN

  	
   

  
	
   

  	
   

  
	
  DEFEASANCE AND COVENANT
  DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION 1301. Company’s Option to Effect
  Legal Defeasance or Covenant Defeasance

  	
   

  
	
  SECTION 1302. Legal Defeasance and
  Discharge

  	
   

  
	
  SECTION 1303. Covenant Defeasance

  	
   

  
	
  SECTION 1304. Conditions to Legal
  Defeasance or Covenant Defeasance

  	
   

  
	
  SECTION 1305. Deposited Money and
  Government Securities to Be Held in Trust; Other Miscellaneous Provisions

  	
   

  
	
  SECTION 1306. Reinstatement

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  FOURTEEN

  	
   

  
	
   

  	
   

  
	
  SUBORDINATION OF NOTES

  	
   

  
	
   

  	
   

  
	
  SECTION 1401. Notes Subordinate to Senior
  Indebtedness

  	
   

  
	
  SECTION 1402. Payment over of Proceeds
  upon Dissolution, Etc.

  	
   

  
	
  SECTION 1403. Suspension of Payment When
  Senior Indebtedness Is in Default

  	
   

  
	
  SECTION 1404. Payment Permitted If No
  Default

  	
   

  
	
  SECTION 1405. Subrogation to Rights of
  Holders of Senior Indebtedness

  	
   

  
	
  SECTION 1406. Provisions Solely to Define
  Relative Rights

  	
   

  
	
  SECTION 1407. Trustee to Effectuate
  Subordination

  	
   

  
	
  SECTION 1408. No Waiver of Subordination
  Provisions

  	
   

  
	
  SECTION 1409. Notice to Trustee

  	
   

  
	
  SECTION 1410. Reliance on Judicial Order
  or Certificate of Liquidating Agent

  	
   

  
	
  SECTION 1411. Rights of Trustee as a
  Holder of Senior Indebtedness; Preservation of Trustee’s Rights

  	
   

  
	
  SECTION 1412. Article Applicable to Paying
  Agents

  	
   

  
	
  SECTION 1413. No Suspension of Remedies

  	
   

  
	
  SECTION 1414. Trust Moneys Not
  Subordinated

  	
   

  
	
  SECTION 1415. Trustee Not Fiduciary for
  Holders of Senior Indebtedness

  	
   

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A – Form of Euro Note

  	
   

  
	
  EXHIBIT B – Form of Dollar Note

  	
   

  

 

x

 

EXECUTION COPY

 

INDENTURE, dated as of
November 10, 2004 (this “Indenture”), among ROCKWOOD SPECIALTIES GROUP, INC., a
Delaware corporation (the “Company”), having its principal office at 100
Overlook Center, Princeton, NJ 08540, certain of the Company’s direct and
indirect Domestic Subsidiaries, each named in the signature pages hereto (each,
a “Guarantor” and, collectively, the “Guarantors”), and THE BANK OF NEW YORK, a
New York banking corporation, Trustee (the “Trustee”).

 

RECITALS
OF THE COMPANY

 

The Company has duly
authorized the creation of an issue of (i) €375,000,000 7.625% Senior
Subordinated Notes due 2014 issued on the date hereof (the “Initial Euro Notes”)
and $200,000,000 7.500% Senior Subordinated Notes due 2014 issued on the date
hereof (the “Initial Dollar Notes,” and, together with the Initial Euro Notes,
the “Initial Notes”) (ii) if and when issued pursuant to the Registration
Rights Agreement, dated the date hereof, among the Company, the Guarantors and
the Initial Purchasers (as defined therein), (the “Registration Rights
Agreement”), 7.625% Senior Subordinated Notes due 2014 issued in an Exchange
Offer in exchange for any Initial Euro Notes (the “Exchange Euro Notes”) and
7.500% Senior Subordinated Notes due 2014 issued in an Exchange Offer for any
Initial Dollar Notes (the “Exchange Dollar Notes,” together with the Exchange
Euro Notes, the “Exchange Notes,” and collectively with the Initial Notes, the “Notes”),
of substantially the tenor and amount hereinafter set forth, and to provide
therefor the Company has duly authorized the execution and delivery of this
Indenture.

 

Each Guarantor has duly
authorized its Guarantee of the Initial Notes, and if and when issued, the
Exchange Notes and to provide therefor each Guarantor has duly authorized the
execution and delivery of this Indenture.

 

Upon the issuance of the
Exchange Notes, if any, or the effectiveness of a Shelf Registration Statement,
this Indenture shall be subject to the provisions of the Trust Indenture Act of
1939, as amended, that are required to be part of this Indenture and shall, to the
extent applicable, be governed by such provisions.

 

All things necessary have
been done to make the Notes, when executed by the Company and authenticated and
delivered hereunder and duly issued by the Company, the valid and legally
binding obligations of the Company and to make this Indenture a valid and
legally binding agreement of the Company, in accordance with their and its
terms.

 

All things necessary have
been done to make the Guarantees, upon execution and delivery of this
Indenture, the valid obligations of each Guarantor and to make this Indenture a
valid and legally binding agreement of each Guarantor, in accordance with their
and its terms.

 

1

 

NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration
of the premises and the purchase of the Notes by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders, as follows:

 

ARTICLE ONE

 

DEFINITIONS
AND OTHER PROVISIONS

OF GENERAL APPLICATION

 

SECTION 101.  Definitions.

 

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

 

(a)           the terms defined in this Article
have the meanings assigned to them in this Article, and include the plural as
well as the singular;

 

(b)           all other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein,
have the meanings assigned to them therein, and the terms “cash transaction”
and “self-liquidating paper”, as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the
Trust Indenture Act;

 

(c)           all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with GAAP (as
herein defined); and

 

(d)           the words “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision.

 

“Acquired Indebtedness” means, with
respect to any specified Person,

 

(1)           Indebtedness of any other Person
existing at the time such other Person is merged with or into or became a
Restricted Subsidiary of such specified Person, including, without limitation,
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Restricted Subsidiary of such
specified Person, and

 

(2)           Indebtedness secured by a Lien
encumbering any asset acquired by such specified Person.

 

2

 

“Acquisition” means the acquisition by Rockwood
Specialties Group, Inc. of the outstanding capital stock of certain members of
the Dynamit Nobel Group from mg technologies ag and certain of its subsidiaries
pursuant to an acquisition agreement notarized on April 19, 2004 and the
related acquisition agreements.

 

“Act”
, when used with respect to any Holder, has the meaning specified in Section
104 of this Indenture.

 

“Additional Interest” means all
additional interest then owing pursuant to the registration rights agreement.

 

“Additional Dollar Notes” means any
Dollar Notes issued by the Company pursuant to Section 316.

 

“Additional Euro Notes” shall mean
any Euro Notes issued by the Company pursuant to Section 316.

 

“Additional Notes” shall mean the
Additional Dollar Notes and Additional Euro Notes.

 

“Adjusted Net Assets” has the
meaning specified in Section 1206 of this Indenture.

 

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person.  For purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling”, “controlled by”
and “under common control with”), as used with respect to any Person, shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.

 

“Affiliate Transaction” has the
meaning specified in Section 1013 of this Indenture.

 

“Agent”
means Credit Suisse First Boston, acting through its Cayman Islands branch, as
administrative agent under the Senior Credit Facilities, and any future such
agent under the Senior Credit Facilities.

 

“Applicable Premium” means , with
respect to any Note on any Redemption Date, the greater of:

 

(1)           1.0% of the principal amount of the
Note; or

 

(2)           the excess of:

 

(a)           the present value at such Redemption
Date of (i) the Redemption Price of the Note at November 15, 2009 plus (ii) all
required interest payments due

 

3

 

on the Note through November 15, 2009, (excluding
accrued but unpaid interest to the Redemption Date), computed using a discount
rate equal to the Treasury Rate, in the case of Dollar Notes, and the Bund
Rate, in the case of Euro Notes, as of such Redemption Date plus 50 basis
points; over

 

(b)           the principal amount of the Note, if
greater.

 

“Asset Sale” means:

 

(1)           the sale, conveyance, transfer or
other disposition, whether in a single transaction or a series of related
transactions, of property or assets (including by way of a sale and leaseback)
of the Company or any Restricted Subsidiary (each referred to in this definition
as a “disposition”), or

 

(2)           the issuance or sale of Equity
Interests of any Restricted Subsidiary, whether in a single transaction or a
series of related transactions,

 

in each case, other than:

 

(a)           a disposition of Cash Equivalents or
Investment Grade Securities or obsolete or worn out equipment in the ordinary
course of business or inventory or goods held for sale in the ordinary course
of business;

 

(b)           the disposition of all or
substantially all of the assets of the Company in a manner permitted pursuant
to Article Eight or any disposition that constitutes a Change of Control
pursuant to this Indenture;

 

(c)           the making of any Restricted Payment
or Permitted Investment that is permitted to be made, and is made, under
Section 1010;

 

(d)           any disposition of assets or issuance
or sale of Equity Interests of any Restricted Subsidiary in any transaction or
series of transactions with an aggregate fair market value of less than $7.5
million;

 

(e)           any disposition of property or assets
or issuance of securities by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Restricted Subsidiary;

 

(f)            to the extent allowable under
Section 1031 of the Internal Revenue Code of 1986, any exchange of like
property (excluding any boot thereon) for use in a Similar Business;

 

(g)           the lease, assignment or sublease of
any real or personal property in the ordinary course of business;

 

4

 

(h)           any sale of Equity Interests in, or
Indebtedness or other securities of, an Unrestricted Subsidiary (with the
exception of Investments in Unrestricted Subsidiaries acquired pursuant to
clause (j) of the definition of “Permitted Investments”);

 

(i)            foreclosures on assets;

 

(j)            sales of accounts receivable, or participations
therein, in connection with any Receivables Facility; and

 

(k)           any financing transaction with
respect to property built or acquired by the Company or any Restricted
Subsidiary after July 23, 2003, including, without limitation, sale leasebacks
and asset securitizations permitted by this Indenture.

 

“Asset Sale Offer” has the meaning
specified in Section 1018 of this Indenture.

 

“Bank of New York London” means The
Bank of New York, London Branch and its successors.

 

“Bankruptcy Law” means Title 11,
United States Bankruptcy Code of 1978, as amended, or any similar United States
federal or state law relating to bankruptcy, insolvency, receivership,
winding-up, liquidation, reorganization or relief of debtors or any amendment
to, succession to or change in any such law.

 

“Banks”
means the lenders from time to time who are parties to the Senior Credit
Facilities.

 

“Board of Directors” means, with
respect to any Person, either the board of directors of such Person or any duly
authorized committee of such board.

 

“Board Resolution” means, with
respect to any Person, a copy of a resolution certified by the Secretary or an
Assistant Secretary of such Person to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification,
and, if required by this Indenture, delivered to the Trustee.

 

“Bund Rate” means, with respect to any Redemption
Date, the rate per annum equal to the semi-annual equivalent yield to maturity
as of such date of the Comparable German Bund Issue, assuming a price for the
Comparable German Bund Issue (expressed as a percentage of its principal
amount) equal to the Comparable German Bund Price for such Redemption Date,
where:

 

(1)           “Comparable German Bund
Issue” means the German Bundesanleihe security selected by any
Reference German Bund Dealer as having a fixed maturity most nearly equal to
the period from such Redemption Date to November 15, 2009 and that would be
utilized at the time of selection and in accordance with customary financial
practice, in pricing new issues of euro-denominated corporate debt securities
in a principal amount approximately equal to the then outstanding principal
amount of the Notes and of a maturity most nearly equal to November 15, 2009; provided, however, that, if the period

 

5

 

from such Redemption Date to November 15, 2009 is not
equal to the fixed maturity of the German Bundesanleihe security selected by
such Reference German Bund Dealer, the Bund Rate shall be determined by linear
interpolation (calculated to the nearest one-twelfth of a year) from the yields
of German Bundesanleihe securities for which such yields are given, except that
if the period from such Redemption Date to November 15, 2009 is less than one
year, a fixed maturity of one year shall be used;

 

(2)           “Comparable German Bund
Price” means, with respect to any Redemption Date, the average of
all Reference German Bund Dealer Quotations for such date (which, in any event,
must include at least two such quotations), after excluding the highest and
lowest such Reference German Bund Dealer Quotations, or if the Company obtains
fewer than four such Reference German Bund Dealer Quotations, the average of
all such quotations;

 

(3)           “Reference German Bund Dealer”
means any dealer of German Bundesanleihe securities appointed by the Company in
good faith; and

 

(4)           “Reference German Bund
Dealer Quotations” means, with respect to each Reference German Bund
Dealer and any Redemption Date, the average as determined by the Company in
good faith of the bid and offered prices for the Comparable German Bund Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Company by such Reference German Bund Dealer at 3:30 p.m.
Frankfurt, Germany, time on the third Business Day preceding the Redemption
Date.

 

“Business Day” means each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in The
City of New York are authorized or obligated by law, regulation or executive
order to close.

 

“Capital Stock” means:

 

(1)           in the case of a corporation,
corporate stock,

 

(2)           in the case of an association or
business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock,

 

(3)           in the case of a partnership or
limited liability company, partnership or membership interests (whether general
or limited), and

 

(4)           any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, the issuing Person.

 

“Capitalized Lease Obligation” means,
at the time any determination thereof is to be made, the amount of the
liability in respect of a capital lease that would at such time be required to
be capitalized and reflected as a liability on a balance sheet (excluding the
footnotes thereto) in accordance with GAAP.

 

6

 

“Cash Equivalents” means:

 

(1)           United States dollars,

 

(2)           pounds sterling,

 

(3)           (a) euro, or any national currency of
any participating member state in the European Union or (b) in the case of any
Foreign Subsidiary that is a Restricted Subsidiary, such local currencies held
by them from time to time in the ordinary course of business,

 

(4)           securities issued or directly and
fully and unconditionally guaranteed or insured by the United States government
or any agency or instrumentality thereof the securities of which are
unconditionally guaranteed as a full faith and credit obligation of such
government with maturities of 24 months or less from the date of acquisition,

 

(5)           securities issued or directly and
fully and unconditionally guaranteed or insured by a member of the European
Union, or any agency or instrumentality thereof, the securities of which are
unconditionally guaranteed as a full faith and credit obligation of such
government with maturities of 24 months or less from the date of acquisition;

 

(6)           certificates of deposit, time
deposits and eurodollar time deposits with maturities of one year or less from
the date of acquisition, bankers’ acceptances with maturities not exceeding one
year and overnight bank deposits, in each case with any commercial bank having
capital and surplus in excess of $500.0 million,

 

(7)           repurchase obligations for underlying
securities of the types described in clauses (5) and (6) above, entered into
with any financial institution meeting the qualifications specified in clause
(6) above,

 

(8)           commercial paper rated at least P–1
by Moody’s or at least A–1 by S&P and in each case maturing within 12
months after the date of creation thereof,

 

(9)           investment funds investing 95% of
their assets in securities of the types described in clauses (1) through (8)
above,

 

(10)         readily marketable direct obligations
issued by any state of the United States of America, any member of the European
Union or any political subdivision thereof having one of the two highest rating
categories obtainable from either Moody’s or S&P with maturities of 24
months or less from the date of acquisition, and

 

(11)         Indebtedness or preferred stock issued
by Persons with a rating of “A” or higher from S&P or “A2” or higher from
Moody’s with maturities of 12 months or less from the date of acquisition.

 

Notwithstanding the foregoing,
Cash Equivalents shall include amounts denominated in currencies other than
those set forth in clauses (1) through (3) above, provided that such
amounts are converted into any currency listed in clauses (1) through (3)
above, as

 

7

 

promptly as practicable and in any event within ten Business Days
following the receipt of such amounts.

 

“Change of Control” means the
occurrence of any of the following:

 

(1)           the sale, lease or transfer, in one
or a series of related transactions, of all or substantially all of the assets
of the Company and its Subsidiaries, taken as a whole, to any Person other than
a Permitted Holder; or

 

(2)           the Company becomes aware of (by way
of a report or any other filing pursuant to Section 13(d) of the Exchange Act,
proxy, vote, written notice or otherwise) the acquisition by any Person or
group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act, or any successor provision), including any group acting for the
purpose of acquiring, holding or disposing of securities (within the meaning of
Rule 13d–5(b)(1) under the Exchange Act), other than the Permitted Holders, in
a single transaction or in a related series of transactions, by way of merger,
consolidation or other business combination or purchase of beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act, or any successor
provision) of 50% or more of the total voting power of the Voting Stock of the
Company or any of its direct or indirect parent corporations.

 

“Change of Control Offer” has the
meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment” has the
meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment Date” has
the meaning specified in Section 1017 of this Indenture.

 

“Clearstream” means Clearstream Banking, S.A.

 

“Commission” means the Securities and Exchange
Commission, as from time to time constituted, created under the Exchange Act,
or, if at any time after the execution of this Indenture such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

 

“Common Depository” means, with
respect to the Euro Notes, Bank of New York London, as common depository for
Euroclear and Clearstream or another Person designated as common depository by
the Company, which Person must be a clearing agency registered under the
Exchange Act.

 

“Common Stock” means, with respect to any Person, any
and all shares, interests, participations and other equivalents (however
designated, whether voting or non-voting) of such Person’s common stock,
whether now outstanding or issued after the date of this Indenture, and
includes, without limitation, all series and classes of such common stock.

 

8

 

“Company” means the Person named as the “Company” in
the first paragraph of this Indenture, until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company Order”
means a written request or order signed in the name of the Company by its
Chairman, its President, any Vice President, its Treasurer or an Assistant
Treasurer, and delivered to the Trustee.

 

“consolidated” or “Consolidated” means,
with respect to any Person, such Person consolidated with its Restricted
Subsidiaries, and shall not include any Unrestricted Subsidiary.

 

“Consolidated Depreciation and Amortization
Expense” means with respect to any Person for any period, the total amount of
depreciation and amortization expense, including the amortization of deferred
financing fees, and other non-cash charges, excluding any non-cash item that
represents an accrual or reserve for a cash expenditure for a future period, of
such Person and its Restricted Subsidiaries for such period on a consolidated
basis and otherwise determined in accordance with GAAP.

 

“Consolidated Interest Expense” means,
with respect to any Person for any period, the sum, without duplication, of:

 

(a)           consolidated interest expense of such
Person and its Restricted Subsidiaries for such period, to the extent such
expense was deducted in computing Consolidated Net Income (including
amortization of original issue discount, non-cash interest payments (but
excluding any non-cash interest expense attributable to the movement in the
mark to market valuation of Hedging Obligation pursuant to Financial Accounting
Standards Board Statement No. 133- “Accounting for Derivative Instruments and
Hedging Activities”), the interest component of Capitalized Lease Obligations
and net payments, if any, pursuant to Hedging Obligations, and excluding
amortization of deferred financing fees), and

 

(b)           consolidated capitalized interest of
such Person and its Restricted Subsidiaries for such period, whether paid or
accrued.

 

“Consolidated Net Income” means,
with respect to any Person for any period, the aggregate of the Net Income, of
such Person and its Restricted Subsidiaries for such period, on a consolidated
basis, and otherwise determined in accordance with GAAP; provided, however,
that:

 

(1)           any net after-tax extraordinary gains
or losses, less all fees and expenses relating thereto, shall be
excluded,

 

(2)           the Net Income for such period shall
not include the cumulative effect of a change in accounting principles during
such period,

 

(3)           any net after-tax income (loss) from
disposed operations and any net after-tax gains or losses on disposal of
disposed operations shall be excluded,

 

9

 

(4)           any net after-tax gains or losses
(less all fees and expenses relating thereto) attributable to asset
dispositions other than in the ordinary course of business, as determined in
good faith by the Board of Directors of such Person, shall be excluded,

 

(5)           the Net Income for such period of any
Person that is not a Subsidiary, or is an Unrestricted Subsidiary, or that is
accounted for by the equity method of accounting, shall be excluded; provided
that, to the extent not already included, Consolidated Net Income of the
Company shall be increased by the amount of dividends or distributions or other
payments that are actually paid in cash (or to the extent converted into cash)
to the referent Person or a Restricted Subsidiary thereof in respect of such
period,

 

(6)           the Net Income for such period of any
Restricted Subsidiary (other than any Guarantor) shall be excluded if the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of its Net Income is not at the date of determination wholly
permitted without any prior governmental approval (which has not been obtained)
or, directly or indirectly, by the operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, or governmental
regulation applicable to that Restricted Subsidiary or its stockholders, unless
such restriction with respect to the payment of dividends or in similar distributions
has been legally waived, provided that Consolidated Net Income of the
Company shall be increased by the amount of dividends or other distributions or
other payments actually paid in cash (or to the extent converted into cash) to
the Company or a Restricted Subsidiary thereof in respect of such period, to
the extent not already included therein,

 

(7)           any increase in amortization or
depreciation resulting from purchase accounting in relation to any acquisition
that is consummated after July 23, 2003, net of taxes, shall be excluded,

 

(8)           any net after-tax income (loss) from
the early extinguishment of Indebtedness shall be excluded,  and

 

(9)           any goodwill impairment charge
pursuant to Financial Accounting Standards Board Statement No. 142—”Goodwill
and Other Intangible Assets” shall be excluded.

 

Notwithstanding the
foregoing, for the purpose of Section 1010 only (other than clause (a)(4)(C)(4)
thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by
the Company and the Restricted Subsidiaries, any repurchases and redemptions of
Restricted Investments from the Company and the Restricted Subsidiaries, any
repayments of loans and advances which constitute Restricted Investments by the
Company or any Restricted Subsidiary, any sale of the stock of an Unrestricted
Subsidiary or any distribution or dividend from an Unrestricted Subsidiary, in
each case only to the extent such amounts increase the amount of Restricted Payments
permitted under such covenant pursuant to clause (a)(4)(C)(4) thereof.

 

“Contingent Obligations” means, with
respect to any Person, any obligation of such Person guaranteeing any leases,
dividends or other obligations that do not constitute

 

10

 

Indebtedness (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including, without
limitation, any obligation of such Person, whether or not contingent,

 

(1)           to purchase any such primary
obligation or any property constituting direct or indirect security therefor,

 

(2)           to advance or supply funds:

 

(A)          for the purchase or payment of any
such primary obligation, or

 

(B)           to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, or

 

(3)           to purchase property, securities or
services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such
primary obligation against loss in respect thereof.

 

“Corporate Trust Office” means the
principal corporate trust office of the Trustee, at which at any particular
time its corporate trust business shall be administered, which office at the
date of execution of this Indenture is located at The Bank of New York, 101
Barclay Street, 21st Floor West, New York New York 10286, except that with
respect to presentation of the Notes for payment or for registration of
transfer or exchange, such term shall mean the office or agency of the Trustee
at which, at any particular time, its corporate agency business shall be
conducted.

 

“Corporation” includes corporations, associations,
companies and business trusts.

 

“Covenant Defeasance” has the
meaning specified in Section 1303 of this Indenture.

 

“Credit Facilities” means, with
respect to the Company, one or more debt facilities, including, without
limitation, the Senior Credit Facilities, or commercial paper facilities with
banks or other institutional lenders or investors or indentures providing for
revolving credit loans, term loans, receivables financing, including through
the sale of receivables to such lenders or to special purpose entities formed
to borrow from such lenders against receivables, letters of credit or other
long-term indebtedness, in each case, as amended, restated, modified, renewed,
refunded, replaced or refinanced, including increasing the amount borrowed
thereunder, in whole or in part from time to time.

 

“Default”
means any event that is, or with the passage of time or the giving of notice or
both would be, an Event of Default.

 

“Defaulted Interest” has the meaning
specified in Section 307 of this Indenture.

 

“Depository” means The Depository Trust Company, its
nominees and their respective successors.

 

11

 

“Designated Non-cash Consideration” means
the fair market value of non-cash consideration received by the Company or a
Restricted Subsidiary in connection with an Asset Sale that is so designated as
Designated Non-cash Consideration pursuant to an Officers’ Certificate, setting
forth the basis of such valuation, executed by an executive vice president and
the principal financial officer of the Company, less the amount of cash
or Cash Equivalents received in connection with a subsequent sale of such
Designated Non-cash Consideration.

 

“Designated Non-Guarantor Joint Venture”
means any non-Wholly Owned Restricted Subsidiary engaged in a Similar Business
that is designated as a Designated Non-Guarantor Joint Venture pursuant to an
Officers’ Certificate.

 

“Designated Preferred Stock” means
preferred stock of the Company or any parent corporation thereof (in each case
other than Disqualified Stock) that is issued for cash (other than to a
Restricted Subsidiary) and is so designated as Designated Preferred Stock,
pursuant to an Officers’ Certificate executed by an executive vice president
and the principal financial officer of the Company or the applicable parent
corporation thereof, as the case may be, on the issuance date thereof, the cash
proceeds of which are excluded from the calculation set forth in clause
(a)(4)(C) of Section 1010.

 

“Designated Senior Indebtedness” means:

 

(1)           Senior Indebtedness under the Senior
Credit Facilities; and

 

(2)           any other Senior Indebtedness
permitted under this Indenture the principal amount of which is $25.0 million
or more and that has been specifically designated in the instrument evidencing
such Senior Indebtedness by the Company as Designated Senior Indebtedness.

 

“Disqualified Stock” means, with
respect to any Person, any Capital Stock of such Person which, by its terms, or
by the terms of any security into which it is convertible or for which it is
putable or exchangeable, or upon the happening of any event, matures or is
mandatorily redeemable, other than as a result of a change of control or asset
sale, pursuant to a sinking fund obligation or otherwise, or is redeemable at
the option of the holder thereof, other than as a result of a change of control
or asset sale, in whole or in part, in each case prior to the date 91 days
after the earlier of the maturity date of the Notes or the date the Notes are
no longer outstanding; provided, however, that if such Capital
Stock is issued to any plan for the benefit of employees of the Company or its
Subsidiaries or by any such plan to such employees, such Capital Stock shall
not constitute Disqualified Stock solely because it may be required to be
repurchased by the Company or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.

 

“Dollar Notes” means the Initial Dollar Notes, the
Exchange Dollar Notes and the Additional Dollar Notes, if any.

 

“Dollar Notes Paying Agent” means
the Trustee or any other Person (including the Company acting as Dollar Notes
Paying Agent) authorized by the Company to pay the principal of (and premium,
if any) or interest on any Dollar Notes on behalf of the Company.

 

12

 

“Dollar Notes Register” has the
meaning specified in Section 305 of this Indenture.

 

“Dollar Notes Registrar” has the
meaning specified in Section 305 of this Indenture.

 

“Domestic Subsidiary” means, with
respect to any Person, any Restricted Subsidiary of such Person other than a
Foreign Subsidiary.

 

“EBITDA”
means, with respect to any Person for any period, the Consolidated Net Income
of such Person for such period plus:

 

(a)           provision for taxes based on income
or profits of such Person for such period deducted in computing Consolidated
Net Income, plus

 

(b)           Consolidated Interest Expense of such
Person for such period to the extent the same was deducted in calculating such
Consolidated Net Income, plus

 

(c)           Consolidated Depreciation and
Amortization Expense of such Person for such period to the extent such
depreciation and amortization were deducted in computing Consolidated Net
Income, plus

 

(d)           any expenses or charges related to
any Equity Offering, Permitted Investment, acquisition, disposition,
recapitalization or Indebtedness permitted to be incurred by this Indenture
(whether or not successful) including such fees, expenses or charges related to
the offering of the Notes, the 2011 Notes, the Senior Subordinated Loans and
the Credit Facilities, and deducted in computing Consolidated Net Income, plus

 

(e)           the amount of any restructuring
charge deducted in such period in computing Consolidated Net Income, including
any one-time costs incurred in connection with acquisitions after July 23,
2003, plus

 

(f)            without duplication, any other
non-cash charges reducing Consolidated Net Income for such period, excluding
any such charge that represents an accrual or reserve for a cash expenditure
for a future period, plus

 

(g)           the amount of any minority interest
expense deducted in calculating Consolidated Net Income (less the amount of any
cash dividends paid to the holders of such minority interests),  plus

 

(h)           Systems/Organizational Establishment
Expenses and, prior to December 31, 2001, unusual patent litigation expenses,
less,

 

(i)            without duplication, non-cash items
increasing Consolidated Net Income of such Person for such period, excluding
any items which represent the reversal of any accrual of, or cash reserve for,
anticipated cash charges in any prior period.

 

13

 

“EMU”
means economic and monetary union as contemplated in the Treaty on European
Union.

 

“Equity Interests” means Capital
Stock and all warrants, options or other rights to acquire Capital Stock, but
excluding any debt security that is convertible into, or exchangeable for,
Capital Stock.

 

“Equity Offering” means any public
or private sale of Common Stock or preferred stock of the Company or any of its
direct or indirect parent corporations (excluding Disqualified Stock), other
than:

 

(1)           public offerings with respect to the
Company’s or any direct or indirect parent corporation’s Common Stock
registered on Form S-8, and

 

(2)           any such public or private sale that
constitutes an Excluded Contribution.

 

“euro”
or “€” means the single currency of participating member states of the EMU.

 

“Euro Notes” means the Initial Euro Notes, the
Exchange Euro Notes and the Additional Euro Notes, if any.

 

“Euroclear” means Euroclear Bank, S.A./N.V., as
operator of the Euroclear system.

 

“Euro Notes Paying Agent” means Bank
of New York London or any other Person (including the Company acting as Euro
Notes Paying Agent) authorized by the Company to pay the principal of (and
premium, if any) or interest on any Euro Notes on behalf of the Company.

 

“Euro Notes Register” has the
meaning specified in Section 305 of this Indenture.

 

“Euro Notes Registrar” has the
meaning specified in Section 305 of this Indenture.

 

 “European Union” means
the European Union, including the countries of Austria, Belgium, Denmark,
France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands,
Portugal, Spain, Sweden and the United Kingdom, but not including any country
which becomes a member of the European Union after the Issue Date.

 

“Event of Default” has the meaning
specified in Section 501 of this Indenture.

 

“Excess Proceeds” has the meaning
specified in Section 1018 of this Indenture.

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Commission promulgated
thereunder.

 

14

 

“Exchange Dollar Notes” has the
meaning stated in the first recital of this Indenture.

 

“Exchange Euro Notes” has the
meaning stated in the first recital of this Indenture.

 

“Exchange Notes” has the meaning
specified in the first recital of this Indenture.

 

“Exchange Offer” means the offer by
the Company to the Holders of the Initial Notes to exchange all of the Initial
Notes for Exchange Notes as provided for in the Registration Rights Agreement.

 

“Exchange Offer Registration Statement”
means the Exchange Offer Registration Statement as defined in the Registration
Rights Agreement.

 

“Excluded Contribution” means net
cash proceeds, marketable securities or Qualified Proceeds received by the
Company from:

 

(a)           contributions to its common equity
capital, and

 

(b)           the sale (other than to a Subsidiary
of the Company or to any management equity plan or stock option plan or any
other management or employee benefit plan or agreement of the Company) of
Capital Stock (other than Disqualified Stock and Designated Preferred Stock) of
the Company,

 

in each case, designated
as Excluded Contributions pursuant to an Officers’ Certificate executed by an
executive vice president and the principal financial officer of the Company on
the date such capital contributions are made or the date such Capital Stock are
sold, as the case may be, which are excluded from the calculation set forth in
Section 1010(a)(4)(C).

 

“Existing Indebtedness” means
Indebtedness of the Company or the Restricted Subsidiaries in existence on the
Issue Date, plus interest accruing thereon.

 

“Fixed Charge Coverage Ratio” means,
with respect to any Person for any period consisting of such Person and its
Restricted Subsidiaries most recently ended four full fiscal quarters for which
internal financial statements are available, the ratio of EBITDA of such Person
for such period to the Fixed Charges of such Person for such period.  In the event that the Company or any Restricted
Subsidiary thereof incurs, assumes, guarantees or redeems any Indebtedness or
issues or redeems Disqualified Stock or preferred stock subsequent to the
commencement of the period for which the Fixed Charge Coverage Ratio is being
calculated but prior to the event for which the calculation of the Fixed Charge
Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage
Ratio shall be calculated giving pro forma effect to such incurrence,
assumption, guarantee or redemption of Indebtedness, or such issuance or
redemption of Disqualified Stock or preferred stock, as if the same had
occurred at the beginning of the applicable four-quarter period.

 

For purposes of making
the computation referred to above, Investments, acquisitions, dispositions,
mergers, consolidations and disposed operations (as determined in

 

15

 

accordance with GAAP) that have been made by the Company or any
Restricted Subsidiary during the four-quarter reference period or subsequent to
such reference period and on or prior to or simultaneously with the Calculation
Date shall be calculated on a pro forma basis assuming that all such
Investments, acquisitions, dispositions, mergers, consolidations and disposed
operations (and the change in any associated fixed charge obligations and the
change in EBITDA resulting therefrom) had occurred on the first day of the
four-quarter reference period.  If since
the beginning of such period any Person (that subsequently became a Restricted
Subsidiary or was merged with or into the Company or any Restricted Subsidiary
since the beginning of such period) shall have made any Investment,
acquisition, disposition, merger, consolidation or disposed operation that
would have required adjustment pursuant to this definition, then the Fixed
Charge Coverage Ratio shall be calculated giving pro forma effect thereto for
such period as if such Investment, acquisition, disposition, merger,
consolidation or disposed operation had occurred at the beginning of the
applicable four-quarter period.

 

For purposes of this
definition, whenever pro forma effect is to be given to a transaction, the pro
forma calculations shall be made in good faith by a responsible financial or
accounting officer of the Company.  If
any Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the Calculation Date had been the applicable rate for the entire
period (taking into account any Hedging Obligations applicable to such
Indebtedness).  Interest on a Capitalized
Lease Obligation shall be deemed to accrue at an interest rate reasonably
determined by a responsible financial or accounting officer of the Company to
be the rate of interest implicit in such Capitalized Lease Obligation in
accordance with GAAP.  For purposes of
making the computation referred to above, interest on any Indebtedness under a
revolving credit facility computed on a pro forma basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable
period.  Interest on Indebtedness that
may optionally be determined at an interest rate based upon a factor of a prime
or similar rate, a eurocurrency interbank offered rate, or other rate, shall be
deemed to have been based upon the rate actually chosen, or, if none, then
based upon such optional rate chosen as the Company may designate.

 

“Fixed Charges” means, with respect
to any Person for any period, the sum of:

 

(a)           Consolidated Interest Expense of such
Person for such period,

 

(b)           all cash dividend payments (excluding
items eliminated in consolidation) on any series of preferred stock (including
any Designated Preferred Stock) of such Person, and

 

(c)           all cash dividend payments (excluding
items eliminated in consolidation) on any series of Disqualified Stock.

 

“Foreign Subsidiary” means, with
respect to any Person, any Restricted Subsidiary of such Person that is not
organized or existing under the laws of the United States, any state thereof,
the District of Columbia, or any territory thereof.

 

“Funding Guarantor” has the meaning
specified in Section 1206 of this Indenture.

 

16

 

“GAAP”
means generally accepted accounting principles in the United States which are
in effect on July 23, 2003.  For purposes
of this Indenture, the term “consolidated” with respect to any Person means
such Person consolidated with its Restricted Subsidiaries, and shall not
include any Unrestricted Subsidiary.

 

“Global Notes” has the meaning specified in Section
201 of this Indenture.

 

“Government Securities” means
securities that are:

 

(a)           direct obligations of the United
States of America for the timely payment of which its full faith and credit is
pledged, or obligations of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America the timely payment
of which is unconditionally guaranteed as a full faith and credit obligation by
the United States of America;

 

(b)           issued or directly and fully and
unconditionally guaranteed or insured by a member of the European Union, or any
agency or instrumentality thereof, the securities of which are unconditionally
guaranteed as a full faith and credit obligation of such government;

 

which, in either case,
are not callable or redeemable at the option of the issuers thereof, and shall
also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such
Government Securities or a specific payment of principal of or interest on any
such Government Securities held by such custodian for the account of the holder
of such depository receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Securities or the specific payment of
principal of or interest on the Government Securities evidenced by such
depository receipt.

 

“guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including, without limitation, letters of credit and reimbursement
agreements in respect thereof), of all or any part of any Indebtedness or other
obligations.

 

“Guarantee” means the guarantee by any Guarantor of the
Company’s Indenture Obligations.

 

“Guarantors” means all Restricted Subsidiaries that
are Domestic Subsidiaries (other than certain special-purpose Restricted
Subsidiaries formed in connection with Receivables Facility) as of the Issue
Date.

 

“Hedging Obligations” means, with
respect to any Person, the obligations of such Person under (a) currency
exchange, interest rate or commodity swap agreements, currency exchange,
interest rate or commodity cap agreements and currency exchange, interest rate
or commodity collar agreements and (b) other agreements or arrangements
designed to protect such Person against fluctuations in currency exchange,
interest rates or commodity prices.

 

17

 

“Holder”
means a holder of Notes.

 

“incur”
has the meaning specified in Section 1011 of this Indenture.

 

“incurrence” has the meaning specified in Section
1011 of this Indenture.

 

“Indebtedness” means, with respect
to any Person,

 

(a)           any indebtedness (including principal
and premium) of such Person, whether or not contingent:

 

(1)           in respect of borrowed money;

 

(2)           evidenced by bonds, notes, debentures
or similar instruments or letters of credit or bankers’ acceptances (or,
without double counting, reimbursement agreements in respect thereof);

 

(3)           representing the balance deferred and
unpaid of the purchase price of any property (including Capitalized Lease
Obligations), except any such balance that constitutes a trade payable or
similar obligation to a trade creditor, in each case accrued in the ordinary
course of business; or

 

(4)           representing any Hedging Obligations;

 

if and to the extent that
any of the foregoing Indebtedness (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet (excluding the
footnotes thereto) of such Person prepared in accordance with GAAP;

 

(b)           to the extent not otherwise included,
any obligation by such Person to be liable for, or to pay, as obligor,
guarantor or otherwise, on the Indebtedness of another Person, other than by
endorsement of negotiable instruments for collection in the ordinary course of
business; and

 

(c)           to the extent not otherwise included,
Indebtedness of another Person secured by a Lien on any asset owned by such
Person, whether or not such Indebtedness is assumed by such Person; provided,
however, that Contingent Obligations incurred in the ordinary course of
business shall be deemed not to constitute Indebtedness; and obligations under
or in respect of Receivables Facilities shall not be deemed to constitute
Indebtedness.

 

“Indenture” means this instrument as originally
executed and as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof.

 

“Independent Financial Advisor” means
an accounting, appraisal, investment banking firm or consultant to Persons
engaged in Similar Businesses of nationally recognized

 

18

 

standing that is, in the good faith judgment of the Company, qualified
to perform the task for which it has been engaged.

 

“Initial Dollar Notes” has the
meaning stated in the first recital of this Indenture.

 

“Initial Euro Notes” has the meaning
stated in the first recital of this Indenture.

 

“Initial Notes” has the meaning
stated in the first recital of this Indenture.

 

“Interest Payment Date” means the
Stated Maturity of an installment of interest on the Notes.

 

“Investment Grade Securities” means:

 

(1)           securities issued or directly and
fully guaranteed or insured by the United States government or any agency or instrumentality
thereof (other than Cash Equivalents),

 

(2)           securities issued or directly and
fully guaranteed or insured by a member of the European Union, or any agency or
instrumentality thereof (other than Cash Equivalents);

 

(3)           debt securities or debt instruments
with a rating of BBB- or higher by S&P or Baa3 or higher by Moody’s or the
equivalent of such rating by such rating organization, or, if no rating of
S&P or Moody’s then exists, the equivalent of such rating by any other
nationally recognized securities rating agency, but excluding any debt
securities or instruments constituting loans or advances among the Company and
its Subsidiaries,

 

(4)           investments in any fund that invests
exclusively in investments of the type described in clauses (1), (2) and (3)
above, which fund may also hold immaterial amounts of cash pending investment
and/or distribution, or

 

(5)           corresponding instruments in
countries other than those identified in clauses (1) and (2) above customarily
utilized for high quality investments.

 

“Investments” means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the form
of loans (including guarantees), advances or capital contributions (excluding
accounts receivable, trade credit, advances to customers, commission, travel
and similar advances to officers and employees, in each case made in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities issued by any other
Person and investments that are required by GAAP to be classified on the
balance sheet (excluding the footnotes) of such Person in the same manner as
the other investments included in this definition to the extent such
transactions involve the transfer of cash or other property.  For purposes of the definition of “Unrestricted
Subsidiary” and Section 1010,

 

19

 

(1)           “Investments” shall include the
portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets of a Subsidiary of the Company at the
time that such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a Restricted
Subsidiary, the Company shall be deemed to continue to have a permanent “Investment”
in an Unrestricted Subsidiary in an amount (if positive) equal to:

 

(x)            the Company’s “Investment” in such
Subsidiary at the time of such redesignation less

 

(y)           the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of the
net assets of such Subsidiary at the time of such redesignation; and

 

(2)           any property transferred to or from
an Unrestricted Subsidiary shall be valued at its fair market value at the time
of such transfer, in each case as determined in good faith by the Company.

 

“Irish Paying Agent” means AIB/BNY
Fund Management (Ireland) Limited and its successors.

 

“Issue Date” means November 10, 2004.

 

“July 2003 Equity Contribution”
means the common equity contribution in the amount of $25.0 million made to the
Company by affiliates of Kohlberg Kravis Roberts & Co. L.P.

 

“Legal Defeasance” has the meaning
specified in Section 1302 of this Indenture.

 

“Letter of Credit Obligations” means
all Obligations in respect of Indebtedness of the Company with respect to
letters of credit issued pursuant to the Senior Credit Facilities which
Indebtedness shall be deemed to consist of:

 

(a)           the aggregate maximum amount
available to be drawn under all such letters of credit (the determination of
such aggregate maximum amount to assume compliance with all conditions for
drawing), and

 

(b)           the aggregate amount that has been
paid by, and not reimbursed to, the fronting bank and the lenders under such
letters of credit.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction; provided
that in no event shall an operating lease be deemed to constitute a Lien.

 

20

 

“Management Group” means at any
time, the Chairman of the Board, any President, any Executive Vice President or
Vice President, any Managing Director, any Treasurer and any Secretary or other
executive officer of any of Rockwood Holdings, Inc., Rockwood Specialties
Consolidated, Inc., Rockwood Specialties International, Inc., the Company or
any Subsidiary of any such company at such time.

 

“Maturity” , when used with respect to any Note,
means the date on which the principal of such Note or an installment of
principal becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, notice of redemption or
otherwise.

 

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

 

“Net Income” means, with respect to any Person, the
net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends.

 

“Net Proceeds” means the aggregate cash proceeds
received by the Company or any Restricted Subsidiary in respect of any Asset
Sale, including, without limitation, any cash received upon the sale or other
disposition of any Designated Non-cash Consideration received in any Asset Sale
and (ii) the amount of any debt owed to the Company or any Restricted
Subsidiary by the Company or any Restricted Subsidiary disposed of which is
repaid in connection with that disposal), net of the direct costs relating to
such Asset Sale and the sale or disposition of such Designated Non-cash
Consideration, including, without limitation, legal, accounting and investment
banking fees, and brokerage and sales commissions, any relocation expenses
incurred as a result thereof, taxes paid or payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements), amounts required to be applied to the repayment of principal,
premium, if any, and interest on Senior Indebtedness required (other than
required by Section 1018(b)(1)) to be paid as a result of such transaction and
any deduction of appropriate amounts to be provided by the Company as a reserve
in accordance with GAAP against any liabilities associated with the asset
disposed of in such transaction and retained by the Company after such sale or
other disposition thereof, including, without limitation, pension and other
post-employment benefit liabilities and liabilities related to environmental
matters or against any indemnification obligations associated with such
transaction.

 

“Non-payment Default”  has the meaning specified in
Section 1403 of this Indenture.

 

“Non-Registration Opinion and Supporting
Evidence” has the meaning specified in Section 312 of this Indenture.

 

“Note Register” means the Euro Notes
Register and the Dollar Notes Register.

 

“Note Registrar” means the Euro
Notes Registrar and the Dollar Notes Registrar and any other Person authorized
by the Company to register Notes and transfers of Notes on behalf of the
Company pursuant to Section 305 hereof.

 

21

 

“Notes”
has the meaning stated in the first recital of this Indenture and more
particularly means any Notes authenticated and delivered under this Indenture.

 

“Obligations” means any principal, interest,
penalties, fees, indemnifications, reimbursements (including, without
limitation, reimbursement obligations with respect to letters of credit and
banker’s acceptances), damages and other liabilities, and guarantees of payment
of such principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities, payable under the documentation governing any
Indebtedness.

 

“Offering Circular” means the
Offering Circular dated November 5, 2004 relating to the Initial Notes.

 

“Officer” means the Chairman of the Board of
Directors, the President, any Executive Vice President, Senior Vice President
or Vice President, the Treasurer or the Secretary of the Company.

 

“Officers’ Certificate” means a
certificate signed on behalf of the Company by two Officers of the Company, one
of whom must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company that
meets the requirements set forth in this Indenture.

 

“Offshore Global Notes” has the
meaning specified in Section 201 of this Indenture.

 

“Offshore Physical Notes” has the
meaning specified in Section 201 of this Indenture.

 

“Opinion of Counsel” means, with
respect to any Person, a written opinion of counsel, who may be counsel for
such Person, including an employee of such Person.

 

“Outstanding” , when used with respect to Notes,
means, as of the date of determination, all Notes theretofore authenticated and
delivered under this Indenture, except:

 

(i)            Notes theretofore cancelled by the
Trustee or delivered to the Trustee for cancellation;

 

(ii)           Notes, or portions thereof, for whose
payment or redemption money in the necessary amount has been theretofore
deposited with the Trustee or any Paying Agent (other than the Company) in
trust or set aside and segregated in trust by the Company (if the Company shall
act as its own Paying Agent) for the Holders of such Notes; provided
that, if such Notes are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made;

 

(iii)          Notes, except to the extent provided
in Sections 1302 and 1303, with respect to which the Company has effected Legal
Defeasance and/or Covenant Defeasance as provided in Article Thirteen; and

 

22

 

(iv)          Notes which have been paid pursuant to
Section 306 or in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture, other than any such
Notes in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Notes are held by a bona fide purchaser in whose
hands the Notes are valid obligations of the Company;

 

provided,
however, that in determining whether the Holders of the requisite
principal amount of Outstanding Notes have given any request, demand,
authorization, direction, consent, notice or waiver hereunder, and for the
purpose of making the calculations required by TIA Section 313, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company
or such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in making
such calculation or in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes which a Responsible Officer of
the Trustee actually knows to be so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Affiliate of the Company or such other obligor.

 

“Parent Companies” means Rockwood
Holdings, Inc., Rockwood Specialties Consolidated, Inc. and Rockwood
Specialties International, Inc.

 

“Pari Passu Indebtedness” means any
indebtedness of the Company which ranks pari passu in right of payment to the
Notes.

 

“Paying Agent” means the Euro Notes Paying Agent and
the Dollar Notes Paying Agent and any other Person (including the Company
acting as Paying Agent) authorized by the Company to pay the principal of (and
premium, if any) or interest on any Notes on behalf of the Company.

 

“Payment Blockage Period” has the
meaning specified in Section 1403 of this Indenture.

 

“Payment Default” has the meaning
specified in Section 1403 of this Indenture.

 

“Permitted Asset Swap” means the
concurrent purchase and sale or exchange of Related Business Assets or a
combination of Related Business Assets and cash or Cash Equivalents between the
Company or any of its Restricted Subsidiaries and another Person; provided
that any cash or Cash Equivalents received must be applied in accordance with
Section 1018.

 

“Permitted Holders” means Kohlberg
Kravis Roberts & Co. L.P., DLJ Merchant Banking Partners III, L.P., their
respective Affiliates and the Management Group.

 

“Permitted Investments” means:

 

(a)           any Investment in the Company or any
Restricted Subsidiary;

 

23

 

(b)           any Investment in cash and Cash
Equivalents or Investment Grade Securities;

 

(c)           any Investment by the Company or any
Restricted Subsidiary of the Company in a Person that is engaged in a Similar
Business if as a result of such Investment,

 

(1)           such Person becomes a Restricted
Subsidiary, or

 

(2)           such Person, in one transaction or a
series of related transactions, is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is
liquidated into, the Company or a Restricted Subsidiary;

 

(d)           any Investment in securities or other
assets not constituting cash or Cash Equivalents and received in connection
with an Asset Sale made pursuant to Section 1018, or any other disposition of
assets not constituting an Asset Sale;

 

(e)           any Investment existing on July 23,
2003;

 

(f)            advances to employees not in excess
of $25.0 million outstanding at any one time, in the aggregate;

 

(g)           any Investment acquired by the
Company or any Restricted Subsidiary,

 

(1)           in exchange for any other Investment
or accounts receivable held by the Company or any such Restricted Subsidiary in
connection with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuer of such other Investment or accounts receivable,
or

 

(2)           as a result of a foreclosure by the
Company or any Restricted Subsidiary with respect to any secured Investment or
other transfer of title with respect to any secured Investment in default;

 

(h)           Hedging Obligations permitted under
Section 1011(b)(10);

 

(i)            loans and advances to officers,
directors and employees for business-related travel expenses, moving expenses
and other similar expenses, in each case incurred in the ordinary course of
business;

 

(j)            any Investment in a Similar Business
having an aggregate fair market value, taken together with all other
Investments made pursuant to this clause (j) that are at that time outstanding
(without giving effect to the sale of an Unrestricted Subsidiary to the extent
the proceeds of such sale do not consist of cash and/or marketable securities),
not to exceed the greater of (x) $150.0 million and (y) 4.0% of Total Assets at
the time of such Investment (with the fair market value of each Investment
being measured at the time made and without giving effect to subsequent changes
in value);

 

24

 

(k)           Investments the payment for which
consists of Equity Interests of the Company, or any of its direct or indirect
parent corporations (exclusive of Disqualified Stock); provided, however,
that such Equity Interests will not increase the amount available for
Restricted Payments under Section 1010(a)(C);

 

(l)            guarantees of Indebtedness permitted
under Section 1011;

 

(m)          any transaction to the extent it
constitutes an investment that is permitted and made in accordance with Section
1013(b) (except transactions described in clauses (2), (6), (7) and (11)
thereof);

 

(n)           Investments consisting of the
licensing or contribution of intellectual property pursuant to joint marketing
arrangements with other Persons;

 

(o)           additional Investments having an
aggregate fair market value, taken together with all other Investments made
pursuant to this clause (o) that are at that time outstanding (without giving
effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of
such sale do not consist of cash and/or marketable securities), not to exceed
the greater of (x) $90.0 million and (y) 2.5% of Total Assets at the time of
such Investment (with the fair market value of each Investment being measured
at the time made and without giving effect to subsequent changes in value); and

 

(p)           Investments relating to any special
purpose wholly-owned subsidiary of the Company organized in connection with a
Receivables Facility that, in the good faith determination of the Board of
Directors of the Company, are necessary or advisable to effect such Receivables
Facility.

 

“Permitted Junior Notes” has the
meaning specified in Section 1402 of this Indenture.

 

“Permitted Liens” means

 

(1)           Liens on assets of the Company or any
Guarantor securing Senior Indebtedness that was permitted under the covenant
described Section 1011 hereof;

 

(2)           Liens in favor of the Company or the
Guarantors;

 

(3)           Liens on property of a Person
existing at the time such Person is merged with or into or consolidated with
the Company or any Subsidiary of the Company; provided
that such Liens were in existence prior to the contemplation of such merger or
consolidation and do not extend to any assets other than those of the Person
merged into or consolidated with the Company or the Subsidiary;

 

(4)           Liens on property (including Capital
Stock) existing at the time of acquisition of the property by the Company or
any Subsidiary of the Company; provided that
such Liens were in existence prior to, such acquisition, and not incurred in
contemplation of, such acquisition;

 

25

 

(5)           Liens to secure the performance of
statutory obligations, surety or appeal bonds, performance bonds or other obligations
of a like nature incurred in the ordinary course of business;

 

(6)           Liens to secure Indebtedness
(including Capital Lease Obligations) permitted under clause (d) of the
covenant described in Section 1011 hereof covering only the assets acquired with
or financed by such Indebtedness;

 

(7)           Liens existing on the date of this
Agreement;

 

(8)           Liens for taxes, assessments or
governmental charges or claims that are not yet delinquent or that are being
contested in good faith by appropriate proceedings promptly instituted and
diligently concluded; provided that
any reserve or other appropriate provision as is required in conformity with
GAAP has been made therefor;

 

(9)           Liens imposed by law, such as
carriers’, warehousemen’s, landlord’s and mechanics’ Liens, in each case,
incurred in the ordinary course of business;

 

(10)         survey exceptions, easements or
reservations of, or rights of others for, licenses, rights-of-way, sewers,
electric lines, telegraph and telephone lines and other similar purposes, or
zoning or other restrictions as to the use of real property that were not
incurred in connection with Indebtedness and that do not in the aggregate
materially adversely affect the value of said properties or materially impair
their use in the operation of the business of such Person;

 

(11)         Liens created for the benefit of (or to
secure) the Notes (or the Guarantees);

 

(12)         Liens to secure any Refinancing
Indebtedness permitted under the covenant described in Section 1011 hereof; provided, however, that: (a) the new Lien shall be limited
to all or part of the same property and assets that secured or, under the
written agreements pursuant to which the original Lien arose, could secure the
original Lien (plus improvements and accessions to, such property or proceeds
or distributions thereof); and (b) the Indebtedness secured by the new Lien is
not increased to any amount greater than the sum of (x) the outstanding
principal amount, or, if greater, committed amount, of the Refinancing
Indebtedness and (y) an amount necessary to pay any fees and expenses,
including premiums, related to such renewal, refunding, refinancing,
replacement, defeasance or discharge; and

 

(13)         Liens incurred in the ordinary course
of business of the Company or any Subsidiary of the Company with respect to
obligations that do not exceed $5.0 million at any one time outstanding.

 

“Person”
means any individual, corporation, limited liability company, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity.

 

“Physical Notes” has the meaning
specified in Section 201 of this Indenture.

 

26

 

“Predecessor Note” of any particular
Note means every previous Note evidencing all or a portion of the same debt as
that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 306 in exchange
for a mutilated Note or in lieu of a lost, destroyed or stolen Note shall be
deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
Note.

 

“preferred stock” means any Equity
Interest with preferential rights of payment of dividends or upon liquidation,
dissolution, or winding up.

 

“Private Placement Legend” has the
meaning specified in Section 203 of this Indenture.

 

“QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

 

“Qualified Proceeds” means assets
that are used or useful in, or Capital Stock of any Person engaged in, a
Similar Business; provided that the fair market value of any such assets
or Capital Stock shall be determined by the Board of Directors in good faith.

 

“Receivables Facility” means one or
more receivables financing facilities, as amended from time to time, the
Indebtedness of which is non-recourse (except for standard representations,
warranties, covenants and indemnities made in connection with such facilities)
to the Company and the Restricted Subsidiaries pursuant to which the Company
and/or any of its Restricted Subsidiaries sells its accounts receivable to a
Person that is not a Restricted Subsidiary.

 

“Receivables Fees” means
distributions or payments made directly or by means of discounts with respect
to any participation interest issued or sold in connection with, and other fees
paid to a Person that is not a Restricted Subsidiary in connection with, any
Receivables Facility.

 

“Redemption Date” , when used with
respect to any Note to be redeemed, in whole or in part, means the date fixed
for such redemption by or pursuant to this Indenture.

 

“Redemption Price” , when used with
respect to any Note to be redeemed, means the price at which it is to be
redeemed pursuant to this Indenture.

 

“Refinancing Indebtedness” has the
meaning specified in Section 1011 of this Indenture.

 

“Refunding Capital Stock” has the
meaning specified in Section 1010 of this Indenture.

 

“Registration Rights Agreement” has
the meaning stated in the first recital of this Indenture.

 

“Regular Record Date” has the
meaning specified in Section 301 of this Indenture.

 

27

 

“Regulation S” means Regulation S under the
Securities Act.

 

“Regulation S Certificate” has the
meaning specified in Section 312 of this Indenture.

 

“Related Business Assets” means
assets (other than cash or Cash Equivalents) used or useful in a Similar
Business, provided that any assets received by the Company or a
Restricted Subsidiary in exchange for assets transferred by the Company or a
Restricted Subsidiary shall not be deemed to be Related Business Assets if they
consist of securities of a Person, unless upon receipt of the securities of
such Person, such Person would become a Restricted Subsidiary.

 

“Resale Restriction Termination Date”
has the meaning specified in Section 311 of this Indenture.

 

“Responsible Officer” , when used
with respect to the Trustee, means any vice president, any assistant treasurer,
any trust officer or assistant trust officer, the controller or any assistant
controller or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above-designated officers, and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Restricted Investment” means an
Investment other than a Permitted Investment.

 

“Restricted Payments” has the
meaning specified in Section 1010 of this Indenture.

 

“Restricted Subsidiary” means, at
any time, any direct or indirect Subsidiary of the Company (including any
Foreign Subsidiary) that is not then an Unrestricted Subsidiary; provided,
however, that upon the occurrence of an Unrestricted Subsidiary ceasing
to be an Unrestricted Subsidiary, such Subsidiary shall be included in the
definition of “Restricted Subsidiary”.

 

“Retired Capital Stock” has the
meaning specified in Section 1010 of this Indenture.

 

“Rule 144A” means Rule 144A under the Securities Act.

 

“Rule 144A Certificate” has the
meaning specified in Section 312 of this Indenture.

 

“S&P”
means Standard and Poor’s Ratings Group.

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

 

28

 

“Senior Credit Facilities” means the
Credit Agreement dated as of July 30, 2004, among the Company, Rockwood
Specialties Limited, Rockwood Specialties International, Inc., the lenders
party thereto, Credit Suisse First Boston, acting through its Cayman Islands
Branch, as administrative agent thereunder and UBS Securities LLC and Goldman
Sachs Credit Partners L.P., as co-syndication agents thereunder, including any
guarantees, collateral documents, instruments and agreements executed in
connection therewith, and any amendments, supplements, modifications,
extensions, renewals, restatements or refundings thereof and any indentures or credit
facilities or commercial paper facilities with banks or other institutional
lenders or investors that replace, refund or refinance any part of the loans,
notes, other credit facilities or commitments thereunder, including any such
replacement, refunding or refinancing facility or indenture that increases the
amount borrowable thereunder or alters the maturity thereof.

 

“Senior Discount Notes” means the
Senior Discount Notes of Rockwood Specialties International Inc., issued on
July 23, 2003 or any refinancing thereof in the form of Indebtedness or
preferred stock; provided, however, that such refinanced Indebtedness or
preferred stock (i) shall be incurred by Rockwood Specialties International,
Inc., (ii) does not have a maturity date which is prior to August 15, 2011,
(iii) does not require cash interest or cash dividends to be paid prior to
August 15, 2007, (iv) does not have an effective interest rate or dividend rate
that exceeds 12% per annum and (v) does not have terms and conditions which
taken as a whole, are materially disadvantageous to the Holders of the Notes as
compared to the Senior Discount Notes.

 

“Senior Indebtedness” means:

 

(1) the Obligations under
the Senior Credit Facilities; and

 

(2) the Obligations under
any other Indebtedness permitted to be incurred by the Company under the terms
of the Indenture, unless the instrument under which such Indebtedness is
incurred expressly provides that it is on a parity with or subordinated in
right of payment to the Notes,

 

including interest accruing
subsequent to the filing of, or which would have accrued but for the filing of,
a petition for bankruptcy, in accordance with and at the rate specified in the
documents evidencing or governing such Senior Indebtedness, to the extent that
such interest is an allowable claim in such bankruptcy proceeding.
Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness
does not include:

 

(a) any liability for
foreign, federal, state, local or other taxes owed or owing by the Company;

 

(b) any obligation of the
Company to its direct or indirect parent corporations or to any of its
Subsidiaries or to any other Affiliate of the Company or any of such Affiliate’s
Subsidiaries;

 

(c) any amounts owed by
the Company for compensation to employees or for services rendered to the
Company;

 

29

 

(d) any accounts payable or trade liabilities,
including obligations in respect of funds held for the account of third
parties, arising in the ordinary course of business, including guarantees
thereof or instruments evidencing such liabilities, other than obligations in
Letter of Credit Obligations;

 

(e) any Indebtedness that is incurred in violation of
the Indenture;

 

(f) Indebtedness which, when incurred and without
respect to any election under Section 1111(b) of Title 11, United States
Code, is without recourse to the Company;

 

(g) any Indebtedness, guarantee or obligation of the
Company which is subordinate or junior to any other Indebtedness, guarantee or
obligation of the Company;

 

(h) Indebtedness evidenced by the Notes;

 

(i) Capital Stock of the Company; and

 

(j) amounts owing under leases (other than Capitalized
Lease Obligations).

 

“Senior Indebtedness” of any Guarantor of the Notes,
including the Guarantors, has a correlative meaning.

 

“Senior Subordinated
Indebtedness” means

 

(a)                                  with
respect to the Company, Indebtedness which ranks equal in right of payment to
the Notes, and

 

(b)                                 with
respect to any Guarantor, Indebtedness which ranks equal in right of payment to
the Guarantee of such Guarantor.

 

“Senior Subordinated Loans” means
the loans issued under the senior subordinated loan agreement, dated as of July 30,
2004, among the Company, the several lenders from time to time party thereto,
Credit Suisse First Boston, as administrative agent, Goldman Sachs Credit
Partners L.P., as Syndication Agent, and UBS AG, Stamford Branch, as
Documentation Agent.

 

“Shelf Registration Statement” means
the shelf registration statement as defined in the Registration Rights
Agreement.

 

“Significant Subsidiary” means any
Restricted Subsidiary that would be a “significant subsidiary” as defined in Article 1,
Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as
such regulation is in effect on the date hereof.

 

30

 

“Similar Business” means the development,
manufacture and distribution and/or provision of chemicals, chemical processes
or performance materials and any services, activities or businesses incidental
or directly related or similar thereto, or any line of businesses engaged in by
the Company and its Subsidiaries or any business activity that is a reasonable
extension, development or expansion thereof or ancillary thereto.

 

“Special Record Date” for the
payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 307.

 

“Stated Maturity” , when used with
respect to any Note or any installment of principal thereof or interest
thereon, means the date specified in such Notes as the fixed date on which the
principal of such Notes or such installment of principal or interest is due and
payable.

 

“Subordinated Indebtedness” means:

 

(a)                                  respect
to the Company, any Indebtedness of the Company which is by its terms
subordinated in right of payment to the Notes, and

 

(b)                                 respect
to any Guarantor, any Indebtedness of such Guarantor which is by its terms
subordinated in right of payment to the guarantee of such Guarantor.

 

“Subordinated
Note Obligations”
means any principal of, premium, if any, and interest on the Notes payable
pursuant to the terms of the Notes or upon acceleration, together with and
including any amounts received upon the exercise of rights of rescission or
other rights of action, including claims for damages, or otherwise, to the
extent relating to the purchase price of the Notes or amounts corresponding to such
principal, premium, if any, or interest on the Notes.

 

“Subsidiary” means, with respect to any Person,

 

(1)                                  any
corporation, association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of which more than
50% of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof, and

 

(2)                                  any
partnership, joint venture, limited liability company or similar entity of
which;

 

(x)                                   more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership or otherwise, and

 

31

 

(y)                                 such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.

 

“Successor Company” has the meaning specified in Section 801
of this Indenture.

 

“Successor
Person” has the
meaning specified in Section 802 of this Indenture.

 

“Systems/Organizational
Establishment Expenses” shall mean the aggregate of all expenditures
(whether paid in cash or accrued as liabilities) by the Company and the
Restricted Subsidiaries in (i) establishing financial, information technology
and other similar systems of the Company and the Restricted Subsidiaries, including
costs of the transition and integration of any such systems acquired in the
Acquisition, as a direct result of the establishment of the business acquired
in the Acquisition as a standalone business following the Acquisition and (ii)
establishing the business acquired in the Acquisition as a standalone business
following the Acquisition including the amortization of sign-on compensation
arrangements for key executives; provided that such expenses for the
period after January 1, 2003 shall not exceed $4.0 million in the
aggregate.

 

“Total Assets” means the total assets of the
Company and the Restricted Subsidiaries, as shown on the most recent balance
sheet of the Company.

 

“Transactions” means all of the transactions
(including the Senior Subordinated Loans, the Senior Credit Facilities and the
offering of the Initial Notes relating to Acquisition as described in the
Offering Circular.

 

“Treasury Rate” means, as of any Redemption Date,
the yield to maturity as of such Redemption Date of United States Treasury
securities with a constant maturity (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly
available at least two business days prior to the Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source of
similar market data)) most nearly equal to the period from the Redemption Date
to November 15, 2009; provided, however,
that if the period from the Redemption Date to November 15, 2009 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year will be used.

 

“Trust
Indenture Act”
or “TIA” means the Trust Indenture Act of 1939 as in force at the date
as of which this Indenture was executed, except as provided in Section 905.

 

“Trustee” means the Person named as the “Trustee” in the first
paragraph of this Indenture until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter “Trustee”
shall mean such successor Trustee.

 

“Unrestricted
Subsidiary”
means:

 

(1)                                  any
Subsidiary of the Company which at the time of determination is an Unrestricted
Subsidiary (as designated by the Board of Directors of the Company, as provided
below), and

 

32

 

(2)                                  any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of
the Company may designate any Subsidiary of the Company (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Equity Interests or Indebtedness of, or owns or holds any Lien on, any
property of, the Company or any Subsidiary of the Company (other than any
Subsidiary of the Subsidiary to be so designated), provided that:

 

(a)                                  any
Unrestricted Subsidiary must be an entity of which shares of the capital stock
or other equity interests (including partnership interests) entitled to cast at
least a majority of the votes that may be cast by all shares or equity
interests having ordinary voting power for the election of directors or other
governing body are owned, directly or indirectly, by the Company,

 

(b)                                 such
designation complies with Section 1010, and

 

(c)                                  each
of (1) the Subsidiary to be so designated and (2) its Subsidiaries has not at
the time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any Restricted Subsidiary.

 

The
Board of Directors of the Company may designate any Unrestricted Subsidiary to
be a Restricted Subsidiary; provided that, immediately after giving
effect to such designation no Default or Event of Default shall have occurred
and be continuing and either:

 

(1)                                  the
Company could incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test described under Section 1011(a), or

 

(2)                                  the
Fixed Charge Coverage Ratio for the Company and its Restricted Subsidiaries
would be greater than such ratio for the Company and its Restricted
Subsidiaries immediately prior to such designation, in each case on a pro forma
basis taking into account such designation. 
Any such designation by the Board of Directors of the Company shall be
notified by the Company to the Trustee by promptly filing with the Trustee a
copy of the board resolution giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the foregoing
provisions.

 

“U.S. Global Notes” has the meaning
specified in Section 201 of this Indenture.

 

“U.S. Physical Notes” has the
meaning specified in Section 201 of this Indenture.

 

“Vice President” , when used with
respect to the Company or the Trustee, means any vice president, whether or not
designated by a number or a word or words added before or after the title “vice
president”.

 

“Voting Stock” of any Person as of any
date means the Capital Stock of such Person that is at the time entitled to
vote in the election of the Board of Directors of such Person.

 

33

 

“Weighted Average Life to
Maturity” means, when applied to any Indebtedness,
Disqualified Stock or preferred stock, as the case may be, at any date, the
quotient obtained by dividing:

 

(1)                                  the
sum of the products of the number of years from the date of determination to
the date of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Disqualified Stock or
preferred stock multiplied by the amount of such payment, by

 

(2)                                  the
sum of all such payments.

 

“Wholly Owned Restricted
Subsidiary” means any Wholly Owned Subsidiary that is a
Restricted Subsidiary.

 

“Wholly-Owned Subsidiary” of any
Person means a Subsidiary of such Person, 100% of the outstanding Capital Stock
or other ownership interests of which (other than directors’ qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person.

 

“2011 Notes” means the 10?% Senior
Subordinated Notes due 2011 of the Company issued pursuant to that certain
Indenture, dated as of July 23, 2003, among the Company, the guarantors
party thereto and The Bank of New York, as trustee.

 

SECTION 102.  Compliance Certificates and Opinions.

 

Upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee
an Officers Certificate stating that all conditions precedent, if any, provided
for in this Indenture (including any covenant compliance with which constitutes
a condition precedent) relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than pursuant to Section 1008(a))
shall include:

 

(1)                                  a
statement that each individual signing such certificate or opinion has read
such covenant or condition and the definitions herein relating thereto;

 

(2)                                  a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

34

 

(3)                                  a
statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

 

(4)                                  a
statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

 

SECTION 103.  Form of Documents Delivered to Trustee.

 

In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

 

Any
certificate or opinion of an officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or opinion may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

 

Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument.

 

SECTION 104.  Acts of Holders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agents duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Company.  Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders signing such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and conclusive in favor of the Trustee and the Company, if made
in the manner provided in this Section.

 

(b)                                 The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution

 

35

 

thereof.  Where such execution is by a signer acting in
a capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of authority.  The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner that the Trustee deems sufficient.

 

(c)                                  The
principal amount and serial numbers of Notes held by any Person, and the date
of holding the same, shall be proved by the Note Register.

 

(d)                                 If
the Company shall solicit from the Holders any request, demand, authorization,
direction, notice, consent, waiver or other Act, the Company may, at its option,
by or pursuant to a Board Resolution, fix in advance a record date for the
determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Company shall have no
obligation to do so.  Notwithstanding TIA
Section 316(c), such record date shall be the record date specified in or
pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection
therewith and not later than the date such solicitation is completed.  If such a record date is fixed, such request,
demand, authorization, direction, notice, consent, waiver or other Act may be
given before or after such record date, but only the Holders of record at the
close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite proportion of
Outstanding Notes have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Notes shall be computed as of such record date; provided
that no such authorization, agreement or consent by the Holders on such record
date shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than eleven months after the record
date.  Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee, the Company or any Guarantor in reliance
thereon, whether or not notation of such action is made upon such Security.

 

SECTION 105.  Notices, Etc., to Trustee, Company, any
Guarantor and Agent.

 

Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with,

 

(1)                                  the
Trustee by any Holder or by the Company or any Guarantor shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing
(which may be via facsimile) to or with the Trustee at The Bank of New York,
101 Barclay Street, 21st Floor West, New York, New York 10286, Attention:  Corporate Trust Administration Division, or

 

(2)                                  the
Company or any Guarantor by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if
made, given, furnished or delivered in writing and mailed, first-class postage
prepaid, or delivered by recognized overnight courier, to the Company or such
Guarantor addressed

 

36

 

to it
at the address of its principal office specified in the first paragraph,
Attention: Thomas J. Riordan, or at any other address previously furnished in
writing to the Trustee by the Company or such Guarantor.

 

SECTION 106.  Notice to Holders; Waiver.

 

Where
this Indenture provides for notice of any event to Holders by the Company or
the Trustee, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at his address as it appears in the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. 
In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to other
Holders.  Notices given by publication
shall be deemed given on the first date on which publication is made and
notices given by first-class mail, postage prepaid, shall be deemed given five
calendar days after mailing.

 

In
case by reason of the suspension of or irregularities in regular mail service
or by reason of any other cause, it shall be impracticable to mail notice of
any event to Holders when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice for every purpose hereunder.

 

Where
this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

 

SECTION 107.  Effect of Headings and Table of Contents.

 

The Article and
Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

 

SECTION 108.  Successors and Assigns.

 

All
covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not.

 

SECTION 109.  Separability Clause.

 

In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

37

 

SECTION 110.  Benefits of Indenture.

 

Nothing
in this Indenture or in the Notes, express or implied, shall give to any
Person, other than the parties hereto, any Paying Agent, any Notes Registrar
and their successors hereunder, the Holders and, with respect to any provisions
hereof relating to the subordination of the Notes or the rights of holders of
Senior Indebtedness, the holders of Senior Indebtedness, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

 

SECTION 111.  Governing Law.

 

This
Indenture, the Notes and any Guarantee shall be governed by and construed in
accordance with the laws of the State of New York.  This Indenture is subject to the provisions
of the Trust Indenture Act that are required to be part of this Indenture and
shall, to the extent applicable, be governed by such provisions.

 

SECTION 112.  [INTENTIONALLY DELETED].

 

SECTION 113.  Legal Holidays.

 

In any
case where any Interest Payment Date, Redemption Date or Stated Maturity or
Maturity of any Note shall not be a Business Day, then (notwithstanding any
other provision of this Indenture or of the Notes) payment of  principal (or premium, if any) or interest
need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the Interest Payment Date,
Redemption Date, or at the Stated Maturity or Maturity; provided that no
interest shall accrue for the period from and after such Interest Payment Date,
Redemption Date, Stated Maturity or Maturity, as the case may be.

 

SECTION 114.  No Personal Liability of Directors,
Officers, Employees and Stockholders.

 

No
director, officer, employee, incorporator or stockholder of the Company or any
Guarantor or any of their parent companies shall have any liability for any
obligations of the Company or the Guarantors under the Notes, the Guarantees or
this Indenture or for any claim based on, in respect of, or by reason of such
obligations or their creation.  Each
Holder by accepting a Note and the related Guarantor waives and releases all
such liability.  The waiver and release
are part of the consideration for issuance of the Notes and the Guarantees.

 

SECTION 115.  Trust Indenture Act Controls.

 

If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
provision required by the TIA shall control. 
If any provision of this Indenture modifies or excludes any provision of
the TIA that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or excluded, as the case may
be.

 

38

 

SECTION 116.  Counterparts.

 

This
Indenture may be executed in any number of counterparts, each of which shall be
original; but such counterparts shall together constitute but one and the same
instrument.

 

ARTICLE TWO

 

NOTE FORMS

 

SECTION 201.  Forms Generally.

 

The
Initial Euro Notes and the Initial Dollar Notes shall be known and designated
as the “7.625% Senior Subordinated Notes due 2014” and the “7.500% Senior
Subordinated Notes due 2014” of the Company, respectively, and the Exchange
Euro Notes and the Exchange Dollar Notes shall be known and designated as the “7.625%
Exchange Notes due 2014” and the “7.500% Exchange Notes due 2014” of the
Company, respectively.  The (i) Dollar
Notes and the Trustee’s certificate of authentication and (ii) Euro Notes and
Trustee’s certificate of authentication shall be in substantially the forms set
forth in Exhibits A and B, respectively, and in this Article, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules of any securities exchange or as
may, consistently herewith, be determined by the officers executing such Notes,
as evidenced by their execution of the Notes. 
Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

 

The
definitive Notes shall be printed, lithographed, typewritten or engraved on
steel-engraved borders or may be produced in any other manner, all as
determined by the officers of the Company executing such Notes, as evidenced by
their execution of such Notes.

 

The
Initial Euro Notes and the Initial Dollar Notes offered and sold in reliance on
Rule 144A under the Securities Act shall be issued initially in the form of a
single permanent global Note in substantially the form set forth in Exhibits A
and B, respectively, and contain each of the legends set forth in Section 203
(the “U.S. Global Note”), registered in the name of the nominee of the
Depository, deposited with the Trustee, as custodian for the Depository or its
nominee, in the case of the Initial Dollar Notes, and registered in the name of
the Common Depository or the nominee of such Common Depository, deposited with
Bank of New York London, as custodian for the Common Depository, in the case of
the Initial Euro Notes, in each case, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of the U.S.
Global Note may from time to time be increased or decreased by adjustments made
(i) in the case of the Dollar Notes, on the records of the Trustee, as
custodian for the Depository or its nominee, and (ii) in the case of the Euro
Notes on the records of the Bank of New York London as Custodian for the Common
Depository as hereinafter provided.

 

The
Initial Euro Notes and the Initial Dollar Notes offered and sold in offshore
transactions in reliance on Regulation S under the Securities Act shall be
issued initially in the

 

39

 

form of a single
permanent global Note in substantially the form set forth in Exhibits A and B,
respectively, and contain the legends set forth in Section 203 (the “Offshore
Global Note”), registered in the name of the nominee of the Depository, deposited
with the Trustee, as custodian for the Depository or its nominee, in the case
of the Initial Dollar Notes, and registered in the name of the Common
Depository or the nominee of such Common Depository, deposited with Bank of New
York London, as custodian for the Common Depository, in the case of the Initial
Euro Notes, in each case, duly executed by the Company and authenticated by the
Trustee as hereinafter provided.  The
aggregate principal amount of the Offshore Global Note may from time to time be
increased or decreased by adjustments made (i) in the case of the Dollar Notes,
in the records of the Trustee, as custodian for the Depository or its nominee
and (ii) in the case of the Euro Notes on the records of Bank of New York
London, as Custodian for the Common Depository, as herein provided.  Initial Notes issued pursuant to Section 305
in exchange for or upon transfer of beneficial interests in the U.S. Global
Note or the Offshore Global Note shall be in the form of U.S. Physical Notes or
in the form of permanent certificated Notes substantially in the form set forth
in Exhibit A, in the case of Initial Euro Notes, and Exhibit B, in the case of
Initial Dollar Notes (the “Offshore Physical Notes”), respectively, as
hereinafter provided.

 

The
Offshore Physical Notes and U.S. Physical Notes are sometimes collectively
herein referred to as the “Physical Notes.” The U.S. Global Note and the
Offshore Global Note are sometimes collectively referred to as the “Global
Notes.” Exchange Euro Notes and Exchange Dollar Notes shall be issued
substantially in the form set forth in Exhibits A and B, respectively.

 

SECTION 202.  Form of Trustee’s Certificate of
Authentication.

 

Subject
to Section 611, the Trustee’s certificate of authentication shall be in
substantially the following form:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION.

 

This
is one of the Notes referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW
  YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
						

 

SECTION 203.  Restrictive Legends.

 

Unless
and until (i) an Initial Note is sold pursuant to an effective Shelf
Registration Statement or (ii) an Initial Note is exchanged for an Exchange
Note in an Exchange Offer pursuant to an effective Exchange Offer Registration
Statement, in either case, pursuant to this Indenture and the Registration
Rights Agreement, it being expressly understood that the

 

40

 

Trustee shall have no
obligation to monitor or otherwise determine compliance with the Registration
Rights Agreement, each Global Note and Physical Note shall bear the following
legend set forth below (the “Private Placement Legend”) on the face thereof:

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT (“RULE 144A”)(A “QIB”), (B) IT IS NOT A U.S.
PERSON, IT IS NOT ACQUIRING THIS NOTE FOR THE ACCOUNT OR BENEFIT OF A U.S.
PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER
THE SECURITIES ACT)(AN “IAI”), (2) AGREES THAT IT WILL NOT, WITHIN THE TIME
PERIOD REFERRED TO UNDER RULE 144(k) (TAKING INTO ACCOUNT THE PROVISIONS 154 OF
RULE 144(d) UNDER THE SECURITIES ACT (IF APPLICABLE) UNDER THE SECURITIES ACT
AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE, RESELL OR OTHERWISE
TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY OF SUBSIDIARY THEREOF, (B)
TO A PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E)
TO AN IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
REGISTRATION OF TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED
FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL
AMOUNT OF NOTES AT THE TIME OF TRANSFER OF LESS THAN $250,000, AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS INCOMPLIANCE WITH THE
SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS, AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND.  IN CONNECTION
WITH ANY TRANSFER OF THOS NOTE OR

 

41

 

ANY
INTEREST HEREIN WITHIN THE TIME PERIOD REFERRED TO ABOVE, THE HOLDER MUST CHECK
THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF
SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE.  AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT.  THE INDENTURE CONTAINS A PROVISIONS REQUIRING
THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE
FOREGOING RESTRICTIONS.

 

Each
Global Note, whether or not an Initial Note, shall also bear the following
legend on the face thereof:

 

UNLESS
THIS CERTIFICATE IS PRESENTED, BY AN AUTHORIZED REPRESENTATIVE OF [THE
DEPOSITORY TRUST COMPANY][THE COMMON DEPOSITORY], TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME [OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY] [AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITORY] (AND ANY
PAYMENT HEREON IS MADE TO [CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY][SUCH
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON
DEPOSITORY]), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, [CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY][ SUCH ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITORY], HAS AN INTEREST HEREIN.

 

TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
[THE DEPOSITORY TRUST COMPANY, NOMINEES OF THE DEPOSITORY TRUST COMPANY][THE
COMMON DEPOSITORY, NOMINEES OF THE COMMON DEPOSITORY] OR TO A SUCCESSOR THEREOF
OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL
BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
SECTIONS 311 AND 312 OF THE INDENTURE.

 

42

 

ARTICLE THREE

 

THE NOTES

 

SECTION 301.  Title and Terms.

 

The
aggregate principal amount of Notes which may be authenticated and delivered
under this Indenture is limited to $1,000 million, except for Notes
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 311,
312, 906, 1017, 1018 or 1108 or pursuant to an Exchange Offer.

 

The
Euro Notes and Dollar Notes shall be known and designated as the “7.625% Senior
Subordinated Notes due 2014” and the “7.500% Senior Subordinated Notes due 2014”
of the Company, respectively.  Their
Stated Maturity shall be November 15, 2014, and the Euro Notes shall bear
interest at the rate of 7.625% and the Dollar Notes shall bear interest at the
rate of 7.500%, each per annum from November 10, 2004, or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, payable on May 15, 2005 and semi-annually thereafter on May 15 and November 15
in each year and at said Stated Maturity, until the principal thereof is paid
or duly provided for and to the Person in whose name the Note (or any
predecessor Note) is registered at the close of business on the May 1 and November 1
immediately preceding such Interest Payment Date (each, a “Regular Record Date”).

 

The
principal of (and premium, if any) and interest on the Notes shall be payable
at the office or agency of the Company maintained for such purpose in The City
and State of New York with respect to the Dollar Notes and in London, England
with respect to the Euro Notes or, at the option of the Company, payment of
interest may be made by check mailed to the Holders of the Notes at their
respective addresses set forth in the Note Register of Holders; provided
that all payments of principal, premium, if any, and interest with respect to
Notes represented by one or more permanent Global Notes registered in the name
of or held by the Common Depository or its Nominee, in the case of the Euro
Notes, and the Depository or its nominee, in the case of the Dollar Notes, will
be made by wire transfer of immediately available funds to the accounts
specified by the Holder or Holders thereof. 
Until otherwise designated by the Company, the Company’s office or
agency in London and New York shall be the office of the trustee maintained for
such purpose.

 

Holders
shall have the right to require the Company to purchase their Notes, in whole
or in part, in the event of a Change in Control pursuant to Section 1017.  The Notes shall be subject to repurchase
pursuant to an Offer to Purchase as provided in Section 1018.

 

The
Notes shall be redeemable as provided in Article Eleven.

 

The
Notes shall be subordinated in right of payment to Senior Indebtedness as
provided in Article Fourteen.

 

The
due and punctual payment of principal of, premium, if any, and interest on the
Notes payable by the Company is irrevocably unconditionally guaranteed, to the
extent set forth herein, by each of the Guarantors.  The Guarantee issued by any Guarantor will be

 

43

 

subordinated to all
existing and future Guarantor Senior Indebtedness of such Guarantor as provided
in Article Twelve.

 

SECTION 302.  Denominations.

 

The
Euro and Dollar Notes shall be issuable only in registered form without coupons
and only in denominations of €50,000 and $50,000, as the case may be, or an
integral multiple of €1,000 or $1,000, as the case may be, above such minimum
denomination amount.

 

SECTION 303.  Execution, Authentication, Delivery and
Dating.

 

The
Notes shall be executed on behalf of the Company by its Chairman, its President
or a Vice President and attested by its Secretary or an Assistant
Secretary.  The signature of any of these
officers on the Notes may be manual or facsimile signatures of the present or
any future such authorized officer and may be imprinted or otherwise reproduced
on the Notes.

 

Notes
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company shall bind the Company, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices at the
date of such Notes.

 

At any
time and from time to time after the execution and delivery of this Indenture,
the Company may deliver Notes executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Notes, and the Trustee in accordance with such Company Order
shall authenticate and deliver such Notes.

 

On the
Issue Date, the Company shall deliver the Initial Euro Notes in the aggregate
principal amount of €375,000,000 and shall delver the Initial Dollar Notes in
the aggregate principal amount of $200,000,000 executed by the Company to the
Trustee for authentication, together with a Company Order for the
authentication and delivery of each of the Euro Notes and the Dollar Notes,
directing the Trustee to authenticate the Euro Notes and the Dollar Notes, as
applicable, and certifying that all conditions precedent to the issuance of the
Euro Notes and the Dollar Notes contained herein have been fully complied with,
and the Trustee in accordance with such Company Order shall authenticate and
deliver such Initial Dollar Notes and Initial Euro Notes.  At any time and from time to time after the
Issue Date, the Company may deliver Additional Notes executed by the Company to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Additional Notes, directing the Trustee to
authenticate the Additional Notes and certifying that the issuance of such
Additional Notes is in compliance with Article Ten hereof and that all
other conditions precedent to the issuance of Notes contained herein have been
fully complied with, and the Trustee in accordance with such Company Order
shall authenticate and deliver such Additional Notes; provided that the
aggregate principal amount of Initial Notes and any Additional Notes shall not
exceed $1,000,000,000; it being understood that the principal amount of Initial
Notes and Additional Notes outstanding shall be determined based upon the
exchange rate in effect on the date of such issuance of Additional Notes.  On Company Order, the Trustee

 

44

 

shall authenticate for
original issue Exchange Euro Notes in an aggregate principal amount not to
exceed €375,000,000 and Exchange Dollar Notes in an aggregate principal amount
not to exceed $200,000,000, in each case, plus the aggregate principal amount
of any Additional Notes issued; provided that such Exchange Notes shall
be issuable only upon the valid surrender for cancellation of Initial Notes and
any Additional Notes of a like aggregate principal amount in accordance with an
Exchange Offer pursuant to the Registration Rights Agreement and a Company
Order for the authentication and delivery of such Exchange Notes and certifying
that all conditions precedent to the issuance of such Exchange Notes are
complied with (including the effectiveness of the Exchange Offer Registration
Statement related thereto).  In each
case, the Trustee shall be entitled to receive an Officers’ Certificate and an
Opinion of Counsel of the Company that it may reasonably require in connection
with such authentication of Notes.  Such
order shall specify the amount of Notes to be authenticated and the date on
which the original issue of Notes is to be authenticated.

 

Each
Note shall be dated the date of its authentication.

 

No
Note shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Note a certificate of
authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of an authorized officer, and such certificate
upon any Note shall be conclusive evidence, and the only evidence, that such
Note has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture.

 

In
case the Company or any Guarantor, pursuant to Article Eight, shall be
consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of its properties and assets substantially as an
entirety to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company or such
Guarantor shall have been merged, or the Person which shall have received a
conveyance, transfer, lease or other disposition as aforesaid, shall have
executed a supplemental indenture hereto with the Trustee pursuant to Article Eight,
any of the Notes authenticated or delivered prior to such consolidation,
merger, conveyance, transfer, lease or other disposition may, from time to
time, at the request of the successor Person, be exchanged for other Notes
executed in the name of the successor Person with such changes in phraseology
and form as may be appropriate, but otherwise in substance of like tenor as the
Notes surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Request of the successor Person, shall authenticate and
deliver Notes as specified in such request for the purpose of such
exchange.  If Notes shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of
transfer of any Notes, such successor Person, at the option of the Holders but
without expense to them, shall provide for the exchange of all Notes at the
time Outstanding for Notes authenticated and delivered in such new name.

 

SECTION 304.  Temporary Notes.

 

Pending
the preparation of definitive Notes, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Notes which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized

 

45

 

denomination,
substantially of the tenor of the definitive Notes in lieu of which they are issued
and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Notes may determine, as conclusively
evidenced by their execution of such Notes.

 

If
temporary Notes are issued, the Company will cause definitive Notes to be
prepared without unreasonable delay. 
After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the
office or agency of the Company designated for such purpose pursuant to Section 1002,
without charge to the Holder.  Upon
surrender for cancellation of any one or more temporary Notes, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Notes of authorized
denominations.  Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as definitive Notes.

 

SECTION 305.  Paying Agent, Registration, Registration
of Transfer and Exchange.

 

The
Company shall maintain (i) in The City of New York an office or agency where
the Dollar Notes may be presented or surrendered for payment (the “Dollar Notes
Paying Agent”) and where notices and demands to or upon the Company in respect
of the Dollar Notes and this Indenture may be served and (ii) in London,
England an office or agency where the Euro Notes may be presented or
surrendered for payment (the “Euro Notes Paying Agent”) and where notices and
demands to or upon the Company in respect of the Euro Notes and this Indenture
may be served.  The Corporate Trust
Office of the Trustee shall be such Dollar Notes Paying Agent, unless the
Company shall designate and maintain some other office or agency for one or
more of such purposes.  Bank of New York
London shall be such Euro Notes Paying Agent, unless the Company shall
designate and maintain some other office or agency for one or more of such
purposes. The Company will give prompt written notice to the Trustee of any
change in the location of any such office or agency.  If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee,
with respect to the Dollar Notes, and Bank of New York London, with respect to
the Euro Notes, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands for the Dollar
Notes and Bank of New York London as its agent to receive all such
presentations, surrenders, notices and demands for the Euro Notes.

 

The
Company shall cause to be kept (i) at the Corporate Trust Office of the Trustee
a register (the register maintained in such office and in any other office or
agency designated pursuant to Section 1002 being herein sometimes referred
to as the “Dollar Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Dollar Notes and of transfers of Dollar Notes and (ii) at the Corporate
Trust Office of Bank of New York London a register (the register maintained in
such office and in any other office or agency designated pursuant to Section 1002
being herein sometimes referred to as the “Euro Note Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Euro Notes and

 

46

 

of transfers of Euro
Notes.  The Dollar Note Register and Euro
Note Register shall be in written form or any other form capable of being
converted into written form within a reasonable time.  At all reasonable times, the Dollar Note
Register and the Euro Note Register shall be open to inspection by the Trustee
and the Euro Notes Paying Agent.  The
Trustee is hereby initially appointed as note registrar (the “Dollar Note
Registrar”) for the purpose of registering Dollar Notes and transfers of Dollar
Notes as herein provided and the Euro Notes Paying Agent is hereby initially
appointed as note registrar (the “Euro Note Registrar”) for the purpose of
registering Euro Notes and transfers of Euro Notes as herein provided.

 

Upon
surrender for registration of transfer of any Note at the office or agency of
the Company designated pursuant to Section 1002, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized
denomination or denominations of a like aggregate principal amount.

 

At the
option of the Holder, Notes may be exchanged for other Notes of any authorized
denomination and of a like aggregate principal amount, upon surrender of the
Notes to be exchanged at such office or agency. 
Whenever any Notes are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Notes which the
Holder making the exchange is entitled to receive; provided that no
exchange of Initial Notes for Exchange Notes shall occur until an Exchange
Offer Registration Statement shall have been declared effective by the
Commission, the Trustee shall have received an Officers’ Certificate confirming
that the Exchange Offer Registration Statement has been declared effective by
the Commission and the Initial Notes to be exchanged for the Exchange Notes
shall be cancelled by the Trustee.

 

All
Notes issued upon any registration of transfer or exchange of Notes shall be
the valid obligations of the Company, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Notes surrendered upon such
registration of transfer or exchange.

 

Every
Note presented or surrendered for registration of transfer or for exchange
shall (if so required by the Company or the Dollar Note Registrar or Euro Note
Registrar, as applicable) be duly endorsed, or be accompanied by written
instruments of transfer, in form satisfactory to the Company and the Dollar
Note Registrar and Euro Note Registrar, as applicable, duly executed by the
Holder thereof or his attorney duly authorized in writing.

 

No
service charge shall be made for any registration of transfer or exchange or
redemption of Notes, but the Company may require payment of a sum sufficient to
cover any taxes, fees or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Sections 303, 304, 906, 1017, 1018, or 1108 not involving
any transfer.

 

So
long as the Notes are listed on the official list of the Irish Stock Exchange
and the rules of the Irish Stock Exchange so require, the Company shall
maintain an office or agency in Dublin, Ireland where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served.  The Irish Paying Agent

 

47

 

shall be such Paying
Agent and Note Registrar in Dublin, Ireland, unless the Company shall designate
and maintain some other office or agency for one or more of such purposes.  If the Notes are listed on any securities
exchange other than the Irish Stock Exchange, the Company shall satisfy any
requirement of such other securities exchange as to paying agents and note
registrars.  So long as the Notes are
listed on the Irish Stock Exchange, the Company shall publish a notice of any
change of Paying Agent or Note Registrar in a newspaper having a general
circulation in Dublin, Ireland in accordance with Section 106 hereof.

 

The
Company may remove any Note Registrar or Paying Agent upon written notice to
such Note Registrar or Paying Agent and to the Trustee; provided,
however, that no such removal shall become effective until (i) if
applicable, acceptance of an appointment by a successor as evidenced by an
appropriate agreement entered into by the Company and such successor Note
Registrar or Paying Agent, as the case may be, and delivered to the Trustee or
(ii) with respect to the Dollar Notes, notification to the Trustee that the
Trustee shall serve as Dollar Notes Registrar or Dollar Notes Paying Agent
until the appointment of a successor in accordance with clause (i) above, and
with respect to the Euro Notes, notification to the Euro Notes Paying Agent
that the Euro Notes Paying Agent shall serve as Euro Notes Registrar or Euro
Notes Paying Agent until the appointment of a successor in accordance with
clause (i) above.  The Note Registrar or
Paying Agent may resign at any time upon written notice to the Company and the
Trustee; provided, however, that the Trustee may
resign as Paying Agent or Registrar only if the Trustee also resigns as Trustee
in accordance with Section 609 hereof.

 

SECTION 306.  Mutilated, Destroyed, Lost and Stolen
Notes.

 

If (i)
any mutilated Note is surrendered to the Trustee, or (ii) the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Note, and there is delivered to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
then, in the absence of notice to the Company or the Trustee that such Note has
been acquired by a bona fide purchaser, the Company shall execute and upon
Company Order the Trustee shall authenticate and deliver, in exchange for any
such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a
new Note of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

 

In
case any such mutilated, destroyed, lost or stolen Note has become or is about
to become due and payable, the Company in its discretion may, instead of
issuing a new Note, pay such Note.

 

Upon
the issuance of any new Note under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

 

Every
new Note issued pursuant to this Section in lieu of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional
contractual obligation of the Company and each Guarantor, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

48

 

The
provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

 

SECTION 307.  Payment of Interest; Interest Rights
Preserved.

 

Interest
on any Note which is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name such Note
(or one or more Predecessor Notes) is registered at the close of business on
the Regular Record Date for such interest at the office or agency of the
Company maintained for such purpose pursuant to Section 1002; provided,
however, that each installment of interest may at the Company’s option
be paid by (i) mailing a check for such interest, payable to or upon the
written order of the Person entitled thereto pursuant to Section 308, to
the address of such Person as it appears in the Note Register or (ii) transfer
to an account located in the United States maintained by the payee.

 

Any
interest on any Note which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date shall forthwith cease to be payable
to the Holder on the Regular Record Date by virtue of having been such Holder,
and such defaulted interest and (to the extent lawful) interest on such
defaulted interest at the rate borne by the Notes (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”) may be paid
by the Company, at its election in each case, as provided in clause (1) or (2)
below:

 

(1)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Security
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause
provided.  Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. 
The Trustee shall promptly notify the Company of such Special Record
Date, and in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given in the manner provided for in Section 106, not less
than 10 days prior to such Special Record Date. 
Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been so given, such Defaulted Interest
shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following clause
(2).

 

49

 

(2)                                  The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required by such exchange,
if, after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed practicable by
the Trustee.

 

Subject
to the foregoing provisions of this Section, each Note delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any
other Note shall carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Note.

 

SECTION 308.  Persons Deemed Owners.

 

Prior
to the due presentment of a Note for registration of transfer, the Company, any
Guarantor, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Note is registered as the owner of such Note for
the purpose of receiving payment of principal of (and premium, if any) and (subject
to Sections 305 and 307) interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Company, the
Trustee or any agent of the Company or the Trustee shall be affected by notice
to the contrary.

 

SECTION 309.  Cancellation.

 

All
Notes surrendered for payment, redemption, registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee and shall be promptly cancelled by it. 
The Company may at any time deliver to the Trustee for cancellation any
Notes previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee (or to
any other Person for delivery to the Trustee) for cancellation any Notes
previously authenticated hereunder which the Company has not issued and sold,
and all Notes so delivered shall be promptly cancelled by the Trustee.  If the Company shall so acquire any of the
Notes, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Notes unless and until the
same are surrendered to the Trustee for cancellation.  No Notes shall be authenticated in lieu of or
in exchange for any Notes cancelled as provided in this Section, except as
expressly permitted by this Indenture. 
All cancelled Notes held by the Trustee shall be disposed of by the
Trustee in accordance with its customary procedures unless by Company Order the
Company shall direct that cancelled Notes be returned to it.

 

SECTION 310.  Computation of Interest.

 

Interest
on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

 

50

 

SECTION 311.  Book-Entry Provisions for Global Notes.

 

(a)                                  Each
Global Note initially shall (i) be registered in the name of the Depository for
such Global Notes or the nominee of such Depository, (ii) be delivered to the
Trustee as custodian for such Depository and (iii) bear legends as set forth in
Section 203.

 

Members
of, or participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Note, and the Depository may be
treated by the Company, the Guarantors, the Trustee and any agent of the
Company, the Guarantors or the Trustee as the absolute owner of such Global
Note for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Guarantors, the Trustee or any agent of the Company, the Guarantors or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and its Participants, the operation of customary practices governing the
exercise of the rights of a beneficial owner of any Note.  The registered Holder of a Global Note may
grant proxies and otherwise authorize any person, including Participants and
persons that may hold interests through Participants, to take any action which
a Holder is entitled to take under this Indenture or the Notes.

 

(b)                                 Interests
of beneficial owners in a Global Note may be transferred in accordance with the
applicable rules and procedures of the Depository and the provisions of Section 312
hereof.  Transfers of a Global Note shall
be limited to transfers of such Global Note in whole, but not in part, to the
Depository, a nominee of the Depository, its successors or their respective
nominees, except (i) as otherwise set forth in Section 312 and (ii)
Physical Notes shall be transferred to beneficial owners in exchange for their
beneficial interests in a Global Note if the Depository (1) notifies the
Company that it is unwilling or unable to continue as depository for such
Global Note and the Company thereupon fails to appoint a successor depository
or (2) has ceased to be a clearing agency registered under the Exchange
Act.  In connection with the transfer of
an entire Global Note to the beneficial owners pursuant to clause (ii) of this
paragraph (b), the applicable Global Note shall be deemed to be surrendered to
the Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the
Depository in exchange for its beneficial interest in the applicable Global
Note, an equal aggregate principal amount of Physical Notes of authorized
denominations.

 

(c)                                  Any
beneficial interest in a Global Note that is transferred to a Person who takes
delivery in the form of an interest in another Global Note shall, upon such
transfer, cease to be an interest in such Global Note and shall become an
interest in such other Global Note and, accordingly, shall thereafter be
subject to all transfer restrictions, if any, and other procedures applicable
to beneficial interests in such other Global Note for as long as it remains
such an interest.

 

(d)                                 Any
Physical Note delivered in exchange for an interest in a Global Note pursuant
to paragraph (b) of this Section shall, unless such exchange is made on or
after the Resale Restriction Termination Date (as defined below), and except as
otherwise provided in Section 312 hereof, bear the Private Placement
Legend.

 

51

 

SECTION 312.  Transfer Provisions.

 

Unless
and until (i) an Initial Note is sold pursuant to an effective Shelf
Registration Statement or (ii) an Initial Note is exchanged for an Exchange
Note in connection with an Exchange Offer pursuant to an effective Exchange
Offer Registration Statement, in each case, pursuant to the Registration Rights
Agreement, the following provisions shall apply:

 

(a)                                  General.  The provisions of this Section 312 shall
apply to all transfers involving any Physical Note and any beneficial interest
in a Global Note.

 

(b)                                 Certain
Definitions.  As used in this Section 312
only, “delivery” of a certificate by a transferee or transferor means the
delivery to the Note Registrar by such transferee or transferor of the
applicable certificate duly completed; “holding” includes both possession of a
Physical Note and ownership of a beneficial interest in a Global Note, as the
context requires; “transferring” a Global Note means transferring that portion
of the principal amount of the transferor’s beneficial interest therein that
the transferor has notified the Note Registrar that it has agreed to transfer;
and “transferring” a Physical Note means transferring that portion of the
principal amount thereof that the transferor has notified the Note Registrar
that it has agreed to transfer.

 

As
used in this Indenture, “Regulation S Certificate” means a certificate
substantially in the form set forth in Section 313; “Rule 144A Certificate”
means a certificate substantially in the form set forth in Section 314;
and “Non-Registration Opinion and Supporting Evidence” means a written opinion
of counsel reasonably acceptable to the Company to the effect that, and such
other certification or information as the Company may reasonably require to
confirm that, the proposed transfer is being made pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act.

 

(c)                                  Deemed
Delivery of a Rule 144A Certificate in Certain Circumstances.  A Rule 144A Certificate, if not actually
delivered, shall be deemed delivered if (i) (A) the transferor advises the
Company and the Trustee in writing that the relevant offer and sale were made
in accordance with the provisions of Rule 144A (or, in the case of a transfer
of a Physical Note, the transferor checks the box provided on the Physical Note
to that effect) and (B) the transferee advises the Company and the Trustee in
writing that (x) it and, if applicable, each account for which it is acting in
connection with the relevant transfer, is a QIB within the meaning of Rule
144A, (y) it is aware that the transfer of Notes to it is being made in
reliance on an exemption from the provisions of Section 5 of the
Securities Act provided by Rule 144A and (z) prior to the proposed date of
transfer it has been given the opportunity to obtain from the Company the
information referred to in Rule 144A(d)(4) and has either declined such
opportunity or has received such information (or, in the case of a transfer of
a Physical Note, the transferee signs the certification provided on the
Physical Note to that effect); or (ii) the transferor holds the U.S. Global
Note and is transferring to a transferee that will take delivery in the form of
the U.S. Global Note.

 

52

 

(d)                                 Procedures
and Requirements.

 

(1)                                  If
the proposed transferor holds:

 

(A)                              a
U.S. Physical Note, which is surrendered to the Note Registrar, and the
proposed transferee or transferor, as applicable:

 

(i)                                     delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee requests delivery in the form of a U.S.
Physical Note, then the Note Registrar shall (x) register such transfer in the
name of such transferee and record the date thereof in its books and records,
(y) cancel such surrendered U.S. Physical Note and (z) deliver a new U.S.
Physical Note to such transferee duly registered in the name of such transferee
in principal amount equal to the principal amount being transferred of such
surrendered U.S. Physical Note;

 

(ii)                                  delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee is or is acting through an Agent Member
and requests that the proposed transferee receive a beneficial interest in the
U.S. Global Note, then the Note Registrar shall (x) cancel such surrendered
U.S. Physical Note, (y) record an increase in the principal amount of the U.S.
Global Note equal to the principal amount being transferred of such surrendered
U.S. Physical Note and (z) notify the Depository in accordance with the
procedures of the Depository that it approves of such transfer; or

 

(iii)                               delivers a Regulation S
Certificate, then the Note Registrar shall cancel such surrendered U.S.
Physical Note and at the direction of the transferee, either:

 

(x)                                   register
such transfer in the name of such transferee, record the date thereof in its
books and records and deliver a new Offshore Physical Note to such transferee
in principal amount equal to the principal amount being transferred of such
surrendered U.S. Physical Note, or

 

(iv)                              (y)                                 if
the proposed transferee is or is acting through an Agent Member, record an
increase in the principal amount of the Offshore Global Note equal to the
principal amount being transferred of such surrendered U.S. Physical Note and
notify the Depository in accordance with the procedures of the Depository that
it approves of such transfer.

 

In any
of the cases described in this Section 312(d)(1)(A), the Note Registrar
shall deliver to the transferor a new U.S. Physical Note in principal amount
equal to the principal amount not being transferred of such surrendered U.S.
Physical Note, as applicable.

 

53

 

(B)                                the
U.S. Global Note, and the proposed transferee or transferor, as applicable:

 

(i)                                     delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee requests delivery in the form of a U.S.
Physical Note, then the Note Registrar shall (w) register such transfer in the
name of such transferee and record the date thereof in its books and records,
(x) record a decrease in the principal amount of the U.S. Global Note in an
amount equal to the beneficial interest therein being transferred, (y) deliver
a new U.S. Physical Note to such transferee duly registered in the name of such
transferee in principal amount equal to the amount of such decrease and (z)
notify the Depository in accordance with the procedures of the Depository that
it approves of such transfer;

 

(ii)                                  delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee is or is acting through an Agent Member
and requests that the proposed transferee receive a beneficial interest in the
U.S. Global Note, then the transfer shall be effected in accordance with the
procedures of the Depository therefor; or

 

(iii)                               delivers a Regulation S
Certificate, then the Note Registrar shall (x) record a decrease in the
principal amount of the U.S. Global Note in an amount equal to the beneficial
interest therein being transferred, (y) notify the Depository in accordance
with the procedures of the Depository that it approves of such transfer and (z)
at the direction of the transferee, either:

 

(x)                                   register
such transfer in the name of such transferee, record the date thereof in its
books and records and deliver a new Offshore Physical Note to such transferee
in principal amount equal to the amount of such decrease, or

 

(iv)                              (y)                                 if
the proposed transferee is or is acting through an Agent Member, record an
increase in the principal amount of the Offshore Global Note equal to the
amount of such decrease.

 

(C)                                an
Offshore Physical Note which is surrendered to the Note Registrar, and the
proposed transferee or transferor, as applicable:

 

(i)                                     delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee is or is acting through an Agent Member
and requests delivery in the form of the U.S. Global Note, then the Note
Registrar shall (x) cancel such surrendered Offshore Physical Note, (y) record
an increase in the principal amount of the U.S. Global Note equal to the
principal amount being

 

54

 

transferred
of such surrendered Offshore Physical Note and (z) notify the Depository in
accordance with the procedures of the Depository that it approves of such
transfer;

 

(ii)                                  where
the proposed transferee is or is acting through an Agent Member, requests that
the proposed transferee receive a beneficial interest in the Offshore Global
Note, then the Note Registrar shall (x) cancel such surrendered Offshore
Physical Note, (y) record an increase in the principal amount of the Offshore
Global Note equal to the principal amount being transferred of such surrendered
Offshore Physical Note and (z) notify the Depository in accordance with the
procedures of the Depository that it approves of such transfer; or

 

(iii)                               does not make a request
covered by Section 312(d)(1)(C)(i) or Section 312(d)(1)(C)(ii), then
the Note Registrar shall (x) register such transfer in the name of such
transferee and record the date thereof in its books and records, (y) cancel
such surrendered Offshore Physical Note and (z) deliver a new Offshore Physical
Note to such transferee duly registered in the name of such transferee in
principal amount equal to the principal amount being transferred of such
surrendered Offshore Physical Note.

 

In any
of the cases described in this Section 312(d)(1)(C), the Note Registrar
shall deliver to the transferor a new Offshore Physical Note in principal
amount equal to the principal amount not being transferred of such surrendered
Offshore Physical Note, as applicable.

 

(D)                               the
Offshore Global Note, and the proposed transferee or transferor, as applicable:

 

(i)                                     delivers
(or is deemed to have delivered pursuant to clause (c) above) a Rule 144A
Certificate and the proposed transferee is or is acting through an Agent Member
and requests delivery in the form of the U.S. Global Note, then the Note
Registrar shall (x) record a decrease in the principal amount of the Offshore
Global Note in an amount equal to the beneficial interest therein being
transferred, (y) record an increase in the principal amount of the U.S. Global
Note equal to the amount of such decrease and (z) notify the Depository in
accordance with the procedures of the Depository that it approves of such
transfer;

 

(ii)                                  where
the proposed transferee is or is acting through an Agent Member, requests that
the proposed transferee receive a beneficial interest in the Offshore Global
Note, then the transfer shall be effected in accordance with the procedures of
the Depository therefor; or

 

(iii)                               does not make a request
covered by Section 312(d)(1)(D)(i) or Section 312(d)(1)(D)(ii), then
the Note Registrar shall (w) register such

 

55

 

transfer
in the name of such transferee and record the date thereof in its books and
records, (x) record a decrease in the principal amount of the Offshore Global
Note in an amount equal to the beneficial interest therein being transferred,
(y) deliver a new Offshore Physical Note to such transferee duly registered in
the name of such transferee in principal amount equal to the amount of such
decrease and (z) notify the Depository in accordance with the procedures of the
Depository that it approves of such transfer.

 

(e)                                  Execution,
Authentication and Delivery of Physical Notes.  In any case in which the Note Registrar is
required to deliver a Physical Note to a transferee or transferor, the Company
shall execute, and the Trustee shall authenticate and make available for
delivery, such Physical Note.

 

(f)                                    Certain
Additional Terms Applicable to Physical Notes.  Any transferee entitled to receive a Physical
Note may request that the principal amount thereof be evidenced by one or more
Physical Notes in any authorized denomination or denominations and the Note
Registrar shall comply with such request if all other transfer restrictions are
satisfied.

 

(g)                                 Transfers
Not Covered by Section 312(d). 
The Note Registrar shall effect and record, upon receipt of a written
request from the Company so to do, a transfer not otherwise permitted by Section 312(d),
such recording to be done in accordance with the otherwise applicable
provisions of Section 312(d), upon the furnishing by the proposed
transferor or transferee of a Non-Registration Opinion and Supporting Evidence.

 

(h)                                 General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such Note acknowledges the restrictions
on transfer of such Note set forth in this Indenture and in the Private
Placement Legend and agrees that it will transfer such Note only as provided in
the Indenture.  The Note Registrar shall
not register a transfer of any Note unless such transfer complies with the
restrictions with respect thereto set forth in this Indenture.  The Note Registrar shall not be required to
determine (but may rely upon a determination made by the Company) the
sufficiency or accuracy of any such certifications, legal opinions, other
information or document.

 

(i)                                     Private
Placement Legend.  Upon the transfer,
exchange or replacement of Notes not bearing the Private Placement Legend, the
Note Registrar shall deliver Notes that do not bear the Private Placement
Legend.  Upon the transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Note Registrar
shall deliver only Notes that bear the Private Placement Legend unless (i) the
circumstances exist contemplated by the fourth paragraph of Section 201 (with
respect to an Offshore Physical Note) or the requested transfer is at least two
years after the original issue date of the Initial Note (with respect to any
Physical Note), (ii) there is delivered to the Note Registrar an Opinion of
Counsel reasonably satisfactory to the Company and the Trustee to the effect
that neither such legend nor the related restrictions on transfer are required
in order to maintain compliance with the provisions of the Securities Act or
(iii) such Notes are exchanged for Exchange Notes pursuant to an Exchange
Offer.

 

56

 

SECTION 313.  Form of Regulation S Certificate.

 

Regulation S Certificate

 

	
  To:

  	
  The Bank of New
  York

  
	
   

  	
  101 Barclay
  Street,

  
	
   

  	
  21st Floor West,

  
	
   

  	
  New York New
  York 10286,

  
	
   

  	
  Attention:
  Corporate Trust Administration Division

  
	
   

  	
   

  
	
   

  	
  Re:

  	
  Rockwood
  Specialties Group, Inc. (the “Company”)

  
	
   

  	
   

  	
  7.625% Senior
  Subordinated Notes due 2014 (the “Euro Notes”)

  
	
   

  	
   

  	
  7.500% Senior
  Subordinated Notes due 2014 (the “Dollar Notes,” and together

  
	
   

  	
   

  	
  with the Euro
  Notes, the “Notes”)

  

 

Ladies and Gentlemen:

 

In
connection with our proposed sale of €          
aggregate principal amount of Euro Notes and $            
aggregate principal amount of Dollar Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S (“Regulation S”) under
the Securities Act of 1933, as amended (the “Securities Act”), and accordingly,
we hereby certify as follows:

 

(1)                                  The
offer of the Notes was not made to a person in the United States (unless such
person or the account held by it for which it is acting is excluded from the
definition of “U.S. person” pursuant to Rule 902(o) of Regulation S under the
circumstances described in Rule 902(i)(3) of Regulation S) or specifically
targeted at an identifiable group of U.S. citizens abroad.

 

(2)                                  Either
(a) at the time the buy order was originated, the buyer was outside the United
States or we and any person acting on our behalf reasonably believed that the
buyer was outside the United States or (b) the transaction was executed in, on
or through the facilities of a designated offshore securities market, and
neither we nor any person acting on our behalf knows that the transaction was
pre-arranged with a buyer in the United States.

 

(3)                                  Neither
we, any of our affiliates, nor any person acting on our or their behalf has
made any directed selling efforts in the United States in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable.

 

(4)                                  The
proposed transfer of Notes is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

 

(5)                                  If
we are a dealer or a person receiving a selling concession or other fee or
remuneration in respect of the Notes and we are an officer or director of the
Company or

 

57

 

a
distributor, we certify that the proposed transfer is being made in accordance
with the provisions of Rules 903 and 904(c) of Regulation S.

 

You
and the Company are entitled to rely upon this Certificate and are irrevocably
authorized to produce this Certificate or a copy hereof to any interested party
in any administrative or legal proceeding or official inquiry with respect to
the matters covered hereby.  Terms used
in this certificate have the meanings set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF SELLER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date of this
  Certificate:

  	
   

  	
   

  	
   

  	
  , 20

  	
   

  	
   

  	
   

  
											

 

SECTION 314.  Form of Rule 144A Certificate.

 

Rule 144A Certificate

 

	
  To:

  	
  The Bank of New
  York

  
	
   

  	
  101 Barclay
  Street,

  
	
   

  	
  21st Floor West,

  
	
   

  	
  New York New
  York 10286,

  
	
   

  	
  Attention:
  Corporate Trust Administration Division

  
	
   

  	
   

  
	
   

  	
  Re:

  	
  Rockwood
  Specialties Group, Inc. (the “Company”)

  
	
   

  	
   

  	
  7.625% Senior
  Subordinated Notes due 2014 (the “Euro Notes”)

  
	
   

  	
   

  	
  7.500% Senior
  Subordinated Notes due 2014 (the “Dollar Notes,” and together

  
	
   

  	
   

  	
  with the Euro
  Notes, the “Notes”)

  

 

Ladies and Gentlemen:

 

In
connection with our proposed sale of €       
aggregate principal amount of Euro Notes and $          
aggregate principal amount of Dollar Notes, we confirm that such sale has been
effected pursuant to and in accordance with Rule 144A (“Rule 144A”) under the
Securities Act of 1933, as amended (the “Securities Act”).  We are aware that the transfer of Notes to us
is being made in reliance on the exemption from the provisions of Section 5
of the Securities Act provided by Rule 144A. 
Prior to the date of this Certificate we have been given the opportunity
to obtain from the Company the information referred to in Rule 144A(d)(4), and
have either declined such opportunity or have received such information.

 

58

 

You
and the Company are entitled to rely upon this Certificate and are irrevocably
authorized to produce this Certificate or a copy hereof to any interested party
in any administrative or legal proceeding or official inquiry with respect to
the matters covered hereby.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF
  PURCHASER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date of this
  Certificate:

  	
   

  	
   

  	
   

  	
  , 20

  	
   

  	
   

  	
   

  
											

 

SECTION 315.  Common Codes, ISINs and CUSIP Numbers.

 

The
Company in issuing the Euro Notes and Dollar Notes may use “Common Codes,” “ISINs”
and “CUSIP” numbers, respectively, (if then generally in use) in addition to
serial numbers, and, if so, the Trustee shall use such “Common Code,” “ISINs”
or “CUSIP” numbers in addition to serial numbers in notices of redemption,
repurchase or other notices to Holders as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such Common Code, ISINs or CUSIP numbers either as printed on
the Notes or as contained in any notice of a redemption or repurchase and that
reliance may be placed only on the serial or other identification numbers
printed on the Notes, and any such redemption or repurchase shall not be
affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee
of any change in the Common Code, ISINs or CUSIP numbers.

 

SECTION 316.  Issuance of Additional Notes.

 

The
Company may, subject to Section 1011 of this Indenture, issue Additional
Euro Notes having identical terms and conditions to the Initial Euro Notes
issued on the Issue Date (the “Additional Euro Notes”), and the Company may,
subject to Section 1011 of this Indenture, issue additional Dollar Notes
having identical terms and conditions to the Initial Dollar Notes issued on the
Issue Date (the “Additional Dollar Notes” and together with the Additional Euro
Notes, the “Additional Notes”); provided that the aggregate principal amount of
Initial Notes issued on the Issue Date and the aggregate principal amount of
Additional Notes issued under this Indenture shall not exceed $1,000,000,000;
it being understood that the principal amount of Initial Notes and Additional
Notes outstanding shall be determined based upon the exchange rate in effect on
the date of such issuance of Additional Notes. The Initial Notes issued on the
Issue Date and any Additional Notes subsequently issued shall be treated as a
single class for all purposes under this Indenture.  Exchange Notes issued in exchange for Initial
Notes issued on the Issue Date and Exchange Notes issued for any Additional
Notes subsequently issued shall be treated as a single class for all purposes
under this Indenture.

 

59

 

ARTICLE FOUR

 

SATISFACTION
AND DISCHARGE

 

SECTION 401.  Satisfaction and Discharge of Indenture.

 

This
Indenture shall upon Company Request cease to be of further effect (except as
to surviving rights of registration of transfer or exchange of Notes expressly
provided for herein or pursuant hereto) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture when:

 

(1)                                  either,

 

(a)                                  all
Notes theretofore authenticated and delivered (other than (i) Notes which have
been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 306 and (ii) Notes for whose payment money has theretofore been
deposited in trust with the Trustee or any Paying Agent or segregated and held
in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

 

(b)                                 all
such Notes not theretofore delivered to the Trustee for cancellation,

 

(i)                                     have
become due and payable by reason of the making of a notice of redemption
pursuant to Section 1105 or otherwise, or

 

(ii)                                  will
become due and payable at their Stated Maturity within one year, or

 

(iii)                               are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company,

 

and
the Company or any Guarantor, in the case of (i), (ii) or (iii) above, has
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders, cash in U.S. dollars, U.S.
dollar-denominated non-callable Government Securities, or a combination
thereof, in the case of the Dollar Notes, and euro, euro-denominated
non-callable Government Securities, or a combination thereof, in the case of
the Euro Notes, in each case, in such amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire
indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal (and premium, if any) and interest to the date of
such deposit (in the case of Notes which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;

 

60

 

(2)                                  no
Default or Event of Default (other than that resulting from borrowing funds to
be applied to make such deposit) with respect to this Indenture or the Notes
shall have occurred and be continuing on the date of such deposit or shall
occur as a result of such deposit and such deposit shall not result in a breach
or violation of, or constitute a default under, any other instrument to which
the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

 

(3)                                  the
Company has paid or caused to be paid all sums payable by it under this
Indenture;

 

(4)                                  the
Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of such Notes at the
Stated Maturity or the Redemption Date, as the case may be; and

 

(5)                                  the
Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein to the satisfaction
and discharge of this Indenture have been complied with.

 

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company
to any Authenticating Agent under Section 612 and, if money or Government
Securities shall have been deposited with the Trustee pursuant to subclause (b)
of clause (1) of this Section, the obligations of the Trustee under Section 402
and the last paragraph of Section 1003 shall survive such satisfaction and
discharge.

 

SECTION 402.  Application of Trust Money.

 

Subject
to the provisions of the last paragraph of Section 1003, all money or
Government Securities deposited with the Trustee pursuant to Section 401
shall be held in trust and applied by it, in accordance with the provisions of
the Notes and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money or Government
Securities has been deposited with the Trustee; but such money or Government
Securities need not be segregated from other funds except to the extent
required by law.

 

If the
Trustee or Paying Agent is unable to apply any money or Government Securities
in accordance with Section 401 by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
and any Guarantor’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 401
until such time as the Trustee or Paying Agent is permitted to apply all such
money or Government Securities in accordance with Section 401; provided
that if the Company has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the
Trustee or Paying Agent.

 

61

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.  Events of Default.

 

“Event
of Default”, wherever used herein, means one of the following events (whatever
the reason for such Event of Default and whether it shall be occasioned by the
provisions of Article Fourteen or be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or governmental
body):

 

(1)                                  default
in payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Notes issued under the Indenture
whether or not such payment shall be prohibited by Article Fourteen
hereof;

 

(2)                                  default
for 30 days or more in the payment when due of interest on or with respect to
the Notes whether or not such payment shall be prohibited by Article Fourteen
hereof;

 

(3)                                  failure
by the Company or any Guarantor for 30 days after receipt of written notice
given by the Trustee or the Holders of at least 30% in principal amount of the
Notes then outstanding to comply with any of its other agreements in this
Indenture or the Notes;

 

(4)                                  default
under any mortgage, indenture or instrument under which there is issued or by
which there is secured or evidenced any Indebtedness for money borrowed by the
Company or any Restricted Subsidiary or the payment of which is guaranteed by
the Company or any Restricted Subsidiary, other than Indebtedness owed to the
Company or a Restricted Subsidiary, whether such Indebtedness or guarantee now
exists or is created after the issuance of the Notes, if both

 

(A)                              such
default either results from the failure to pay any such Indebtedness at its
stated final maturity (after giving effect to any applicable grace periods) or
relates to an obligation other than the obligation to pay principal of any such
Indebtedness at its stated final maturity and results in the holder or holders
of such Indebtedness causing such Indebtedness to become due prior to its
stated maturity and

 

(B)                                the
principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at stated
final maturity (after giving effect to any applicable grace periods), or the
maturity of which has been so accelerated, aggregate $35.0 million or more at
any one time outstanding;

 

(5)                                  failure
by the Company or any Significant Subsidiary to pay final judgments aggregating
in excess of $35.0 million, which final judgments remain unpaid,

 

62

 

undischarged
and unstayed for a period of more than 60 days after such judgment becomes
final, and in the event such judgment is covered by insurance, an enforcement
proceeding has been commenced by any creditor upon such judgment or decree
which is not promptly stayed;

 

(6)                                  any
of the following events with respect to the Company or any Significant
Subsidiary

 

(A)                              the
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law

 

(i)                                     commences
a voluntary case;

 

(ii)                                  consents
to the entry of an order for relief against it in an involuntary case;

 

(iii)                               consents to the
appointment of a Custodian of it or for any substantial part of its property;

 

(iv)                              takes
any comparable action under any foreign laws relating to insolvency; or

 

(B)                                a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

(i)                                     is
for relief against the Company or any Significant Subsidiary in an involuntary
case;

 

(ii)                                  appoints
a Custodian of the Company or any Significant Subsidiary or for any substantial
part of its property; or

 

(iii)                               orders the winding up or
liquidation of the Company or any Significant Subsidiary;

 

and
the order or decree remains unstayed and in effect for 60 days; or

 

(7)                                  the
Guarantee of any Significant Subsidiary shall for any reason cease to be in
full force and effect or to be declared null and void or any responsible
officer of any Guarantor that is a Significant Subsidiary, as the case may be,
denies that it has any further liability under its Guarantee or gives notice to
such effect, other than by reason of the termination of this Indenture or the
release of any such Guarantee in accordance with this Indenture.

 

SECTION 502.  Acceleration of Maturity; Rescission and
Annulment.

 

If an
Event of Default (other than an Event of Default specified in Section 501(6)
above) occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 30% in principal amount of the Outstanding Notes may
declare the principal, premium, if any, interest and any other monetary
obligations on all Outstanding Notes to be due and

 

63

 

payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders); provided,
however, that, so long as any Indebtedness permitted to be incurred
under this Indenture as part of the Senior Credit Facilities shall be
outstanding, no such acceleration shall be effective until the earlier of:

 

(1)                                  acceleration
of any such Indebtedness under the Senior Credit Facilities or

 

(2)                                  five
Business Days after the giving of written notice to the Company and the Agent
of such acceleration.

 

Upon
the effectiveness of such declaration, such principal and interest will be due
and payable immediately.  Notwithstanding
the foregoing, if an Event of Default specified in Section 501(6) above
occurs and is continuing, then the principal amount of all Outstanding Notes
shall ipso  facto become and be immediately due and payable
without any notice, declaration or other act on the part of the Trustee or any
Holder.

 

At any
time after a declaration of acceleration has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter provided in this Article, the Holders of a majority in aggregate
principal amount of the Outstanding Notes, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:

 

(a)                                  the
Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(A)                              all
overdue interest on all Outstanding Notes,

 

(B)                                all
unpaid principal of (and premium, if any, on) any Outstanding Notes which has
become due otherwise than by such declaration of acceleration, and interest on
such unpaid principal at the rate borne by the Notes,

 

(C)                                to
the extent that payment of such interest is lawful, interest on overdue
interest at the rate borne by the Notes, and

 

(D)                               all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel;
and

 

(b)                                 Events
of Default, other than the non-payment of amounts of principal of (or premium,
if any, on) or interest on Notes which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 513,

 

no such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

Notwithstanding
the preceding paragraph, in the event of any Event of Default specified in
clause 501(4) above, such Event of Default and all consequences thereof
(excluding any resulting payment default) shall be annulled, waived and
rescinded, automatically and

 

64

 

without any action by the
Trustee or the Holders, if within 20 days after such Event of Default arose,

 

(x)                                   the
Indebtedness or guarantee that is the basis for such Event of Default has been
discharged, or

 

(y)                                 the
holders thereof have rescinded or waived the acceleration, notice or action (as
the case may be) giving rise to such Event of Default, or

 

(z)                                   if
the default that is the basis for such Event of Default has been cured.

 

Upon a
determination by the Company that the Senior Credit Facilities are no longer in
effect, the Company shall promptly give to the Trustee written notice thereof,
which notice shall be countersigned by the Agent.  Unless and until the Trustee shall have
received such written notice with respect to the Senior Credit Facilities, the
Trustee, subject to the TIA Sections 315(a) through 315(d), shall be entitled
in all respects to assume that the Senior Credit Facilities are in effect
(unless a Responsible Officer of the Trustee shall have actual knowledge to the
contrary).

 

SECTION 503.  Collection of Indebtedness and Suits for
Enforcement by Trustee.

 

The
Company covenants that if:

 

(a)                                  default
is made in the payment of any installment of interest on any Note when such
interest becomes due and payable and such default continues for a period of 30
days, or

 

(b)                                 default
is made in the payment of the principal of (or premium, if any, on) any Note at
the Maturity thereof,

 

the Company will, upon
demand of the Trustee, pay to the Trustee for the benefit of the Holders of
such Notes, the whole amount then due and payable on such Notes for principal
(and premium, if any) and interest, and interest on any overdue principal (and
premium, if any) and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installment of interest, at the rate
borne by the Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

If the
Company fails to pay such amounts forthwith upon such demand, the Trustee, in
its own name as trustee of an express trust, may institute a judicial
proceeding for the collection of the sums so due and unpaid, may prosecute such
proceeding to judgment or final decree and may enforce the same against the
Company, any Guarantor or any other obligor upon the Notes and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company, any Guarantor or any other obligor upon the Notes,
wherever situated.

 

65

 

If an
Event of Default occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders under
this Indenture and the Guarantees by such appropriate judicial proceedings as
the Trustee shall deem necessary to protect and enforce any such rights,
including seeking recourse against any Guarantor, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy,
including but without limitation, seeking recourse against any Guarantor.

 

SECTION 504.  Trustee May File Proofs of Claim.

 

In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor including any
Guarantor, upon the Notes or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue principal, premium,
if any, or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

 

(i)                                     to
file and prove a claim for the whole amount of principal (and premium, if any)
and interest owing and unpaid in respect of the Notes and to file such other
papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and of the
Holders allowed in such judicial proceeding, and

 

(ii)                                  to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same;

 

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or similar official in
any such judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay the Trustee any amount due it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.

 

Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

SECTION 505.  Trustee May Enforce Claims Without
Possession of Notes.

 

All rights
of action and claims under this Indenture or the Notes may be prosecuted and
enforced by the Trustee without the possession of any of the Notes or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name and as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses,

 

66

 

disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders in respect of which such judgment has been recovered.

 

SECTION 506.  Application of Money Collected.

 

Subject
to Article Fourteen, any money collected by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal (or
premium, if any) or interest, upon presentation of the Notes and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

 

FIRST:  To the payment of all amounts due the Trustee
under Section 607;

 

SECOND:  To the payment of the amounts then due and
unpaid for principal of (and premium, if any) and interest on the Notes in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Notes for principal (and premium, if any) and interest,
respectively; and

 

THIRD:  The balance, if any, to the Company or any
other obligor on the Notes, as their interests may appear or as a court of
competent jurisdiction may direct in writing; provided that all sums due
and owing to the Holders and the Trustee have been paid in full as required by
this Indenture.

 

SECTION 507.  Limitation
on Suits.

 

No
Holder of any Notes shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

 

(1)                                  such
Holder has previously given written notice to the Trustee of a continuing Event
of Default;

 

(2)                                  the
Holders of not less than 30% in principal amount of the Outstanding Notes shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder;

 

(3)                                  such
Holder or Holders have offered to the Trustee reasonable indemnity satisfactory
to it against the costs, expenses and liabilities to be incurred in compliance
with such request;

 

(4)                                  the
Trustee for 30 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

 

(5)                                  no
direction inconsistent with such written request has been given to the Trustee
during such 30-day period by the Holders of a majority or more in principal
amount of the Outstanding Notes;

 

67

 

it being understood and
intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture or
the Guarantees to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture or the Guarantees, except in the
manner herein provided and for the equal and ratable benefit of all the
Holders.

 

SECTION 508.  Unconditional Right of Holders to Receive
Principal, Premium and Interest.

 

Notwithstanding
any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment, as provided
herein (including, if applicable, Article Eleven) and in such Note of the
principal of (and premium, if any) and (subject to Section 307) interest
on such Note on the respective Stated Maturities expressed in such Security
(or, in the case of redemption, on the Redemption Date) and to institute suit
for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

 

SECTION 509.  Restoration of Rights and Remedies.

 

If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture or the Guarantees and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, any Guarantor, any other obligor
of the Notes, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

SECTION 510.  Rights and Remedies Cumulative.

 

Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 306, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 511.  Delay or Omission Not Waiver.

 

No
delay or omission of the Trustee or of any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.  Every right and
remedy given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.

 

68

 

SECTION 512.  Control by Holders.

 

The
Holders of not less than a majority in principal amount of the Outstanding
Notes shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, provided that:

 

(1)                                  such
direction shall not be in conflict with any rule of law or with this Indenture,

 

(2)                                  subject
to Section 315 of the Trust Indenture Act, the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction, and

 

(3)                                  the
Trustee need not take any action which might involve it in personal liability
or be unjustly prejudicial to the Holders not consenting.

 

SECTION 513.  Waiver of Past Defaults.

 

Subject
to Sections 508 and 902 and the last paragraph of Section 502, the Holders
of not less than a majority in principal amount of the Outstanding Notes may on
behalf of the Holders of all such Notes waive any past Default hereunder and
its consequences, except a continuing Default or Event of Default (1) in
respect of the payment of interest on, premium, if any, or the principal of any
such Note held by a non-consenting Holder, or (2) in respect of a covenant or
provision hereof which under Article Nine cannot be modified or amended
without the consent of the Holder of each Outstanding Note affected.

 

Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Indenture, but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

 

SECTION 514.  Waiver of Stay or Extension Laws.

 

Each
of the Company, the Guarantors and any other obligor on the Notes covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
each of the Company, the Guarantors and any other obligor on the Notes (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

69

 

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.  Duties of the Trustee.

 

(a)                                  Except
during the continuance of a Default or an Event of Default,

 

(1)                                  the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(2)                                  in
the absence of bad faith or willful misconduct on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case
of any such certificates or opinions specifically required by any provision
hereof to be provided to it, the Trustee shall be under a duty to examine the
same to determine whether or not they conform to the requirements of this
Indenture, but not to verify the contents thereof.

 

(b)                                 In
case a Default or an Event of Default has occurred and is continuing of which a
Responsible Officer of the Trustee has actual knowledge or of which written
notice of such Default or Event of Default shall have been given to the Trustee
by the Company, any other obligor of the Notes or by any Holder, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture,
and use the same degree of care and skill in their exercise, as a prudent
Person would exercise or use under the circumstances in the conduct of such
Person’s own affairs.

 

(c)                                  No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that

 

(1)                                  this
paragraph (c) shall not be construed to limit the effect of paragraph (a) of
this Section;

 

(2)                                  the
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent
in ascertaining the pertinent facts;

 

(3)                                  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a
majority in aggregate principal amount of the Outstanding Notes relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture; and

 

(4)                                  no
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers, if it
shall have

 

70

 

reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

 

(d)                                 Whether
or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section.

 

SECTION 602.  Notice of Defaults.

 

Within
ten days after the earlier of receipt from the Company of notice of the
occurrence of any Default or Event of Default hereunder or the date when such
Default or Event of Default becomes known to the Trustee, the Trustee shall
transmit, in the manner and to the extent provided in TIA Section 313(c),
notice of such Default or Event of Default hereunder known to the Trustee,
unless such Default or Event of Default shall have been cured or waived;
provided, however, that, except in the case of a Default or Event of Default in
the payment of the principal of (or premium, if any, on) or interest on any
Note, the Trustee shall be protected in withholding such notice if and so long
as a trust committee of Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interest of the
Holders.

 

SECTION 603.  Certain Rights of Trustee.

 

Subject
to the provisions of TIA Sections 315(a) through 315(d):

 

(1)                                  the
Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document (whether in
original or facsimile form) believed by it to be genuine and to have been
signed or presented by the proper party or parties;

 

(2)                                  any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

 

(3)                                  whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officers’
Certificate;

 

(4)                                  the
Trustee may consult with counsel of its own selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(5)                                  the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders pursuant to this Indenture, unless such Holders shall have offered to
the Trustee

 

71

 

reasonable
security or indemnity satisfactory to it against the costs, expenses, losses
and liabilities which might be incurred by it in compliance with such request
or direction;

 

(6)                                  the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney at the
expense of the Company and shall incur no liability of any kind by reason of
such inquiry or investigation;

 

(7)                                  the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder;

 

(8)                                  the
Trustee shall not be liable for any action taken, suffered or omitted by it in
good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; and

 

(9)                                  the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

The
Trustee shall not be required to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

SECTION 604.  Trustee Not Responsible for Recitals or
Issuance of Notes.

 

The
recitals contained herein and in the Notes, except for the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Notes, except that the
Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Notes and perform its obligations hereunder and
that the statements made by it in a Statement of Eligibility on Form T-1
supplied to the Company are true and accurate, subject to the qualifications
set forth therein.  The Trustee shall not
be accountable for the use or application by the Company of Notes or the
proceeds thereof.

 

SECTION 605.  May Hold Notes.

 

The
Trustee, any Paying Agent, any Note Registrar or any other agent of the Company
or of the Trustee, in its individual or any other capacity, may become the
owner or

 

72

 

pledgee of Notes and,
subject to TIA Sections 310(b) and 311, may otherwise deal with the Company
with the same rights it would have if it were not the Trustee, Paying Agent,
Note Registrar or such other agent; provided, however, that, if
it acquires any conflicting interest, it must eliminate such conflict within 90
days, apply to the Commission for permission to continue or resign.

 

SECTION 606.  Money Held in Trust.

 

Money
held by the Trustee in trust hereunder need not be segregated from other funds
except to the extent required by law. 
The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

 

SECTION 607.  Compensation and Reimbursement.

 

Each
of the Company and the Guarantors jointly and severally agrees:

 

(1)                                  to
pay to the Trustee from time to time such compensation as shall be agreed in
writing between the Company and the Trustee for all services rendered by it
hereunder (which compensation shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust);

 

(2)                                  except
as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or
made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of
its agents and counsel), except any such expense, disbursement or advance as
shall be determined to have been caused by its own negligence or willful
misconduct; and

 

(3)                                  to
indemnify the Trustee for, and to hold it harmless against, any loss,
liability, claim, damage or expense incurred without negligence or willful
misconduct on its part, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

 

The
obligations of the Company under this Section to compensate the Trustee,
to pay or reimburse the Trustee for expenses, disbursements and advances and to
indemnify and hold harmless the Trustee shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture and resignation or removal of the Trustee.  As security for the performance of such
obligations of the Company, the Trustee shall have a claim prior to the Notes
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the payment of principal of (and premium, if any) or
interest on particular Notes.

 

When
the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 501(6), the expenses (including the
reasonable charges and expenses of its counsel) of and the compensation for
such services are intended to constitute expenses of administration under any
applicable Federal or State bankruptcy, insolvency or other similar law.

 

73

 

The
provisions of this Section shall survive the termination of this
Indenture.

 

SECTION 608.  Corporate Trustee Required; Eligibility.

 

There
shall be at all times a Trustee hereunder which shall be eligible to act as Trustee
under TIA Section 310(a)(1) and shall have a combined capital and surplus
of at least $50,000,000.  If such
corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of Federal, State, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.  If at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

 

SECTION 609.  Resignation and Removal; Appointment of
Successor.

 

(a)                                  No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable requirements
of Section 610.

 

(b)                                 The
Trustee may resign at any time by giving written notice thereof to the
Company.  Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee by written
instrument executed by authority of the Board of Directors, a copy of which
shall be delivered to the resigning Trustee and a copy to the successor
trustee.  If the instrument of acceptance
by a successor Trustee required by Section 610 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Trustee.

 

(c)                                  The
Trustee may be removed at any time by Act of the Holders of not less than a
majority in principal amount of the Outstanding Notes, delivered to the Trustee
and to the Company.  If the instrument of
acceptance by a successor Trustee required by Section 610 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Trustee.

 

(d)                                 If
at any time:

 

(1)                                  the
Trustee shall fail to comply with the provisions of TIA Section 310(b)
after written request therefor by the Company or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

 

(2)                                  the
Trustee shall cease to be eligible under Section 608 and shall fail to
resign after written request therefor by the Company or by any Holder who has
been a bona fide Holder of a Note for at least six months, or

 

74

 

(3)                                  the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

 

then, in any such case,
(i) the Company, by a Board Resolution, may remove the Trustee, or (ii) subject
to TIA Section 315(e), any Holder who has been a bona fide Holder of a
Note for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

 

(e)                                  If
the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company.  If no
successor Trustee shall have been so appointed by the Company or the Holders
and accepted appointment in the manner hereinafter provided, any Holder who has
been a bona fide Holder of a Note for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(f)                                    The
Company shall give notice of each resignation and each removal of the Trustee
and each appointment of a successor Trustee to the Holders in the manner
provided for in Section 106.  Each
notice shall include the name of the successor Trustee and the address of its
Corporate Trust Office.

 

SECTION 610.  Acceptance of Appointment by Successor.

 

(a)                                  Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to
the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder.  Upon request of any
such successor Trustee, the Company shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers and trusts.

 

(b)                                 Upon
request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all rights, powers and trusts referred to in paragraph (a) of
this Section.

 

75

 

(c)                                  No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.

 

SECTION 611.  Merger, Conversion, Consolidation or
Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.  In case any
Notes shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes.  In case at
that time any of the Notes shall not have been authenticated, any successor
Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor Trustee.  In all such cases such certificates shall
have the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee shall have; provided, however,
that the right to adopt the certificate of authentication of any predecessor
Trustee or to authenticate Notes in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or
consolidation.

 

SECTION 612.  Appointment of Authenticating Agent.

 

At any
time when any of the Notes remain Outstanding, the Trustee may appoint an
Authenticating Agent or Agents with respect to the Notes which shall be
authorized to act on behalf of the Trustee to authenticate Notes and the
Trustee shall give written notice of such appointment to all Holders of Notes
with respect to which such Authenticating Agent will serve, in the manner
provided for in Section 106.  Notes
so authenticated shall be entitled to the benefits of this Indenture and shall
be valid and obligatory for all purposes as if authenticated by the Trustee
hereunder.  Any such appointment shall be
evidenced by an instrument in writing signed by a Responsible Officer of the
Trustee, and a copy of such instrument shall be promptly furnished to the
Company.  Wherever reference is made in
this Indenture to the authentication and delivery of Notes by the Trustee or
the Trustee’s certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. 
Each Authenticating Agent shall be acceptable to the Company and shall
at all times be a corporation organized and doing business under the laws of
the United States of America, any state thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by federal or state authority. 
If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall
cease to be

 

76

 

eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect specified in this Section.

 

Any
corporation into which an Authenticating Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be
a party, or any corporation succeeding to the corporate agency or corporate
trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise
eligible under this Section, without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company.  The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this
Section, the Trustee may appoint a successor Authenticating Agent which shall
be acceptable to the Company and shall give written notice of such appointment
to all Holders of Notes, in the manner provided for in Section 106.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. 
No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

 

The
Company agrees to pay to each Authenticating Agent from time to time such
compensation for its services under this Section as shall be agreed in
writing between the Company and such Authenticating Agent.

 

If an
appointment is made pursuant to this Section, the Notes may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an
alternate certificate of authentication in the following form:

 

This
is one of the Notes designated therein referred to in the within-mentioned
Indenture.

 

 

	
   

  	
   

  	
  THE BANK OF NEW
  YORK

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  as
  Authenticating Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  as Authorized
  Officer

  	
   

  

 

77

 

ARTICLE SEVEN

 

HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 

SECTION 701.  Company to Furnish Trustee Names and
Addresses.

 

The
Company will furnish or cause to be furnished to the Trustee

 

(a)                                  semiannually,
not more than 10 days after each Regular Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders
as of such Regular Record Date; and

 

(b)                                 at
such other times as the Trustee may reasonably request in writing, within 30
days after receipt by the Company of any such request, a list of similar form
and content to that in paragraph (a) hereof as of a date not more than 15 days
prior to the time such list is furnished;

 

provided, however, that if and so long as the Trustee shall
be the Note Registrar, no such list need be furnished.

 

SECTION 702.  Disclosure of Names and Addresses of
Holders.

 

Every
Holder of Notes, by receiving and holding the same, agrees with the Company and
the Trustee that none of the Company or the Trustee or any agent of either of
them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with TIA
Section 312, regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of
mailing any material pursuant to a request made under TIA Section 312(b).

 

SECTION 703.  Reports by Trustee.

 

Within
60 days after May 15 of each year commencing with the first May 15 after the
first issuance of Notes pursuant to this Indenture, the Trustee shall transmit
to the Holders of Notes (with a copy to the Company at the Place of Payment),
in the manner and to the extent provided in TIA Section 313(c), a brief
report dated as of such May 15 if required by TIA Section 313(a).

 

ARTICLE EIGHT

 

MERGER, CONSOLIDATION OR SALE OF ALL OR
SUBSTANTIALLY ALL ASSETS

 

SECTION 801.  Company May Consolidate, Etc., Only on
Certain Terms.

 

The
Company may not consolidate or merge with or into or wind up into (whether or
not the Company is the surviving corporation), or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to any Person unless:

 

78

 

(1)                                  the
Company is the surviving corporation or the Person formed by or surviving any
such consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been
made is a corporation organized or existing under the laws of the United
States, any state thereof, the District of Columbia, or any territory thereof
(such Person, as the case may be, being herein called the “Successor Company”);

 

(2)                                  the
Successor Company, if other than the Company, expressly assumes all the
obligations of the Company under this Indenture and the Notes pursuant to a
supplemental indenture or other documents or instruments in form reasonably
satisfactory to the Trustee;

 

(3)                                  immediately
after such transaction no Default or Event of Default exists;

 

(4)                                  immediately
after giving pro forma effect to such transaction, as if such transaction had
occurred at the beginning of the applicable four-quarter period,

 

(A)                              the
Successor Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 1011(a)
or

 

(B)                                the
Fixed Charge Coverage Ratio for the Successor Company and the Restricted
Subsidiaries would be greater than such Ratio for the Company and the
Restricted Subsidiaries immediately prior to such transaction;

 

(5)                                  each
Guarantor, unless it is the other party to the transactions described above, in
which case Section 802(2) below shall apply, shall have by supplemental
indenture confirmed that its Guarantee shall apply to such Person’s obligations
under this Indenture and the Notes; and

 

(6)                                  the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such supplemental indenture, if any, comply with this Indenture.

 

The
Successor Company shall succeed to, and be substituted for, the Company under
this Indenture and the Notes.  Notwithstanding
clauses (3) and (4) above,

 

(a)                                  any
Restricted Subsidiary may consolidate with, merge into or transfer all or part
of its properties and assets to the Company, and

 

(b)                                 the
Company may merge with an Affiliate incorporated solely for the purpose of
reincorporating the Guarantor or the Company in another State of the United
States so long as the amount of Indebtedness of the Company and the Restricted
Subsidiaries is not increased thereby.

 

79

 

SECTION 802.  Subsidiary Guarantors May Consolidate,
Etc., Only on Certain Terms.

 

Subject
to Section 1015(b), each Guarantor shall not, and the Company shall not
permit any Guarantor to, consolidate or merge with or into or wind up into
(whether or not such Guarantor is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions to, any Person unless:

 

(A)                              (1)   such Guarantor is the surviving corporation
or the Person formed by or surviving any such consolidation or merger (if other
than such Guarantor) or to which such sale, assignment, transfer, lease,
conveyance or other disposition will have been made is a corporation organized
or existing under the laws of the United States, any state thereof, the
District of Columbia, or any territory thereof (such Guarantor or such Person,
as the case may be, being herein called the “Successor Person”);

 

(2)                                  the
Successor Person, if other than such Guarantor, expressly assumes all the
obligations of such Guarantor under this Indenture and such Guarantor’s
Guarantee pursuant to a supplemental indenture or other documents or
instruments in form reasonably satisfactory to the Trustee;

 

(3)                                  immediately
after such transaction no Default or Event of Default exists; and

 

(4)                                  the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such supplemental indenture, if any, comply with this Indenture; or

 

(B)                                (1)   the transaction is made in compliance with Section 1018;
and

 

(2)                                  if
the Successor Person is a Restricted Subsidiary (other than such Guarantor or a
Designated Non-Guarantor Joint Venture), the Successor Person expressly assumes
all the obligations of such Guarantor under the Indenture and such Guarantor’s
Guarantee pursuant to supplemental indentures or other documents or instruments
in form reasonably satisfactory to the trustee; provided, however,
that if the Successor Person is a Designated Non-Guarantor Joint Venture, all
the obligations of such Guarantor under the Indenture and such Guarantor’s
Guarantee will be required to be expressly assumed by such Designated
Non-Guarantor Joint Venture only if, immediately after giving effect to such
transaction or transactions on a pro forma basis, (i) a Default or Event of
Default would then exist and be continuing or (ii) the total assets (excluding
intercompany assets) of such Guarantor, valued immediately prior to such
transaction, together with any assets (excluding intercompany assets)
previously transferred to any Designated Non-Guarantor Joint Venture by any
other Guarantor, valued at the time such assets were transferred to such
Designated Non-Guarantor Joint Ventures, would exceed 10.0% of the total assets
(excluding intercompany assets) of the Issuer and its Restricted Subsidiaries
as shown on the most recent balance sheet of the Issuer and its Restricted
Subsidiaries prior to the most recent proposed transfer.

 

80

 

Subject
to Section 1015(b) hereof, the Successor Person shall succeed to, and be
substituted for, such Guarantor under this Indenture and such Guarantor’s
Guarantee.  Notwithstanding the foregoing,
any Guarantor may merge into or transfer all or part of its properties and
assets to another Guarantor or the Company.

 

SECTION 803.  Successor Substituted.

 

Upon
any consolidation or merger, or any sale, assignment, conveyance, transfer,
lease or disposition of all or substantially all of the assets of the Company
or any Guarantor in accordance with Sections 801 and 802 hereof, the successor
Person formed by such consolidation or into which the Company or such
Guarantor, as the case may be, is merged or the successor Person to which such
sale, assignment, conveyance, transfer, lease or disposition is made, shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company or such Guarantor, as the case may be, under this Indenture and/or
the Guarantees, as the case may be, with the same effect as if such successor
Person had been named as the Company or such Guarantor, as the case may be,
herein and/or the Guarantees, as the case may be. When a successor Person
assumes all obligations of its predecessor hereunder, the Notes or the
Guarantees, as the case may be, such predecessor shall be released from all
obligations; provided  that in the
event of a transfer or lease, the predecessor shall not be released from the
payment of principal and interest or other obligations on the Notes or the
Guarantees, as the case may be.

 

ARTICLE NINE

 

SUPPLEMENTAL
INDENTURES

 

SECTION 901.  Amendments or Supplements Without Consent
of Holders.

 

Without
the consent of any Holders, the Company, any Guarantor (with respect to a
Guarantee or this Indenture to which it is a party), when authorized by Board
Resolutions of their respective Board of Directors, and the Trustee, at any
time and from time to time, may amend or supplement this Indenture, any
Guarantee or the Notes, in form satisfactory to the Trustee, for any of the
following purposes:

 

(1)                                  to
cure any ambiguity,  omission or defect,
to correct or supplement any provision herein which may be inconsistent with
any other provision herein, or to make any other provisions with respect to
matters or questions arising under this Indenture; provided that such
action shall not adversely affect the interests of the Holders in any material
respect;

 

(2)                                  to
provide for uncertificated Notes in addition to or in place of certificated
Notes;

 

(3)                                  to
comply with Article Eight hereof;

 

(4)                                  to
evidence the succession of another Person to the Company or to any Guarantor
and to provide the assumption by such Person of the Company’s or such Guarantor’s
obligations to Holders;

 

81

 

(5)                                  to
make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights under this Indenture
of any such Holder;

 

(6)                                  to
add covenants for the benefit of the Holders or to surrender any right or power
conferred in this Indenture upon the Company;

 

(7)                                  to
comply with requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

 

(8)                                  to
evidence and provide for the acceptance and appointment under this Indenture of
a successor Trustee pursuant to the requirements of Sections 609 and 610;

 

(9)                                  to
provide for the issuance of Exchange Notes or private exchange notes, which are
identical to Exchange Notes  except that
they are not freely transferable; or

 

(10)                            to
add a Guarantor under this Indenture.

 

SECTION 902.  Amendments, Supplements or Waivers with
Consent of Holders.

 

With
the consent of the Holders of not less than a majority in principal amount of
the Outstanding Notes, by Act of said Holders delivered to the Company and the
Trustee, the Company, any Guarantor (with respect to any Guarantee or this
Indenture to which it is a party), when authorized by Board Resolutions of
their respective Board of Directors, and the Trustee may amend or supplement
this Indenture, any Guarantee or the Notes for the purpose of adding any
provisions hereto or thereto, changing in any manner or eliminating any of the
provisions or of modifying in any manner the rights of the Holders hereunder or
thereunder (including, without limitation, consents obtained in connection with
a purchase of, or tender offer or Exchange Offer for, the Notes) and any
existing Default, Event of Default or compliance with any provision of this
Indenture or the Notes may be waived with the consent of the Holders of not
less than a majority in principal amount of the Outstanding Notes, other than
Notes beneficially owned by the Company or its Affiliates (including, without
limitation, consents obtained in connection with a purchase of or tender offer
or exchange offer for Notes); provided, however, that if any
amendment, supplement or waiver will only affect the Dollar Notes or the Euro
Notes, only the consent of the Holders of at least a majority in principal
amount of the then outstanding Dollar Notes or Euro Notes (and not the consent
of at least a majority of all Notes) shall be required and; provided, further
however, that no such amendment, supplement or waiver shall, without the
consent of the Holder of each Outstanding Note affected thereby:

 

(1)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver,

 

(2)                                  reduce
the principal of or change the Maturity of any such Security or alter or waive
the provisions with respect to the redemption of the Notes (other than Sections
1017 and 1018),

 

(3)                                  reduce
the rate of or change the time for payment of interest on any Note,

 

82

 

(4)                                  waive
a Default or Event of Default in the payment of principal of or premium, if
any, or interest on the Notes, except a rescission of acceleration of the Notes
by the Holders of at least a majority in aggregate principal amount of such
Notes and a waiver of the Payment Default that resulted from such acceleration,
or in respect of a covenant or provision contained in the Indenture or any
guarantee which cannot be amended or modified without the consent of all
Holders,

 

(5)                                  make
any Note payable in money other than that stated in such Notes,

 

(6)                                  make
any change in Section 513 or the rights of Holders to receive payments of
principal of or premium, if any, or interest on the Notes,

 

(7)                                  make
any change in these amendment, supplement and waiver provisions,

 

(8)                                  impair
the right of any Holder to receive payment of principal of, or interest on such
Holder’s Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes or

 

(9)                                  make
any change in Article Fourteen of this Indenture that would adversely
affect the Holders.

 

SECTION 903.  Execution of Amendments, Supplements or
Waivers.

 

In
executing, or accepting the additional trusts created by, any amendment,
supplement or waiver permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be provided
with, and shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such amendment, supplement or waiver is
authorized or permitted by this Indenture. 
The Trustee may, but shall not be obligated to, enter into any such
amendment, supplement or waiver which affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise.

 

SECTION 904.  Effect of Amendments, Supplements or
Waivers.

 

Upon
the execution of any supplemental indenture under this Article, this Indenture
shall be modified in accordance therewith, and such amendment, supplement or
waiver shall form a part of this Indenture for all purposes; and every Holder
of Notes theretofore or thereafter authenticated and delivered hereunder shall
be bound thereby.

 

SECTION 905.  Conformity with Trust Indenture Act.

 

Every
supplemental indenture executed pursuant to the Article shall conform to
the requirements of the Trust Indenture Act as then in effect.

 

SECTION 906.  Reference in Notes to Supplemental
Indentures.

 

Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture.  If

 

83

 

the Company shall so
determine, new Notes so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Notes.

 

SECTION 907.  Notice of Supplemental Indentures.

 

Promptly
after the execution by the Company, any Guarantor and the Trustee of any
supplemental indenture pursuant to the provisions of Section 902, the
Company shall give notice thereof to the Holders of each Outstanding Note affected,
in the manner provided for in Section 106, setting forth in general terms
the substance of such supplemental indenture.

 

SECTION 908.  Effect on Senior Indebtedness.

 

No
amendment, supplement or waiver shall adversely affect the rights of the Banks or
holders of any other Designated Senior Indebtedness under Article Fourteen
without the consent of the Agent or the representative of such holders, as the
case may be.

 

ARTICLE TEN

 

COVENANTS

 

SECTION 1001.  Payment of Principal, Premium, if Any, and
Interest.

 

The
Company covenants and agrees for the benefit of the Holders that it will duly
and punctually pay the principal of (and premium, if any) and interest on the
Notes in accordance with the terms of the Notes and this Indenture.

 

SECTION 1002.  Maintenance of Office or Agency.

 

The
Company will maintain in The City of New York, in London, England and, so long
as the Notes are listed on the Irish Stock Exchange and the rules of such stock
exchange so require, in Dublin, Ireland an office or agency where Notes may be
presented or surrendered for payment, where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Notes and this Indenture may be served.  The Corporate Trust Office of the Trustee
shall be such office or agency of the Company for Dollar Notes and Bank of New
York London shall be such office of the Company for the Euro Notes, unless the
Company shall designate and maintain some other office or agency for one or
more of such purposes.  The Company will
give prompt written notice to the Trustee of any change in the location of any
such office or agency.  If at any time
the Company shall fail to maintain any such required office or agency or shall
fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee for Dollar Notes and Bank of New York London shall be
such office of the Company for the Euro Notes, and the Company hereby appoints
the Trustee and Bank of New York London as its agent to receive all such
presentations, surrenders, notices and demands.

 

The
Company may also from time to time designate one or more other offices or
agencies (in or outside of The City of New York, London or Dublin) where the
Notes may be

 

84

 

presented or surrendered
for any or all such purposes and may from time to time rescind any such
designation; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in The City of New York, London, England and, so
long as the Notes are listed on the Irish Stock Exchange and the rules of such
stock exchange so require, in Dublin, Ireland for such purposes.  The Company will give prompt written notice
to the Trustee of any such designation or rescission and any change in the
location of any such other office or agency.

 

SECTION 1003.  Money for Notes Payments to Be Held in
Trust.

 

If the
Company shall at any time act as its own Paying Agent, it will, on or before
each due date of the principal of (or premium, if any) or interest on any of
the Notes, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal of (or premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee
of its action or failure so to act.

 

Whenever
the Company shall have one or more Paying Agents for the Notes, it will, on or
before each due date of the principal of (or premium, if any) or interest on
any Notes, deposit with a Paying Agent a sum sufficient to pay the principal
(and premium, if any) or interest so becoming due, such sum to be held in trust
for the benefit of the Persons entitled to such principal, premium or interest,
and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of such action or any failure so to act.

 

The
Company will cause each Paying Agent (other than the Trustee) to execute and
deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

 

(1)                                  hold
all sums held by it for the payment of the principal of (and premium, if any)
or interest on Notes in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as
herein provided;

 

(2)                                  give
the Trustee notice of any default by the Company (or any other obligor upon the
Notes) in the making of any payment of principal (and premium, if any) or
interest; and

 

(3)                                  at
any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

 

The
Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such sums.

 

85

 

Any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of (or premium, if any) or
interest on any Note and remaining unclaimed for two years after such
principal, premium or interest has become due and payable shall be paid to the
Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the Borough of Manhattan, The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Company.

 

SECTION 1004.  Corporate Existence.

 

Subject
to Article Eight, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect the corporate existence
and that of each Restricted Subsidiary and the corporate rights (charter and
statutory) and franchises of the Company and each Restricted Subsidiary; provided,
however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries as a whole.

 

SECTION 1005.  Payment of Taxes and Other Claims.

 

The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (a) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the
income, profits or property of the Company or any Subsidiary and (b) all lawful
claims for labor, materials and supplies, which, if unpaid, might by law become
a lien upon the property of the Company or any Subsidiary; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings and for which appropriate reserves, if necessary (in the good faith
judgment of management of the Company) are being maintained in accordance with
GAAP.

 

SECTION 1006.  Maintenance of Properties.

 

The
Company will cause all properties owned by the Company or any Restricted
Subsidiary or used or held for use in the conduct of its business or the
business of any Restricted Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however,
that nothing in this Section shall

 

86

 

prevent the Company from
discontinuing the maintenance of any of such properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its business or
the business of any Restricted Subsidiary.

 

SECTION 1007.  Insurance.

 

The
Company will at all times keep all of its and its Subsidiaries properties which
are of an insurable nature insured with insurers, believed by the Company to be
responsible, against loss or damage to the extent that property of similar
character is usually so insured by corporations similarly situated and owning
like properties.

 

SECTION 1008.  Statement by Officers as to Default.

 

(a)                                  The
Company will deliver to the Trustee within 120 days after the end of each
fiscal year, an Officers’ Certificate stating that a review of the activities
of the Company and its Restricted Subsidiaries during the preceding quarter or
the preceding fiscal year, as the case may be, has been made under the
supervision of the signing officers with a view to determining whether it has
kept, observed, performed and fulfilled, and has caused each of its Restricted
Subsidiaries to keep, observe, perform and fulfill its obligations under this
Indenture and further stating, as to each such officer signing such
certificate, that, to the best of his or her knowledge, the Company during such
preceding quarter or the preceding fiscal year, as the case may be, has kept,
observed, performed and fulfilled, and has caused each of its Restricted
Subsidiaries to keep, observe, perform and fulfill each and every such covenant
contained in this Indenture and no Default or Event of Default occurred during
such quarter or year, as the case may be, and at the date of such certificate
there is no Default or Event of Default which has occurred and is continuing
or, if such signers do know of such Default or Event of Default, the certificate
shall describe its status, with particularity and that, to the best of his or
her knowledge, no event has occurred and remains by reason of which payments on
the account of the principal of or interest, if any, on the Notes is prohibited
or if such event has occurred, a description of the event and what action each
is taking or proposes to take with respect thereto.  The Officers’ Certificate shall also notify
the Trustee should the Company elect to change the manner in which it fixes its
fiscal year-end.  For purposes of this Section 1008(a),
such compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

(b)                                 When
any Default or Event of Default has occurred and is continuing under this
Indenture, or if the trustee for or the holder of any other evidence of
Indebtedness of the Company or any Restricted Subsidiary gives any notice or
takes any other action with respect to a claimed default (other than with
respect to Indebtedness in the principal amount of less than $25,000,000), the
Company shall deliver to the Trustee by registered or certified mail or by
telegram, telex or facsimile transmission an Officers’ Certificate specifying
such event, notice or other action within five Business Days of its occurrence.

 

SECTION 1009.  Reports and Other Information.

 

(a)                                  The
Company shall file with the Commission (and make available to the Trustee and
Holders (without exhibits), without cost to each Holder, within 15 days after
it files with the Commission):

 

87

 

(1)                                  within
90 days (or the successor time period then in effect under the rules and
regulations of the Exchange Act) after the end of each fiscal year, annual
reports on Form 10-K, or any successor or comparable form, containing the
information required to be contained therein, or required in such successor or
comparable form;

 

(2)                                  within
45 days (or the successor time period then in effect under the rules and
regulations of the Exchange Act) after the end of each of the first three
fiscal quarters of each fiscal year, reports on Form 10-Q, containing the
information required to be contained therein, or any successor or comparable
form;

 

(3)                                  promptly
from time to time after the occurrence of an event required to be therein
reported, such other reports on Form 8-K, or any successor or comparable form;

 

(4)                                  any
other information, documents and other reports which the Company would be
required to file with the Commission if it were subject to Section 13 or
15(d) of the Exchange Act; and

 

(5)                                  delivery
of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates);

 

provided
that the Company shall not be so obligated to file such reports with the
Commission if the Commission does not permit such filing, in which event the
Company shall make available such information to prospective purchasers of the
Notes, in addition to providing such information to the Trustee and the Holders,
in each case within 15 days after the time the Company would be required to
file such information with the Commission, if it were subject to Section 13
or 15(d) of the Exchange Act.

 

In
addition, the Company and the Guarantors agree that, for so long as any Notes
remain outstanding, if at any time they are not obligated to file with the
Commission the reports required by the preceding paragraphs, they will furnish
to the Holders of Notes and to securities analysts and prospective investors,
upon their request, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act.

 

The
Company will also make available copies of the above information required by
clauses (1) through (5) above if and for so long as the Notes are listed on the
Irish Stock Exchange and the Irish Stock Exchange so requires, at the office of
the Irish paying agent in Ireland.

 

SECTION 1010.  Limitation on Restricted Payments.

 

(a)                                  The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly:

 

88

 

(1)                                  declare
or pay any dividend or make any distribution on account of the Company’s or any
Restricted Subsidiary’s Equity Interests, including any dividend or
distribution payable in connection with any merger or consolidation other than,

 

(A)                              dividends
or distributions by the Company payable in Equity Interests (other than
Disqualified Stock) of the Company or in options, warrants or other rights to
purchase such Equity Interests, or

 

(B)                                dividends
or distributions by a Restricted Subsidiary so long as, in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Subsidiary other than a Wholly Owned Subsidiary, the
Company or a Restricted Subsidiary receives at least its pro rata share of such
dividend or distribution in accordance with its Equity Interests in such class
or series of securities;

 

(2)                                  purchase,
redeem, defease or otherwise acquire or retire for value any Equity Interests
of the Company or any direct or indirect parent of the Company, including in
connection with any merger or consolidation;

 

(3)                                  make
any principal payment on, or redeem, repurchase, defease or otherwise acquire
or retire for value in each case, prior to any scheduled repayment, sinking
fund payment or maturity, any Subordinated Indebtedness, other than,

 

(x)                                   Indebtedness
permitted under clauses (7) and (8) of Section 1011(b), or

 

(y)                                 the
purchase, repurchase or other acquisition of Subordinated Indebtedness
purchased in anticipation of satisfying a sinking fund obligation, principal
installment or final maturity, in each case due within one year of the date of
purchase, repurchase or acquisition; or

 

(4)                                  make
any Restricted Investment;

 

(all such payments and
other actions set forth in clauses (1) through (4) above being collectively
referred to as “Restricted Payments”), unless, at the time of such Restricted
Payment:

 

(A)                              no
Default or Event of Default shall have occurred and be continuing or would
occur as a consequence thereof;

 

(B)                                immediately
after giving effect to such transaction on a pro forma basis, the Company could
incur at least $1.00 of additional Indebtedness under Section 1011(a); and

 

(C)                                such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries after July 23,
2003 (including Restricted Payments permitted by clauses (1), (2) (with respect
to the payment of dividends on Refunding Capital Stock pursuant to clause (B)
thereof only), (4) (only to the extent that amounts that could have been paid
pursuant to such clause if

 

89

 

$7.5
million and $15.0 million were substituted in such clause for $15.0 million and
$30.0 million respectively), (5), (6)(A) and (C) and (9) of Section 1010(b),
but excluding all other Restricted Payments permitted by Section 1010(b),
is less than the sum of:

 

(1)                                  50%
of the Consolidated Net Income of the Company for the period (taken as one
accounting period) from the beginning of the first fiscal quarter commencing
after July 23, 2003, to the end of the Company’s most recently ended
fiscal quarter for which internal financial statements are available at the
time of such Restricted Payment, or, in the case such Consolidated Net Income
for such period is a deficit, minus 100% of such deficit, plus

 

(2)                                  100%
of the aggregate net cash proceeds and the fair market value, as determined in
good faith by the Board of Directors, of marketable securities received by the
Company since immediately after July 23, 2003 (other than net cash
proceeds to the extent such net cash proceeds have been used to incur
Indebtedness, Disqualified Stock or preferred stock pursuant to Section 1011(b)(13))
from the issue or sale of:

 

(x)                                   Equity
Interests of the Company, including Retired Capital Stock (as defined below),
but excluding cash proceeds and marketable securities received from the sale of
(A) Equity Interests to members of management, directors or consultants of the
Company, any direct or indirect parent corporation of the Company and the
Company’s Subsidiaries after July 23, 2003 to the extent such amounts have
been applied to Restricted Payments made in accordance with Section 1010(b)(4)
and (B) Designated Preferred Stock, and to the extent actually contributed to
the Company, Equity Interests of the Company’s direct or indirect parent
corporations (excluding contributions of the proceeds from the sale of
Designated Preferred Stock of such corporations), or

 

(y)                                 debt
securities of the Company that have been converted into such Equity Interests
of the Company; provided, however, that this clause (2) shall not
include the proceeds from (a) Refunding Capital Stock (as defined below), (b)
Equity Interests or converted debt securities of the Company sold to a
Restricted Subsidiary or the Company, as the case may be, (c) Disqualified
Stock or debt securities that have been converted into Disqualified Stock or
(d) Excluded Contributions, plus

 

(3)                                  100%
of the aggregate amount of cash and marketable securities contributed to the
capital of the Company following July 23, 2003 (other than net cash
proceeds to the extent such net cash proceeds have been used to incur
Indebtedness, Disqualified Stock or preferred stock pursuant to Section 1011(b)(13))
(other than by a Restricted Subsidiary and other than by any Excluded
Contributions), plus

 

(4)                                  100%
of the aggregate amount received in cash and the fair market value of
marketable securities received by means of,

 

90

 

(A)                              the
sale or other disposition (other than to the Company or a Restricted
Subsidiary) of Restricted Investments made by the Company and its Restricted
Subsidiaries and repurchases and redemptions of such Restricted Investments
from the Company and its Restricted Subsidiaries and repayments of loans or
advances which constitute Restricted Investments by the Company and its
Restricted Subsidiaries, or

 

(B)                                the
sale (other than to the Company or a Restricted Subsidiary) of the stock of an
Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary
(other than in each case to the extent the Investment in such Unrestricted
Subsidiary was made by the Company or a Restricted Subsidiary pursuant to clause
(7) or (10) of Section 1010(b) or to the extent such Investment
constituted a Permitted Investment) or a dividend from an Unrestricted
Subsidiary, plus

 

(5)                                  in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary, the fair market value of the Investment in such Unrestricted
Subsidiary, as determined by the Board of Directors in good faith or if, in the
case of an Unrestricted Subsidiary, such fair market value may exceed $25.0
million, in writing by an independent investment banking firm of nationally
recognized standing, at the time of the redesignation of such Unrestricted
Subsidiary as a Restricted Subsidiary, other than an Unrestricted Subsidiary to
the extent the Investment in such Unrestricted Subsidiary was made by the
Company or a Restricted Subsidiary pursuant to clause (7) or (10) of Section 1010(b)
or to the extent such Investment constituted a Permitted Investment.

 

(b)                                 The
foregoing provisions shall not prohibit:

 

(1)                                  the
payment of any dividend within 60 days after the date of declaration thereof,
if at the date of declaration such payment would have complied with the
provisions of this Indenture;

 

(2)                                  (A)
the redemption, repurchase, retirement or other acquisition of any Equity
Interests (“Retired Capital Stock”) or Subordinated Indebtedness of the
Company, or any Equity Interests of any direct or indirect parent corporation
of the Company, in exchange for, or out of the proceeds of the substantially
concurrent sale (other than to a Restricted Subsidiary) of, Equity Interests of
the Company (in each case, other than any Disqualified Stock) (“Refunding
Capital Stock”) and (B) if immediately prior to the retirement of Retired
Capital Stock, the declaration and payment of dividends thereon was permitted
under clause (6) of this Section 1010(b), the declaration and payment of
dividends on the Refunding Capital Stock (other than Refunding Capital Stock
the proceeds of which were used to redeem, repurchase, retire or otherwise
acquire any Equity Interests of any direct or indirect parent corporation of
the Company) in an aggregate amount per year no greater than the aggregate
amount of dividends per annum that was declarable and payable on such Retired
Capital Stock immediately prior to such retirement;

 

91

 

(3)                                  the
redemption, repurchase or other acquisition or retirement of Subordinated
Indebtedness of the Company made by exchange for, or out of the proceeds of the
substantially concurrent sale of, new Indebtedness of the Company which is
incurred in compliance with Section 1011 so long as,

 

(A)                              the
principal amount of such new Indebtedness does not exceed the principal amount
of the Subordinated Indebtedness being so redeemed, repurchased, acquired or
retired for value, plus the amount of any reasonable premium required to
be paid under the terms of the instrument governing the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired,

 

(B)                                such
Indebtedness is subordinated to Senior Indebtedness and the Notes at least to
the same extent as such Subordinated Indebtedness so purchased, exchanged,
redeemed, repurchased, acquired or retired for value,

 

(C)                                such
Indebtedness has a final scheduled maturity date equal to or later than the
final scheduled maturity date of the Subordinated Indebtedness being so
redeemed, repurchased, acquired or retired, and

 

(D)                               such
Indebtedness has a Weighted Average Life to Maturity equal to or greater than
the remaining Weighted Average Life to Maturity of the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired;

 

(4)                                  a
Restricted Payment to pay for the repurchase, retirement or other acquisition
or retirement for value of common Equity Interests of the Company or any of its
direct or indirect parent corporations held by any future, present or former
employee, director or consultant of the Company, any of its Subsidiaries or any
of its direct or indirect parent corporations pursuant to any management equity
plan or stock option plan or any other management or employee benefit plan or
agreement; provided, however, that the aggregate Restricted
Payments made under this clause (4) do not exceed in any calendar year $15.0
million (with unused amounts in any calendar year being carried over to
succeeding calendar years subject to a maximum (without giving effect to the
following proviso) of $30.0 million in any calendar year); provided  further
that such amount in any calendar year may be increased by an amount not to
exceed,

 

(A)                              the
cash proceeds from the sale of Equity Interests of the Company and, to the
extent contributed to the Company, Equity Interests of any of the Company’s
direct or indirect parent corporations, in each case to members of management,
directors or consultants of the Company, any of its Subsidiaries or any of its
direct or indirect parent corporations that occurs after July 23, 2003, to
the extent the cash proceeds from the sale of such Equity Interests have not
otherwise been applied to the payment of Restricted Payments by virtue of Section 1010(a)(C),
plus

 

(B)                                the
cash proceeds of key man life insurance policies received by the Company and
its Restricted Subsidiaries after July 23, 2003, less

 

92

 

(C)                                the
amount of any Restricted Payments previously made pursuant to clauses (A) and
(B) of this Section 1010(b)(4);

 

and provided
further that cancellation of Indebtedness owing to the Company from
members of management of the Company, any of its direct or indirect parent
corporations or any Restricted Subsidiary in connection with a repurchase of
Equity Interests of the Company or any of its direct or indirect parent
corporations will not be deemed to constitute a Restricted Payment for purposes
of this covenant or any other provision of this Indenture;

 

(5)                                  the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company or any other Restricted Subsidiary issued in
accordance with the covenant described under Section 1011 to the extent
such dividends are included in the definition of Fixed Charges;

 

(6)                                  (A)  the declaration and payment of dividends to
holders of any class or series of Designated Preferred Stock (other than
Disqualified Stock) issued by the Company after the Issue Date,

 

(A)                              the
declaration and payment of dividends to a direct or indirect parent corporation
of the Company, the proceeds of which will be used to fund the payment of
dividends to holders of any class or series of Designated Preferred Stock
(other than Disqualified Stock) of such parent corporation issued after the
Issue Date, provided  that the
amount of dividends paid pursuant to this clause 6(B) shall not exceed the
aggregate amount of cash actually contributed to the Company from the sale of
such Designated Preferred Stock, or

 

(B)                                the
declaration and payment of dividends on Refunding Capital Stock in excess of
the dividends declarable and payable thereon pursuant to clause (2) of this Section 1010(b);

 

provided,
however, in the case of each of (A), (B) and (C) of this clause (6),
that for the most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date of issuance
of such Designated Preferred Stock or the declaration of such dividends on
Refunding Capital Stock, after giving effect to such issuance or declaration on
a pro forma basis, the Company and the Restricted Subsidiaries would have had a
Fixed Charge Coverage Ratio of at least 2.00 to 1.00;

 

(7)                                  Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (7) that are
at the time outstanding, without giving effect to the sale of an Unrestricted
Subsidiary to the extent the proceeds of such sale do not consist of cash
and/or marketable securities, not to exceed $75.0 million at the time of such
Investment (with the fair market value of each Investment being measured at the
time made and without giving effect to subsequent changes in value);

 

93

 

(8)                                  repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants
if such Equity Interests represent a portion of the exercise price of such
options or warrants;

 

(9)                                  the
payment of dividends on the Company’s Common Stock, following the first public
offering of the Company’s Common Stock or the Common Stock of any of its direct
or indirect parent corporations after the Issue Date, of up to 6% per annum of
the net proceeds received by or contributed to the Company in such public
offerings, other than public offerings with respect to the Company’s Common
Stock registered on Form S-8 and other than any public sale constituting an
Excluded Contribution;

 

(10)                            Investments
that are made with Excluded Contributions;

 

(11)                            other
Restricted Payments in an aggregate amount not to exceed $75.0 million;

 

(12)                            the
declaration and payment of dividends by the Company to, or the making of loans
to, its parent corporation in amounts required for either of their respective
direct or indirect parent corporations to pay,

 

(A)                              franchise
taxes and other fees, taxes and expenses required to maintain their corporate
existence,

 

(B)                                federal,
state and local income taxes, to the extent such income taxes are attributable
to the income of the Company and the Restricted Subsidiaries and, to the extent
of the amount actually received from its Unrestricted Subsidiaries, in amounts
required to pay such taxes to the extent attributable to the income of such
Unrestricted Subsidiaries,

 

(C)                                customary
salary, bonus and other benefits payable to officers and employees of any
direct or indirect parent corporation of the Company to the extent such
salaries, bonuses and other benefits are attributable to the ownership or
operation of the Company and the Restricted Subsidiaries, and

 

(D)                               general
corporate overhead expenses of any direct or indirect parent corporation of the
Company to the extent such expenses are attributable to the ownership or
operation of the Company and the Restricted Subsidiaries;

 

(13)                            distributions
or payments of Receivables Fees;

 

(14)                            cash
dividends or other distributions on the Company’s or any Restricted Subsidiary’s
Capital Stock used to fund the payment of fees and expenses incurred in
connection with the Transactions or owed to Affiliates, in each case to the
extent permitted by Section 1013;

 

(15)                            the
payment of dividends or distributions to Rockwood Specialties International,
Inc. to be applied to fund cash interest payments on the Senior Discount

 

94

 

Notes
commencing August 15, 2007 in accordance with the terms of the Senior
Discount Notes on the Issue Date; and

 

(16)                            the
payment of dividends or distributions to Rockwood Specialties International,
Inc. in an amount equal to the July 2003 Equity Contribution for the
purpose of repaying Indebtedness of any of the Parent Companies; provided,
however, that for the most recently ended four full fiscal quarters for
which internal financial statements are available immediately preceding the
date of the declaration of such dividends or distributions, after giving effect
to such declaration on a pro forma basis, the Company and Restricted
Subsidiaries would have had a Fixed Charge Coverage Ratio of at least 2.50 to
1.00;

 

provided,
however, that at the time of, and after giving effect to, any Restricted
Payment permitted under clauses (5) through (7), clause (11) and clauses (15)
and (16) of this Section 1010(b), no Default or Event of Default shall
have occurred and be continuing or would occur as a consequence thereof.

 

(c)                                  As
of the time of issuance of the Notes, all of the Company’s Subsidiaries shall
be Restricted Subsidiaries.  The Company
shall not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to the last sentence of the definition of “Unrestricted
Subsidiary” in Section 101 of this Indenture.  For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the
Company and its Restricted Subsidiaries (except to the extent repaid) in the
Subsidiary so designated shall be deemed to be Restricted Payments in an amount
determined as set forth in the last sentence of the definition of “Investment”.  Such designation will be permitted only if a
Restricted Payment in such amount would be permitted at such time, whether
pursuant to Section 1010(a) or under clause (7), (10) or (11) of Section 1010(b),
and if such Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.  Unrestricted Subsidiaries
shall not be subject to any of the restrictive covenants set forth in this
Indenture.

 

SECTION 1011.  Limitation on Incurrence of Indebtedness
and Issuance of  Disqualified Stock.

 

(a)                                  The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable, contingently or otherwise, (collectively, “incur”
and collectively, an “incurrence”) with respect to any Indebtedness (including
Acquired Indebtedness) and the Company shall not issue any shares of
Disqualified Stock and shall not permit any Restricted Subsidiary to issue any
shares of Disqualified Stock or preferred stock; provided, however,
that the Company may incur Indebtedness (including Acquired Indebtedness) or
issue shares of Disqualified Stock, and any Restricted Subsidiary may incur
Indebtedness (including Acquired Indebtedness), issue shares of Disqualified
Stock and issue shares of preferred stock, if the Fixed Charge Coverage Ratio
for the Company’s and the Restricted Subsidiaries’ most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or preferred stock is issued would have
been at least 2.00 to 1.00, determined on a pro forma basis (including a pro
forma application of the net proceeds therefrom), as if the additional

 

95

 

Indebtedness had been
incurred, or the Disqualified Stock or preferred stock had been issued, as the
case may be, and the application of proceeds therefrom had occurred at the
beginning of such four-quarter period; provided  that
the amount of Indebtedness (other than Acquired Indebtedness), Disqualified
Stock and preferred stock that may be incurred pursuant to the foregoing by
Restricted Subsidiaries that are not Guarantors of the Notes shall not exceed
$150.0 million at any one time outstanding.

 

(b)                                 The
foregoing limitations shall not apply to:

 

(1)                                  the
existence of Indebtedness under Credit Facilities on the Issue Date together
with the incurrence by the Company or any Restricted Subsidiary of Indebtedness
under Credit Facilities and the issuance and creation of letters of credit and
bankers’ acceptances thereunder (with letters of credit and bankers’
acceptances being deemed to have a principal amount equal to the face amount
thereof), up to an aggregate principal amount of $2.05 billion outstanding at
any one time; provided, however, that the aggregate amount of
Indebtedness incurred by Restricted Subsidiaries (other than Guarantors)
pursuant to this clause (1) may not exceed $300.0 million outstanding at any
one time;

 

(2)                                  the
incurrence by the Company and any Guarantor of Indebtedness represented by the
Notes (including any Guarantee);

 

(3)                                  Existing
Indebtedness (other than Indebtedness described in clauses (1) and (2) above,
including the 2011 Notes);

 

(4)                                  Indebtedness
(including Capitalized Lease Obligations), Disqualified Stock and preferred
stock incurred by the Company or any of its Restricted Subsidiaries, to finance
the purchase, lease or improvement of property (real or personal) or equipment
that is used or useful in a Similar Business, whether through the direct
purchase of assets or the Capital Stock of any Person owning such assets, in an
aggregate principal amount which, when aggregated with the principal amount of
all other Indebtedness, Disqualified Stock and preferred stock then outstanding
and incurred pursuant to this clause (4) and including all Refinancing
Indebtedness incurred to refund, refinance or replace any other Indebtedness,
Disqualified Stock and preferred stock incurred pursuant to this clause (4),
does not exceed the greater of (x) $150.0 million and (y) 4.0% of Total Assets;

 

(5)                                  Indebtedness
incurred by the Company or any Restricted Subsidiary constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including without limitation letters of credit in respect of workers’
compensation claims, or other Indebtedness with respect to reimbursement type
obligations regarding workers’ compensation claims; provided, however, that upon the drawing of such letters of credit
or the incurrence of such Indebtedness, such obligations are reimbursed within
30 days following such drawing or incurrence;

 

(6)                                  Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the disposition of any

 

96

 

business,
assets or a Subsidiary, other than guarantees of Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or a Subsidiary
for the purpose of financing such acquisition; provided, however,
that:

 

(A)                              such
Indebtedness is not reflected on the balance sheet of the Company or any
Restricted Subsidiary (contingent obligations referred to in a footnote to
financial statements and not otherwise reflected on the balance sheet shall not
be deemed to be reflected on such balance sheet for purposes of this clause
(6)(A)), and

 

(B)                                the
maximum assumable liability in respect of all such Indebtedness shall at no
time exceed the gross proceeds including non-cash proceeds (the fair market
value of such non-cash proceeds being measured at the time received and without
giving effect to any subsequent changes in value) actually received by the
Company and the Restricted Subsidiaries in connection with such disposition;

 

(7)                                  Indebtedness
of the Company to a Restricted Subsidiary; provided   that any such Indebtedness owing to
a non-Guarantor is subordinated in right of payment to the Notes; provided further that any subsequent issuance or transfer of
any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such Indebtedness (except to the Company or another Restricted
Subsidiary) shall be deemed, in each case to be an incurrence of such
Indebtedness;

 

(8)                                  Indebtedness
of a Restricted Subsidiary to the Company or another Restricted Subsidiary; provided
that:

 

(A)                              any
such Indebtedness is made pursuant to an intercompany note, and

 

(B)                                if
a Guarantor incurs such Indebtedness to a Restricted Subsidiary that is a
Guarantor, such Indebtedness is subordinated in right of payment to the
Guarantee of such Guarantor; provided  further that any subsequent
transfer of any such Indebtedness (except to the Company or another Restricted
Subsidiary) shall be deemed, in each case to be an incurrence of such
Indebtedness;

 

(9)                                  shares
of preferred stock of a Restricted Subsidiary issued to the Company or another
Restricted Subsidiary; provided that any subsequent issuance or transfer
of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent
transfer of any such shares of preferred stock (except to the Company or
another Restricted Subsidiary) shall be deemed in each case to be an issuance
of such shares of preferred stock;

 

(10)                            Hedging
Obligations (excluding Hedging Obligations entered into for speculative
purposes) for the purpose of limiting:

 

(A)                              interest
rate risk with respect to any Permitted Indebtedness, or

 

97

 

(B)                                exchange
rate risk with respect to any currency exchange;

 

(11)                            obligations
in respect of performance and surety bonds and completion guarantees provided
by the Company or any Restricted Subsidiary in the ordinary course of business;

 

(12)                            Indebtedness
of any Guarantor in respect of such Guarantor’s Guarantee;

 

(13)                            Indebtedness,
Disqualified Stock and preferred stock of the Company or any Restricted
Subsidiary not otherwise permitted hereunder in an aggregate principal amount
or liquidation preference, which when aggregated with the principal amount and
liquidation preference of all other Indebtedness, Disqualified Stock and
preferred stock then outstanding and incurred pursuant to this clause (13),
does not at any one time outstanding exceed the sum of:

 

(x)                                   $250.0
million, and

 

(y)                                 100%
of the net cash proceeds received by the Company since immediately after July 23,
2003 from the issue or sale of Equity Interests of the Company or cash
contributed to the capital of the Company (in each case other than proceeds of
Disqualified Stock or sales of Equity Interests to the Company or any of its
Subsidiaries) as determined in accordance with clauses (C)(2) and (C)(3) of Section 1010(a)
to the extent such net cash proceeds or cash have not been applied pursuant to
such clauses to make Restricted Payments or to make other investments, payments
or exchanges pursuant to Section 1010(b) or to make Permitted Investments
(other than Permitted Investments specified in clauses (a) and (c) of the
definition thereof),

 

provided
further, however, that the aggregate amount of Indebtedness,
Disqualified Stock and preferred stock incurred by Restricted Subsidiaries
(other than Guarantors) pursuant to this clause (13) may not exceed $150.0
million outstanding at any one time (it being understood that any Indebtedness,
Disqualified Stock or preferred stock incurred 
pursuant to this clause (13) shall cease to be deemed incurred or
outstanding for purposes of this clause (13) but shall be deemed incurred for
the purposes of Section 1011(a) from and after the first date on which the
Company or such Restricted Subsidiary could have incurred such Indebtedness,
Disqualified Stock or preferred stock under Section 1011(a) without
reliance on this clause (13));

 

(14)                            (A)                              any
guarantee by the Company or a Guarantor of Indebtedness or other obligations of
any Restricted Subsidiary so long as the incurrence of such Indebtedness
incurred by such Restricted Subsidiary is permitted under the terms of this
Indenture, or

 

(A)                              any
guarantee by a Restricted Subsidiary of Indebtedness of the Company, provided
that such guarantee is incurred in accordance with Section 1015;

 

(15)                            the
incurrence by the Company or any Restricted Subsidiary of Indebtedness,
Disqualified Stock or preferred stock which serves to refund or refinance any
Indebtedness, Disqualified Stock or preferred stock incurred as permitted under
Section 1011(a) and clauses (2) and (3) above, this clause (15) and clause
(16) below or

 

98

 

any
Indebtedness, Disqualified Stock or preferred stock issued to so refund or
refinance such Indebtedness, Disqualified Stock or preferred stock including
additional Indebtedness, Disqualified Stock or preferred stock incurred to pay
premiums and fees in connection therewith (the “Refinancing Indebtedness”)
prior to its respective maturity; provided, however, that such
Refinancing Indebtedness:

 

(A)                              has
a Weighted Average Life to Maturity at the time such Refinancing Indebtedness
is incurred which is not less than the remaining Weighted Average Life to
Maturity of the Indebtedness, Disqualified Stock or preferred stock being
refunded or refinanced,

 

(B)                                to
the extent such Refinancing Indebtedness refinances (i) Indebtedness
subordinated or pari  passu to the Notes or any Guarantee of the
Notes, such Refinancing Indebtedness is subordinated or pari  passu to the Notes or such Guarantee at least to the
same extent as the Indebtedness being refinanced or refunded or (ii)
Disqualified Stock or preferred stock, such Refinancing Indebtedness must be
Disqualified Stock or preferred stock, respectively, and

 

(C)                                shall
not include (x) Indebtedness, Disqualified Stock or preferred stock of a
Subsidiary that refinances Indebtedness, Disqualified Stock or preferred stock
of the Company, (y) Indebtedness, Disqualified Stock or preferred stock of a
Subsidiary that is not a Guarantor that refinances Indebtedness, Disqualified
Stock or preferred stock of a Guarantor; or (z) Indebtedness, Disqualified
Stock or preferred stock of the Company or a Restricted Subsidiary that
refinances Indebtedness, Disqualified Stock or preferred stock of an
Unrestricted Subsidiary;

 

and provided
further that subclause (A) above of this clause (15) shall not apply to
any refunding or refinancing of any Senior Indebtedness; and

 

(16)                            Indebtedness,
Disqualified Stock or preferred stock of Persons that are acquired by the
Company or any Restricted Subsidiary or merged into the Company or a Restricted
Subsidiary in accordance with the terms of this Indenture; provided that
such Indebtedness, Disqualified Stock or preferred stock is not incurred in
contemplation of such acquisition or merger; and provided  further
that after giving effect to such acquisition or merger, either:

 

(A)                              the
Company would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section 1011(a),
or

 

(B)                                the
Fixed Charge Coverage Ratio is greater than immediately prior to such
acquisition or merger.

 

(c)                                  For
purposes of determining compliance with this Section 1011, in the event
that an item of Indebtedness, Disqualified Stock or Preferred Stock meets the
criteria of more than one of the categories of permitted Indebtedness,
Disqualified Stock or Preferred Stock described in clauses (1) through (16) of
this Section 1011(b) or is entitled to be incurred pursuant to Section 1011(a),
the Company shall, in its sole discretion, classify such item of Indebtedness

 

99

 

in any manner that
complies with this Section 1011 and such item of Indebtedness,
Disqualified Stock or Preferred Stock shall be treated as having been incurred
pursuant to only one of such clauses of this Section 1011(b) or pursuant
to Section 1011(a) except as otherwise set forth in clause (13) of this Section 1011(b).  Accrual of interest, the accretion of
accreted value and the payment of interest in the form of additional
Indebtedness, Disqualified Stock or Preferred Stock shall not be deemed to be
an incurrence of Indebtedness, Disqualified Stock or Preferred Stock for
purposes of this Section 1011.

 

(d)                                 For
purposes of determining compliance with any U.S. dollar-denominated restriction
on the incurrence of Indebtedness, the U.S. dollar-equivalent principal amount
of Indebtedness denominated in a foreign currency shall be calculated based on
the relevant currency exchange rate in effect on the date such Indebtedness was
incurred, in the case of term debt, or first committed, in the case of
revolving credit debt; provided that if such Indebtedness is incurred to
refinance other Indebtedness denominated in a foreign currency, and such
refinancing would cause the applicable U.S. dollar-denominated restriction to
be exceeded if calculated at the relevant currency exchange rate in effect on
the date of such refinancing, such U.S. dollar-denominated restriction shall be
deemed not to have been exceeded so long as the principal amount of such
refinancing Indebtedness does not exceed the principal amount of such
Indebtedness being refinanced.

 

(e)                                  The
principal amount of any Indebtedness incurred to refinance other Indebtedness,
if incurred in a different currency from the Indebtedness being refinanced,
shall be calculated based on the currency exchange rate applicable to the
currencies in which such respective Indebtedness is denominated that is in effect
on the date of such refinancing.

 

SECTION 1012.  Limitation
on Liens.

 

The
Company shall not, and shall not permit any Guarantor to, directly or
indirectly create, incur, assume or suffer to exist any Lien (other than
Permitted Liens) that secures obligations under any Senior Subordinated
Indebtedness or Subordinated Indebtedness on any asset or property of the
Company or such Guarantor, or any income or profits therefrom, or assign or
convey any right to receive income therefrom, unless the Notes (or a Guarantee
in the case of Liens of a Guarantor) are equally and ratably secured with, or
senior to, in the event the Lien relates to Subordinated Indebtedness, the
obligations so secured or until such time as such obligations are no longer
secured by a Lien.

 

SECTION 1013.  Limitations on Transactions with
Affiliates.

 

(a)                                  The
Company shall not, and shall not permit any Restricted Subsidiary to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the Company
(each of the foregoing, an “Affiliate Transaction”) involving aggregate
payments or consideration in excess of $5.0 million, unless

 

(1)                                  such
Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary than those that would have been

 

100

 

obtained
in a comparable transaction by the Company or such Restricted Subsidiary with
an unrelated Person and

 

(2)                                  the
Company delivers to the Trustee with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate payments or
consideration in excess of $10.0 million, a resolution adopted by the majority
of the Board of Directors approving such Affiliate Transaction and set forth in
an Officers’ Certificate certifying that such Affiliate Transaction complies
with clause (1) above.

 

(b)                                 The
foregoing provisions will not apply to the following:

 

(1)                                  transactions
between or among the Company and/or any of the Restricted Subsidiaries;

 

(2)                                  Restricted
Payments permitted by Section 1010 and the definition of “Permitted  Investments”;

 

(3)                                  the
payment of customary annual management, consulting, monitoring and advisory
fees and related expenses to Kohlberg Kravis Roberts & Co. L.P., DLJ
Merchant Banking Partners and their respective Affiliates;

 

(4)                                  the
payment of reasonable and customary fees paid to, and indemnities provided on
behalf of, officers, directors, employees or consultants of the Company, any of
its direct or indirect parent corporations or any Restricted Subsidiary;

 

(5)                                  payments
by the Company or any Restricted Subsidiary to Kohlberg Kravis Roberts &
Co. L.P., DLJ Merchant Banking Partners III, L.P. and their Affiliates made for
any financial advisory, financing, underwriting or placement services or in
respect of other investment banking activities, including, without limitation,
in connection with acquisitions or divestitures which payments are approved by
a majority of the Board of Directors of the Company in good faith;

 

(6)                                  transactions
in which the Company or any Restricted Subsidiary, as the case may be, delivers
to the Trustee a letter from an Independent Financial Advisor stating that such
transaction is fair to the Company or such Restricted Subsidiary from a
financial point of view or meets the requirements of Section 1013(a)(1);

 

(7)                                  payments
or loans (or cancellation of loans) to employees or consultants of the Company,
any of its direct or indirect parent corporations or any Restricted Subsidiary
which are approved by a majority of the Board of Directors of the Company in
good faith;

 

(8)                                  any
agreement as in effect as of the Issue Date, or any amendment thereto (so long
as any such amendment is not disadvantageous to the Holders in any material
respect);

 

(9)                                  the
existence of, or the performance by the Company or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement

 

101

 

(including
any registration rights agreement or purchase agreement related thereto) to
which it is a party as of the Issue Date and any similar agreements which it
may enter into thereafter; provided, however, that the existence
of, or the performance by the Company or any Restricted Subsidiary of
obligations under any future amendment to any such existing agreement or under
any similar agreement entered into after the Issue Date shall only be permitted
by this clause (9) to the extent that the terms of any such amendment or new
agreement are not otherwise disadvantageous to the Holders in any material respect;

 

(10)                            the
Transactions and the payment of all fees and expenses related to the
Transactions, in each case as disclosed in the Offering Memorandum;

 

(11)                            transactions
with customers, clients, suppliers, or purchasers or sellers of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Indenture which are fair to the Company and
the Restricted Subsidiaries, in the reasonable determination of the Board of
Directors of the Company or the senior management thereof, or are on terms at
least as favorable as might reasonably have been obtained at such time from an
unaffiliated party;

 

(12)                            the
issuance of Equity Interests (other than Disqualified Stock) of the Company to
any Permitted Holder; and

 

(13)                            sales
of accounts receivable, or participations therein, in connection with any
Receivables Facility.

 

SECTION 1014.  Limitations on Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

 

The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, create or otherwise cause or suffer to exist or become effective
any consensual encumbrance or consensual restriction on the ability of any such
Restricted Subsidiary to:

 

(a)                                  (1)
pay dividends or make any other distributions to the Company or any Restricted
Subsidiary on its Capital Stock or, with respect to any other interest or
participation in, or measured by, its profits, or (2) pay any Indebtedness owed
to the Company or any Restricted Subsidiary;

 

(b)                                 make
loans or advances to the Company or any Restricted Subsidiary; or

 

(c)                                  sell,
lease or transfer any of its properties or assets to the Company or any
Restricted Subsidiary,

 

except (in each case) for
such encumbrances or restrictions existing under or by reason of:

 

(1)                                  contractual
encumbrances or restrictions in effect on the Issue Date, including, without
limitation, pursuant to the Senior Credit Facilities and their related
documentation, the 2011 Notes;

 

(2)                                  this
Indenture and the Notes;

 

102

 

(3)                                  purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions of the nature discussed in clause (c) above on the property
so acquired;

 

(4)                                  applicable
law or any applicable rule, regulation or order;

 

(5)                                  any
agreement or other instrument of a Person acquired by the Company or any
Restricted Subsidiary in existence at the time of such acquisition (but not
created in contemplation thereof), which encumbrance or restriction is not
applicable to any Person, or the properties or assets of any Person, other than
the Person, or the property or assets of the Person, so acquired;

 

(6)                                  contracts
for the sale of assets, including, without limitation, customary restrictions
with respect to a Subsidiary pursuant to an agreement that has been entered
into for the sale or disposition of all or substantially all of the Capital
Stock or assets of such Subsidiary;

 

(7)                                  secured
Indebtedness otherwise permitted to be incurred pursuant to Sections 1011 and
1012 that limit the right of the debtor to dispose of the assets securing such
Indebtedness;

 

(8)                                  restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business;

 

(9)                                  other
Indebtedness, Disqualified Stock or preferred stock of Restricted Subsidiaries
permitted to be incurred subsequent to the Issue Date pursuant to Section 1011;

 

(10)                            customary
provisions in joint venture agreements and other similar agreements;

 

(11)                            customary
provisions contained in leases and other agreements entered into in the
ordinary course of business;

 

(12)                            any
encumbrances or restrictions of the type referred to in clauses (a), (b) and
(c) above imposed by any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of the
contracts, instruments or obligations referred to in clauses (1) through (11)
above, provided that such amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings are, in the
good faith judgment of the Board of Directors of the Company no more
restrictive with respect to such encumbrance and other restrictions than those
prior to such amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing; and

 

(13)                            restrictions
created in connection with any Receivables Facility that, in the good faith
determination of the Board of Directors of the Company, are necessary or
advisable to effect such Receivables Facility.

 

103

 

SECTION 1015.  Limitation on Guarantees of Indebtedness
by Restricted Subsidiaries.

 

(a)                                  The
Company shall not permit any Restricted Subsidiary, other than a Guarantor, to
guarantee the payment of any Indebtedness of the Company or any other Guarantor
unless:

 

(1)                                  such
Restricted Subsidiary simultaneously executes and delivers a supplemental
indenture to this Indenture providing for a guarantee of payment of the Notes
by such Restricted Subsidiary, except that with respect to a guarantee of
Indebtedness of the Company or any Guarantor:

 

(A)                              if
the Notes or such Guarantor’s Guarantee of the Notes are subordinated in right
of payment to such Indebtedness, the Guarantee under the supplemental indenture
shall be subordinated to such Restricted Subsidiary’s guarantee with respect to
such Indebtedness substantially to the same extent as the Notes are
subordinated to such Indebtedness under this Indenture and

 

(B)                                if
such Indebtedness is by its express terms subordinated in right of payment to
the Notes or such Guarantor’s Guarantee of the Notes, any such guarantee of
such Restricted Subsidiary with respect to such Indebtedness shall be
subordinated in right of payment to such Restricted Subsidiary’s Guarantee with
respect to the Notes substantially to the same extent as such Indebtedness is
subordinated to the Notes;

 

(2)                                  such
Restricted Subsidiary waives and shall not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Company or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
guarantee; and

 

(3)                                  such
Restricted Subsidiary shall deliver to the Trustee an Opinion of Counsel to the
effect that:

 

(A)                              such
Guarantee of the Notes has been duly executed and authorized, and

 

(B)                                such
Guarantee of the Notes constitutes a valid, binding and enforceable obligation
of such Restricted Subsidiary, except insofar as enforcement thereof may be
limited by bankruptcy, insolvency or similar laws (including, without
limitation, all laws relating to fraudulent transfers) and except insofar as
enforcement thereof is subject to general principles of equity;

 

provided
that this Section 1015(a) shall not be applicable to any guarantee of any
Restricted Subsidiary

 

(x)                                   that
existed at the time such Person became a Restricted Subsidiary and was not
incurred in connection with, or in contemplation of, such Person becoming a
Restricted Subsidiary or

 

104

 

(y)                                 that
guarantees the payment of Obligations of the Company or any Restricted
Subsidiary under the Senior Credit Facilities or any other Senior Indebtedness
and any refunding, refinancing or replacement thereof, in whole or in part, provided
that such refunding, refinancing or replacement thereof constitutes Senior
Indebtedness and provided  further that any such Senior
Indebtedness and any refunding, refinancing or replacement thereof is not
incurred pursuant to a registered offering of securities under the Securities
Act or a private placement of securities (including under Rule 144A) pursuant
to an exemption from the registration requirements of the Securities Act, which
private placement provides for registration rights under the Securities Act.

 

In the
event that a Subsidiary Guarantor enters into a Subsidiary Guarantee at a time
when the Notes are listed on the Official List of the Irish Stock Exchange, the
Company will, to the extent required by the rules of the Irish Stock Exchange,
notify the Irish Stock Exchange and deposit a copy of the new Guarantee with
the Irish Stock Exchange and the Irish paying agent in Ireland.

 

(b)                                 Notwithstanding
the foregoing and the other provisions of this Indenture, any Guarantee by a
Restricted Subsidiary of the Notes shall provide by its terms that it shall be
automatically and unconditionally released and discharged upon:

 

(1)                                  any
sale, exchange or transfer of all of the Company’s Capital Stock in any
Restricted Subsidiary (by merger or otherwise), which sale, exchange or
transfer is not prohibited by this Indenture to (i) any Person not a Restricted
Subsidiary, and (ii) any Designated Non-Guarantor Joint Venture; provided,
however, that, in the case of transfers to a Designated Non-Guarantor
Joint Venture, the applicable Guarantee shall not be released and discharged
if, immediately after giving effect to such release and discharge on a pro
forma basis, (i) a Default or Event of Default would then exist and be
continuing or (ii) the total assets (excluding intercompany assets) of such
Restricted Subsidiary transferred, valued immediately prior to its transfer to
a Designated Non-Guarantor Joint Venture, together with any assets (excluding
intercompany assets) previously transferred to any Designated Non-Guarantor
Joint Venture by any other Restricted Subsidiary that was a Guarantor, valued
at the time such assets were transferred to such Designated Non-Guarantor Joint
Ventures, would exceed 10.0% of the total assets (excluding intercompany
assets) of the Company and its Restricted Subsidiaries as shown on the most
recent balance sheet of the Company and its Restricted Subsidiaries prior to
the most recent proposed transfer, or

 

(2)                                  the
release or discharge of the guarantee by such Restricted Subsidiary which
resulted in the creation of such Guarantee, except a discharge or release by or
as a result of payment under such guarantee, or

 

(3)                                  if
the Company properly designates any Restricted Subsidiary that is a Guarantor
as an Unrestricted Subsidiary.

 

In the
event that a Subsidiary Guarantor is released from its obligations under a
Subsidiary Guarantee at a time when the Notes are listed on the Official List
of the Irish Stock Exchange, the Company will, to the extent required by the
Irish Stock Exchange, notify the Irish Stock Exchange.

 

105

 

SECTION 1016.  Limitation on Layering.

 

The
Company shall not, and shall not permit any Guarantor to, directly or
indirectly, incur any Indebtedness (including Acquired Indebtedness) that is
subordinate in right of payment to any Indebtedness of the Company or any
Guarantor, as the case may be, unless such Indebtedness is either:

 

(a)                                  equal
in right of payment with the Notes or such Guarantor’s Guarantee, as the case
may be, or

 

(b)                                 subordinate
in right of payment to the Notes or such Guarantor’s guarantee, as the case may
be.

 

SECTION 1017.  Change of Control.

 

(a)                                  If
a Change of Control occurs, the Company shall make an offer to purchase all of
the Notes pursuant to the offer described below (the “Change of Control Offer”)
at a price in cash (the “Change of Control Payment”) equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase, subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant Interest Payment Date.  Within
30 days following any Change of Control, the Company shall send notice of such
Change of Control Offer by first class mail, with a copy to the Trustee, to
each Holder to the address of such Holder appearing in the Note Register with a
copy to the Trustee, with the following information:

 

(1)                                  a
Change of Control Offer is being made pursuant to this Section 1017 and
that all Notes properly tendered pursuant to such Change of Control Offer will
be accepted for payment;

 

(2)                                  the
purchase price and the purchase date, which will be no earlier than 30 days nor
later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

 

(3)                                  any
Note not properly tendered will remain outstanding and continue to accrue
interest;

 

(4)                                  unless
the Company defaults in the payment of the Change of Control Payment, all Notes
accepted for payment pursuant to the Change of Control Offer will cease to
accrue interest on the Change of Control Payment Date;

 

(5)                                  Holders
electing to have any Notes purchased pursuant to a Change of Control Offer will
be required to surrender the Notes, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Notes completed, to the Paying Agent
specified in the notice at the address specified in the notice prior to the close
of business on the third business day preceding the Change of Control Payment
Date;

 

106

 

(6)                                  Holders
will be entitled to withdraw their tendered Notes and their election to require
the Company to purchase such Notes, provided that the Paying Agent receives,
not later than the close of business on the last day of the Offer Period, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder of the Notes, the principal amount of Notes tendered for purchase, and a
statement that such Holder is withdrawing his tendered Notes and his election
to have such Notes purchased; and

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $50,000 or €50,000, as the case may
be, or an integral multiple of $1,000 or €1,000, as the case may be, above such
minimum denomination amount.

 

(b)                                 While
the Notes are in global form and the Company makes an offer to purchase all of
the Notes pursuant to the Change of Control Offer, a Holder may exercise its
option to elect for the purchase of the Notes through the facilities of The
Depository Trust Company, Euroclear and Clearstream, subject to their rules and
regulations.

 

(c)                                  Prior
to complying with the provisions of this Section 1017, but in any event
within 30 days following a Change of Control, the Company shall either repay
all its outstanding Senior Indebtedness that prohibits it from repurchasing
Notes in a Change of Control Offer or obtain the requisite consents, if any,
under any outstanding Senior Indebtedness, in each case, necessary to permit
the repurchase of the Notes required by this Section 1017, provided
that the failure to repay such Indebtedness or obtain such consent shall not
affect the obligation to make a Change of Control Offer.

 

(d)                                 The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such
laws or regulations are applicable in connection with the repurchase of the
Notes pursuant to a Change of Control Offer. 
To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Indenture, the Company shall comply with
the applicable securities laws and regulations and shall not be deemed to have
breached its obligations described in this Indenture by virtue thereof.

 

(e)                                  On
the Change of Control Payment Date, the Company shall, to the extent permitted
by law,

 

(1)                                  accept
for payment all Notes or portions thereof properly tendered pursuant to the
Change of Control Offer,

 

(2)                                  deposit
with the Paying Agent an amount equal to the aggregate Change of Control
Payment in respect of all Notes or portions thereof so tendered, and

 

(3)                                  deliver,
or cause to be delivered, to the Trustee for cancellation the Notes so accepted
together with an Officers’ Certificate stating that such Notes or portions
thereof have been tendered to and purchased by the Company.

 

107

 

(4)                                  The
Paying Agent shall promptly mail to each Holder the Change of Control Payment
for such Notes, and the Trustee will promptly authenticate and mail to each
Holder a new Security equal in principal amount to any unpurchased portion of
the Notes surrendered, if any, provided that each such new Note shall be
in a principal amount of $$50,000 or €50,000, as the case may be, or an
integral multiple of $1,000 or €1,000, as the case may be, above such minimum
denomination amount.

 

(f)                                    The
Company shall publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Change of Control Payment Date.

 

(g)                                 If
at any time of such Change of Control, the Notes are listed on the Official
List of the Irish Stock Exchange, to the extent required by the Irish Stock
Exchange, the Company will notify the Irish Stock Exchange that a Change of
Control has occurred and any relevant details relating to such Change of
Control.

 

(h)                                 The
Company will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the manner,
at the times and otherwise in compliance with the requirements set forth in
this Indenture applicable to a Change of Control Offer made by the Company and
purchases all Notes properly tendered and not withdrawn under the Change of
Control Offer, or (2) notice of redemption has been given pursuant to this
Indenture as described in Section 1101 hereof unless and until there is a
default in payment of the applicable Redemption Price.

 

SECTION 1018.  Asset Sales.

 

(a)                                  The
Company shall not, and shall not permit any Restricted Subsidiary to, cause,
make or suffer to exist an Asset Sale, unless:

 

(1)                                  the
Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market
value (as determined in good faith by the Company) of the assets sold or
otherwise disposed of, and

 

(2)                                  except
in the case of a Permitted Asset Swap, at least 75% of the consideration
therefor received by the Company or such Restricted Subsidiary, as the case may
be, is in the form of cash or Cash Equivalents; provided that the amount
of:

 

(A)                              any
liabilities (as shown on the Company’s, or such Restricted Subsidiary’s, most
recent balance sheet or in the Notes thereto) of the Company or any Restricted
Subsidiary, other than liabilities that are by their terms subordinated to the
Notes, that are assumed by the transferee of any such assets and for which the
Company and all Restricted Subsidiaries have been validly released by all
creditors in writing,

 

(B)                                any
securities received by the Company or such Restricted Subsidiary from such
transferee that are converted by the Company or such

 

108

 

Restricted
Subsidiary into cash (to the extent of the cash received) within 180 days
following the closing of such Asset Sale, and

 

(C)                                any
Designated Non-cash Consideration received by the Company or any Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken together
with all other Designated Non-cash Consideration received pursuant to this
clause (C) that is at that time outstanding, not to exceed 7.0% of Total Assets
at the time of the receipt of such Designated Non-cash Consideration with the
fair market value of each item of Designated Non-cash Consideration, being
measured at the time received and without giving effect to subsequent changes
in value,

 

shall
be deemed to be cash for purposes of this provision and for no other purpose.

 

(b)                                 Within
365 days after the Company’s or any Restricted Subsidiary’s receipt of the Net
Proceeds of any Asset Sale, the Company or such Restricted Subsidiary, at its
option, may apply the Net Proceeds from such Asset Sale,

 

(1)                                  to
permanently reduce:

 

(A)                              Obligations
under the Senior Credit Facilities, and to correspondingly reduce commitments
with respect thereto,

 

(B)                                Obligations
under other Senior Indebtedness (and to correspondingly reduce commitments with
respect thereto) or Senior Subordinated Indebtedness  provided
that if the Company shall so reduce Obligations under Senior Subordinated
Indebtedness, it shall equally and ratably reduce Obligations under the Notes
if the Notes are then prepayable or, if the Notes may not then be prepaid, the
Company shall make an offer (in accordance with the procedures set forth below
for an Asset Sale Offer) to all Holders to purchase their Notes at 100% of the
principal amount thereof, plus accrued but unpaid interest and Additional
Interest, if any, on the amount of Notes that would otherwise be prepaid, or

 

(C)                                Indebtedness
of a Restricted Subsidiary which is not a Guarantor, other than Indebtedness
owed to the Company or another Restricted Subsidiary,

 

(2)                                  to
an investment in (a) any one or more businesses, provided that such
investment in any business is in the form of the acquisition of Capital Stock
and results in the Company or a Restricted Subsidiary, as the case may be,
owning an amount of the Capital Stock of such business such that it constitutes
a Restricted Subsidiary, (b) capital expenditures or (c) acquisitions of other
assets, in each of (a), (b) and (c), used or useful in a Similar Business,
and/or

 

(3)                                  to
an investment in (a) any one or more businesses, provided that such investment
in any business is in the form of the acquisition of Capital Stock and results
in the Company or a Restricted Subsidiary, as the case may be, owning an amount
of  the Capital Stock of such business
such that it constitutes a Restricted Subsidiary, (b)

 

109

 

properties
or (c) other assets that, in each of (a), (b) and (c) replace the businesses,
properties and assets that are the subject of such Asset Sale.

 

provided
that, any portion of such proceeds that has not been so reinvested within such
365-day period pursuant to clauses (2) or (3) above shall (x) be deemed to be
Net Proceeds of an Asset Sale occurring on the last day of such 365-day period
and (y) be applied to the repayment of Notes and other pari passu Indebtedness,
including the 2011 Notes, ratably, as described below; and provided  further that, for purposes of the preceding proviso, such
365-day period shall be extended by up to twelve months (or, if less, extended
by up to the shortest period of time in excess of 365 days that such a reinvestment
period exists pursuant to, or may be extended under the terms of, any
instrument governing any publicly offered, privately placed or borrowed
Indebtedness of the Parent Companies or the Company) from the last day of such
365-day period so long as (A) such proceeds are to be reinvested within such
additional twelve-month period under the Company’s business plan as most
recently adopted in good faith by its Board of Directors and (B) the Company
believes in good faith that such proceeds will be so reinvested within such
additional twelve-month period.

 

(c)                                  Any
Net Proceeds from the Asset Sale that are not invested or applied as provided
and within the time period set forth in Section 1018(a) shall be deemed to
constitute “Excess Proceeds.”  When the aggregate
amount of Excess Proceeds exceeds $15.0 million, the Company shall make an
offer to all Holders of the Notes and, if required by the terms of any Pari
Passu Indebtedness, including the 2011 Notes, to the holders of such Pari Passu
Indebtedness, (an “Asset Sale Offer”) to purchase the maximum principal amount
of Notes and such Pari Passu Indebtedness, that is an integral multiple of
$50,000 or €50,000 as the case may be, or an integral multiple of $1,000 or
€1,000, as the case may be, above such minimum denomination amount., that may
be purchased out of the Excess Proceeds at an offer price in cash in an amount
equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Additional Interest, if any, to the date fixed for the closing of
such offer, in accordance with the procedures set forth in this Indenture.  The Company shall commence an Asset Sale
Offer with respect to Excess Proceeds within ten Business Days after the date
that Excess Proceeds exceeds $15.0 million by mailing the notice required
pursuant to the terms of this Indenture, with a copy to the Trustee.  To the extent that the aggregate amount of
Notes and such Pari Passu Indebtedness tendered pursuant to an Asset Sale Offer
is less than the Excess Proceeds, the Company may use any remaining Excess
Proceeds for general corporate purposes, subject to other covenants contained
in this Indenture.  If the aggregate
principal amount of Notes or the Pari Passu Indebtedness surrendered by such
holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes and such Pari Passu Indebtedness to be purchased on a pro rata basis
based on the accreted value or principal amount of the Notes or such Pari Passu
Indebtedness tendered. Upon completion of any such Asset Sale Offer, the amount
of Excess Proceeds shall be reset at zero.

 

(d)                                 Pending
the final application of any Net Proceeds pursuant to this Section 1018,
the Company or the applicable Restricted Subsidiary may apply such Net Proceeds
temporarily to reduce Indebtedness outstanding under a revolving credit
facility or otherwise invest such Net Proceeds in any manner not prohibited by
this Indenture.

 

110

 

(e)                                  The
Company shall comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such
laws or regulations are applicable in connection with the repurchase of the
Notes pursuant to an Asset Sale Offer. 
To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Indenture, the Company shall comply with
the applicable securities laws and regulations and shall not be deemed to have
breached its obligations described in this Indenture by virtue thereof.

 

(f)                                    If
less than all of the Notes or such Pari Passu Indebtedness are to be redeemed at
any time, selection for such Notes for redemption, will be made by the Trustee
in compliance with the requirements of the principal national securities
exchange, if any, on which such Notes are listed, or, if such Notes are not so
listed, on a pro rata basis; provided that no Dollar Notes or Euro Notes of
$50,000 or less and €50,000 or less, respectively, shall be purchased or
redeemed in part.

 

(g)                                 Notices
of purchase or redemption shall be mailed by first class mail, postage prepaid,
at least 30 but not more than 60 days before the purchase or Redemption Date to
each Holder to be purchased or redeemed at such Holder’s registered
address.  If any Note is to be purchased
or redeemed in part only, any notice of purchase or redemption that relates to
such Note shall state the portion of the principal amount thereof that has been
or is to be purchased or redeemed.

 

(h)                                 A
new Note in principal amount equal to the unpurchased or unredeemed portion of
any Note purchased or redeemed in part shall be issued in the name of the
Holder thereof upon cancellation of the original Note.  On and after the purchase or Redemption Date,
unless the Company defaults in payment of the purchase or Redemption Price,
interest shall cease to accrue on Notes or portions thereof purchased or called
for redemption.

 

So
long as any Notes are listed on the Official List of the Irish Stock Exchange,
and to the extent required by the Irish Stock Exchange, the Company will
provide a copy of all notices to the Irish Stock Exchange. In addition, for 14
days from the date of the listing particulars relating to the listing of the
Notes on the Irish Stock Exchange, copies of the following documents will be
available for inspection during usual business hours at the specified office of
the Irish paying agent: (a) the Indenture (including the form of Notes) and (b)
any documents furnished to the Trustee under the covenant described in Section 1009
hereof.

 

SECTION 1019.  Waiver of Certain Covenants.

 

The
Company and the Restricted Subsidiaries may omit in any particular instance to
comply with any term, provision or condition set forth in or Sections 1004
through 1008, inclusive, if before or after the time for such compliance the
Holders of at least a majority in principal amount of the Outstanding Notes, by
Act of such Holders, waive such compliance in such instance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

 

111

 

 

ARTICLE ELEVEN

 

REDEMPTION OF NOTES

 

SECTION 1101.  Right of Redemption.

 

The Notes may be
redeemed, at the election of the Company, as a whole or from time to time in
part, at any time after November 15, 2009, subject to the conditions and at the
Redemption Prices specified in the form of Note, together with accrued interest
to the Redemption Date.

 

In addition to the
optional redemption of the Notes in accordance with the provisions of the
preceding paragraph, at any time prior to November 15, 2009, the Company may
redeem up to 40% of the aggregate principal amount of Dollar Notes issued under
this Indenture at a Redemption Price equal to 107.500% of the aggregate
principal amount thereof and up to 40% of the aggregate principal amount of
Euro Notes issued under this Indenture at a Redemption Price equal to 107.625%
of the aggregate principal amount thereof, in each case, plus accrued and
unpaid interest thereon and Additional Interest, if any, to the Redemption
Date, subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date, with the net
proceeds of one or more Equity Offerings of the Company or any direct or
indirect parent of the Company to the extent such net proceeds are contributed
to the Company; provided that at least 60% of the aggregate principal
amount of Dollar Notes originally issued under this Indenture and any
Additional Dollar Notes issued under this Indenture after the Issue Date
remains outstanding immediately after each such redemption of Dollar Notes and
at least 60% of the aggregate principal amount of Euro Notes originally issued
under the Indenture and any Additional Euro Notes issued under this Indenture
after the Issue Date remains outstanding immediately after each such redemption
of Euro Notes; provided further that each such redemption occurs within
90 days of the date of closing of each such Equity Offering.

 

At any time prior to
November 15, 2009, the Company may also redeem all or a part of each series of
Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each holder’s registered address, at a Redemption Price
equal to 100% of the principal amount of Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to, the date of redemption, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date.

 

So long as the Notes are
listed on the Official List of the Irish Stock Exchange, and to the extent
required by the Irish Stock Exchange, the Company will notify the Irish Stock
Exchange of any such notice. In addition, the Company will notify the Irish
Stock Exchange of the principal amount of Notes outstanding following any
partial redemption of Notes.

 

SECTION 1102.  Applicability of Article.

 

Redemption of Notes at
the election of the Company or otherwise, as permitted or required by any
provision of this Indenture, shall be made in accordance with such provision
and this Article.

 

112

 

SECTION 1103.  Election to Redeem; Notice to Trustee.

 

The election of the
Company to redeem any Notes pursuant to Section 1101 above shall be evidenced
by a Board Resolution.  In case of any
redemption at the election of the Company, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date and of the principal amount of Notes to be redeemed and shall deliver to
the Trustee such documentation and records as shall enable the Trustee to
select the Notes to be redeemed pursuant to Section 1104.

 

SECTION 1104.  Selection by Trustee of Notes to Be
Redeemed.

 

If less than all the
Notes are to be redeemed, the particular Notes to be redeemed shall be selected
not more than 60 days prior to the Redemption Date by the Trustee, from the
Outstanding Notes not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions of the principal of Notes; provided, however,
that no such partial redemption shall reduce the portion of the principal
amount of a Note not redeemed to less than $1,000.

 

The Trustee shall
promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Notes selected for partial redemption, the principal
amount thereof to be redeemed.

 

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
redemption of Notes shall relate, in the case of any Note redeemed or to be
redeemed only in part, to the portion of the principal amount of such Note
which has been or is to be redeemed.

 

SECTION 1105.  Notice of Redemption.

 

Notice of redemption
shall be given in the manner provided for in Section 106 not less than 30 nor
more than 60 days prior to the Redemption Date, to each Holder to be redeemed.

 

All notices of redemption
shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price and the amount
of accrued interest to the Redemption Date payable as provided in Section 1107,
if any,

 

(3)           if less than all Outstanding Notes
are to be redeemed, the identification (and, in the case of a partial
redemption, the principal amounts) of the particular Notes to be redeemed,

 

(4)           in case any Note is to be redeemed in
part only, the notice which relates to such Note shall state that on and after
the Redemption Date, upon surrender of such Note, the Holder will receive,
without charge, a new Note or Notes of authorized denominations for the
principal amount thereof remaining unredeemed,

 

113

 

(5)           that on the Redemption Date the
Redemption Price (and accrued interest, if any, to the Redemption Date payable
as provided in Section 1107) will become due and payable upon each such Note,
or the portion thereof, to be redeemed, and that interest thereon will cease to
accrue on and after said date,

 

(6)           the place or places where such Notes
are to be surrendered for payment of the Redemption Price and accrued interest,
if any,

 

(7)           the name and address of the Paying
Agent,

 

(8)           that Notes called for redemption must
be surrendered to the Paying Agent to collect the Redemption Price,

 

(9)           the Common Code, ISIN or CUSIP
number, as the case may be, and that no representation is made as to the
accuracy or correctness of the Common Code, ISIN or CUSIP number, as the case
may be, if any, listed in such notice or printed on the Notes, and

 

(10)         the paragraph of the Notes pursuant to
which the Notes are to be redeemed.

 

Notice of redemption of
Notes to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company.

 

SECTION 1106.  Deposit of Redemption Price.

 

Prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and accrued interest on, all the Notes which are to be redeemed on
that date.

 

SECTION 1107.  Notes Payable on Redemption Date.

 

Notice of redemption
having been given as aforesaid, the Notes so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified (together with accrued interest, if any, to the Redemption Date), and
from and after such date (unless the Company shall default in the payment of
the Redemption Price and accrued interest) such Notes shall cease to bear
interest.  Upon surrender of any such
Note for redemption in accordance with said notice, such Note shall be paid by
the Company at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided, however, that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Notes, or one or more Predecessor Notes,
registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 307.

 

114

 

If any Note called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate borne by the Notes.

 

SECTION 1108.  Notes Redeemed in Part.

 

Any Note which is to be
redeemed only in part (pursuant to the provisions of this Article) shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 1002 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Note without
service charge, a new Note or Notes, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Note so surrendered.

 

ARTICLE TWELVE

 

GUARANTEES

 

SECTION 1201.  Guarantees.

 

Each Guarantor hereby
jointly and severally, unconditionally and irrevocably guarantees the Notes and
obligations of the Company hereunder and thereunder, and guarantees to each
Holder of a Note authenticated and delivered by the Trustee, and to the Trustee
on behalf of such Holder, that:  (a) the
principal of (and premium, if any) and interest on the Notes will be paid in
full when due, whether at Stated Maturity, by acceleration or otherwise (including,
without limitation, the amount that would become due but for the operation of
the automatic stay under Section 362(a) of the Bankruptcy Law), together with
interest on the overdue principal, if any, and interest on any overdue
interest, to the extent lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or of any such
other obligations, the same shall be paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise, subject, however, in the case of clauses
(a) and (b) above, to the limitation set forth in Section 1205 hereof.

 

Each Guarantor hereby
agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
with respect to any provisions hereof or thereof, any release of any other
Guarantor, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a Guarantor.

 

Each Guarantor hereby
waives (to the extent permitted by law) the benefits of diligence, presentment,
demand for payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the

 

115

 

Company or any other Person, protest, notice and all demands whatsoever
and covenants that the Guarantee of such Guarantor shall not be discharged as
to any Note except by complete performance of the obligations contained in such
Note, this Indenture and such Guarantee. 
Each Guarantor acknowledges that the Guarantee is a guarantee of payment
and not of collection.  Each of the
Guarantors hereby agrees that, in the event of a default in payment of
principal (or premium, if any) or interest on such Note, whether at its Stated
Maturity, by acceleration, purchase or otherwise, legal proceedings may be instituted
by the Trustee on behalf of, or by, the Holder of such Note, subject to the
terms and conditions set forth in this Indenture, directly against each of the
Guarantors to enforce such Guarantor’s Guarantee without first proceeding
against the Company or any other Guarantor. 
Each Guarantor agrees that if, after the occurrence and during the
continuance of an Event of Default, the Trustee or any of the Holders are
prevented by applicable law from exercising their respective rights to
accelerate the Maturity of the Notes, to collect interest on the Notes, or to
enforce or exercise any other right or remedy with respect to the Notes, such
Guarantor shall pay to the Trustee for the account of the Holder, upon demand
therefor, the amount that would otherwise have been due and payable had such
rights and remedies been permitted to be exercised by the Trustee or any of the
Holders.

 

If any Holder or the
Trustee is required by any court or otherwise to return to the Company or any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to either the Company or any Guarantor, any amount paid by
any of them to the Trustee or such Holder, the Guarantee of each of the
Guarantors, to the extent theretofore discharged, shall be reinstated in full
force and effect.  Each Guarantor further
agrees that, as between each Guarantor, on the one hand, and the Holders and
the Trustee on the other hand, (x) subject to this Article Twelve, the Maturity
of the obligations guaranteed hereby may be accelerated as provided in Article
Five hereof for the purposes of the Guarantee of such Guarantor notwithstanding
any stay, injunction or other prohibition preventing such acceleration in
respect of the obligations guaranteed hereby, and (y) in the event of any
acceleration of such obligation as provided in Article Five hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by each Guarantor for the purpose of the Guarantee of such Guarantor.

 

Each Guarantee shall
remain in full force and effect and continue to be effective should any
petition be filed by or against the Company for liquidation, reorganization,
should the Company become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of the Company’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Notes are, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Notes, whether as a “voidable preference”, “fraudulent
transfer” or otherwise, all as though such payment or performance had not been
made.  In the event that any payment or
any part thereof, is rescinded, reduced, restored or returned, the Notes shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only
by such amount paid and not so rescinded, reduced, restored or returned.

 

116

 

SECTION 1202.  Severability.

 

In case any provision of
any Guarantee shall be invalid, illegal or unenforceable, the validity,
legality, and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

 

SECTION 1203.  Restricted Subsidiaries.

 

The Company shall cause
any Restricted Subsidiary required to guarantee payment of the Notes pursuant
to the terms and provisions of Section 1015 to (i) execute and deliver to the
Trustee any amendment or supplement to this Indenture in accordance with the
provisions of Article Nine of this Indenture pursuant to which such Restricted
Subsidiary shall guarantee all of the obligations on the Notes, whether for principal,
premium, if any, interest (including interest accruing after the filing of, or
which would have accrued but for the filing of, a petition by or against the
Company under Bankruptcy Law, whether or not such interest is allowed as a
claim after such filing in any proceeding under such law) and other amounts due
in connection therewith (including any fees, expenses and indemnities), on an
unsecured senior subordinated basis and (ii) deliver to such Trustee an Opinion
of Counsel reasonably satisfactory to such Trustee to the effect that such
amendment or supplement has been duly executed and delivered by such Restricted
Subsidiary and is in compliance with the terms of this Indenture.  Upon the execution of any such amendment or
supplement, the obligations of the Guarantors and any such Restricted
Subsidiary under their respective Guarantees shall become joint and several and
each reference to the “Guarantor” in this Indenture shall, subject to Section
1208, be deemed to refer to all Guarantors, including such Restricted
Subsidiary.  Such Guarantee shall be
released in accordance with Section 803 and Section 1015(b).

 

SECTION 1204.  Subordination of Guarantees.

 

The Guarantee issued by
any Guarantor shall be unsecured senior subordinated obligations of such
Guarantor, ranking pari  passu with all other existing and future
senior subordinated indebtedness of such Guarantor, if any.  The Indebtedness evidenced by such Guarantee
shall be subordinated on the same basis to Senior Indebtedness of such Guarantor
as the Notes are subordinated to Senior Indebtedness under Article Fourteen.

 

SECTION 1205.  Limitation of Guarantors’ Liability.

 

Each Guarantor and by its
acceptance hereof each Holder confirms that it is the intention of all such
parties that the guarantee by each such Guarantor pursuant to its Guarantee not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
or any similar federal or state law or the provisions of its local law relating
to fraudulent transfer or conveyance.  To
effectuate the foregoing intention, the Holders and each such Guarantor hereby
irrevocably agree that the obligations of such Guarantor under its Guarantee
shall be limited to the maximum amount that will not, after giving effect to
all other contingent and fixed liabilities of such Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its

 

117

 

Guarantee or pursuant to this Section 1205, result in the obligations
of such Guarantor under its Guarantee constituting such fraudulent transfer or
conveyance.

 

SECTION 1206.  Contribution.

 

In order to provide for
just and equitable contribution among the Guarantors, the Guarantors agree, inter
se, that in the event any payment or distribution is made by any
Guarantor (a “Funding Guarantor”) under a Guarantee, such Funding Guarantor
shall be entitled to a contribution from all other Guarantors in a pro  rata
amount based on the Adjusted Net Assets (as defined below) of each Guarantor
(including the Funding Guarantor) for all payments, damages and expenses
incurred by that Funding Guarantor in discharging the Company’s obligations
with respect to the Notes or any other Guarantor’s obligations with respect to
the Guarantee of such Guarantor.  “Adjusted
Net Assets” of such Guarantor at any date shall mean the lesser of (x) the amount
by which the fair value of the property of such Guarantor exceeds the total
amount of liabilities, including, without limitation, contingent liabilities
(after giving effect to all other fixed and contingent liabilities incurred or
assumed on such date), but excluding liabilities under the Guarantee of such
Guarantor at such date and (y) the amount by which the present fair salable
value of the assets of such Guarantor at such date exceeds the amount that will
be required to pay the probable liability of such Guarantor on its debts (after
giving effect to all other fixed and contingent liabilities incurred or assumed
on such date), excluding debt in respect of the Guarantee of such Guarantor, as
they become absolute and matured.

 

SECTION 1207.  Subrogation.

 

Each Guarantor shall be
subrogated to all rights of Holders against the Company in respect of any
amounts paid by any Guarantor pursuant to the provisions of Section 1201; provided,
however, that, if an Event of Default has occurred and is continuing, no
Guarantor shall be entitled to enforce or receive any payments arising out of,
or based upon, such right of subrogation until all amounts then due and payable
by the Company under this Indenture or the Notes shall have been paid in full.

 

SECTION 1208.  Reinstatement.

 

Each Guarantor hereby
agrees (and each Person who becomes a Guarantor shall agree) that the Guarantee
provided for in Section 1201 shall continue to be effective or be reinstated,
as the case may be, if at any time, payment, or any part thereof, of any
obligations or interest thereon is rescinded or must otherwise be restored by a
Holder to the Company upon the bankruptcy or insolvency of the Company or any
Guarantor.

 

SECTION 1209.  Release of a Guarantor.

 

Concurrently with the
discharge of the Notes under Section 401, the Legal Defeasance of the Notes
under Section 1302 hereof, or the Covenant Defeasance of the Notes under
Section 1303 hereof, the Guarantors shall be released from all their
obligations under their Guarantees under this Article Twelve.  Any Guarantor shall be released from all its
obligations under its Guarantee in accordance with Section 803 and Section
1015(b).

 

118

 

SECTION 1210.  Benefits Acknowledged.

 

Each Guarantor acknowledges
that it will receive direct and indirect benefits from the financing
arrangements contemplated by this Indenture and from its guarantee and waivers
pursuant to its Guarantees under this Article Twelve.

 

ARTICLE THIRTEEN

 

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1301.  Company’s Option to Effect Legal
Defeasance or Covenant Defeasance.

 

The Company may, at its
option by Board Resolution, at any time, with respect to the Notes, elect to
have either Section 1302 or Section 1303 be applied to all Outstanding Notes
upon compliance with the conditions set forth below in this Article Thirteen.

 

SECTION 1302.  Legal Defeasance and Discharge.

 

Upon the Company’s
exercise under Section 1301 of the option applicable to this Section 1302, each
of the Company and the Guarantors shall be deemed to have been discharged from
its respective obligations with respect to all Outstanding Notes on the date
the conditions set forth in Section 1304 are satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, such
Legal Defeasance means that each of the Company and the Guarantors shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Notes, which shall thereafter be deemed to be “Outstanding” only
for the purposes of Section 1305 and the other Sections of this Indenture
referred to in (A) and (B) below, and to have satisfied all its other
obligations under such Notes and this Indenture insofar as such Notes are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder:  (A) the rights of Holders of Outstanding
Notes to receive, solely from the trust fund described in Section 1304 and as
more fully set forth in such Section, payments in respect of the principal of
(and premium, if any, on) and interest on such Notes when such payments are
due, (B) the obligations of each of the Company with respect to such Notes
under Sections 304, 305, 306, 1002 and 1003, (C) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and the obligations of each of
the Company and the Guarantors in connection therewith, and (D) this Article
Thirteen.  Subject to compliance with
this Article Thirteen, the Company may exercise its option under this Section
1302 notwithstanding the prior exercise of its option under Section 1303 with
respect to the Notes.

 

SECTION 1303.  Covenant Defeasance.

 

Upon the Company’s
exercise under Section 1301 of the option applicable to this Section 1303, each
of the Company and the Guarantors shall be released from its respective
obligations under any covenant contained in Sections 801, 802 and in Sections
1005, 1006, 1007, 1009 through 1018 with respect to the Outstanding Notes on
and after the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed not to be “Outstanding”
for the purposes of any direction, waiver, consent or declaration

 

119

 

or Act of Holders (and the consequences of any thereof) in connection
with such covenants, but shall continue to be deemed “Outstanding” for all
other purposes hereunder.  For this
purpose, such Covenant Defeasance means that, with respect to the Outstanding
Notes, the Company or any Guarantor, as applicable, may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference
in any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Sections 501(3), 501(4), 501(5) and 501(7) and, with respect to only any
Significant Subsidiary and not the Company, Section 501(6), but, except as
specified above, the remainder of this Indenture and such Notes shall be unaffected
thereby.

 

SECTION 1304.  Conditions to Legal Defeasance or Covenant
Defeasance.

 

The following shall be
the conditions to application of either Section 1302 or Section 1303 to the
Outstanding Notes:

 

(1)           The Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 608 who shall agree to comply with the
provisions of this Article Thirteen applicable to it) as trust funds in trust
for the purpose of making the following payments, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of such
Notes, (A) cash in U.S. dollars, or (B) U.S. dollar-denominated non-callable
Government Securities or (C) a combination thereof, in the case of Dollar
Notes, and cash in euro, euro-denominated non-callable Government Securities or
a combination thereof, in the case of Euro Notes, in such amounts as will be
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, the principal of (and
premium, if any) and interest on the Outstanding Notes on the Stated Maturity
(or Redemption Date, if applicable) of such principal (and premium, if any) or
interest due on the Notes; provided that the Trustee shall have been
irrevocably instructed to apply such cash or the proceeds of such Government
Securities to said payments with respect to the Notes; and provided  further
that upon the effectiveness of this Section 1304, the cash or Government
Securities deposited shall not be subject to the rights of the holders of
Senior Indebtedness pursuant to the provisions of Article Fourteen.  Before such a deposit, the Company may give
to the Trustee, in accordance with Section 1103 hereof, a notice of its
election to redeem all of the Outstanding Notes at a future date in accordance
with Article Eleven hereof, which notice shall be irrevocable.  Such irrevocable redemption notice, if given,
shall be given effect in applying the foregoing;

 

(2)           in the case of Legal Defeasance, the
Company shall have delivered to the Trustee an Opinion of Counsel in the United
States reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions,

 

(A)          the Company has received from, or
there has been published by, the United States Internal Revenue Service a
ruling, or

 

120

 

(B)           since the issuance of the Notes,
there has been a change in the applicable U.S. federal income tax law,

 

in either case to the
effect that, and based thereon such Opinion of Counsel in the United States
shall confirm that, subject to customary assumptions and exclusions, the
Holders of the Outstanding Notes will not recognize income, gain or loss for
U.S. federal income tax purposes as a result of such Legal Defeasance and will
be subject to U.S. federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had
not occurred;

 

(3)           in the case of Covenant Defeasance,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States reasonably acceptable to the Trustee confirming that, subject to
customary assumptions and exclusions, the Holders of the Outstanding Notes,
will not recognize income, gain or loss for U.S. federal income tax purposes as
a result of such Covenant Defeasance and will be subject to such tax on the
same amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;

 

(4)           no Default or Event of Default (other
than that resulting from borrowing funds to be applied to make such deposit)
shall have occurred and be continuing on the date of such deposit or, insofar
as Section 501(6) hereof is concerned, at any time during the period ending on
the 91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period);

 

(5)           such Legal Defeasance or Covenant
Defeasance shall not result in a breach or violation of, or constitute a
default under, the Senior Credit Facilities or any other material agreement or
instrument (other than this Indenture) to which, the Company or any Guarantor
is a party or by which the Company or any Guarantor is bound;

 

(6)           the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that, as of the date of such
opinion and subject to customary assumptions and exclusions following the
deposit, the trust funds will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally under any applicable U.S. federal or state law, and that the
Trustee has a perfected security interest in such trust funds for the ratable
benefit of the Holders of the Outstanding Notes;

 

(7)           the Company shall have delivered to
the Trustee an Officers’ Certificate stating that the deposit was not made by
the Company with the intent of defeating, hindering, delaying or defrauding any
creditors of the Company or any Guarantor or others; and

 

(8)           the Company shall have delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel in the United
States (which Opinion of Counsel may be subject to customary assumptions and
exclusions) each stating that all conditions

 

121

 

precedent provided for or
relating to the Legal Defeasance or the Covenant Defeasance, as the case may
be, have been complied with.

 

SECTION 1305.  Deposited Money and Government Securities
to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to the provisions
of the last paragraph of Section 1003, all cash and Government Securities
(including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 1305, the “Trustee”)
pursuant to Section 1304 in respect of the Outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money or Government Securities need not be segregated from other funds except
to the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the Government Securities deposited pursuant to Section 1304
or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of the
Outstanding Notes.

 

Anything in this Article
Thirteen to the contrary notwithstanding, the Trustee shall deliver or pay to
the Company from time to time upon Company Request any money or Government
Securities held by it as provided in Section 1304 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance, as applicable, in
accordance with this Article.

 

SECTION 1306.  Reinstatement.

 

If the Trustee or any
Paying Agent is unable to apply any money or Government Securities in
accordance with Section 1305 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company’s and each Guarantor’s obligations under this
Indenture and the Outstanding Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 1302 or 1303, as the case may be,
until such time as the Trustee or Paying Agent is permitted to apply all such
money or Government Securities in accordance with Section 1305; provided,
however, that if the Company makes any payment of principal of (or
premium, if any) or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

 

122

 

ARTICLE FOURTEEN

 

SUBORDINATION OF NOTES

 

SECTION 1401.  Notes Subordinate to Senior Indebtedness.

 

The Company covenants and
agrees, and each Holder of a Note, by his acceptance thereof, likewise
covenants and agrees, for the benefit of the Holders, from time to time, of
Senior Indebtedness that, to the extent and in the manner hereinafter set forth
in this Article, the Indebtedness represented by the Notes and the payment of
the principal of (and premium, if any) and interest on each and all of the
Notes are hereby expressly made subordinate and subject in right of payment as
provided in this Article to the prior payment in full in cash or cash
equivalents of all Senior Indebtedness, whether outstanding on the date of this
Indenture or hereafter incurred; provided, however, that the
Notes, the Indebtedness represented thereby and the payment of the principal of
(and premium, if any) and interest on the Notes in all respects shall rank
equally with, or prior to, all existing and future unsecured indebtedness
(including, without limitation, Indebtedness) of the Company that is
subordinated to Senior Indebtedness.

 

SECTION 1402.  Payment over of Proceeds upon Dissolution,
Etc.

 

In the event of (a) any
insolvency or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding in connection therewith,
relative to the Company or to its assets, or (b) any liquidation, dissolution
or other winding up of the Company, whether voluntary or involuntary and
whether or not involving insolvency or bankruptcy, or (c) any assignment for
the benefit of creditors or any other marshalling of assets or liabilities of
the Company, then and in any such event,

 

(1)           the holders of Senior Indebtedness
shall be entitled to receive payment in full in cash or cash equivalents (other
than those cash equivalents referred to in clause (3)(b) of the definition of “Cash
Equivalents”) of such Senior Indebtedness and all outstanding Letter of Credit
Obligations shall be fully cash collateralized before the Holders will be
entitled to receive any payment with respect to the Subordinated Note
Obligations, and until all Senior Indebtedness is paid in full in cash or cash
equivalents, any distribution to which the Holders would be entitled shall be
made to the holders of Senior Indebtedness, except that Holders may receive:

 

(A)          shares of stock and any debt
securities that are subordinated at least to the same extent as the Notes to
(i) Senior Indebtedness, and (ii) any securities issued in exchange for Senior
Indebtedness (collectively, the “Permitted Junior Notes”), and

 

(B)           payments made from the trusts
described under Article Thirteen;

 

(2)           any payment or distribution of assets
of the Company of any kind or character, whether in cash, property or
securities (other than a payment or distribution in the form of Permitted
Junior Notes), by set-off or otherwise, to which the Holders or the Trustee
would be entitled but for the provisions of this Article shall be paid by the
liquidating trustee or agent or other person making such payment or
distribution, whether

 

123

 

a trustee in bankruptcy,
a receiver or liquidating trustee or otherwise, directly to the holders of
Senior Indebtedness or their representative or representatives or to the
trustee or trustees under any indenture under which any instruments evidencing
any of such Senior Indebtedness may have been issued, ratably according to the
aggregate amounts remaining unpaid on account of the Senior Indebtedness held
or represented by each, to the extent necessary to make payment in full of all
Senior Indebtedness remaining unpaid, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness; and

 

(3)           in the event that, notwithstanding the
foregoing provisions of this Section, the Trustee or the Holder of any Note
shall have received any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, in respect of
principal of (and premium, if any) or interest on the Notes before all Senior
Indebtedness is paid in full or payment thereof provided for, then and in such
event such payment or distribution shall be paid over or delivered forthwith to
the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee,
agent or other Person making payment or distribution of assets of the Company
for application to the payment of all Senior Indebtedness remaining unpaid, to
the extent necessary to pay all Senior Indebtedness in full, after giving
effect to any concurrent payment or distribution to or for the holders of
Senior Indebtedness.

 

In case the Company or
any Guarantor, pursuant to Article Eight, shall be consolidated or merged with
or into any other Person or shall convey, transfer, lease or otherwise dispose
of its properties and assets substantially as an entirety to any Person
pursuant to Article Eight, such consolidation, merger, conveyance, transfer,
lease or disposition shall not be deemed a dissolution, winding up, liquidation,
reorganization, assignment for the benefit of creditors or marshalling of
assets and liabilities of the Company or such Guarantor for the purposes of
this Section if the successor Person resulting from such consolidation, or
surviving such merger, or into which the Company or such Guarantor shall have
been merged, or the Person which shall have received a conveyance, transfer,
lease or other disposition as aforesaid, comply with the conditions set forth
in Article Eight.

 

SECTION 1403.  Suspension of Payment When Senior
Indebtedness Is in Default.

 

(a)           The Company shall not make any
payment upon or in respect of the Subordinated Note Obligations, except in
Permitted Junior Notes described in Section 1402 or from the trust described in
Article Thirteen, if:

 

(1)           a default in the payment of the
principal of, premium, if any, or interest on, or of unreimbursed amounts under
drawn letters of credit or in respect of bankers’ acceptances or fees relating
to letters of credit or bankers’ acceptances constituting Senior Indebtedness
occurs and is continuing beyond any applicable period of grace (a “Payment
Default”), or

 

(2)           any other default occurs and is
continuing with respect to Designated Senior Indebtedness that permits holders
of the Designated Senior Indebtedness as to

 

124

 

which such default
relates to accelerate its maturity without further notice (except such notice
as may be required to effect such acceleration) or the expiration of any
applicable grace periods, (a “Non-payment Default”), and the Trustee receives a
payment blockage notice with respect to such default from a representative of
holders of such Designated Senior Indebtedness.

 

(b)           Payments on the Notes, including any
missed payments, may and shall be resumed:

 

(1)           in the case of a Payment Default,
upon the date on which such Payment Default is cured or waived or shall have
ceased to exist or such Senior Indebtedness shall have been discharged or paid
in full in cash or cash equivalents and all outstanding Letter of Credit
Obligations shall have been fully cash collateralized, and

 

(2)           in case of a Non-payment Default,
unless the holders of the Designated Senior Indebtedness have or representative
of such holders has accelerated the maturity of such Designated Senior
Indebtedness and such Designated Senior Indebtedness has not been repaid in
full, the earlier of (x) the date on which such Non-payment Default is cured or
waived, (y) 179 days after the date on which the applicable Payment Blockage
Notice is received (each such period, a “Payment Blockage Period”), or (z) the
date such Payment Blockage Period shall be terminated by written notice to the
Trustee from the requisite holders of such Designated Senior Indebtedness
necessary to terminate such period or from their representative.

 

(c)           No new Payment Blockage Period shall
be commenced until 365 days have elapsed since the effectiveness of the
immediately preceding Payment Blockage Notice. 
However, if any Payment Blockage Notice within such 365-day period is
given by or on behalf of any holders of Designated Senior Indebtedness other
than the Agent, the Agent may give another Payment Blockage Notice within such
period.  In no event, however, may the total
number of days during which any Payment Blockage Period or Periods is in effect
exceed 179 days in the aggregate during any 365 consecutive day period.  No Non-payment Default that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the
trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice unless such default shall have been cured or waived for a period of not
less than 90 days.

 

(d)           If the Company fails to make any
payment on the Notes when due or within any applicable grace period, whether or
not on account of Section 1403(a), such failure shall constitute an Event of
Default under this Indenture and shall enable the Holders to accelerate the
Maturity of the Notes.

 

(e)           The Company shall promptly notify
holders of Senior Indebtedness if payment of the Notes is accelerated because
of an Event of Default.

 

SECTION 1404.  Payment Permitted If No Default.

 

Nothing contained in this
Article or elsewhere in this Indenture or in any of the Notes shall prevent the
Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of
creditors

 

125

 

or other marshalling of assets and liabilities of the Company referred to
in Section 1402 or under the conditions described in Section 1403, from making
payments at any time of principal of (and premium, if any, on) or interest on
the Notes.

 

SECTION 1405.  Subrogation to Rights of Holders of Senior
Indebtedness.

 

Subject to the payment in
full of all Senior Indebtedness, the Holders shall be subrogated (equally and
ratably with the holders of all indebtedness of the Company which by its
express terms is subordinated to Senior Indebtedness of the Company to the same
extent as the Notes are subordinated and which is entitled to like rights of
subrogation) to the rights of the holders of such Senior Indebtedness to
receive payments and distributions of cash, property and securities applicable
to the Senior Indebtedness until the principal of (and premium, if any) and
interest on the Notes shall be paid in full. 
For purposes of such subrogation, no payments or distributions to the
holders of Senior Indebtedness of any cash, property or securities to which the
Holders or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this Article to the
holders of Senior Indebtedness by Holders or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Indebtedness, and the
Holders, be deemed to be a payment or distribution by the Company to or on
account of the Senior Indebtedness.

 

SECTION 1406.  Provisions Solely to Define Relative
Rights.

 

The provisions of this
Article are and are intended solely for the purpose of defining the relative
rights of the Holders on the one hand and the holders of Senior Indebtedness on
the other hand.  Nothing contained in
this Article or elsewhere in this Indenture or in the Notes is intended to or
shall (a) impair, as between the Company and the Holders, the obligation of the
Company, which is absolute and unconditional, to pay to the Holders the
principal of (and premium, if any) and interest on the Notes as and when the
same shall become due and payable in accordance with their terms; or (b) affect
the relative rights against the Company of the Holders and creditors of the
Company other than the holders of Senior Indebtedness; or (c) prevent the
Trustee or the Holder of any Note from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article of the holders of Senior Indebtedness.

 

SECTION 1407.  Trustee to Effectuate Subordination.

 

Each Holder of a Note by
his acceptance thereof authorizes and directs the Trustee on his behalf to take
such action as may be necessary or appropriate to effectuate the subordination
provided in this Article and appoints the Trustee his attorney-in-fact for any
and all such purposes.

 

SECTION 1408.  No Waiver of Subordination Provisions.

 

(a)           No right of any present or future
holder of any Senior Indebtedness to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith,
by any such holder, or by any non-compliance by the Company with the terms,
provisions

 

126

 

and covenants of this Indenture, regardless of any knowledge thereof
any such holder may have or be otherwise charged with.

 

(b)           Without in any way limiting the
generality of paragraph (a) of this Section, the holders of Senior Indebtedness
may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders, without incurring responsibility to the Holders and
without impairing or releasing the subordination provided in this Article or
the obligations hereunder of the Holders to the holders of Senior Indebtedness,
do any one or more of the following:  (1)
change the manner, place or terms of payment or extend the time of payment of,
or renew or alter, Senior Indebtedness or any instrument evidencing the same or
any agreement under which Senior Indebtedness is outstanding; (2) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Indebtedness; (3) release any Person liable in any
manner for the collection of Senior Indebtedness; and (4) exercise or refrain
from exercising any rights against the Company and any other Person.

 

SECTION 1409.  Notice to Trustee.

 

(a)           The Company shall give prompt written
notice to the Trustee of any fact known to the Company which would prohibit the
making of any payment to or by the Trustee in respect of the Notes.  Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Notes, unless and
until the Trustee shall have received written notice thereof from the Company,
the Agent or a holder of Senior Indebtedness or from any trustee, fiduciary or
agent therefor; and, prior to the receipt of any such written notice, the
Trustee, subject to TIA Sections 315(a) through 315(d), shall be entitled in
all respects to assume that no such facts exist; provided, however,
that, if the Trustee shall not have received the notice provided for in this
Section at least three Business Days prior to the date upon which by the terms
hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of (and premium, if any) or interest
on any Note), then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such money and to
apply the same to the purpose for which such money was received and shall not
be affected by any notice to the contrary which may be received by it within
three Business Days prior to such date.

 

(b)           Subject to TIA Sections 315(a)
through 315(d), the Trustee shall be entitled to rely on the delivery to it of
a written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a trustee, fiduciary or agent therefor) to establish that such
notice has been given by a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor).  In the
event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

 

127

 

SECTION 1410.  Reliance on Judicial Order or Certificate
of Liquidating Agent.

 

Upon any payment or
distribution of assets of the Company referred to in this Article, the Trustee,
subject to TIA Sections 315(a) through 315(d), and the Holders shall be
entitled to rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other
Person making such payment or distribution, delivered to the Trustee or to the
Holders, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of Senior Indebtedness and other
indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article.

 

SECTION 1411.  Rights of Trustee as a Holder of Senior
Indebtedness; Preservation of Trustee’s Rights.

 

The Trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness which may at any time be held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee of any of its rights as
such holder.  Nothing in this Article
shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 607.

 

SECTION 1412.  Article Applicable to Paying Agents.

 

In case at any time any
Paying Agent other than the Trustee shall have been appointed by the Company
and be then acting hereunder, the term “Trustee” as used in this Article shall
in such case (unless the context otherwise requires) be construed as extending
to and including such Paying Agent within its meaning as fully for all intents
and purposes as if such Paying Agent were named in this Article in addition to
or in place of the Trustee; provided, however, that Section 1411
shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

 

SECTION 1413.  No Suspension of Remedies.

 

Nothing contained in this
Article shall limit the right of the Trustee or the Holders to take any action
to accelerate the Maturity of the Notes pursuant to Article Five or to pursue
any rights or remedies hereunder or under applicable law, except as provided in
Article Five.

 

SECTION 1414.  Trust Moneys Not Subordinated.

 

Notwithstanding anything
contained herein to the contrary, payments from cash or the proceeds of
Government Securities held in trust under Article Thirteen hereof by the
Trustee (or other qualifying trustee) and which were deposited in accordance
with the terms of Article Thirteen hereof and not in violation of Section 1403
hereof for the payment of principal of (and premium, if any) and interest on
the Notes shall not be subordinated to the prior payment of any Senior
Indebtedness or subject to the restrictions set forth in this Article Fourteen,
and

 

128

 

none of the Holders shall be obligated to pay over any such amount to
the Company or any holder of Senior Indebtedness or any other creditor of the
Company.

 

SECTION 1415.  Trustee Not Fiduciary for Holders of Senior
Indebtedness.

 

The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and
shall not be liable to any such holders if the Trustee shall mistakenly, in the
absence of gross negligence or willful misconduct, pay over or distribute to
Holders of Notes or to the Company or to any other person cash, property or
securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article or otherwise. 
With respect to the holders of Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants or obligations
as are specifically set forth in this Article and no implied covenants or
obligations with respect to holders of Senior Indebtedness shall be read into
this Indenture against the Trustee.

 

129

 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed, and their
respective corporate seals to be hereunto affixed and attested, all as of the
day and year first above written.

 

 

	
   

  	
  ROCKWOOD SPECIALTIES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ADVANTIS TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ALPHAGARY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CERAMTEC NORTH AMERICA
  INNOVATIVE

  CERAMIC ENGINEERING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHEMETALL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
					

 

 

	
   

  	
  CHEMETALL CHEMICAL
  PRODUCTS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHEMETALL FOOTE CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHEMICAL SPECIALTIES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPUGRAPHICS U.S.A. INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CYANTEK CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ELECTROCHEMICALS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
					

 

 

	
   

  	
  EXSIL, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FOOTE CHILE HOLDING
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LUREX, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OAKITE PRODUCTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROCKWOOD AMERICA INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROCKWOOD PIGMENTS NA,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
					

 

 

	
   

  	
  ROCKWOOD SPECIALTIES
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RS FUNDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RW HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SACHTLEBEN CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOUTHERN CLAY PRODUCTS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOUTHERN COLOR N.A.,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Michael W. Valente

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael W. Valente

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
					

 

 

	
   

  	
  THE BANK OF NEW YORK

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Walter Salvatori

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Walter Salvatori

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

EXHIBIT A

 

[FACE OF EURO
NOTE]

 

ROCKWOOD
SPECIALTIES GROUP, INC.

 

7.625% Senior
Subordinated Note due 2014

 

	
  No.

  	
  Common Code No.                   

  
	
   

  	
  ISIN No.                   

  
	
   

  	
   

  
	
   

  	
  €                    

  

 

ROCKWOOD SPECIALTIES
GROUP, INC., a Delaware corporation (the “Company”, which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, promises to pay to                        ,
or its registered assigns, the principal sum of                                                                         
Euros (€                    )
or such amount as is indicated at the records of the Trustee or                       ,
on November 15, 2014.

 

	
  Interest Rate:

  	
  7.625% per annum.(1)

  
	
  Interest Payment Dates:

  	
  May 15 and November 15
  of each year commencing May 15, 2005.

  
	
  Regular Record Dates:

  	
  May 1 and November 1 of
  each year.

  

 

Reference is hereby made
to the further provisions of this Euro Note set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

 

(1)           Include only for
Exchange Notes.

 

 

IN WITNESS WHEREOF, the
Company has caused this Euro Note to be signed manually or by facsimile by its
duly authorized officers.

 

	
  Dated:

  	
   

  	
   

  	
  ROCKWOOD SPECIALTIES
  GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

(Form of Trustee’s
Certificate of Authentication)

 

This is one of the 7.625%
Senior Subordinated Notes due 2014 referred to in the within-mentioned
Indenture.

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
						

 

 

[REVERSE SIDE OF
EURO NOTE]

 

ROCKWOOD
SPECIALTIES GROUP, INC.

 

7.625% Senior
Subordinated Note due 2014

 

1.             Principal and Interest; Subordination.

 

The Company will pay the
principal of this Euro Note on November 15, 2014.

 

The Company promises to
pay interest on the principal amount of this Euro Note on each Interest Payment
Date, as set forth below, at the rate of 7.625% per annum [(subject to
adjustment as provided below)] [except that interest accrued on this Euro Note
pursuant to the fourth paragraph of this Section 1 for periods prior to the
applicable Exchange Offer or Shelf Registration Date (as such terms are defined
in the Registration Rights Agreement referred to below) will accrue at the rate
or rates borne by the Euro Notes from time to time during such periods].(2)

 

Interest will be payable
semi-annually (to the Holders of record of the Euro Notes (or any Predecessor
Notes)) at the close of business on May 1 or November 1 immediately preceding
the Interest Payment Date) on each Interest Payment Date, commencing May 15,
2005.

 

[The Holder of this Euro
Note is entitled to the benefits of the Registration Rights Agreement, dated
November 10, 2004, among the Company, the Guarantors and the Initial Purchasers
named therein (the “Registration Rights Agreement”).  In the event that either (a) the Exchange
Offer Registration Statement (as such term is defined in the Registration
Rights Agreement) is not filed with the Commission (as such term is defined in
the Registration Rights Agreement) on or prior to the 180th calendar day
following the Issue Date, (b) the Exchange Offer Registration Statement (as such
term is defined in the Registration Rights Agreement) has not been declared
effective on or prior to the 270th calendar day following the Issue Date, or
(c) the Exchange Offer is not consummated (as such term is defined in the
Registration Rights Agreement) on or prior to the 300th calendar day following
the Issue Date, (d) the Shelf Registration Statement is not declared effective
on or prior to the 270th calendar day following the Issue Date (or, in the case
of a Shelf Registration Statement required to be filed in response to a change
in law or applicable interpretation of the staff of the Commission, if later,
within 90 calendar days after publication of the change in law or
interpretation, but in no event before 270 calendar days after the Issue Date),
or (e) the Shelf Registration Statement is filed and declared effective within
the time periods specified in (d) above but shall thereafter cease to be
effective (at any time the Company is obligated to maintain the effectiveness
thereof), without being succeeded within 90 calendar days by an additional
Shelf Registration Statement filed and declared effective, the interest rate
borne by this Euro Note shall be increased by one-quarter of one percent per
annum following such 180-day period in the case of (a) above, following such
270-day period in the case of (b) above, following such 300-day period in the
case of (c) above,

 

(2)           Include only for
Exchange Note.

 

 

following such 270-day period in the case of clause (d) above (or, in
the case of the events provided in the parenthetical to clause (d), such later
period as is provided in such parenthetical) or following such period as
provided in clause (e) above, which rate will be increased by an additional
one-quarter of one percent per annum for each 90-day period that any additional
interest continues to accrue; provided that the aggregate increase in such
annual interest rate shall in no event exceed one percent.  Upon (v) the filing of the Exchange Offer
Registration Statement after the 90-day period described in clause (a) above,
(w) the effectiveness of the Exchange Offer Registration Statement after the
270-day period described in clause (b) above or (x) the consummation of the
Exchange Offer after the 300-day period described in clause (c) above, (y) the
effectiveness of a Shelf Registration Statement after the 270-day period (or,
in the case of the events provided in the parenthetical to clause (d), such
later period as is provided in such parenthetical) described in (d) above, or
(z) the Shelf Registration Statement again becoming effective as described in
clause (c) above, the interest rate borne by this Euro Note from the date of
such filing, effectiveness or consummation, as the case may be, will be reduced
to the interest rate set forth above; provided, however,
that, if after any such reduction in interest rate, a different event specified
in clause (a), (b), (c), (d) or (e) above occurs, the interest rate may again
be increased pursuant to the foregoing provisions.(3)

 

Interest on this Euro
Note will accrue from the most recent date to which interest has been paid [on
this Euro Note or the Euro Note surrendered in exchange herefor](4) or, if no
interest has been paid, from November 10, 2004; provided that, if there
is no existing default in the payment of interest and if this Euro Note is
authenticated between a Regular Record Date referred to on the face hereof and
the next succeeding Interest Payment Date, interest shall accrue from such
Interest Payment Date.  Interest will be
computed on the basis of a 360-day year of twelve 30-day months.

 

The Company shall pay
interest on overdue principal and premium, if any, and interest on overdue
installments of interest, to the extent lawful, at a rate per annum equal to
the rate of interest applicable to the Euro Notes.

 

The indebtedness
evidenced by the Euro Notes is, to the extent and in the manner provided in the
Indenture, subordinate and subject in right of payment to the prior payment in
full of all Senior Indebtedness, and this Euro Note is issued subject to such
provisions.  Each Holder of this Euro
Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on its behalf to take such
action as may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee its attorney-in-fact for
such purpose.

 

2.             Method of Payment.

 

The Company will pay
interest (except defaulted interest) on the principal amount of the Euro Notes
on each May 15 and November 15 to the Persons who are Holders (as reflected in
the Note Register at the close of business on May 1 and November 1 immediately
preceding the Interest Payment Date), in each case, even if the Euro Note is
cancelled on

 

(3)           Include only for Initial Note.

(4)           Include only for Exchange Note.

 

 

registration of transfer or registration of exchange after such Regular
Record Date; provided that, with respect to the payment of principal, the
Company will make payment to the Holder that surrenders this Euro Note to any
Paying Agent on or after November 15, 2014.

 

The Company will pay
principal (premium, if any) and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal (premium, if any) and interest by its check payable in such
money.  The Company may pay interest on
the Euro Notes either (a) by mailing a check for such interest to a Holder’s
registered address (as reflected in the Note Register) or (b) by wire transfer
to an account located in the United States maintained by the payee.  If a payment date is a date other than a
Business Day at a place of payment, payment may be made at that place on the
next succeeding day that is a Business Day and no interest shall accrue for the
intervening period.

 

3.             Paying Agent and Registrar.

 

Initially, the Trustee
will act as Paying Agent and Note Registrar. 
The Company may change any Paying Agent or Note Registrar upon written
notice thereto.  The Company, any
Subsidiary or any Affiliate of any of them may act as Paying Agent, Note
Registrar or co-registrar.

 

4.             Indenture; Limitations.

 

The Company issued the
Euro Notes under an Indenture dated as of November 10, 2004 (the “Indenture”),
among the Company, the Guarantors and The Bank of New York, as trustee (the “Trustee”).  Capitalized terms herein are used as defined
in the Indenture unless otherwise indicated. 
The terms of the Euro Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act.  The Euro Notes are subject to all such terms,
and Holders are referred to the Indenture and the Trust Indenture Act for a
statement of all such terms.  To the
extent permitted by applicable law, in the event of any inconsistency between
the terms of this Euro Note and the terms of the Indenture, the terms of the
Indenture shall control.

 

The Euro Notes are
unsecured senior subordinated obligations of the Company.  The Indenture limits the aggregate principal
amount of the Notes to $1,000,000,000; it being understood that the principal
amount of Initial Notes and Additional Notes outstanding shall be determined
based upon the exchange rate in effect on the date of such issuance of
Additional Notes.

 

5.             Redemption.

 

Optional
Redemption.  The Euro
Notes may be redeemed at the option of the Company, in whole or in part, at any
time and from time to time on or after November 15, 2009, at the following
Redemption Prices (expressed in percentages of principal amount), plus accrued
and unpaid interest, if any, to the Redemption Date (subject to the right of
Holders of record on the relevant Regular Record Date to receive interest due
on an Interest Payment Date that is on or prior to the Redemption Date), if
redeemed during the 12-month period beginning November 15 of each of the years
set forth below:

 

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2009

  	
   

  	
  103.813

  	
  %

  
	
  2010

  	
   

  	
  102.542

  	
  %

  
	
  2011

  	
   

  	
  101.271

  	
  %

  
	
  2012 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition to the
optional redemption of the Euro Notes in accordance with the provisions of the
preceding paragraph, at any time on or prior to November 15, 2007, the Company
may redeem up to 40% of the aggregate principal amount of the Euro Notes under
the Indenture at a Redemption Price equal to 107.625% of the aggregate
principal amount thereof, plus accrued and unpaid interest thereon and
Additional Interest, if any, to the Redemption Date, subject to the right of
Holders of record on the relevant record date to receive interest due on the
relevant interest payment date, with the net proceeds of one or more Equity
Offerings of the Company or any direct or indirect parent of the Company to the
extent such net proceeds are contributed to the Company; provided that
at least 60% of the sum of the aggregate principal amount of Euro Notes issued
under the Indenture remains outstanding immediately after the occurrence of
each such redemption; provided  further that each such redemption
occurs within 90 days of the date of closing of each such Equity Offering.  At any time prior to November 15, 2009, the
Company may also redeem all or a part of the Euro Notes, upon not less than 30
nor more than 60 days’ prior notice mailed by first-class mail to each Holder’s
registered address, at a Redemption Price equal to 100% of the principal amount
of the Euro Notes redeemed plus the Applicable Premium as of, and accrued and
unpaid interest and Additional Interest, if any, to, the date of redemption,
subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date.

 

If less than all the Euro
Notes are to be redeemed pursuant to the preceding two paragraphs, the Trustee
shall select the Euro Notes or portions thereof to be redeemed in compliance
with the requirements of the principal national securities exchange, if any, on
which the Euro Notes being redeemed are listed, or if the Euro Notes are not so
listed, by such other method the Trustee shall deem fair and appropriate; provided
that no such partial redemption shall reduce the portion of the principal
amount of a Euro Note not redeemed to less than €50,000; provided  further
that any such redemption pursuant to the provisions relating to an Equity
Offering shall be made on a pro rata basis or on as nearly a pro rata basis as
practicable (subject to the procedures of Depository or any other depositary).

 

Notice of a redemption
will be mailed, first-class postage prepaid, at least 30 days but not more than
60 days before the Redemption Date to each Holder to be redeemed at such Holder’s
last address as it appears in the Note Register.  Euro Notes in original denominations larger
than €50,000 may be redeemed in part in integral multiples of €1,000.  On and after the Redemption Date, interest
ceases to accrue on Euro Notes or portions of Euro Notes called for redemption,
unless the Company defaults in the payment of the Redemption Price.

 

 

6.             Repurchase upon a Change in Control and Asset Sales.

 

Upon the occurrence of
(a) a Change in Control, the Holders of the Euro Notes will have the right to
require that the Company purchase such Holder’s outstanding Euro Notes, in
whole or in part, at a purchase price of 101% of the principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the date
of purchase and (b) Asset Sales, the Company may be obligated to make offers to
purchase Euro Notes and Pari Passu Indebtedness with a portion of the Proceeds
of such Asset Sales at a Redemption Price of 100% of the principal amount
thereof, plus accrued and unpaid interest and Additional Interest, if any, to
the date of purchase.

 

7.             Denominations; Transfer; Exchange.

 

The Euro Notes are in
registered form without coupons, in denominations of €50,000 and multiples of
€1,000 in excess thereof.  A Holder may
register the transfer or exchange of Euro Notes in accordance with the Indenture.  The Note Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the
Indenture.  The Note Registrar need not
register the transfer or exchange of any Euro Notes selected for redemption
(except the unredeemed portion of any Euro Note being redeemed in part).

 

8.             Persons Deemed Owners.

 

A Holder may be treated
as the owner of a Euro Note for all purposes.

 

9.             Unclaimed Money.

 

If money for the payment
of principal (premium, if any) or interest remains unclaimed for two years, the
Trustee and the Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled to
the money must look to the Company for payment, unless an abandoned property
law designates another Person, and all liability of the Trustee and such Paying
Agent with respect to such money shall cease.

 

10.           Discharge and Defeasance Prior to
Redemption or Maturity.

 

If the Company
irrevocably deposits, or causes to be deposited, with the Trustee money or
Government Securities sufficient to pay the then outstanding principal of
(premium, if any) and accrued interest on the Euro Notes (a) to Redemption or
Maturity Date, the Company will be discharged from its obligations under the
Indenture and the Euro Notes, except in certain circumstances for certain
covenants thereof, and (b) to the Stated Maturity, the Company will be
discharged from certain covenants set forth in the Indenture.

 

11.           Amendment; Supplement; Waiver.

 

Subject to certain exceptions,
the Indenture or the Euro Notes may be amended or supplemented with the consent
of the Holders of at least a majority in aggregate principal amount of the
Outstanding Euro Notes, and any existing Default or compliance with any
provision may be waived with the consent of the Holders of a majority in
aggregate principal amount of the Outstanding Euro Notes; provided, however,
that if any amendment, supplement or waiver will only affect the Dollar Notes
or the Euro Notes, only the consent of the Holders of

 

 

at least a majority in principal amount of the then Outstanding Dollar
Notes or Euro Notes (and not the consent of at least a majority of all Notes),
as the case may be, shall be required. 
Without notice to or the consent of any Holder, the parties thereto may
amend or supplement the Indenture or the Euro Notes to, among other things,
cure any ambiguity, defect or inconsistency and make any change that does not
adversely affect the rights of any Holder.

 

12.           Restrictive Covenants.

 

The Indenture contains
certain covenants, including, without limitation, covenants with respect to the
following matters:  (i) Incurrence of
Indebtedness and Issuance of Disqualified Stock; (ii) Restricted Payments;
(iii) transactions with Affiliates; (iv) Liens; (v) purchase of Euro Notes upon
a Change in Control; (vi) disposition of proceeds of Asset Sales; (vii)
guarantees of Indebtedness by Restricted Subsidiaries; (viii) dividend and
other payment restrictions affecting Restricted Subsidiaries; (ix) merger and
certain transfers of assets; and (x) limitation on Senior Subordinated
Indebtedness.  Within 120 days (or the
successor time period then in effect under the rules and regulations of the
Exchange Act) after the end of each fiscal year, the Company must report to the
Trustee on compliance with such limitations.

 

13.           Successor Persons.

 

When a successor Person
or other entity assumes all the obligations of its predecessor under the Euro
Notes and the Indenture, the predecessor Person will be released from those
obligations.

 

14.           Remedies for Events of Default.

 

If an Event of Default,
as defined in the Indenture, occurs and is continuing, the Trustee or the
Holders of not less than 30% in principal amount of the Outstanding Euro Notes
may declare all the Euro Notes to be immediately due and payable.  If a bankruptcy or insolvency default with
respect to the Company or any of its Significant Subsidiaries occurs and is
continuing, the Euro Notes automatically become immediately due and
payable.  Holders may not enforce the
Indenture or the Euro Notes except as provided in the Indenture.  The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Euro Notes.  Subject to certain limitations, Holders of at
least a majority in aggregate principal amount of the Outstanding Euro Notes
may direct the Trustee in its exercise of any trust or power.

 

15.           Guarantees.

 

The Company’s obligations
under the Euro Notes are fully, irrevocably and unconditionally guaranteed on
an unsecured senior subordinated basis, to the extent set forth in the
Indenture, by each of the Guarantors.

 

16.           Trustee Dealings with Company.

 

The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Euro Notes and may make loans to, accept deposits from, perform
services for, and otherwise deal with, the Company and its Affiliates as if it
were not the Trustee.

 

 

17.           Authentication.

 

This Euro Note shall not
be valid until the Trustee signs the certificate of authentication on the other
side of this Euro Note.

 

18.           Abbreviations.

 

Customary abbreviations
may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts
to Minors Act).

 

The Company will furnish
to any Holder upon written request and without charge a copy of the
Indenture.  Requests may be made to
Rockwood Specialties Group, Inc., 100 Overlook Center, Princeton, NJ  08540, Attention:  Thomas J. Riordan.

 

 

[FORM OF TRANSFER
NOTICE]

 

FOR VALUE RECEIVED the
undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto

 

Insert Taxpayer
Identification No.

 

 

(Please print or typewrite name and address including zip code of
assignee)

 

 

the within Euro Note and all rights thereunder, hereby irrevocably
constituting and appointing

 

 

attorney to transfer such Euro Note on the books of the Company with
full power of substitution in the premises.

 

[THE FOLLOWING
PROVISION TO BE INCLUDED

ON ALL CERTIFICATES

EXCEPT OFFSHORE PHYSICAL

CERTIFICATES]

 

In connection with any
transfer of this Euro Note occurring prior to the date which is the earlier of
the date of an effective Registration Statement or the end of the period
referred to in Rule 144(k) under the Securities Act of 1933, as amended, the
undersigned confirms that without utilizing any general solicitation or general
advertising that:

 

Check One

 

o                                    (a)           this Euro Note is being transferred
in compliance with the exemption from registration under the Securities Act of
1933, as amended, provided by Rule 144A thereunder.

 

or

 

o                                    (b)           this Euro Note is being transferred
other than in accordance with (a) above and documents are being furnished which
comply with the conditions of transfer set forth in this Euro Note and the
Indenture.

 

 

If none of the foregoing
boxes is checked, the Trustee or other Note Registrar shall not be obligated to
register this Euro Note in the name of any Person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Sections 311 and 312 of the Indenture shall have been satisfied.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  NOTICE: The signature
  to this assignment must correspond with the name as written upon the face of
  the within-mentioned instrument in every particular, without alteration or
  any change whatsoever.

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
				

 

TO BE COMPLETED BY
PURCHASER IF (a) ABOVE IS CHECKED.

 

Signatures must be guaranteed
by an “eligible guarantor institution” meeting the requirements of the Note
Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

The undersigned
represents and warrants that it is purchasing this Euro Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE: To be executed
  by an executive officer

  

 

 

OPTION OF HOLDER
TO ELECT PURCHASE

 

If you wish to have this
Euro Note purchased by the Company pursuant to Section 1017 or Section 1018 of
the Indenture, check the Box:  o.

 

If you wish to have a
portion of this Euro Note purchased by the Company pursuant to Section 1017 or
Section 1018 of the Indenture, state the amount (in original principal amount)
below:

 

	
  $

  	
   

  	
  .

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:

  	
   

  	
   

  
	
   

  
	
  (Sign exactly as your
  name appears on the other side of this Euro Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
								

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

 

EXHIBIT B

 

[FACE OF DOLLAR
NOTE]

 

ROCKWOOD
SPECIALTIES GROUP, INC.

 

7.500% Senior
Subordinated Note due 2014

 

	
  No.

  	
  CUSIP No.                   

  
	
   

  	
  ISIN No.                   

  
	
   

  	
   

  
	
   

  	
  $                   

  

 

ROCKWOOD SPECIALTIES
GROUP, INC., a Delaware corporation (the “Company”, which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, promises to pay to                         ,
or its registered assigns, the principal sum of                                                                       
Dollars ($                    )
or such amount as is indicated at the records of the Trustee or                       ,
on November 15, 2014.

 

	
  Interest Rate:

  	
  7.500% per annum.(5)

  
	
  Interest Payment Dates:

  	
  May 15 and November 15
  of each year commencing May 15, 2005.

  
	
  Regular Record Dates:

  	
  May 1 and November 1 of
  each year.

  

 

Reference is hereby made
to the further provisions of this Dollar Note set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

 

(5)           Include only for
Exchange Notes.

 

 

IN WITNESS WHEREOF, the
Company has caused this Dollar Note to be signed manually or by facsimile by
its duly authorized officers.

 

 

	
  Dated:

  	
   

  	
   

  	
  ROCKWOOD SPECIALTIES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

(Form of Trustee’s
Certificate of Authentication)

 

This is one of the 7.500%
Senior Subordinated Notes due 2014 referred to in the within-mentioned
Indenture.

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
						

 

 

[REVERSE SIDE OF
DOLLAR NOTE]

 

ROCKWOOD SPECIALTIES
GROUP, INC.

 

7.500% Senior
Subordinated Note due 2014

 

1.             Principal and Interest; Subordination.

 

The Company will pay the
principal of this Dollar Note on November 15, 2014.

 

The Company promises to
pay interest on the principal amount of this Dollar Note on each Interest
Payment Date, as set forth below, at the rate of 7.500% per annum [(subject to
adjustment as provided below)] [except that interest accrued on this Dollar
Note pursuant to the fourth paragraph of this Section 1 for periods prior to the
applicable Exchange Offer or Shelf Registration Date (as such terms are defined
in the Registration Rights Agreement referred to below) will accrue at the rate
or rates borne by the Dollar Notes from time to time during such periods].(6)

 

Interest will be payable
semi-annually (to the Holders of record of the Dollar Notes (or any Predecessor
Notes)) at the close of business on May 1 or November 1 immediately preceding
the Interest Payment Date) on each Interest Payment Date, commencing May 15,
2005.

 

[The Holder of this
Dollar Note is entitled to the benefits of the Registration Rights Agreement,
dated November 10, 2004, among the Company, the Guarantors and the Initial
Purchasers named therein (the “Registration Rights Agreement”).  In the event that either (a) the Exchange
Offer Registration Statement (as such term is defined in the Registration
Rights Agreement) is not filed with the Commission (as such term is defined in
the Registration Rights Agreement) on or prior to the 180th calendar day
following the Issue Date, (b) the Exchange Offer Registration Statement (as
such term is defined in the Registration Rights Agreement) has not been
declared effective on or prior to the 270th calendar day following the Issue
Date, or (c) the Exchange Offer is not consummated (as such term is defined in
the Registration Rights Agreement) on or prior to the 300th calendar day
following the Issue Date, (d) the Shelf Registration Statement is not declared
effective on or prior to the 270th calendar day following the Issue Date (or,
in the case of a Shelf Registration Statement required to be filed in response
to a change in law or applicable interpretation of the staff of the Commission,
if later, within 90 calendar days after publication of the change in law or
interpretation, but in no event before 270 calendar days after the Issue Date),
or (e) the Shelf Registration Statement is filed and declared effective within
the time periods specified in (d) above but shall thereafter cease to be
effective (at any time the Company is obligated to maintain the effectiveness
thereof), without being succeeded within 90 calendar days by an additional
Shelf Registration Statement filed and declared effective, the interest rate
borne by this Dollar Note shall be increased by one-quarter of one percent per
annum following such 180-day period in the case of (a) above, following such
270-day period in the case of (b) above, following such 300-day period in the
case of (c) above,

 

(6)           Include only for
Exchange Note.

 

 

following such 270-day period in the case of clause (d) above (or, in
the case of the events provided in the parenthetical to clause (d), such later
period as is provided in such parenthetical) or following such period as
provided in clause (e) above, which rate will be increased by an additional
one-quarter of one percent per annum for each 90-day period that any additional
interest continues to accrue; provided that the aggregate increase in such
annual interest rate shall in no event exceed one percent.  Upon (v) the filing of the Exchange Offer
Registration Statement after the 90-day period described in clause (a) above,
(w) the effectiveness of the Exchange Offer Registration Statement after the
270-day period described in clause (b) above or (x) the consummation of the Exchange
Offer after the 300-day period described in clause (c) above, (y) the
effectiveness of a Shelf Registration Statement after the 270-day period (or,
in the case of the events provided in the parenthetical to clause (d), such
later period as is provided in such parenthetical) described in (d) above, or
(z) the Shelf Registration Statement again becoming effective as described in
clause (c) above, the interest rate borne by this Dollar Note from the date of
such filing, effectiveness or consummation, as the case may be, will be reduced
to the interest rate set forth above; provided, however,
that, if after any such reduction in interest rate, a different event specified
in clause (a), (b), (c), (d) or (e) above occurs, the interest rate may again
be increased pursuant to the foregoing provisions.(7)

 

Interest on this Dollar
Note will accrue from the most recent date to which interest has been paid [on
this Dollar Note or the Dollar Note surrendered in exchange herefor](8) or, if
no interest has been paid, from November 10, 2004; provided that, if
there is no existing default in the payment of interest and if this Dollar Note
is authenticated between a Regular Record Date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
Interest Payment Date.  Interest will be
computed on the basis of a 360-day year of twelve 30-day months.

 

The Company shall pay
interest on overdue principal and premium, if any, and interest on overdue
installments of interest, to the extent lawful, at a rate per annum equal to
the rate of interest applicable to the Dollar Notes.

 

The indebtedness
evidenced by the Dollar Notes is, to the extent and in the manner provided in
the Indenture, subordinate and subject in right of payment to the prior payment
in full of all Senior Indebtedness, and this Dollar Note is issued subject to
such provisions.  Each Holder of this
Dollar Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on its behalf to take such
action as may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee its attorney-in-fact for
such purpose.

 

2.             Method of Payment.

 

The Company will pay interest
(except defaulted interest) on the principal amount of the Dollar Notes on each
May 15 and November 15 to the Persons who are Holders (as reflected in the Note
Register at the close of business on May 1 and November 1 immediately preceding
the Interest Payment Date), in each case, even if the Dollar Note is cancelled
on

 

(7)           Include only for Initial Note.

(8)           Include only for Exchange Note.

 

 

registration of transfer or registration of exchange after such Regular
Record Date; provided that, with respect to the payment of principal, the
Company will make payment to the Holder that surrenders this Dollar Note to any
Paying Agent on or after November 15, 2014.

 

The Company will pay
principal (premium, if any) and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal (premium, if any) and interest by its check payable in such money.  The Company may pay interest on the Dollar
Notes either (a) by mailing a check for such interest to a Holder’s registered
address (as reflected in the Note Register) or (b) by wire transfer to an
account located in the United States maintained by the payee.  If a payment date is a date other than a
Business Day at a place of payment, payment may be made at that place on the
next succeeding day that is a Business Day and no interest shall accrue for the
intervening period.

 

3.             Paying Agent and Registrar.

 

Initially, the Trustee
will act as Paying Agent and Note Registrar. 
The Company may change any Paying Agent or Note Registrar upon written
notice thereto.  The Company, any
Subsidiary or any Affiliate of any of them may act as Paying Agent, Note
Registrar or co-registrar.

 

4.             Indenture; Limitations.

 

The Company issued the
Dollar Notes under an Indenture dated as of November 10, 2004 (the “Indenture”),
among the Company, the Guarantors and The Bank of New York, as trustee (the “Trustee”).  Capitalized terms herein are used as defined
in the Indenture unless otherwise indicated. 
The terms of the Dollar Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act.  The Dollar Notes are subject to all such
terms, and Holders are referred to the Indenture and the Trust Indenture Act
for a statement of all such terms.  To
the extent permitted by applicable law, in the event of any inconsistency
between the terms of this Dollar Note and the terms of the Indenture, the terms
of the Indenture shall control.

 

The Dollar Notes are
unsecured senior subordinated obligations of the Company.  The Indenture limits the aggregate principal
amount of the Notes to $1,000,000,000; it being understood that the principal
amount of Initial Notes and Additional Notes outstanding shall be determined
based upon the exchange rate in effect on the date of such issuance of
Additional Notes.

 

5.             Redemption.

 

Optional
Redemption.  The Dollar
Notes may be redeemed at the option of the Company, in whole or in part, at any
time and from time to time on or after November 15, 2009, at the following
Redemption Prices (expressed in percentages of principal amount), plus accrued
and unpaid interest, if any, to the Redemption Date (subject to the right of
Holders of record on the relevant Regular Record Date to receive interest due
on an Interest Payment Date that is on or prior to the Redemption Date), if
redeemed during the 12-month period beginning November 15 of each of the years
set forth below:

 

 

	
  Year

  	
   

  	
  Redemption

  Price

  	
   

  
	
  2009

  	
   

  	
  103.750

  	
  %

  
	
  2010

  	
   

  	
  102.500

  	
  %

  
	
  2011

  	
   

  	
  101.250

  	
  %

  
	
  2012 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition to the
optional redemption of the Dollar Notes in accordance with the provisions of
the preceding paragraph, at any time on or prior to November 15, 2007, the
Company may redeem up to 40% of the aggregate principal amount of the Dollar
Notes under the Indenture at a Redemption Price equal to 107.500% of the
aggregate principal amount thereof, plus accrued and unpaid interest thereon
and Additional Interest, if any, to the Redemption Date, subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date, with the net proceeds of one or more Equity
Offerings of the Company or any direct or indirect parent of the Company to the
extent such net proceeds are contributed to the Company; provided that
at least 60% of the sum of the aggregate principal amount of Dollar Notes
issued under the Indenture remains outstanding immediately after the occurrence
of each such redemption; provided  further that each such
redemption occurs within 90 days of the date of closing of each such Equity
Offering.  At any time prior to November
15, 2009, the Company may also redeem all or a part of the Dollar Notes, upon
not less than 30 nor more than 60 days’ prior notice mailed by first-class mail
to each Holder’s registered address, at a Redemption Price equal to 100% of the
principal amount of the Dollar Notes redeemed plus the Applicable Premium as
of, and accrued and unpaid interest and Additional Interest, if any, to, the
date of redemption, subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date.

 

If less than all the
Dollar Notes are to be redeemed pursuant to the preceding two paragraphs, the
Trustee shall select the Dollar Notes or portions thereof to be redeemed in
compliance with the requirements of the principal national securities exchange,
if any, on which the Dollar Notes being redeemed are listed, or if the Dollar
Notes are not so listed, by such other method the Trustee shall deem fair and
appropriate; provided that no such partial redemption shall reduce the
portion of the principal amount of a Dollar Note not redeemed to less than
$50,000; provided  further that any such redemption pursuant to
the provisions relating to an Equity Offering shall be made on a pro rata basis
or on as nearly a pro rata basis as practicable (subject to the procedures of
Depository or any other depositary).

 

Notice of a redemption
will be mailed, first-class postage prepaid, at least 30 days but not more than
60 days before the Redemption Date to each Holder to be redeemed at such Holder’s
last address as it appears in the Note Register.  Dollar Notes in original denominations larger
than $50,000 may be redeemed in part in integral multiples of $1,000.  On and after the Redemption Date, interest
ceases to accrue on Dollar Notes or portions of Dollar Notes called for
redemption, unless the Company defaults in the payment of the Redemption Price.

 

 

6.             Repurchase upon a Change in Control and Asset Sales.

 

Upon the occurrence of
(a) a Change in Control, the Holders of the Dollar Notes will have the right to
require that the Company purchase such Holder’s outstanding Dollar Notes, in
whole or in part, at a purchase price of 101% of the principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the date
of purchase and (b) Asset Sales, the Company may be obligated to make offers to
purchase Dollar Notes and Pari Passu Indebtedness with a portion of the
Proceeds of such Asset Sales at a Redemption Price of 100% of the principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any, to the date of purchase.

 

7.             Denominations; Transfer; Exchange.

 

The Dollar Notes are in
registered form without coupons, in denominations of $50,000 and multiples of
$1,000 in excess thereof.  A Holder may
register the transfer or exchange of Dollar Notes in accordance with the Indenture.  The Note Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the
Indenture.  The Note Registrar need not
register the transfer or exchange of any Dollar Notes selected for redemption
(except the unredeemed portion of any Dollar Note being redeemed in part).

 

8.             Persons Deemed Owners.

 

A Holder may be treated
as the owner of a Dollar Note for all purposes.

 

9.             Unclaimed Money.

 

If money for the payment
of principal (premium, if any) or interest remains unclaimed for two years, the
Trustee and the Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled to
the money must look to the Company for payment, unless an abandoned property
law designates another Person, and all liability of the Trustee and such Paying
Agent with respect to such money shall cease.

 

10.           Discharge and Defeasance Prior to
Redemption or Maturity.

 

If the Company
irrevocably deposits, or causes to be deposited, with the Trustee money or
Government Securities sufficient to pay the then outstanding principal of
(premium, if any) and accrued interest on the Dollar Notes (a) to Redemption or
Maturity Date, the Company will be discharged from its obligations under the
Indenture and the Dollar Notes, except in certain circumstances for certain
covenants thereof, and (b) to the Stated Maturity, the Company will be
discharged from certain covenants set forth in the Indenture.

 

11.           Amendment; Supplement; Waiver.

 

Subject to certain
exceptions, the Indenture or the Dollar Notes may be amended or supplemented
with the consent of the Holders of at least a majority in aggregate principal
amount of the Outstanding Dollar Notes, and any existing Default or compliance
with any provision may be waived with the consent of the Holders of a majority
in aggregate principal amount of the Outstanding Dollar Notes; provided,
however, that if any amendment, supplement or waiver will only affect
the Dollar Notes or the Euro Notes, only the consent of the Holders of

 

 

at least a majority in principal amount of the then Outstanding Dollar
Notes or Euro Notes (and not the consent of at least a majority of all Notes),
as the case may be, shall be required. 
Without notice to or the consent of any Holder, the parties thereto may
amend or supplement the Indenture or the Dollar Notes to, among other things,
cure any ambiguity, defect or inconsistency and make any change that does not
adversely affect the rights of any Holder.

 

12.           Restrictive Covenants.

 

The Indenture contains
certain covenants, including, without limitation, covenants with respect to the
following matters:  (i) Incurrence of
Indebtedness and Issuance of Disqualified Stock; (ii) Restricted Payments; (iii)
transactions with Affiliates; (iv) Liens; (v) purchase of Dollar Notes upon a
Change in Control; (vi) disposition of proceeds of Asset Sales; (vii)
guarantees of Indebtedness by Restricted Subsidiaries; (viii) dividend and
other payment restrictions affecting Restricted Subsidiaries; (ix) merger and
certain transfers of assets; and (x) limitation on Senior Subordinated
Indebtedness.  Within 120 days (or the
successor time period then in effect under the rules and regulations of the
Exchange Act) after the end of each fiscal year, the Company must report to the
Trustee on compliance with such limitations.

 

13.           Successor Persons.

 

When a successor Person
or other entity assumes all the obligations of its predecessor under the Dollar
Notes and the Indenture, the predecessor Person will be released from those
obligations.

 

14.           Remedies for Events of Default.

 

If an Event of Default,
as defined in the Indenture, occurs and is continuing, the Trustee or the
Holders of not less than 30% in principal amount of the Outstanding Dollar
Notes may declare all the Dollar Notes to be immediately due and payable.  If a bankruptcy or insolvency default with
respect to the Company or any of its Significant Subsidiaries occurs and is
continuing, the Dollar Notes automatically become immediately due and
payable.  Holders may not enforce the
Indenture or the Dollar Notes except as provided in the Indenture.  The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Dollar Notes.  Subject to certain limitations, Holders of at
least a majority in aggregate principal amount of the Outstanding Dollar Notes
may direct the Trustee in its exercise of any trust or power.

 

15.           Guarantees.

 

The Company’s obligations
under the Dollar Notes are fully, irrevocably and unconditionally guaranteed on
an unsecured senior subordinated basis, to the extent set forth in the
Indenture, by each of the Guarantors.

 

16.           Trustee Dealings with Company.

 

The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Dollar Notes and may make loans to, accept deposits from, perform
services for, and otherwise deal with, the Company and its Affiliates as if it
were not the Trustee.

 

 

17.           Authentication.

 

This Dollar Note shall
not be valid until the Trustee signs the certificate of authentication on the
other side of this Dollar Note.

 

18.           Abbreviations.

 

Customary abbreviations
may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts
to Minors Act).

 

The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to Rockwood Specialties
Group, Inc., 100 Overlook Center, Princeton, NJ 
08540, Attention:  Thomas J.
Riordan.

 

 

[FORM OF TRANSFER
NOTICE]

 

FOR VALUE RECEIVED the
undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto

 

Insert Taxpayer
Identification No.

 

 

(Please print or typewrite name and address including zip code of
assignee)

 

 

the within Dollar Note and all rights thereunder, hereby irrevocably
constituting and appointing

 

 

attorney to transfer such Dollar Note on the books of the Company with
full power of substitution in the premises.

 

[THE FOLLOWING
PROVISION TO BE INCLUDED

ON ALL CERTIFICATES

EXCEPT OFFSHORE PHYSICAL

CERTIFICATES]

 

In connection with any
transfer of this Dollar Note occurring prior to the date which is the earlier
of the date of an effective Registration Statement or the end of the period
referred to in Rule 144(k) under the Securities Act of 1933, as amended, the
undersigned confirms that without utilizing any general solicitation or general
advertising that:

 

Check One

 

o                                    (a)           this Dollar Note is being transferred
in compliance with the exemption from registration under the Securities Act of
1933, as amended, provided by Rule 144A thereunder.

 

or

 

o                                    (b)           this Dollar Note is being transferred
other than in accordance with (a) above and documents are being furnished which
comply with the conditions of transfer set forth in this Dollar Note and the
Indenture.

 

 

If none of the foregoing
boxes is checked, the Trustee or other Note Registrar shall not be obligated to
register this Dollar Note in the name of any Person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Sections 311 and 312 of the Indenture shall have been
satisfied.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  NOTICE:  The signature to this assignment must
  correspond with the name as written upon the face of the within-mentioned
  instrument in every particular, without alteration or any change whatsoever.

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
				

 

TO BE COMPLETED BY
PURCHASER IF (a) ABOVE IS CHECKED.

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

The undersigned represents
and warrants that it is purchasing this Dollar Note for its own account or an
account with respect to which it exercises sole investment discretion and that
it and any such account is a “qualified institutional buyer” within the meaning
of Rule 144A under the Securities Act of 1933, as amended, and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges that it
has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTICE: To be executed
  by an executive officer

  

 

 

OPTION OF HOLDER
TO ELECT PURCHASE

 

If you wish to have this
Dollar Note purchased by the Company pursuant to Section 1017 or Section 1018
of the Indenture, check the Box:  o.

 

If you wish to have a
portion of this Dollar Note purchased by the Company pursuant to Section 1017
or Section 1018 of the Indenture, state the amount (in original principal
amount) below:

 

	
  $

  	
   

  	
  .

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:

  	
   

  	
   

  
	
   

  
	
  (Sign exactly as your
  name appears on the other side of this Dollar Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
								

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Note Registrar in addition to,
or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.EXHIBIT 10.2

 

EXECUTION COPY

 

Rockwood Specialties Group, Inc.

 

€375,000,000 7.625% Senior Subordinated Notes due
2014

 

$200,000,000 7.500% Senior Subordinated Notes due
2014

 

REGISTRATION RIGHTS AGREEMENT

 

November 10, 2004

 

Credit Suisse First
Boston (Europe) Limited

Goldman, Sachs & Co.

UBS Limited

Credit Suisse First
Boston LLC

UBS Securities LLC

As Representatives of the
several Initial Purchasers

c/o Credit Suisse First
Boston LLC

Eleven
Madison Avenue

New
York, New York 10010-3629

 

Dear Sirs:

 

Rockwood
Specialties Group, Inc. a Delaware corporation (the “Issuer”), proposes
to issue and sell to (i) Credit Suisse First Boston (Europe) Limited, Goldman,
Sachs & Co., UBS Limited, BNP Paribas Securities Corp., ING Financial Markets LLC, NatCity Investments, Inc., Rabo Securities USA, Inc. and WestLB AG, London Branch
(collectively, the “Euro Initial Purchaser”), upon the terms set forth
in a purchase agreement, dated November 5, 2004 (the “Purchase
Agreement”), €375,000,000 aggregate principal amount of its 7.625% Senior
Subordinated Notes due 2014 (the “Initial Euro Securities”) and (ii)
Credit Suisse First Boston LLC, Goldman,
Sachs & Co., UBS Securities
LLC, BNP Paribas Securities
Corp., ING Financial Markets LLC,
NatCity Investments, Inc., Rabo
Securities USA, Inc. and WestLB
AG, London Branch (collectively, the “Dollar Initial Purchasers”
and, together with the Euro Initial Purchasers, the “Initial Purchasers”),
upon the terms set forth in the Purchase Agreement, $200,000,000 aggregate
principal amount of its 7.500% Senior Subordinated Notes due 2014 (the “Initial
Dollar Securities” and together with the Initial Euro Securities, the “Initial
Securities”), in each case, to be unconditionally guaranteed (the “Guarantees”)
by each of the subsidiaries of the Company listed on Schedule I
hereto (the “Guarantors” and together with the Issuer, the “Company”).  The Initial Securities will be issued
pursuant to an Indenture, dated as of November 10, 2004, (the “Indenture”)
among the Issuer, the Guarantors named therein and The Bank of New York (the “Trustee”).  As an inducement to the Initial Purchasers,
the Company agrees with the Initial Purchasers, for the benefit of the holders
of the Initial Securities (including, without limitation, the Initial
Purchasers), the Exchange Securities (as defined below) and the Private
Exchange Securities (as defined below) (collectively the “Holders”), as
follows:

 

1.  Registered Exchange Offer.  The Company shall, at
its own cost, prepare and, not later than 180 calendar days after (or if the
180th day is not a Business Day (as defined below), the first Business Day
thereafter) the date of original issuance of the Initial Securities (the “Issue
Date”), file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Exchange Offer Registration Statement”)
on an appropriate form under the Securities Act of 1933, as amended (the “Securities
Act”), with respect to a proposed offer (the “Registered Exchange Offer”)
to the Holders of Transfer Restricted

 

 

Securities (as defined in
Section 6 hereof), who are not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer, to issue and
deliver to such Holders, in exchange for the Initial Securities, a like aggregate
principal amount of debt securities (the “Exchange Securities”) of the
Company issued under the Indenture and identical in all material respects to
the Initial Securities (except for the transfer restrictions relating to the
Initial Securities and the provisions relating to the matters described in Section 6
hereof) that would be registered under the Securities Act.  The Company shall use commercially reasonable
efforts to cause such Exchange Offer Registration Statement to become effective
under the Securities Act within 270 calendar days (or if the 270th day is not a
Business Day, the first Business Day thereafter) after the Issue Date of the
Initial Securities and to consummate the Registered Exchange offer within 300
calendar days (or if the 300th day is not a Business Day, the first
Business Day thereafter) after the Issue Date of the Initial Securities.  The Company shall also keep the Exchange
Offer open for at least 20 Business Days (or longer, if required by applicable
federal securities law) after the date notice of the Registered Exchange Offer
is mailed to the Holders (such period being called the “Exchange Offer
Registration Period”).  The term “Business
Day” as used in this Agreement shall mean each day that is not a Saturday,
Sunday or a federal holiday.

 

If the
Company effects the Registered Exchange Offer, the Company will be entitled to
close the Registered Exchange Offer 30 calendar days after the commencement
thereof; provided that, the Company has accepted all the Initial Securities theretofore
validly tendered in accordance with the terms of the Registered Exchange Offer.

 

Following
the declaration of the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange Offer,
it being the objective of such Registered Exchange Offer to enable each Holder
of Transfer Restricted Securities (as defined in Section 6 hereof)
electing to exchange the Initial Securities for Exchange Securities (assuming
that such Holder is not an affiliate of the Company within the meaning of Rule
405 under the Securities Act, acquires the Exchange Securities in the ordinary
course of such Holder’s business and has no arrangements with any person to
participate in the distribution of the Exchange Securities and is not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act
and without material restrictions under the securities laws of the several
states of the United States.

 

The
Company acknowledges that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, in the absence of
an applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”), is required to deliver a prospectus
containing the information set forth in (a) Annex A hereto on the cover, (b)
Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of
Distribution” section of such prospectus in connection with a sale of
any such Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell
Exchange Securities acquired in exchange for Initial Securities constituting
any portion of an unsold allotment is required to deliver a prospectus
containing the information required by Item 507 or 508 of Regulation S-K under
the Securities Act, as applicable, in connection with such sale.

 

The
Company shall use commercially reasonable efforts to keep the Exchange Offer
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 for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement thereto
must be delivered by an Exchanging Dealer or an Initial Purchaser, such period
shall be the lesser of 90 days and the date on which all Exchanging Dealers and
the Initial Purchasers have sold all Exchange Securities held by them (unless
such period is extended pursuant to Section 3(j) below) and (ii) the
Company shall make such prospectus and any amendment or supplement

 

2

 

thereto, available to any
broker-dealer for use in connection with any resale of any Exchange Securities
for a period of not less than 90 days after the consummation of the Registered
Exchange Offer.

 

If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the
Company, simultaneously with the delivery of the Exchange Securities pursuant
to the Registered Exchange Offer, shall issue and deliver to such Initial
Purchaser upon the written request of such Initial Purchaser, in exchange (the “Private
Exchange”) for the Initial Securities held by such Initial Purchaser, a
like principal amount of debt securities of the Company issued under the
Indenture and identical in all material respects (including the existence of restrictions
on transfer under the Securities Act and the securities laws of the several
states of the United States, but excluding provisions relating to the matters
described in Section 6 hereof) to the Initial Securities (the “Private
Exchange Securities”).  The Initial
Securities, the Exchange Securities and the Private Exchange Securities are
herein collectively called the “Securities”.

 

In
connection with the Registered Exchange Offer, the Company shall:

 

(a)  mail to each Holder a copy of the
prospectus forming part of the Exchange Offer Registration Statement, together
with an appropriate letter of transmittal and related documents;

 

(b)  keep the Registered Exchange Offer open
for at least 20 Business Days (or longer, if required by applicable federal
securities law) after the date notice thereof is mailed to the Holders;

 

(c)  utilize the services of a depositary
for the Registered Exchange Offer with an address in the Borough of Manhattan,
The City of New York, which may be the Trustee or an affiliate of the Trustee;

 

(d)  permit Holders to withdraw tendered
Initial Securities at any time prior to 12:00 midnight, New York time, on the
last Business Day on which the Registered Exchange Offer shall remain open; and

 

(e)  otherwise comply with all applicable
laws.

 

As
soon as practicable after the close of the Registered Exchange Offer or the
Private Exchange, as the case may be, the Company shall:

 

(x)  accept for exchange all the Initial
Securities validly tendered and not validly withdrawn pursuant to the
Registered Exchange Offer and the Private Exchange;

 

(y)  deliver to the Trustee for cancellation
all the Initial Securities so accepted for exchange; and

 

(z)  cause the Trustee to authenticate and
deliver promptly to each Holder of the Initial Securities, Exchange Securities
or Private Exchange Securities, as the case may be, equal in principal amount
to the Initial Securities of such Holder so accepted for exchange.

 

The
Indenture will provide that the Exchange Securities will not be subject to the
transfer restrictions set forth in the Indenture and that all the Securities
will vote and consent together on all matters as one class and that none of the
Securities will have the right to vote or consent as a class separate from one
another on any matter.

 

Interest
on each Exchange Security and Private Exchange Security, respectively, issued
pursuant to the Registered Exchange Offer and the Private Exchange,
respectively, will accrue from the last interest payment date on which interest
was paid on the Initial Securities surrendered in exchange therefor or, if no
interest has been paid on the Initial Securities, from the Issue Date.

 

3

 

Each
Holder participating in the Registered Exchange Offer shall be required to
represent to the Company at the time of tender of the Initial Securities by
such Holder pursuant to the Registered Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of
its business, (ii) at the time of the commencement of the Registered
Exchange Offer, such Holder had no arrangements or understanding with any
person to participate in the distribution of the Exchange Securities within the
meaning of the Securities Act, (iii) such Holder is not an “affiliate,”
as defined in Rule 405 of the Securities Act, of the Company or if it is an
affiliate, such Holder will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable,
(iv) if such Holder is not a broker-dealer, that it is not engaged in, and
does not intend to engage in, the distribution of the Exchange Securities and
(v) if such Holder is a broker-dealer, that it will receive the Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities
and that it acknowledges that it will be required to deliver a prospectus in
connection with any resale of such Exchange Securities.

 

Notwithstanding
any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus
forming part thereof and any supplement thereto complies in all material
respects with the Securities Act and the rules and regulations thereunder, (ii)
any Exchange Offer Registration Statement and any amendment thereto does not,
when it becomes effective, 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 not misleading and (iii) any prospectus forming
part of any Exchange Offer Registration Statement, and any supplement to such
prospectus, does not include an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

 

2.  Shelf Registration. 
If, (i) because of any change in law or in applicable interpretations
thereof by the staff of the Commission, the Company is not permitted to effect
a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the
Registered Exchange Offer is not consummated within 300 calendar days after the
Issue Date, (iii) any Initial Purchaser so requests with respect to the Initial
Securities (or the Private Exchange Securities) not eligible to be exchanged
for Exchange Securities in the Registered Exchange Offer and held by it
following consummation of the Registered Exchange Offer or (iv) any Holder
(other than an Initial Purchaser) is not eligible to participate in the
Registered Exchange Offer by applicable law or applicable interpretations of
the staff of the Commission, the Company shall take the following actions:

 

(a)  The Company shall, at its cost, as
promptly as practicable (but in no event more than 30 calendar days after so
required or requested pursuant to this Section 2) file with the Commission
and thereafter shall use commercially reasonable efforts to cause to be
declared effective within 270 calendar days after the Issue Date a registration
statement (the “Shelf Registration Statement” and, together with the
Exchange Offer Registration Statement, a “Registration Statement”) on an
appropriate form under the Securities Act relating to the offer and sale of the
Transfer Restricted Securities (as defined in Section 6 hereof) by the
Holders or Affiliated Market Makers (defined below) thereof from time to time
in accordance with the methods of distribution set forth in the Shelf Registration
Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder (other than an Initial
Purchaser) shall be entitled to have the Securities held by it covered by such
Shelf Registration Statement unless such Holder agrees in writing to be bound
by all the provisions of this Agreement applicable to such Holder.  An “Affiliated Market Maker” is
defined as a broker-dealer or one of its affiliates who is deemed to be an
affiliate of the Company and intends to make a market in the Exchange
Securities.

 

(b)  The Company shall use commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective in order to permit the prospectus included therein to be lawfully
delivered by the Holders of the relevant Securities, for a period of two years
(or for

 

4

 

such
longer period if extended pursuant to Section 3(j) below) from the date of
its effectiveness or such shorter period ending upon the earlier of
(i) when all the Securities covered by the Shelf Registration Statement
have been sold pursuant thereto or (ii) when all the Securities covered by the
Shelf Registration Statement are no longer restricted securities (as defined in
Rule 144 under the Securities Act, or any successor rule thereof).  The Company shall be deemed not to have used
commercially reasonable efforts to keep the Shelf Registration Statement
effective during the requisite period if it voluntarily takes any action that
would result in Holders of Securities covered thereby not being able to offer
and sell such Securities during that period, unless such action is required by
applicable law or such action is taken by the Company in good faith for valid
business reasons (not including avoidance of the Company’s obligations
hereunder), including a material corporate transaction, so long as the Company
promptly complies with the requirements of Section 3(j) hereof, if
applicable, but subject to the provisions of Section 6 hereof.

 

(c)  Notwithstanding any other provisions of
this Agreement to the contrary, the Company shall cause the Shelf Registration
Statement and the related prospectus and any amendment or supplement thereto,
as of the effective date of the Shelf Registration Statement, amendment or
supplement, (i) to comply in all material respects with the applicable
requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

3.  Registration Procedures. 
In connection with any Shelf Registration contemplated by Section 2
hereof and, to the extent applicable, any Registered Exchange Offer
contemplated by Section 1 hereof, the following provisions shall apply:

 

(a)  The Company shall (i) furnish to
each Initial Purchaser, prior to the filing thereof with the Commission, a copy
of the Registration Statement and each amendment thereof and each supplement,
if any, to the prospectus included therein and make such changes in each such
document as such Initial Purchaser may reasonably request; (ii) include the
information set forth in Annex A hereto on the cover, in Annex B hereto in the “Exchange
Offer Procedures” section and the “Purpose of the Exchange Offer”
section and in Annex C hereto in the “Plan of Distribution” section of
the prospectus forming a part of the Exchange Offer Registration Statement and
include the information set forth in Annex D hereto in the Letter of
Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
requested by any broker-dealer that is the beneficial owner (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) of Exchange Securities received by such broker-dealer in the
Registered Exchange Offer (a “Participating Broker-Dealer”), include the
information required by Item 508 of Regulation S-K under the Securities Act, as
applicable, in the prospectus forming a part of the Exchange Offer Registration
Statement and (iv) in the case of a Shelf Registration Statement, if requested
by any Participating Broker Dealer, include the information required by Item
507 of Regulation S-K under the Securities Act, including the names of the
Holders, who propose to sell Securities pursuant to the Shelf Registration
Statement, as selling securityholders.

 

(b)  The Company shall give written notice
to the Initial Purchasers, the Holders of the Securities, Affiliated Market
Makers and any Participating Broker-Dealer from whom the Company has received
prior written notice that it will be a Participating Broker-Dealer in the
Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof
shall be accompanied by an instruction to suspend the use of the prospectus
until the requisite changes have been made):

 

(i)  when the Registration Statement or any
amendment thereto has been filed with the Commission and when the Registration
Statement or any post-effective amendment thereto has become effective;

 

5

 

(ii)  of any request by the Commission for
amendments or supplements to the Registration Statement or the prospectus
included therein or for additional information;

 

(iii)  of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement or
the initiation of any proceedings for that purpose;

 

(iv)  of the receipt by the Company or its
legal counsel of any notification with respect to the suspension of the
qualification of the Exchange Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and

 

(v)  of the happening of any event that
requires the Company to make changes in the Registration Statement or the
prospectus in order that the Registration Statement or the prospectus do not
contain an untrue statement of a material fact nor omit to state a material
fact required to be stated therein or necessary to make the statements therein
(in the case of the prospectus, in light of the circumstances under which they
were made) not misleading.

 

(c)  The Company shall make every reasonable
effort to obtain the withdrawal at the earliest possible time, of any order
suspending the effectiveness of the Registration Statement.

 

(d)  The Company shall furnish to each
Holder of Securities included within the coverage of the Shelf Registration and
each Affiliated Market Maker, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, and, if the Holder or Affiliated Market
Maker so requests in writing, all exhibits thereto (including those, if any,
incorporated by reference).

 

(e)  The Company shall deliver to each
Exchanging Dealer and each Initial Purchaser, and to any other Holder who so
requests, without charge, at least one copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if any Initial Purchaser or any such Holder
requests, all exhibits thereto (including those incorporated by reference).

 

(f)  The Company shall, during the Shelf
Registration Period, deliver to each Holder of Securities included within the
coverage of the Shelf Registration and each Affiliated Market Maker, without
charge, as many copies of the prospectus (including each preliminary prospectus)
included in the Shelf Registration Statement and any amendment or supplement
thereto as such person may reasonably request. The Company consents, subject to
the provisions of this Agreement, to the use of the prospectus or any amendment
or supplement thereto by each of the selling Holders of the Securities or
Affiliated Market Maker in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

(g)  The Company shall deliver to each
Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and
such other persons required to deliver a prospectus following the Registered
Exchange Offer, without charge, as many copies of the final prospectus included
in the Exchange Offer Registration Statement and any amendment or supplement
thereto as such persons may reasonably request. 
The Company consents, subject to the provisions of this Agreement, to
the use of the prospectus or any amendment or supplement thereto by any Initial
Purchaser, if necessary, any Participating Broker-Dealer and such other persons
required to deliver a prospectus following the Registered Exchange Offer in
connection with the offering and sale of the Exchange Securities covered by the
prospectus, or any amendment or supplement thereto, included in such Exchange
Offer Registration Statement.

 

6

 

(h)  Prior to any public offering of the
Securities, pursuant to any Registration Statement, the Company shall register
or qualify or cooperate with the Holders of the Securities included therein and
their respective counsel in connection with the registration or qualification
of the Securities for offer and sale under the securities or “blue sky”
laws of such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things
necessary or advisable to enable the offer and sale in such jurisdictions of
the Securities covered by such Registration Statement; provided, however, that
the Company shall not be required to (i) qualify generally to do business or as
a dealer in securities in any jurisdiction where it is not then so qualified or
(ii) take any action which would subject it to general service of process or to
taxation in any jurisdiction where it is not then so subject.

 

(i)  The Company shall cooperate with the
Holders of the Securities to facilitate the timely preparation and delivery of
certificates representing the Securities to be sold pursuant to any
Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a
reasonable period of time prior to sales of the Securities pursuant to such Registration
Statement.

 

(j)  Upon the occurrence of any event
contemplated by paragraphs (ii) through (v) of Section 3(b) above
during the period for which the Company is required to maintain an effective
Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the
related prospectus and any other required document so that, as thereafter
delivered to Holders of the Securities or purchasers of Securities, the
prospectus will not contain an 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.  If the Company notifies
the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 3(b)
above to suspend the use of the prospectus until the requisite changes to the
prospectus have been made, then the Initial Purchasers, the Holders of the
Securities and any such Participating Broker-Dealers shall suspend use of such
prospectus, and the period of effectiveness of the Shelf Registration Statement
provided for in Section 2(b) above and the Exchange Offer Registration
Statement provided for in Section 1 above shall each be extended by the
number of days from and including the date of the giving of such notice to and
including the date when the Initial Purchasers, the Holders of the Securities,
any Affiliated Market Maker and any known Participating Broker-Dealer shall
have received such amended or supplemented prospectus pursuant to this Section 3(j).

 

(k)  Not later than the effective date of
the applicable Registration Statement, the Company will provide a CUSIP number
and ISIN Number for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, and provide the Trustee with
printed certificates for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, in a form eligible for deposit
with The Depository Trust Company or Euroclear Bank S.A./N.V. or Clearstream
Banking, S.A., as applicable.

 

(l)  The Company will comply with all rules
and regulations of the Commission to the extent and so long as they are
applicable to the Registered Exchange Offer or the Shelf Registration and will
make generally available to its security holders (or otherwise provide in
accordance with Section 11(a) of the Securities Act) an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act, no later
than 45 days after the end of a 12-month period (or 90 days, if such period is
a fiscal year) beginning with the first month of the Company’s first fiscal
quarter commencing after the effective date of the Registration Statement,
which statement shall cover such 12-month period.

 

(m)  The Company shall cause the Indenture
to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner
and containing such changes, if any, as shall be

 

7

 

necessary
for such qualification.  In the event
that such qualification would require the appointment of a new trustee under
the Indenture, the Company shall appoint a new trustee thereunder pursuant to
the applicable provisions of the Indenture.

 

(n)  The Company may require each Holder or
Affiliated Market Maker of Securities to be sold pursuant to the Shelf
Registration Statement to furnish to the Company such information regarding the
Holder or Affiliated Market Maker and the distribution of the Securities as the
Company may from time to time reasonably require for inclusion in the Shelf
Registration Statement, and the Company may exclude from such registration the
Securities of any Holder that unreasonably fails to furnish such information
within a reasonable time after receiving such request.

 

(o)  The Company shall enter into such
customary agreements (including, if requested, an underwriting agreement in
customary form) and take all such other action, if any, as any Holder of the
Securities or Affiliated Market Maker shall reasonably request in order to
facilitate the disposition of the Securities pursuant to any Shelf
Registration.

 

(p)  In the case of any Shelf Registration,
the Company shall (i) make reasonably available for inspection by the Holders
of the Securities, Affiliated Market Makers, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any attorney,
accountant or other agent retained by the Holders of the Securities, Affiliated
Market Makers or any such underwriter all relevant financial and other records,
pertinent corporate documents and properties of the Company and (ii) cause the
Company’s officers, directors, employees, accountants and auditors to supply
all relevant information reasonably requested by the Holders of the Securities,
Affiliated Market Makers or any such underwriter, attorney, accountant or agent
in connection with the Shelf Registration Statement, in each case, as shall be
reasonably necessary to enable such persons, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act;
provided, however, that the foregoing inspection and information gathering
shall be coordinated on behalf of the Initial Purchasers by you and on behalf
of the other parties, by one counsel designated by and on behalf of such other
parties as described in Section 4 hereof; provided, further however, that
such Holders or Affiliated Market Makers shall first agree in writing with the
Company that any information that is reasonably and in good faith designated by
the Company in writing as confidential at the time of delivery of such
information shall be kept confidential by such Holders, any underwriter or
attorney, accountant or other agent retained by the Holders or Affiliated
Market Makers, unless (i) disclosure of such information is required by court
or administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law (including
any disclosure requirements pursuant to federal securities laws in connection
with the filing of such Registration Statement or the use of any Prospectus),
(iii) such information becomes generally available to the public other than as
a result of a disclosure or failure to safeguard such information by any such
person or (iv) such information becomes available to such person from a source
other than the Issuer and its subsidiaries and such source is not known, after
due inquiry, by the relevant Holder or Affiliated Market Maker to be bound by a
confidentiality agreement or is otherwise under a duty of trust to the Company.

 

(q)  In the case of any Shelf Registration,
the Company, if requested by any Holder of Securities or Affiliated Market
Maker covered thereby, shall cause (i) its counsel to deliver signed
opinions in the forms set forth in Section 6(a), (b) and (c) of the
Purchase Agreement with such changes as may be reasonably requested by the
Holders or Affiliated Market Makers or their respective counsel to reflect that
the offering of the Transfer Restricted Securities in such case will be
registered with the Commission (which opinions shall be reasonably satisfactory
to the managing underwriters, if any, and the holders of a majority in
principal amount of the Transfer Restricted Securities being sold);
(ii) its officers to execute and deliver all customary documents and
certificates and updates thereof requested by any underwriters of the
applicable Securities and

 

8

 

(iii) its
independent public accountants and the independent public accountants with
respect to any other entity for which financial information is provided in the
Shelf Registration Statement to provide to the selling Holders or Affiliated
Market Makers of the applicable Securities and any underwriter therefor a
comfort letter, in customary form, meeting the requirements as to the substance
thereof as set forth in Sections 6(h) and (i) of the Purchase Agreement,
with appropriate date changes.

 

(r)  In the case of the Registered Exchange
Offer, if requested by any Initial Purchaser or any known Participating
Broker-Dealer, the Company shall cause (i) its counsel to deliver to such
Initial Purchaser or such Participating Broker-Dealer signed opinions in the
forms set forth in Section 6(a), (b) and (c) of the Purchase Agreement
with such changes as may be reasonably requested by Initial Purchaser or such
Participating Broker-Dealer or their counsel to reflect that the offering of
the Transfer Restricted Securities in such case will be registered with the
Commission and (ii) its independent public accountants and the independent
public accountants with respect to any other entity for which financial
information is provided in the Registration Statement to deliver to such
Initial Purchaser or such Participating Broker-Dealer a comfort letter, in
customary form, meeting the requirements as to the substance thereof as set
forth in Sections 6(h) and (i) of the Purchase Agreement, with appropriate
date changes.

 

(s)  If a Registered Exchange Offer or a
Private Exchange is to be consummated, upon delivery of the Initial Securities
by Holders to the Company (or to such other Person as directed by the Company)
in exchange for the Exchange Securities or the Private Exchange Securities, as
the case may be, the Company shall mark, or caused to be marked, on the Initial
Securities so exchanged that such Initial Securities are being canceled in
exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be; in no event shall the Initial Securities be marked as paid or
otherwise satisfied.

 

(t)  The Company will use its best efforts
to (a) if the Initial Securities have been rated prior to the initial sale of
such Initial Securities, confirm such ratings will apply to the Securities
covered by a Registration Statement, or (b) if the Initial Securities were not
previously rated, cause the Securities covered by a Registration Statement to
be rated with the appropriate rating agencies, if so requested by Holders of a
majority in aggregate principal amount of Securities covered by such
Registration Statement, or by the managing underwriters, if any.

 

(u)  In the event that any broker-dealer
registered under the Exchange Act shall underwrite any Securities or
participate as a member of an underwriting syndicate or selling group or “assist
in the distribution” (within the meaning of the Conduct Rules (the “Rules”)
of the National Association of Securities Dealers, Inc. (“NASD”))
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with the
requirements of such Rules, including, without limitation, by (i) if such
Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to
exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

 

(v)  The Company shall use its best efforts
to take all other steps necessary to effect the registration of the Securities
covered by a Registration Statement contemplated hereby.

 

9

 

4.  Registration Expenses. 
The Company shall bear all fees and expenses incurred in connection with
the performance of its obligations under Sections 1 through 3 hereof, whether
or not the Registered Exchange Offer or a Shelf Registration is filed or
becomes effective, and, in the event of a Shelf Registration, shall bear or
reimburse the Holders of the Securities covered thereby only for the reasonable
fees and disbursements of one firm of counsel designated by the Holders of a
majority in principal amount of the Initial Securities covered thereby to act
as counsel for the Holders of the Initial Securities in connection therewith.

 

5.  Indemnification. 
(a)  The Company agrees to
indemnify and hold harmless each Initial Purchaser, each Holder of the
Securities, including any Participating Broker-Dealer, and each person, if any,
who controls any of such parties within the meaning of the Securities Act or
the Exchange Act (each Initial Purchaser, Holder and such controlling persons
are referred to collectively as the “Indemnified Parties”) from and
against any losses, claims, damages or liabilities, joint or several, or any
actions in respect thereof (including, but not limited to, any losses, claims,
damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in a Registration
Statement (including any documents incorporated by reference therein) or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or arise out of, or are based
upon, the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse, as incurred, the Indemnified Parties for any
legal or other expenses (including the reasonable fees and disbursements of one
firm of counsel chosen by any indemnified party) reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided, however, that (i) the
Company shall not be liable in any such case to the extent that such loss,
claim, damage or liability arises out of or is based upon any untrue statement
or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Holder and
furnished to the Company by or on behalf of such Holder specifically for
inclusion therein and (ii) with respect to any untrue statement or
omission or alleged untrue statement or omission made in any preliminary
prospectus relating to a Shelf Registration Statement, the indemnity agreement
contained in this subsection (a) shall not inure to the benefit of any
Initial Purchaser or any Holder, including any Participating Broker-Dealer,
from whom the person asserting any such losses, claims, damages or liabilities
purchased the Securities concerned, to the extent that a prospectus relating to
such Securities was required to be delivered by such Initial Purchaser or Holder
under the Securities Act in connection with such purchase and the Company shall
sustain the burden of proof that any such loss, claim, damage or liability of
such Initial Purchaser or such Holder results from the fact that there was not
sent or given to such person, at or prior to the written confirmation of the
sale of such Securities to such person, a copy of the final prospectus if the
Company had previously furnished copies thereof to such Initial Purchaser or
Holder sufficiently in advance to allow for proper delivery on or before such
written confirmation of sale; provided further, however, that this indemnity
agreement will be in addition to any liability which the Company may otherwise
have to such Indemnified Party.  The
Company shall also indemnify underwriters, their officers and directors and
each person who controls such underwriters within the meaning of the Securities
Act or the Exchange Act to the same extent as provided above with respect to
the indemnification of the Initial Purchasers and the Holders of the Securities
if requested by such Initial Purchaser or Holder.

 

(b)  In
the case of the Shelf Registration Statement, each Holder of the Securities,
severally and not jointly, will indemnify and hold harmless the Company and
each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act from and against any losses, claims, damages
or liabilities or any actions in respect thereof, to which the Company or any
such controlling person may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Shelf Registration Statement
or prospectus or in

 

10

 

any amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary to make the statements
therein not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein; and, subject to the limitation set forth immediately
preceding this clause, shall reimburse, as incurred, the Company for any legal
or other expenses reasonably incurred by the Company or any such controlling
person in connection with investigating or defending any loss, claim, damage,
liability or action in respect thereof. 
This indemnity agreement will be in addition to any liability which such
Holder may otherwise have to the Company or any of its controlling persons.

 

(c)  Promptly
after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 5, notify the
indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have under subsection (a) or (b) above except to the extent
that it has been materially prejudiced (through the forfeiture of substantive
rights or defenses) by such failure; and provided further that the failure to
notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under subsection  (a) or
(b) above.  In case any such action is
brought against any indemnified party, and it notifies the indemnifying party
of the commencement thereof, the indemnifying party will be entitled to
participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this Section 5
for any legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense
thereof.  No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any indemnified
party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party unless such settlement (i) includes an
unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action, and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.

 

(d)  If
the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or (b)
above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to in subsection (a)
or (b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party or parties on the one hand and the
indemnified party on the other from the exchange of the Securities, pursuant to
the Registered Exchange Offer, or (ii) if the allocation provided by the
foregoing clause (i) 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 or parties on
the one hand and the indemnified party on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities (or actions in respect thereof) as well as any other relevant
equitable considerations.  The relative
fault of the parties shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or such Holder or such other
indemnified party, as the case may be, on the other, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The amount
paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall
be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which
is the subject of

 

11

 

this subsection (d).  Notwithstanding any other provision of this Section 5(d),
the Holders of the Securities shall not be required to contribute any amount in
excess of the amount by which the net proceeds received by such Holders from
the sale of the Securities pursuant to a Registration Statement exceeds the
amount of damages which such Holders have 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.  For
purposes of this paragraph (d), each person, if any, who controls such
indemnified party within the meaning of the Securities Act or the Exchange Act
shall have the same rights to contribution as such indemnified party and each
person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act shall have the same rights to contribution as the
Company.  The Holders’ obligation in this
subsection (d) to contribute are several in proportion to their respective
purchase obligations and not joint.

 

(e)  The
agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force
and effect, regardless of any termination or cancellation of this Agreement or
any investigation made by or on behalf of any indemnified party.

 

6.  Additional Interest Under Certain Circumstances.  (a) 
Additional interest (the “Additional Interest”) with respect to
the Initial Securities shall be assessed as follows if any of the following
events occur (each such event in clauses (i) through (iv) below a “Registration
Default”:

 

(i)  If on or prior to May 9, 2005, which is
180 calendar days after Issue Date, neither the Exchange Offer Registration
Statement nor a Shelf Registration Statement has been  filed with the Commission;

 

(ii)  If on or prior to August 8, 2005,
which is 270 calendar days after Issue Date, neither the Registered Exchange Offer
is declared effective nor, if required in lieu thereof, the Shelf Registration
Statement is declared effective by the Commission (or, in the case of a Shelf
Registration Statement required to be filed in response to a change in law or
applicable interpretations of the staff of the Commission, if later, within 90
calendar days after publication of the change in law or interpretation, but in
no event before 270 calendar days after the Issue Date);

 

(iii) If on or prior to September 6, 2005, which
is 300 calendar days after the Issue Date, the Registered Exchange Offer is not
consummated; or

 

(iv)  If after either the Exchange Offer
Registration Statement or the Shelf Registration Statement is declared
effective (A) such Registration Statement thereafter ceases to be
effective; or (B) such Registration Statement or the related prospectus ceases
to be usable (except as permitted in paragraph (b)) in connection with
resales of Transfer Restricted Securities during the periods specified herein
because either (1) any event occurs as a result of which the related
prospectus forming part of such Registration Statement would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein in the light of the circumstances under which they
were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the
Securities Act or the Exchange Act or the respective rules thereunder, in each
case, without being succeeded within 90 days by an additional registration
statement filed and declared effective.

 

Additional Interest shall
accrue on the Initial Securities over and above the interest set forth in the
title of the Initial Securities from and including the date on which any such
Registration Default shall occur to but excluding the date on which all such
Registration Default have been cured, at a rate of 0.25% per annum per 90 day
period that such additional interest continues to accrue with an aggregate
maximum interest increase in the interest rate of 1.0% per annum.

 

12

 

(b)  A
Registration Default referred to in Section 6(a)(iv)(B) hereof shall be
deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with
respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause
(y), the Company is proceeding promptly and in good faith to amend or
supplement such Shelf Registration Statement and related prospectus to describe
such events; provided, however, that in any case if such Registration Default
occurs for a continuous period in excess of 60 days in the aggregate in any
consecutive twelve-month period (a “Registration Suspension Default”),
Additional Interest shall be payable in accordance with the above paragraph
from the day such Registration Suspension Default occurs until such
Registration Default is cured.

 

(c)  Any
amounts of Additional Interest due pursuant to clause (i), (ii), (iii) or (iv)
of Section 6(a) above will be payable in cash on the regular interest
payment dates with respect to the Initial Securities. The amount of Additional
Interest will be determined by multiplying the applicable Additional Interest
rate by the principal amount of the Initial Securities, 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 the denominator of which is 360.

 

(d)  ”Transfer
Restricted Securities” means each Security until (i) the date on which such
Transfer Restricted Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered Exchange
Offer, (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of a Initial Security for an Exchange Note, the date on which
such Exchange Note is sold to a purchaser who receives from such broker-dealer
on or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, (iii) the date on which such Initial
Security has been effectively registered under the Securities Act and disposed
of in accordance with the Shelf Registration Statement or (iv) the date on
which such Initial Security is distributed to the public pursuant to Rule 144
under the Securities Act or is saleable pursuant to Rule 144(k) under the
Securities Act.

 

7.  Rules 144 and 144A.  The Company shall use its best
efforts to file the reports required to be filed by it 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 request of any Holder of
Initial Securities, make publicly available other information so long as
necessary to permit sales of their securities pursuant to Rules 144 and
144A.  The Company covenants that it will
take such further action as any Holder of Initial Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Initial Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A (including
the requirements of Rule 144A(d)(4)).  The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchasers upon request. 
Upon the request of any Holder of Initial Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with
such requirements. Notwithstanding the foregoing, nothing in this Section 7
shall be deemed to require the Company to register any of its securities
pursuant to the Exchange Act.

 

8.  Market
Making Activities.  For so
long as any of the Initial Securities is outstanding and CSFB or any of its
affiliates (as defined in the rules and regulations under the Securities Act)
owns any equity securities of the Company or any of their affiliates and
proposes to make a market in the Initial Securities or Exchange Securities in
the ordinary course of its business and is required to deliver a prospectus in
connection with such market making activities, the Company agrees to (i)
provide CSFB and its affiliates, without charge, as many copies of a prospectus
(any such prospectus, a “Market Making Prospectus”)
as they may reasonably request, (ii) periodically amend the Exchange Offer
Registration Statement, or, if required to be filed, the Shelf Registration
Statement, so that the information contained therein complies

 

13

 

with the requirements of Section 10(a)
of the Securities Act, (iii) amend the Exchange Offer Registration Statement
or, if required to be filed, the Shelf Registration Statement, or amend or
supplement the Market Making Prospectus when necessary to reflect any material
changes in the information provided therein and promptly file such amendment or
supplement with the Commission and provide CSFB and its affiliates with copies
of each amendment or supplement so filed and (iv) indemnify CSFB and its
affiliates with respect to the Market Making Prospectus and, if applicable,
contribute to any amount paid or payable by CSFB and its affiliates in a manner
substantially identical to that specified in Section 5 hereof (with
appropriate modifications).  The Company
consents to the use, subject to the provisions of the Securities Act and the
state securities or Blue Sky laws of the jurisdictions in which the Initial
Securities are offered by CSFB and its affiliates, of each Market Making
Prospectus.

 

9.  Underwritten Registrations.  If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing
Underwriters”) will be selected by the Holders of a majority in aggregate
principal amount of such Transfer Restricted Securities to be included in such
offering.

 

No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Transfer Restricted Securities on the
basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

 

10.  Miscellaneous.

 

(a)  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, except by the
Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consents.

 

(b)  Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
first-class mail, facsimile transmission, or air courier which guarantees
overnight delivery:

 

(1)  if to a Holder of the Securities, at the most
current address given by such Holder to the Company.

 

(2)  if to the Initial Purchasers;

 

Credit
Suisse First Boston LLC

Eleven
Madison Avenue

New
York, NY 10010-3629

Fax
No.:  (212) 325-8278

Attention:  Transactions Advisory Group

 

with a
copy to:

 

Latham
& Watkins LLP

885
Third Avenue

New
York, NY 10022

Fax
No:  (212) 751-4864

Attention:  Peter M. Labonski, Esq.

 

14

 

(3)                                  if
to the Company, at its address as follows:

 

Rockwood
Specialties Group, Inc.

100
Overlook Center

Princeton,
NJ  08540

Attention:  Thomas J. Riordan, Esq.

 

with a
copy to:

 

Simpson
Thacher & Bartlett LLP

425
Lexington Avenue

New
York, NY  10017

Fax
No:  (212) 455-2502

Attention:  Roxane F. Reardon, Esq.

 

All
such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; three Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile
machine operator, if sent by facsimile transmission; and on the day delivered,
if sent by overnight air courier guaranteeing next day delivery.

 

(c)  No Inconsistent Agreements.  The Company has not,
as of the date hereof, entered into, nor shall it, on or after the date hereof,
enter into, any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

 

(d)  Successors and Assigns.  This Agreement shall be
binding upon the Company and its successors and assigns.

 

(e)  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.

 

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

 

(g)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

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

 

(i)  Securities Held by the Company.  Whenever the
consent or approval of Holders of a specified percentage of principal amount of
Securities is required hereunder, Securities held by the Company or its
affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

15

 

If the
foregoing is in accordance with your understanding of our agreement, please
sign and return to the Issuer a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers, the Issuer and the Guarantors in accordance with its terms.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  Rockwood
  Specialties Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael W. Vaelente

  	
   

  
	
   

  	
  Name:

  	
  Michael W.
  Valente

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Each of the
  Guarantors listed on Schedule I hereto

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael W. Valente

  	
   

  
	
   

  	
  Name:

  	
  Michael W.
  Valente

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
					

 

The foregoing
Registration

Rights Agreement is
hereby confirmed

and accepted as of the
date first

above written.

 

CREDIT SUISSE FIRST
BOSTON (EUROPE) LIMITED

GOLDMAN, SACHS & CO.

UBS LIMITED

CREDIT SUISSE FIRST
BOSTON LLC

UBS SECURITIES LLC

AS REPRESENTATIVES OF THE
SEVERAL INITIAL PURCHASERS

 

by:  CREDIT
SUISSE FIRST BOSTON LLC

 

 

	
   

  	
  By:

  	
  /s/ Richard Whitney

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Richard Whitney

  	
   

  
	
   

  	
  Title:

  	
  Managing
  Director

  	
   

  
						

 

16

 

SCHEDULE I

 

Guarantors

 

Advantis
Technologies, Inc.

AlphaGary
Corporation

CeramTec North America Innovative Ceramic Engineering Corporation

Chemetall
Corporation

Chemetall
Chemical Products Inc.

Chemetall
Foote Corp.

Chemical
Specialties, Inc.

Compugraphics
U.S.A. Inc.

Cyantek
Corporation

Electrochemicals Inc.

Exsil, Inc. 

Foote Chile Holding Company

Lurex,
Inc.

Oakite
Products, Inc.

Rockwood
America Inc.

Rockwood Specialties Inc.

Rockwood Pigments NA, Inc.

RS Funding Corporation

RW Holding Corp.

Sachtleben
Corporation

Southern
Clay Products, Inc.

Southern Color N.A., Inc.

 

 

ANNEX A

 

Each broker-dealer
that receives the Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. 
The Letter of Transmittal states that by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is
an “underwriter” within the meaning of the Securities Act.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of the Exchange Securities received in exchange for the Initial
Securities where such Initial Securities were acquired by such broker-dealer as
a result of market-making activities or other trading activities.  The Company has agreed that, for a period of
90 days after the Expiration Date (as defined herein), it will make this
Prospectus available to any broker-dealer for use in connection with any such
resale.  See “Plan of Distribution.”

 

 

ANNEX B

 

Each
broker-dealer that receives the Exchange Securities for its own account in
exchange for the Initial Securities, where such Initial Securities were
acquired by such broker-dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  See “Plan of Distribution.”

 

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each
broker-dealer that receives the Exchange Securities for its own account
pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for the Initial
Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities.  The Company has agreed that, for a period of
90 days after the Expiration Date, it will make this prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any
such resale.  In addition, until            ,
200  ,  all dealers effecting
transactions in the Exchange Securities may be required to deliver a
prospectus.(1)

 

The
Company will not receive any proceeds from any sale of the Exchange Securities
by broker-dealers.  Exchange Securities
received by broker-dealers for their own account pursuant to the Exchange Offer
may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Securities or a combination of such methods of resale,
at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. 
Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities.  Any broker-dealer that
resells the Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities
Act.  The Letter of Transmittal states
that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

 

For a
period of 90 days after the Expiration Date, the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the Letter of
Transmittal.  The Company has agreed to
pay all expenses incident to the Exchange Offer (including the expenses of one
counsel for the Holders of the Securities) other than commissions or
concessions of any brokers or dealers and will indemnify the Holders of the
Securities (including any broker-dealers) against certain liabilities,
including liabilities under the Securities Act.

 

(1)  In addition, the legend required by Item
502(b) of Regulation S-K will appear on the back cover page of the Exchange
Offer prospectus.

 

 

ANNEX D

 

 

o                                    CHECK
HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

 

If the undersigned is not
a broker-dealer, the undersigned represents that it is not engaged in, and does
not intend to engage in, a distribution of the Exchange Securities.  If the undersigned is a broker-dealer that
will the receive Exchange Securities for its own account in exchange for the
Initial Securities that were acquired as a result of market-making activities
or other trading activities, it acknowledges that it will deliver a prospectus
in connection with any resale of such Exchange Securities; however, by so
acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

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