Document:

Exhibit 4.1

 

EXECUTION COPY

 

 

NIAGARA ACQUISITION, INC.

to be merged with and into

PQ CORPORATION,

as the Issuer

 

 

the Guarantors named herein

 

 

and

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

 

 

INDENTURE

 

 

Dated as of February 11, 2005

 

 

71⁄2% Senior Subordinated Notes due 2013

 

 

 

CROSS-REFERENCE TABLE

 

	
  TIA

  	
   

  	
  Indenture

  	
   

  
	
  Section

  	
   

  	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  7.08; 7.10

  	
   

  
	
  (b)

  	
   

  	
  7.08; 7.10;
  12.02

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
  (b)

  	
   

  	
  12.03

  	
   

  
	
  (c)

  	
   

  	
  12.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)(1)

  	
   

  	
  7.06

  	
   

  
	
  (b)(2)

  	
   

  	
  7.06

  	
   

  
	
  (c)

  	
   

  	
  7.06; 12.02

  	
   

  
	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.06; 4.17

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)(1)

  	
   

  	
  7.02; 12.04;
  12.05

  	
   

  
	
  (c)(2)

  	
   

  	
  7.02; 12.04;
  12.05

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (d)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  12.05

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
  (b)

  	
   

  	
  7.05

  	
   

  
	
  (c)

  	
   

  	
  7.01

  	
   

  
	
  (d)

  	
   

  	
  6.05;
  7.01(c)

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a)(last sentence)

  	
   

  	
  2.09

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  9.02

  	
   

  
	
  (b)

  	
   

  	
  6.07

  	
   

  
	
  (c)

  	
   

  	
  9.05

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  12.01

  	
   

  
	
  (c)

  	
   

  	
  12.01

  	
   

  

 

N.A. means Not Applicable

 

Note:      This Cross-Reference Table
shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  
	
  SECTION
  1.01.

  	
  Definitions

  	
   

  
	
  SECTION
  1.02.

  	
  Other
  Definitions

  	
   

  
	
  SECTION 1.03.

  	
  Incorporation by Reference of TIA

  	
   

  
	
  SECTION 1.04.

  	
  Rules of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  	
   

  
	
   

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form, Dating and Terms

  	
   

  
	
  SECTION 2.02.

  	
  Execution and Authentication

  	
   

  
	
  SECTION 2.03.

  	
  Registrar and Paying Agent

  	
   

  
	
  SECTION 2.04.

  	
  Paying Agent To Hold Assets in Trust

  	
   

  
	
  SECTION 2.05.

  	
  Holder Lists

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and Exchange

  	
   

  
	
  SECTION 2.07.

  	
  Replacement Notes

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding Notes

  	
   

  
	
  SECTION 2.09.

  	
  Treasury Notes

  	
   

  
	
  SECTION 2.10.

  	
  Temporary Notes

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation

  	
   

  
	
  SECTION 2.12.

  	
  Defaulted Interest

  	
   

  
	
  SECTION 2.13.

  	
  CUSIP, ISIN and “Common Code” Numbers

  	
   

  
	
  SECTION 2.14.

  	
  Deposit of Moneys

  	
   

  
	
  SECTION 2.15.

  	
  Computation of Interest

  	
   

  
	
  SECTION 2.16.

  	
  Calculation of Principal Amount of Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  	
   

  
	
   

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Notices to Trustee

  	
   

  
	
  SECTION 3.02.

  	
  Selection of Notes To Be Redeemed

  	
   

  
	
  SECTION 3.03.

  	
  Notice of Redemption

  	
   

  
	
  SECTION 3.04.

  	
  Effect of Notice of Redemption

  	
   

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price

  	
   

  
	
  SECTION 3.06.

  	
  Notes Redeemed in Part

  	
   

  

 

i

 

	
  ARTICLE FOUR

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes

  	
   

  
	
  SECTION 4.02.

  	
  Maintenance of Office or Agency

  	
   

  
	
  SECTION 4.03.

  	
  Corporate Existence

  	
   

  
	
  SECTION 4.04.

  	
  Payment of Taxes and Other Claims

  	
   

  
	
  SECTION 4.05.

  	
  Intentionally Omitted

  	
   

  
	
  SECTION 4.06.

  	
  Compliance Certificate; Notice of Default

  	
   

  
	
  SECTION 4.07.

  	
  Intentionally Omitted

  	
   

  
	
  SECTION 4.08.

  	
  Waiver of Stay, Extension or Usury Laws

  	
   

  
	
  SECTION 4.09.

  	
  Change of Control

  	
   

  
	
  SECTION
  4.10.

  	
  Incurrence
  of Indebtedness and Issuance of Preferred Stock

  	
   

  
	
  SECTION
  4.11.

  	
  Restricted
  Payments

  	
   

  
	
  SECTION
  4.12.

  	
  Liens

  	
   

  
	
  SECTION
  4.13.

  	
  Asset
  Sales

  	
   

  
	
  SECTION
  4.14.

  	
  Transactions
  with Affiliates

  	
   

  
	
  SECTION
  4.15.

  	
  Dividend
  and Other Payment Restrictions Affecting Subsidiaries

  	
   

  
	
  SECTION
  4.16.

  	
  Additional
  Guarantees

  	
   

  
	
  SECTION
  4.17.

  	
  Reports
  to Holders

  	
   

  
	
  SECTION
  4.18.

  	
  Limitation
  on Layering

  	
   

  
	
  SECTION
  4.19.

  	
  Business
  Activities

  	
   

  
	
  SECTION
  4.20.

  	
  Payments
  for Consent

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  	
   

  
	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  
	
  SECTION
  5.01.

  	
  Merger,
  Consolidation, or Sale of Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  	
   

  
	
   

  	
   

  
	
  DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.01.

  	
  Events
  of Default

  	
   

  
	
  SECTION
  6.02.

  	
  Acceleration

  	
   

  
	
  SECTION
  6.03.

  	
  Other
  Remedies

  	
   

  
	
  SECTION
  6.04.

  	
  Waiver
  of Defaults

  	
   

  
	
  SECTION
  6.05.

  	
  Control
  by Majority

  	
   

  
	
  SECTION
  6.06.

  	
  Limitation
  on Suits

  	
   

  
	
  SECTION
  6.07.

  	
  Rights
  of Holders To Receive Payment

  	
   

  
	
  SECTION
  6.08.

  	
  Collection
  Suit by Trustee

  	
   

  
	
  SECTION
  6.09.

  	
  Trustee
  May File Proofs of Claim

  	
   

  
	
  SECTION
  6.10.

  	
  Priorities

  	
   

  
	
  SECTION
  6.11.

  	
  Undertaking
  for Costs

  	
   

  

 

ii

 

	
  ARTICLE SEVEN

  	
   

  
	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION
  7.01.

  	
  Duties
  of Trustee

  	
   

  
	
  SECTION
  7.02.

  	
  Rights
  of Trustee

  	
   

  
	
  SECTION
  7.03.

  	
  Individual
  Rights of Trustee

  	
   

  
	
  SECTION
  7.04.

  	
  Trustee’s
  Disclaimer

  	
   

  
	
  SECTION
  7.05.

  	
  Notice
  of Default

  	
   

  
	
  SECTION
  7.06.

  	
  Reports
  by Trustee to Holders

  	
   

  
	
  SECTION
  7.07.

  	
  Compensation
  and Indemnity

  	
   

  
	
  SECTION
  7.08.

  	
  Replacement
  of Trustee

  	
   

  
	
  SECTION
  7.09.

  	
  Successor
  Trustee by Merger, Etc.

  	
   

  
	
  SECTION
  7.10.

  	
  Eligibility;
  Disqualification

  	
   

  
	
  SECTION
  7.11.

  	
  Preferential
  Collection of Claims Against the Issuer

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  	
   

  
	
   

  	
   

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  	
   

  
	
   

  	
   

  
	
  SECTION
  8.01.

  	
  Termination
  of the Issuer’s Obligations

  	
   

  
	
  SECTION
  8.02.

  	
  Legal
  Defeasance and Covenant Defeasance

  	
   

  
	
  SECTION
  8.03.

  	
  Conditions
  to Legal Defeasance or Covenant Defeasance

  	
   

  
	
  SECTION
  8.04.

  	
  Application
  of Trust Money

  	
   

  
	
  SECTION
  8.05.

  	
  Repayment
  to the Issuer

  	
   

  
	
  SECTION
  8.06.

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  	
   

  
	
   

  	
   

  
	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.01.

  	
  Without
  Consent of Holders

  	
   

  
	
  SECTION
  9.02.

  	
  With
  Consent of Holders

  	
   

  
	
  SECTION
  9.03.

  	
  Effect
  on Senior Debt

  	
   

  
	
  SECTION
  9.04.

  	
  Compliance
  with TIA

  	
   

  
	
  SECTION
  9.05.

  	
  Revocation
  and Effect of Consents

  	
   

  
	
  SECTION
  9.06.

  	
  Notation
  on or Exchange of Notes

  	
   

  
	
  SECTION
  9.07.

  	
  Trustee
  To Sign Amendments, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  	
   

  
	
   

  	
   

  
	
  SUBORDINATION OF SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.01.

  	
  Notes
  Subordinated to Senior Debt

  	
   

  
	
  SECTION
  10.02.

  	
  Suspension
  of Payment When Designated Senior Debt Is in Default

  	
   

  
	
  SECTION
  10.03.

  	
  Notes
  Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation
  or Reorganization of the Issuer

  	
   

  

 

iii

 

	
  SECTION
  10.04.

  	
  Payments
  May Be Made Prior to Dissolution

  	
   

  
	
  SECTION
  10.05.

  	
  Holders
  To Be Subrogated to Rights of Holders of Senior Debt

  	
   

  
	
  SECTION
  10.06.

  	
  Obligations
  of the Issuer Unconditional

  	
   

  
	
  SECTION
  10.07.

  	
  Notice
  to Trustee

  	
   

  
	
  SECTION
  10.08.

  	
  Reliance
  on Judicial Order or Certificate of Liquidating Agent

  	
   

  
	
  SECTION
  10.09.

  	
  Trustee’s
  Relation to Senior Debt

  	
   

  
	
  SECTION
  10.10.

  	
  Subordination
  Rights Not Impaired by Acts or Omissions of the Issuer or Holders of Senior
  Debt

  	
   

  
	
  SECTION
  10.11.

  	
  Noteholders
  Authorize Trustee To Effectuate Subordination of Notes

  	
   

  
	
  SECTION
  10.12.

  	
  This
  Article Ten Not To Prevent Events of Default

  	
   

  
	
  SECTION
  10.13.

  	
  Trustee’s
  Compensation Not Prejudiced

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  	
   

  
	
   

  	
   

  
	
  GUARANTEES

  	
   

  
	
   

  	
   

  
	
  SECTION
  11.01.

  	
  Unconditional
  Guarantee

  	
   

  
	
  SECTION
  11.02.

  	
  Subordination
  of Guarantee

  	
   

  
	
  SECTION
  11.03.

  	
  Limitation
  on Guarantor Liability

  	
   

  
	
  SECTION
  11.04.

  	
  Execution
  and Delivery of Guarantee for Future Guarantors

  	
   

  
	
  SECTION
  11.05.

  	
  Release
  of a Guarantor; Merger, Consolidation or Sale of Assets of a Guarantor

  	
   

  
	
  SECTION
  11.06.

  	
  Waiver
  of Subrogation

  	
   

  
	
  SECTION
  11.07.

  	
  Immediate
  Payment

  	
   

  
	
  SECTION
  11.08.

  	
  No
  Setoff

  	
   

  
	
  SECTION
  11.09.

  	
  Guarantee
  Obligations Absolute

  	
   

  
	
  SECTION
  11.10.

  	
  Guarantee
  Obligations Continuing

  	
   

  
	
  SECTION
  11.11.

  	
  Guarantee
  Obligations Not Reduced

  	
   

  
	
  SECTION
  11.12.

  	
  Guarantee
  Obligations Reinstated

  	
   

  
	
  SECTION
  11.13.

  	
  Guarantee
  Obligations Not Affected

  	
   

  
	
  SECTION
  11.14.

  	
  Waiver

  	
   

  
	
  SECTION
  11.15.

  	
  No
  Obligation To Take Action Against the Issuer

  	
   

  
	
  SECTION
  11.16.

  	
  Dealing
  with the Issuer and Others

  	
   

  
	
  SECTION
  11.17.

  	
  Default
  and Enforcement

  	
   

  
	
  SECTION
  11.18.

  	
  Amendment,
  Etc.

  	
   

  
	
  SECTION
  11.19.

  	
  Acknowledgment

  	
   

  
	
  SECTION
  11.20.

  	
  Costs
  and Expenses

  	
   

  
	
  SECTION
  11.21.

  	
  No
  Merger or Waiver; Cumulative Remedies

  	
   

  
	
  SECTION
  11.22.

  	
  Guarantee
  in Addition to Other Guarantee Obligations

  	
   

  
	
  SECTION
  11.23.

  	
  Severability

  	
   

  
	
  SECTION
  11.24.

  	
  Successors
  and Assigns

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  SECTION
  12.01.

  	
  TIA
  Controls

  	
   

  

 

iv

 

	
  SECTION
  12.02.

  	
  Notices

  	
   

  
	
  SECTION
  12.03.

  	
  Communications
  by Holders with Other Holders

  	
   

  
	
  SECTION
  12.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
   

  
	
  SECTION
  12.05.

  	
  Statements
  Required in Certificate or Opinion

  	
   

  
	
  SECTION
  12.06.

  	
  Rules
  by Trustee, Paying Agent, Registrar

  	
   

  
	
  SECTION
  12.07.

  	
  Legal
  Holidays

  	
   

  
	
  SECTION
  12.08.

  	
  Governing
  Law

  	
   

  
	
  SECTION 12.09.

  	
  No Adverse Interpretation of Other Agreements

  	
   

  
	
  SECTION 12.10.

  	
  No Recourse Against Others

  	
   

  
	
  SECTION 12.11.

  	
  Successors

  	
   

  
	
  SECTION 12.12.

  	
  Duplicate Originals

  	
   

  
	
  SECTION 12.13.

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  Signatures

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Initial Note

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of Legend for Rule 144A Notes and
  Other Notes That Are Restricted Notes

  	
   

  
	
  Exhibit C

  	
  -

  	
  Form of Legend for Regulation S Note

  	
   

  
	
  Exhibit D

  	
  -

  	
  Form of Legend for Global Note

  	
   

  
	
  Exhibit E

  	
  -

  	
  Form of Non-Distribution Letter for
  Institutional Accredited Investors

  	
   

  
	
  Exhibit F

  	
  -

  	
  Form of Certificate To Be Delivered in
  Connection with Transfers Pursuant to Regulation S

  	
   

  
	
  Exhibit G

  	
  -

  	
  Form of Indenture Supplement to add Notes
  Guarantor

  	
   

  
	
  Exhibit H

  	
  -

  	
  Guarantors

  	
   

  
	
  Exhibit I

  	
  -

  	
  Form of Notation of Guarantee

  	
   

  

 

Note:      This
Table of Contents shall not, for any purpose, be deemed to be a part of this
Indenture.

 

v

 

INDENTURE
dated as of February 11, 2005 between Niagara Acquisition, Inc., a
Delaware corporation which will be merged with and into PQ Corporation, a
Pennsylvania corporation, with PQ Corporation continuing as the surviving
corporation (the “Issuer”), the
Guarantors (as defined herein) and Wells Fargo Bank, National Association, as
trustee (the “Trustee”).

 

For and in
consideration of the premises and the purchase of the Notes by the Holders
thereof, each party hereto covenants and agrees as follows for the benefit of
the other parties and for the equal and ratable benefit of all Holders of
(i) the Issuer’s 71⁄2% Senior Subordinated Notes due 2013, issued on the
date hereof and the guarantees thereof by the Guarantors (the “Initial Notes”), (ii) if and when issued in accordance with the terms of
this Indenture, an unlimited principal amount of additional 71⁄2% Senior
Subordinated Notes due 2013 in a non-registered offering or 71⁄2% Senior
Subordinated Notes due 2013 in a registered offering of the
Issuer, and the guarantees thereof by the Guarantors that may be offered from
time to time subsequent to the Issue Date (the “Additional Notes”)
and (iii) if and when issued in accordance with the terms of this
Indenture, the Issuer’s 71⁄2% Senior Subordinated Notes due 2013 and the
guarantees thereof by the Guarantors that may be issued from time to time in
exchange for Initial Notes or any Additional Notes in an offer registered under
the Securities Act (as hereinafter defined) as provided in the Registration
Rights Agreement (as hereinafter defined, the “Exchange Notes,” and together with the Initial Notes and
Additional Notes, the “Notes”).

 

ARTICLE ONE

 

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

SECTION 1.01.  Definitions.

 

Set forth
below are certain defined terms used in this Indenture.

 

“Acquired Debt” 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 Indebtedness
incurred in connection with, or in contemplation of, or to provide all or any
portion of the funds or credit support utilized in connection with, such other
Person merging with or into, or becoming a Restricted Subsidiary of, such
specified Person; and

 

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

 

“Additional Interest” has the meaning set forth in the
Registration Rights Agreement.

 

“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 

 

1

 

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.

 

“Agent” means any Registrar, Paying Agent or co-Registrar.

 

“amend” means amend, modify, supplement, restate or amend and
restate, including successively; and “amending” and “amended” have correlative meanings.

 

“Applicable Premium” means, with respect to any Note on any
applicable redemption date, the greater of:

 

(1)           1.0%
of the then outstanding principal amount of the Note; and

 

(2)           the
excess of:

 

(a)           the present
value at such redemption date of (i) the redemption price of the Note at
February 15, 2009 (such redemption price being set forth in the table appearing
under paragraph (b) of Section 5 of Exhibit A hereto) plus
(ii) all required interest payments due on the Note, through February 15,
2009 (excluding accrued but unpaid interest), computed using a discount rate
equal to the Treasury Rate as of such redemption date plus 50 basis points;
over

 

(b)           the then
outstanding principal amount of the Note.

 

“asset” means any asset or property, whether real, personal
or other, tangible or intangible.

 

“Asset Sale” means (i) the sale, conveyance, transfer, lease
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 Issuer or any Restricted Subsidiary (each referred to in this definition
as a “disposition”) or (ii) the issuance or
sale of Equity Interests of any Restricted Subsidiary other than directors’
qualifying shares or shares required to be held by Foreign Subsidiaries
(whether in a single transaction or a series of related transactions), in each
case, other than:

 

(1)           a disposition of Cash
Equivalents or obsolete or worn out property or equipment in the ordinary
course of business or inventory (or other assets) held for sale in the ordinary
course of business and dispositions of property no longer used or useful in the
conduct of the business of the Issuer and its Restricted Subsidiaries;

 

(2)           the disposition of all
or substantially all of the assets of the Issuer in a manner permitted pursuant
to Section 5.01 or any disposition that constitutes a Change of
Control pursuant to this Indenture;

 

(3)           the making of any
Restricted Payment or Permitted Investment that is permitted to be made, and is
made, pursuant to Section 4.11 or the granting of a Lien permitted
by Section 4.12;

 

2

 

(4)           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;

 

(5)           any disposition of
property or assets or issuance of securities by a Restricted Subsidiary to the
Issuer or by the Issuer or a Restricted Subsidiary to another Restricted
Subsidiary;

 

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

 

(7)           any sale of Equity
Interests in, or Indebtedness or other securities of, an Unrestricted
Subsidiary (with the exception of Investments in Unrestricted Subsidiaries made
pursuant to clause (10) of the definition of “Permitted Investments”);

 

(8)           foreclosures on assets;

 

(9)           disposition of an
account receivable in connection with the collection or compromise thereof;

 

(10)         sales of Securitization
Assets and related assets of the type specified in the definition of “Securitization
Financing” to a Securitization Subsidiary in connection with any Qualified
Securitization Financing;

 

(11)         a transfer of
Securitization Assets and related assets of the type specified in the
definition of “Securitization Financing” (or a fractional undivided interest
therein) by a Securitization Subsidiary in a Qualified Securitization
Financing;

 

(12)         the grant in the ordinary
course of business of any licenses of patents, trademarks, know-how and any
other intellectual property; and

 

(13)         the sale of any property
in a sale/leaseback transaction within six months of the acquisition of such
property.

 

“Bank Indebtedness” means all Obligations pursuant to the Credit
Agreement.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar
Federal, state or foreign law for the relief of debtors.

 

“Beneficial Owner” has the meaning assigned to such term in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as that term is used in
Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have
beneficial ownership of all securities that such “person” has the right to
acquire by conversion or exercise of other securities, whether such right is
currently exercisable or is exercisable only upon the occurrence of a
subsequent condition. The terms “Beneficially Owns,”
“Beneficially Owned” and “Beneficial Ownership” have a corresponding meaning.

 

3

 

“Board of Directors” means:

 

(1)           with respect to a
corporation, the board of directors of the corporation;

 

(2)           with respect to a
partnership, the board of directors of the general partner of the partnership;
and

 

(3)           with respect to any
other Person, the board or committee of such Person serving a similar function.

 

“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 (or a duly
authorized committee thereof) of such Person and to be in full force and effect
on the date of such certification, and delivered to the Trustee.

 

“Business Day” means any day other than a Saturday, Sunday or
any other day on which banking institutions in the City of New York are
required or authorized by law or other governmental action to be closed.

 

“Capital Stock” means:

 

(1)           in the case of a
corporation, capital stock;

 

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

 

“Cash Contribution Amount” means the aggregate amount of cash
contributions made to the capital of the Issuer or any Guarantor described in
the definition of “Contribution Indebtedness.”

 

“Cash Equivalents” means:

 

(1)           U.S. dollars or, in the
case of the Issuer or any Foreign Subsidiary, such local currencies held by it
from time to time in the ordinary course of business;

 

4

 

(2)           securities issued or
directly and fully and unconditionally guaranteed or insured by the government
or any agency or instrumentality of the United States, the United Kingdom or
any member state of the European Union whose legal tender is the euro having
maturities of not more than 12 months from the date of acquisition;

 

(3)           certificates of
deposit, time deposits and eurodollar time deposits with maturities of 12
months or less from the date of acquisition, bankers’ acceptances with
maturities not exceeding 12 months and overnight bank deposits, in each case,
with any lender party to the Credit Agreement or with any commercial bank
having capital and surplus in excess of $250 million;

 

(4)           repurchase obligations
for underlying securities of the types described in clauses (2) and (3) above
entered into with any financial institution meeting the qualifications
specified in clause (3) above;

 

(5)           commercial paper
maturing within 12 months after the date of acquisition and having a rating of
at least A-2 from Moody’s or P-2 from S&P;

 

(6)           readily marketable
direct obligations issued by any state of the United States or any political
subdivision thereof having one of the two highest rating categories obtainable
from either Moody’s or S&P with maturities of 12 months or less from the
date of acquisition;

 

(7)           instruments equivalent
to those referred to in clauses (1) to (6) above denominated in euro or pound
sterling or any other foreign currency comparable in credit quality and tenor
to those referred to above and customarily used by corporations for cash
management purposes in any jurisdiction outside the United States to the extent
reasonably required in connection with any business conducted by any Restricted
Subsidiary organized in such jurisdiction; and

 

(8)           investment in funds
which invest substantially all of their assets in Cash Equivalents of the kinds
described in clauses (1) through (7) of this definition.

 

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

 

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

 

(2)           the Issuer 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, directly or indirectly, of 50% 

 

5

 

or more of the total voting power of the Voting Stock of the Issuer or
any of its direct or indirect parent entities; or

 

(3)           the first day on which
the majority of the Board of Directors of the Issuer then in office shall cease
to consist of individuals who (i) were members of the Board of Directors
of the Issuer on the Issue Date or (ii) were either (x) nominated for
election by the Board of Directors of the Issuer, a majority of whom were
directors on the Issue Date or whose election or nomination for election was
previously approved by a majority of such directors or who were designated or
appointed pursuant to clause (y) below, or (y) designated or
appointed by a Permitted Holder (each of the directors selected pursuant to
clauses (i) or (ii), “Continuing Directors”).

 

“Code” means the United States Internal Revenue Code of 1986,
as amended from time to time, and the regulations promulgated and rulings
issued thereunder. Section references to the Code are to the Code, as in effect
on the Issue Date, and any subsequent provisions of the Code, amendatory
thereof, supplemental thereto or substituted therefor.

 

“Commission” means the U.S. Securities and Exchange
Commission.

 

“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 (including amortization
of original issue discount, non-cash interest payments (other than imputed
interest as a result of purchase accounting)), commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance
financing, the interest component of Capitalized Lease Obligations, net
payments (if any) pursuant to interest rate Hedging Obligations, but excluding
amortization of deferred financing fees or expensing of any bridge or other
financing fees, (b) consolidated capitalized interest of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued, less (c)
interest income actually received in cash for such period; provided, however, that Securitization Fees shall not be deemed to
constitute Consolidated Interest Expense.

 

“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, unusual or non-recurring gains or losses (including, without
limitation, severance, relocation, transition and other restructuring costs and
litigation settlements or losses) shall be excluded;

 

6

 

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

 

(3)           any net after-tax gains
or losses attributable to asset dispositions other than in the ordinary course
of business (as determined in good faith by the Board of Directors of the
Issuer) and any gain (or loss) realized upon the sale or other disposition of
any Capital Stock of any Person shall be excluded;

 

(4)           the Net Income for such
period of any Person that is not a Subsidiary of such Person, or that is an
Unrestricted Subsidiary, or that is accounted for by the equity method of
accounting, shall be excluded; provided, however, that, to the extent not already included,
Consolidated Net Income of such Person shall be (A) increased by the amount of
dividends or other 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 (subject, in the case
of dividends paid or distributions or other payments made to a Restricted
Subsidiary (other than a Guarantor), to the limitations contained in clause (5)
below) and (B) decreased by the amount of any equity of the Issuer in a
net loss of any such Person for such period to the extent the Issuer has funded
such net loss;

 

(5)           solely for the purpose
of determining the amount available for payments under Section 4.11(a)(3),
the Net Income for such period of any Restricted Subsidiary (other than a
Guarantor) shall be excluded if the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of its Net Income is not
permitted at the date of determination 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 similar distributions has been legally waived; provided, however, that
the Consolidated Net Income of such Person shall be, subject to the exclusion
contained in clause (4) above, increased by the amount of dividends or similar
distributions that are actually paid in cash (or to the extent converted into
cash) to such Person or a Restricted Subsidiary thereof (subject to the
provisions of this clause (5)) in respect of such period, to the extent not
already included therein;

 

(6)           non-cash compensation
charges, including any such charges arising from stock options, restricted
stock grants or other equity-incentive programs, shall be excluded;

 

(7)           any net after-tax gains
or losses (less all fees and expenses or charges relating thereto) attributable
to the early extinguishment of Indebtedness shall be excluded;

 

(8)           the effect of any
non-cash items resulting from any amortization, write-up, write-down or
write-off of assets (including intangible assets, goodwill and deferred
financing costs) in connection with the Transactions or any future acquisition,
merger, consolidation or similar transaction (excluding any such non-cash item
to the extent that 

 

7

 

it represents an accrual of or reserve for cash expenditures in any
future period except to the extent such item is subsequently reversed) shall be
excluded;

 

(9)           any net after-tax
income or loss from discontinued operations and any net after-tax gains or
losses on disposal of discontinued operations shall be excluded;

 

(10)         an amount equal to the
distributions actually made to any parent company of such Person in respect of such
period in accordance with Section 4.11(b)(16)(B) shall be included as
though such amounts had been paid by such Person for such period for the
expense or cost incurred by such parent company and for which such distribution
was made;

 

(11)         any non-cash impairment
charges resulting from the application of Statement of Financial Accounting
Standards Nos. 142 and 144 and the amortization of intangibles arising pursuant
to No. 141 shall be excluded;

 

(12)         accruals and reserves
that are established within twelve months after the Issue Date and that are so
required to be established in accordance with GAAP shall be excluded; provided, however, that
any noncash item that represents an accrual or reserve for a cash expenditure
for a future period shall be treated as an expense in such future period when
cash is paid (except to the extent such item would otherwise be excluded under
this definition);

 

(13)         unrealized gains and
losses relating to hedging transactions and mark-to-market Indebtedness
denominated in foreign currencies resulting from the application of Statement
of Financial Accounting Standards No. 52 shall be excluded; and

 

(14)         fees, expenses and
charges in connection with the Transactions shall be excluded.

 

Notwithstanding
the foregoing, for the purpose of Section 4.11 only, there shall be
excluded from Consolidated Net Income any income arising from any sale or other
disposition of Restricted Investments made by the Issuer and the Restricted
Subsidiaries, any repurchases and redemptions of Restricted Investments made by
the Issuer and the Restricted Subsidiaries, any repayments of loans and
advances which constitute Restricted Investments made by the Issuer and 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 clause Section 4.11(a)(3)(D).

 

“Contingent Obligations” means, with respect to any Person,
any obligation of such Person guaranteeing any leases, dividends or other
obligations that do not constitute Indebtedness (“primary
obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including
any obligation of such Person, whether or not contingent, (i) to purchase any
such primary obligation or any property constituting direct or indirect
security therefor, (ii) 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 (iii) to 

 

8

 

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.

 

“Contribution Indebtedness” means Indebtedness of the Issuer
or any Guarantor in an aggregate principal amount not greater than twice the
aggregate amount of cash contributions (other than Excluded Contributions) made
to the capital of the Issuer or such Guarantor after the Issue Date; provided, however, that:

 

(1)           if the aggregate
principal amount of such Contribution Indebtedness is greater than one times
such cash contributions to the capital of the Issuer or such Guarantor, as
applicable, the amount of such excess shall be (A)(x) Subordinated Indebtedness
(other than Secured Indebtedness) or (y) Senior Subordinated Indebtedness
(other than Secured Indebtedness) and (B) Indebtedness with a Stated Maturity
later than the Stated Maturity of the Notes, and

 

(2)           such Contribution
Indebtedness (a) is incurred within 180 days after the making of such cash
contributions and (b) is so designated as Contribution Indebtedness pursuant to
an Officers’ Certificate on the date of the incurrence thereof.

 

“Corporate Trust Office” means the corporate trust office of
the Trustee located at 213 Court Street, Suite 703, Middletown, CT
06457, Attention:  Corporate Trust
Department, or such other office, designated by the Trustee by written notice
to the Issuer, at which at any particular time its corporate trust business
shall be administered.

 

“Credit Agreement” means (i) the credit agreement, as
amended, restated, supplemented, waived, replaced (whether or not upon
termination, and whether with the original lenders or otherwise), restructured,
repaid, refunded, refinanced or otherwise modified from time to time, including
any agreement or indenture extending the maturity thereof, refinancing,
replacing or otherwise restructuring all or any portion of the Indebtedness
under such agreement or agreements or indenture or indentures or any successor
or replacement agreement or agreements or indenture or indentures or increasing
the amount loaned or issued thereunder or altering the maturity thereof, among PQ
Corporation, Niagara Acquisition, Inc., certain Subsidiaries of PQ Corporation,
the financial institutions named therein and UBS AG, Stamford Branch, as
Administrative Agent and Collateral Agent and (ii) whether or not the
credit agreement referred to in clause (i) remains outstanding, if
designated by the Issuer to be included in the definition of “Credit Agreement,”
one or more (A) debt facilities or commercial paper facilities, providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to lenders or to special purpose entities
formed to borrow from lenders against such receivables) or letters of credit,
(B) debt securities, indentures or other forms of debt financing
(including convertible or exchangeable debt instruments or bank guarantees or
bankers’ acceptances), or (C) instruments or agreements evidencing any
other Indebtedness, in each case, with the same or different borrowers or
issuers and, in each case, as amended, supplemented, modified, extended,
restructured, renewed, refinanced, restated, replaced or refunded in whole or
in part from time to time.

 

9

 

“Custodian” means any receiver, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law.

 

“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.

 

“Designated Non-cash Consideration” means the fair market
value of non-cash consideration received by the Issuer or any of its Restricted
Subsidiaries 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, less the amount of cash or Cash Equivalents
received in connection with a subsequent sale of such Designated Non-cash Consideration.

 

“Designated Preferred Stock” means Preferred Stock of the
Issuer or any direct or indirect parent entity of the Issuer (other than
Disqualified Stock), that is issued for cash (other than to the Issuer or any
of its Subsidiaries or an employee stock ownership plan or trust established by
the Issuer or any of its Subsidiaries) and is so designated as Designated
Preferred Stock, pursuant to an Officers’ Certificate, on the issuance date
thereof, the cash proceeds of which are excluded from the calculation set forth
in Section 4.11(a)(3).

 

“Designated Senior Debt” means:

 

(1)           any Bank Indebtedness
that constitutes Senior Debt; and

 

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

 

“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 final maturity date of the Notes or the date the Notes are
no longer outstanding; provided, however, that (i) if such Capital Stock is issued to any
plan for the benefit of employees of the Issuer or any of 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
Issuer or any of its Subsidiaries in order to satisfy applicable statutory or
regulatory obligations, (ii) only the portion of Capital Stock which so
matures or is mandatorily redeemable, is so convertible or exchangeable or is
so redeemable at the option of the holder thereof prior to such date shall be
deemed to be Disqualified Stock and (iii) any class of Capital Stock of
the Issuer that by its terms authorizes the Issuer to satisfy its obligations
thereunder by delivery of Capital Stock of the Issuer that is not Disqualified
Stock shall not be deemed to be Disqualified Stock.

 

“Domestic Restricted Subsidiary” means any direct or indirect
Restricted Subsidiary of the Issuer that was formed under the laws of the
United States, any state of the 

 

10

 

United States,
the District of Columbia or any territory of the United States including,
without limitation, Puerto Rico.

 

“Domestic Subsidiary” means any direct or indirect Subsidiary
of the Issuer that was formed under the laws of the United States, any state of
the United States, the District of Columbia or any territory of the United
States including, without limitation, Puerto Rico.

 

“EBITDA” means, with respect to any Person for any period,
the Consolidated Net Income of such Person for such period plus, without
duplication, the following to the extent deducted in calculating such
Consolidated Net Income:

 

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

 

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

 

(3)           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

 

(4)           any reasonable expenses
or charges incurred in connection with any Equity Offering, Permitted
Investment, acquisition, recapitalization or Indebtedness permitted to be
incurred under this Indenture (in each case whether or not consummated) or
pursuant to the Transactions (including, without limitation, the fees payable
to the Sponsors pursuant to the Management Agreement in connection with the
Transactions), plus

 

(5)           the amount of any
business optimization expenses and restructuring charges or reserves (which,
for the avoidance of doubt, shall include retention, severance, systems
establishment costs, excess pension charges, contract termination costs,
including future lease commitments, and costs to consolidate facilities and
relocate employees) deducted in such period in computing Consolidated Net
Income, plus

 

(6)           any other non-cash
charges (including any impairment charges and the impact of purchase
accounting, including, but not limited to, the amortization of inventory
step-up) 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

 

(7)           any net gain or loss
resulting from Hedging Obligations, plus

 

(8)           the amount of
management, monitoring, consulting and advisory fees, termination payments and
related expenses paid to the Sponsors (or any accruals relating to such fees
and related expenses) during such period pursuant to the Management Agreement,
plus

 

11

 

(9)           Securitization Fees to
the extent deducted in calculating Consolidated Net Income for such period,
plus

 

(10)         any net after-tax income
or loss from discontinued operations and any net after-tax gains or losses on
disposal of discontinued operations, less

 

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 made in any prior period).

 

Notwithstanding
the foregoing, the provision for taxes based on the income or profits of, and
the depreciation and amortization and non-cash charges of, a Restricted
Subsidiary (other than a Guarantor) shall be added to Consolidated Net Income
to compute EBITDA only to the extent (and in the same proportion, including by
reason of minority interests) that the net income or loss of such Restricted
Subsidiary was included in calculating Consolidated Net Income.

 

“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 Issuer or any of its direct or indirect parent
entities (excluding Disqualified Stock of the Issuer), other than (i) public
offerings with respect to common stock of the Issuer or of any of its direct or
indirect parent entities registered on Form S-4 or Form S-8, (ii) any such
public or private sale that constitutes an Excluded Contribution or (iii) an
issuance to any Subsidiary of the Issuer.

 

“Exchange Offer Registration Statement” shall have the
meaning set forth in the Registration Rights Agreement.

 

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

 

“Excluded Contribution” means net cash proceeds, marketable
securities or Qualified Proceeds, in each case received by the Issuer and its
Restricted Subsidiaries from:

 

(1)           contributions to its
common equity capital; and

 

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

 

in each case
designated as Excluded Contributions pursuant to an Officers’ Certificate on
the date such capital contributions are made or the date such Equity Interests
are sold, as the case may be, which are excluded from the calculation set forth
in Section 4.11(a)(3).

 

12

 

“Existing Indebtedness” means Indebtedness of the Issuer and
its Subsidiaries (other than Indebtedness under the Credit Agreement) in
existence on the date of this Indenture.

 

“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 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 Issuer or any
Restricted Subsidiary incurs, assumes, guarantees or repays 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 repayment 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 and as if
the Issuer or such Restricted Subsidiary had not earned the interest income
actually earned during such period in respect of such cash used to repay,
repurchase, defease or otherwise discharge such Indebtedness.

 

Investments,
acquisitions, dispositions, mergers, consolidations, discontinued operations or
any operational changes that have been made by the Issuer 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
or if the Issuer or any Restricted Subsidiary had accounted for any of its
business as a discontinued operation during any such period, then the Fixed
Charge Coverage Ratio shall be calculated on a pro
forma basis assuming that all such Investments, acquisitions,
dispositions, mergers, consolidations or operational changes (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
and that such discontinued operation was disposed of on the first day of such
reference period.

 

If since the
beginning of such period any Person (that subsequently became a Restricted
Subsidiary or was merged with or into the Issuer or any Restricted Subsidiary
since the beginning of such period) shall have made any Investment,
acquisition, disposition, merger, consolidation, discontinued operation or any
operational change 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,
discontinued operation or any operational change 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 an Investment, acquisition, disposition, merger, consolidation,
discontinued operation or any operational change (including, without
limitation, the Transactions) and the amount of income or earnings relating
thereto, the pro forma
calculations shall be determined in good faith by a responsible financial or
accounting Officer of the Issuer. 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 if the related hedge has a remaining term in excess of twelve
months). Any such pro forma calculation 

 

13

 

may include
adjustments appropriate, in the reasonable determination of the Issuer as set
forth in an Officers’ Certificate, to reflect (1) operating expense
reductions and other operating improvements or synergies reasonably expected to
result from the transaction being given pro forma effect (including, to the
extent applicable, from the Transactions) and (2) all adjustments of the
nature used in connection with the calculation of “Adjusted EBITDA” as set
forth in footnote 6 to the “Offering Circular Summary — Summary Historical and
Pro Forma Financial Information” in the Offering Circular­ to the extent such
adjustments, without duplication, continue to be applicable to such
four-quarter period.

 

Interest on a
Capitalized Lease Obligation shall be deemed to accrue at the interest rate
reasonably determined by a responsible financial or accounting officer of the
Issuer 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 Issuer may designate.

 

“Fixed Charges” means, with respect to any Person for any
period, the sum of, without duplication, (a) Consolidated Interest Expense
(excluding all non-cash interest expense and amortization/accretion of original
issue discount, in each case, in connection with the Specified Financings
(including any original issue discount created by fair value adjustments to the
Issuer’s Existing Indebtedness as a result of purchase accounting)) of such
Person for such period, (b) all cash dividends paid during such period
(excluding items eliminated in consolidation) on any series of Preferred Stock
of such Person and its Subsidiaries and (c) all cash dividends paid during
such period (excluding items eliminated in consolidation) on any series of
Disqualified Stock of such Person and its Subsidiaries.

 

“Foreign Subsidiary” means any Subsidiary of the Issuer that
is not a Domestic Subsidiary.

 

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

 

“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, through
letters of credit or reimbursement agreements in respect thereof, of all or any
part of any Indebtedness or other obligations. 
When used as a verb, “guarantee”
shall have a corresponding meaning.

 

“Guarantee” means any guarantee of the obligations of the
Issuer under this Indenture and the Notes by a Guarantor in accordance with the
provisions of this Indenture. When used as a verb, “Guarantee”
shall have a corresponding meaning.

 

14

 

“Guarantor” means any Person that incurs a Guarantee of the
Notes; provided, however, that upon the release and discharge of such Person from its
Guarantee in accordance with this Indenture, such Person shall cease to be a
Guarantor.

 

“Guarantor Senior Debt” means, with respect to any Guarantor,
the principal of, premium, if any, and interest (including any interest
accruing subsequent to the filing of a petition of bankruptcy at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed or allowable claim under applicable law) on any
Indebtedness and any Securitization Repurchase Obligation of such Guarantor,
whether outstanding on the Issue Date or thereafter created, incurred or
assumed, unless, in the case of any particular obligation, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such obligation shall be subordinate or pari passu in right of payment to the Guarantee of such
Guarantor. Without limiting the generality of the foregoing, “Guarantor Senior
Debt” shall also include the principal of, premium, if any, interest (including
any interest accruing subsequent to the filing of a petition of bankruptcy at
the rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed or allowable claim under applicable law) on, and
all other amounts owing in respect of (including guarantees of the foregoing
obligations):

 

(1)           all monetary
obligations of every nature of such Guarantor under, or with respect to, the
Credit Agreement, including obligations to pay principal, premium and interest,
reimbursement obligations under letters of credit, fees, expenses and
indemnities (and guarantees thereof); and

 

(2)           all Hedging Obligations
(and guarantees thereof), in each case whether outstanding on the Issue Date or
thereafter incurred.

 

Notwithstanding
the foregoing, “Guarantor Senior Debt” shall not include:

 

(1)           any Indebtedness of
such Guarantor to a Subsidiary of such Guarantor (other than any Securitization
Repurchase Obligation);

 

(2)           Indebtedness to, or
guaranteed on behalf of, any shareholder, director, officer or employee of such
Guarantor or any Subsidiary of such Guarantor (including, without limitation,
amounts owed for compensation), other than Indebtedness under the Credit
Agreement;

 

(3)           Indebtedness to trade
creditors and other amounts incurred in connection with obtaining goods,
materials or services (including guarantees thereof or instruments evidencing
such liabilities);

 

(4)           Indebtedness
represented by Capital Stock;

 

(5)           any liability for
federal, foreign, state, local or other taxes owed or owing by such Guarantor;

 

(6)           that portion of any
Indebtedness incurred in violation of Section 4.10 or Section
4.18; provided, however, that if such Indebtedness has
been Incurred under the 

 

15

 

Credit Agreement, such Indebtedness shall be deemed Senior Debt if the
holders of such Indebtedness or their Representative received an Officers’
Certificate at the time of such incurrence to the effect that the incurrence of
such Indebtedness does not (or, in the case of a revolving credit facility
thereunder, the incurrence of the entire committed amount thereof at the date
on which the initial borrowing thereunder is made would not) violate such Sections;

 

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

 

(8)           any Indebtedness which
is, by its express terms, subordinated in right of payment to any other
Indebtedness of such Guarantor.

 

“Hedging Obligations” means, with respect to any Person, the
obligations of such Person under:

 

(1)           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

 

(2)           other agreements or
arrangements designed to protect such Person against fluctuations in currency
exchange, interest rates or commodity prices.

 

“Holdings” means Niagara Holdings, Inc. and its successors.

 

“Holder” or “Noteholder”
means the registered holder of any Note.

 

“Indebtedness” means, with respect to any Person,

 

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

 

(i)            in respect of borrowed
money,

 

(ii)           evidenced by bonds,
notes, debentures or similar instruments or letters of credit (or, without
duplication, reimbursement agreements in respect thereof),

 

(iii)          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

 

(iv)          representing any Hedging
Obligations,

 

16

 

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)           Disqualified Stock of
such Person,

 

(c)           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

 

(d)           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 the amount of such Indebtedness will be the lesser of:  (a) the Fair Market Value of such asset
at such date of determination and (b) the amount of such Indebtedness of
such other Person;

 

provided, however, that notwithstanding the foregoing, Indebtedness
shall be deemed not to include (a) Contingent Obligations incurred in the
ordinary course of business and not in respect of borrowed money;
(b) prepaid revenues; (c) purchase price holdbacks in respect of a
portion of the purchase price of an asset to satisfy warranty or other
unperformed obligations of the respective seller; or (d) Obligations under
or in respect of Qualified Securitization Financing.

 

“Indenture” means this Indenture, as amended, restated or
supplemented from time to time in accordance with the terms hereof.

 

“Independent Financial Advisor” means an accounting,
appraisal or investment banking firm or consultant to Persons engaged in a
Permitted Business of nationally recognized standing that is, in the good faith
judgment of the Board of Directors of the Issuer, qualified to perform the task
for which it has been engaged.

 

“Initial Purchasers” means (1) with respect to the Initial
Notes issued on the Issue Date, Credit Suisse First Boston LLC, J.P. Morgan
Securities Inc. and UBS Securities LLC and (2) with respect to each issuance of
Additional Notes, the Persons purchasing such Additional Notes under the
related purchase agreement.

 

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

 

“Investments” means, with respect to any Person, all direct
or indirect investments by such Person in other Persons (including Affiliates)
in the forms of loans (including guarantees or other obligations), advances or
capital contributions (including by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others, but 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 

 

17

 

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 4.11,
(i) ”Investments” shall include the portion (proportionate to the Issuer’s
equity interest in such Subsidiary) of the fair market value of the net assets
of a Subsidiary of the Issuer 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 Issuer shall be deemed to continue to have a
permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive)
equal to (x) the Issuer’s “Investment” in such Subsidiary at the time of such
redesignation less (y) the portion (proportionate to the Issuer’s equity
interest in such Subsidiary) of the fair market value of the net assets of such
Subsidiary at the time of such redesignation; (ii) 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
Board of Directors of the Issuer; and (iii) in any single transaction or series
of related transactions, any transfer of Capital Stock that results in an
entity ceasing to be a Restricted Subsidiary shall be deemed to be an
Investment in an amount equal to the fair market value (as determined by the
Board of Directors of the Issuer in good faith as of the date of initial
acquisition) of the Capital Stock of such entity owned by the Issuer and the
Restricted Subsidiaries immediately after such transfer.

 

“Issue Date” means February 11, 2005.

 

“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, however,
that in no event shall an operating lease be deemed to constitute a Lien.

 

“Management Agreement” means the Management Agreement by and
among J.P. Morgan Partners (BHCA), L.P. and certain affiliates thereof,
Peak Investments, LLC and certain affiliates thereof, Holdings and the Issuer,
as of the Issue Date.

 

“Maturity Date” means February 15, 2013.

 

“Moody’s” means Moody’s Investors Service, Inc. and by any
successor to its rating business.

 

“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 or accretion of any Preferred
Stock.

 

“Net Proceeds” means the aggregate cash proceeds received by
the Issuer or any Restricted Subsidiary in respect of any Asset Sale, in each
case net of, legal, accounting and investment banking fees, and brokerage and
sales commissions, any relocation expenses and other direct costs incurred as a
result thereof, taxes paid or payable as a result thereof (after 

 

18

 

taking into
account any available tax credits or deductions and any tax sharing
arrangements), repayment of Indebtedness (including premiums and accrued
interest) that is secured by the property or assets that are the subject of
such Asset Sale and any deduction of appropriate amounts to be provided by the
Issuer as a reserve in accordance with GAAP against any liabilities associated
with the asset disposed of in such transaction and retained by the Issuer 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-Guarantor Restricted Subsidiary” means any Restricted
Subsidiary that is not a Guarantor.

 

“Non-U.S. Person” has the meaning assigned to such term in
Regulation S.

 

“Obligations” means any principal, interest, penalties, fees,
indemnifications, reimbursements (including, without limitation, reimbursement
obligations with respect to letters of credit), 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 confidential offering circular
of the Issuer dated February 3, 2005 relating to the Notes.

 

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

 

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

 

“Opinion of Counsel” means a written opinion from legal
counsel (which may be subject to customary exceptions) who is reasonably
acceptable to the Trustee.  The counsel
may be an employee of or counsel to the Issuer, a Guarantor or the Trustee.

 

“Permitted Asset Swap” means any transfer of property or
assets by the Issuer or any of its Restricted Subsidiaries in which at least
90% of the consideration received by the transferor consists of properties or
assets (other than cash) that shall be used in a Permitted Business; provided, however, that
the aggregate fair market value of the property or assets being transferred by
the Issuer or such Restricted Subsidiary is not greater than the aggregate fair
market value of the property or assets received by the Issuer or such
Restricted Subsidiary in such exchange; provided further,
however, that such market value of the
property or assets being transferred or received by the Issuer or such
Restricted Subsidiary shall be made in good faith by the Board of Directors of the
Issuer.

 

“Permitted Business” means the business and any services,
activities or businesses incidental or directly related or similar to, any line
of business engaged in by the 

 

19

 

Issuer and its
Subsidiaries as of the Issue Date or any business activity that is a reasonable
extension, development or expansion thereof or ancillary thereto.

 

“Permitted Debt” is defined in Section 4.10(b).

 

“Permitted Holders” means (i) each of the Sponsors and
their respective Affiliates; (ii) Officers; provided, however, that if such Officers beneficially own more shares
of Voting Stock of the Issuer or any of its direct or indirect parent entities
than the number of such shares beneficially owned (including granted but
unvested shares) by all the Officers as of the Issue Date or acquired by
Officers within 90 days immediately following the Issue Date, such excess shall
be deemed not to be beneficially owned by Permitted Holders; and (iii) any
“group” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act or any successor provision) of which any of the foregoing are
members; provided, however, that in the case of such “group”
and without giving effect to the existence of such “group” or any other “group”,
such Sponsors, Affiliates and Officers (subject, in the case of Officers, to
the foregoing limitations), collectively, have beneficial ownership, directly
or indirectly, of more than 50% of the total voting power of the Voting Stock
of the Issuer or any of its direct or indirect parent entities held by such “group”.

 

“Permitted Investments” means

 

(1)           any Investment by the
Issuer in any Restricted Subsidiary or by a Restricted Subsidiary in another
Restricted Subsidiary;

 

(2)           any Investment in cash
and Cash Equivalents;

 

(3)           any Investment by the
Issuer or any Restricted Subsidiary of the Issuer in a Person that is engaged
in a Permitted Business if as a result of such Investment (A) such Person
becomes a Restricted Subsidiary or (B) 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 Issuer or a Restricted Subsidiary;

 

(4)           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 4.13
or any other disposition of assets not constituting an Asset Sale;

 

(5)           any Investment existing
on the Issue Date and any modification, replacement, renewal or extension
thereof; provided, however, that the amount of any such
Investment may be increased (x) as required by the terms of such
Investment as in existence on the Issue Date or (y) as otherwise permitted
under this Indenture;

 

(6)           loans and advances to
employees and any guarantees made in the ordinary course of business consistent
with past practices, but in any event not in excess of $5 million in the
aggregate outstanding at any one time;

 

(7)           any Investment acquired
by the Issuer or any Restricted Subsidiary (A) in exchange for any other
Investment or accounts receivable held by the Issuer or any such 

 

20

 

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

 

(8)           Hedging Obligations
permitted under clause (9) of the definition of “Permitted Debt” in Section 4.10(b);

 

(9)           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;

 

(10)         any Investment by the
Issuer or a Restricted Subsidiary in a Permitted Business having an aggregate
fair market value, taken together with all other Investments made pursuant to
this clause (10) 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 or marketable securities), not to exceed the
greater of (x) $75 million and (y) 7.5% of Total Assets;

 

(11)         Investments the payment
for which consists of Equity Interests of the Issuer or any of its direct or
indirect parent entities (exclusive of Disqualified Stock);

 

(12)         guarantees (including
Guarantees) of Indebtedness permitted under Section 4.10 and
performance guarantees in the ordinary course of business;

 

(13)         Investments consisting of
licensing of intellectual property pursuant to joint marketing arrangements
with other Persons;

 

(14)         any Investment in a
Securitization Subsidiary or any Investment by a Securitization Subsidiary in
any other Person in connection with a Qualified Securitization Financing,
including, without limitation, Investments of funds held in accounts permitted
or required by the arrangements governing such Qualified Securitization
Financing or any related Indebtedness; provided, however, that any Investment in a Securitization Subsidiary is in the form of
a Purchase Money Note, contribution of additional Securitization Assets or an
equity interest;

 

(15)         Investments consisting of
purchases and acquisitions of inventory, supplies, materials and equipment or purchases
of contract rights or licenses or leases of intellectual property, in each case
in the ordinary course of business;

 

(16)         Investments resulting
from the receipt of non-cash consideration in an Asset Sale received in
compliance with Section 4.13;

 

(17)         additional Investments in
joint ventures of the Issuer or any of its Restricted Subsidiaries existing on
the Issue Date not to exceed $15 million outstanding at any one time; and

 

21

 

(18)         Investments of a
Restricted Subsidiary of the Issuer acquired after the Issue Date or of an
entity merged into, amalgamated with, or consolidated with a Restricted
Subsidiary of the Issuer in a transaction that is not prohibited under Section
5.01 after the Issue Date to the extent that such Investments were not made
in contemplation of such acquisition, merger, amalgamation or consolidation and
were in existence on the date of such acquisition, merger, amalgamation or
consolidation.

 

“Permitted Junior Securities” means:

 

(1)           Equity Interests in the
Issuer, any Guarantor or any direct or indirect parent of the Issuer issued
pursuant to a plan of reorganization or readjustment; or

 

(2)           unsecured debt
securities of the Issuer issued pursuant to a plan of reorganization or readjustment
that are subordinated to all Senior Debt or, as applicable, Guarantor Senior
Debt of the Issuer (and any debt securities issued in exchange for Senior Debt
or such Guarantor Senior Debt) to substantially the same extent as, or to a
greater extent than, the Notes are subordinated to Senior Debt under this
Indenture;

 

provided, however, that to the extent that any Senior Debt or
Guarantor Senior Debt, as the case may be, outstanding on the date of
consummation of any such plan of reorganization or readjustment is not paid in
full in cash on such date, the holders of any such Senior Debt or Guarantor
Senior Debt not so paid in full in cash have consented to the terms of such
plan of reorganization or readjustment.

 

“Permitted Liens” means the following types of Liens:

 

(1)           deposits of cash or
government bonds made in the ordinary course of business to secure surety or
appeal bonds to which such Person is a party;

 

(2)           Liens in favor of
issuers of performance, surety, bid, indemnity, warranty, release, appeal or
similar bonds or with respect to other regulatory requirements or letters of
credit or bankers’ acceptance issued, and completion guarantees provided for,
in each case pursuant to the request of and for the account of such Person in
the ordinary course of its business or consistent with past practice;

 

(3)           Liens on property or
shares of stock of a Person at the time such Person becomes a Subsidiary; provided, however, that
such Liens are not created or incurred in connection with, or in contemplation
of, or to provide all or any portion of the funds or credit support utilized in
connection with, such other Person becoming such a Subsidiary; provided, further, however, that such Liens may not extend to any other
property owned by the Issuer or any Restricted Subsidiary;

 

(4)           Liens on property at
the time the Issuer or a Restricted Subsidiary acquired the property, including
any acquisition by means of a merger or consolidation with or into the Issuer
or any Restricted Subsidiary; provided, however, that such Liens are not created or incurred in
connection with, or in contemplation of, or to provide all or any portion of
the funds or credit support utilized for, such acquisition; provided, further, 

 

22

 

however, that such
Liens may not extend to any other property owned by the Issuer or any
Restricted Subsidiary;

 

(5)           Liens securing Hedging
Obligations; provided, however, that in the case of Hedging Obligations relating to
interest rate risks, the related Indebtedness is permitted to be incurred under
this Indenture and is secured by a Lien on the same property securing such
Hedging Obligation;

 

(6)           Liens on specific items
of inventory or other goods and proceeds of any Person securing such Person’s
obligations in respect of bankers’ acceptances or letters of credit issued or
created for the account of such Person to facilitate the purchase, shipment or
storage of such inventory or other goods;

 

(7)           Liens in favor of the
Issuer or any Restricted Subsidiary;

 

(8)           Liens to secure any
Indebtedness that is incurred to refinance any Indebtedness that has been
secured by a Lien existing on the Issue Date or referred to in clauses (3), (4)
and (19)(B) of this definition; provided, however, that such Liens (x) are no less favorable to the
Holders of the Notes, taken as a whole, and are not more favorable to the
lienholders with respect to such Liens than the Liens in respect of the
Indebtedness being refinanced; and (y) do not extend to or cover any property
or assets of the Issuer or any of its Restricted Subsidiaries not securing the
Indebtedness so refinanced;

 

(9)           Liens on Securitization
Assets and related assets of the type specified in the definition of “Securitization
Financing” incurred in connection with any Qualified Securitization Financing;

 

(10)         Liens for taxes,
assessments or other governmental charges or levies not yet delinquent, or
which are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted or for property taxes on property that the
Issuer or one of its Subsidiaries has determined to abandon if the sole
recourse for such tax, assessment, charge, levy or claim is to such property;

 

(11)         judgment liens in respect
of judgments that do not constitute an Event of Default so long as such Liens
are adequately bonded and any appropriate legal proceedings that may have been
duly initiated for the review of such judgment have not been finally terminated
or the period within which such proceedings may be initiated has not expired;

 

(12)         pledges, deposits or
security under workmen’s compensation, unemployment insurance and other social
security laws or regulations, or deposits to secure the performance of bids,
tenders, contracts (other than for the payment of Indebtedness) or leases, or
deposits to secure public or statutory obligations, or deposits as security for
contested taxes or import or customs duties or for the payment of rent, or
deposits or other security securing liabilities to insurance carriers under
insurance or self-insurance arrangements, in each case incurred in the ordinary
course of business or consistent with past practice;

 

23

 

(13)         Liens imposed by law,
including carriers’, warehousemen’s, materialmen’s, repairmen’s and mechanics’
Liens, in each case for sums not overdue by more than 30 days or if more than
30 days overdue, are unfiled and no other action has been taken to enforce such
Lien or which are being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted;

 

(14)         encumbrances, ground
leases, 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, building codes or other restrictions (including, without
limitation, minor defects or irregularities in title and similar encumbrances)
as to the use of real properties or Liens incidental to the conduct of business
or to the ownership of properties 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;

 

(15)         leases, licenses, subleases
or sublicenses granted to others in the ordinary course of business that do not
(x) interfere in any material respect with the business of the Issuer or any of
its material Restricted Subsidiaries or (y) secure any Indebtedness;

 

(16)         the rights reserved or
vested in any Person by the terms of any lease, license, franchise, grant or
permit held by the Issuer or any of its Restricted Subsidiaries or by a
statutory provision, to terminate any such lease, license, franchise, grant or
permit, or to require annual or periodic payments as a condition to the
continuance thereof;

 

(17)         banker’s Liens, rights of
set-off or similar rights and remedies as to deposit accounts or other funds
maintained with a depositary institution; provided, however, that (a) such deposit account is
not a dedicated cash collateral account and is not subject to restrictions
against access by the Issuer or any of its Subsidiaries in excess of those set
forth by regulations promulgated by the Federal Reserve Board or other
applicable law and (b) such deposit account is not intended by the Issuer or
any Restricted Subsidiary to provide collateral to the depositary institution;

 

(18)         Liens arising from
Uniform Commercial Code financing statement filings regarding operating leases
or consignments entered into by the Issuer and its Restricted Subsidiaries in
the ordinary course of business;

 

(19)         (A) other Liens securing
Indebtedness for borrowed money with respect to property or assets with an
aggregate fair market value (valued at the time of creation thereof) of not
more than $10 million at any time and (B) Liens securing Indebtedness incurred
to finance the construction, purchase or lease of, or repairs, improvements or
additions to, property of such Person; provided, however, that (x) the Lien may not extend to any other
property (except for accessions to such property) owned by such Person or any
of its Restricted Subsidiaries at the time the Lien is incurred, (y) such Liens
attach concurrently with or within 270 days after the acquisition, repair,
replacement, construction or improvement (as applicable) of the property
subject to such Liens and (z) with respect to Capitalized Lease Obligations,
such Liens do not at any time extend to or cover any assets (except for
accessions to such assets) other than the assets subject to 

 

24

 

such Capitalized Lease Obligations; provided, however, that individual financings of equipment provided
by one lender may be cross collateralized to other financings of equipment
provided by such lender;

 

(20)         Liens (i) of a collection
bank arising under Section 4-210 of the Uniform Commercial Code on items in the
course of collection, (ii) attaching to commodity trading accounts or other
commodities brokerage accounts incurred in the ordinary course of business, and
(iii) in favor of a banking institution arising as a matter of law encumbering
deposits (including the right of set-off) and which are within the general
parameters customary in the banking industry;

 

(21)         Liens encumbering
reasonable customary initial deposits and margin deposits and similar Liens
attaching to commodity trading accounts or other brokerage accounts incurred in
the ordinary course of business and not for speculative purposes;

 

(22)         Liens that are
contractual rights of set-off (i) relating to the establishment of depository
relations with banks not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts of the Issuer or any
Restricted Subsidiary to permit satisfaction of overdraft or similar
obligations incurred in the ordinary course of business of the Issuer and its
Restricted Subsidiaries or (iii) relating to purchase orders and other
agreements entered into with customers of the Issuer or any Restricted
Subsidiary in the ordinary course of business;

 

(23)         Liens solely on any cash
earnest money deposits made by the Issuer or any of its Restricted Subsidiaries
in connection with any letter of intent or purchase agreement permitted under
this Indenture;

 

(24)         Liens with respect to the
assets of a Restricted Subsidiary that is not a Guarantor securing Indebtedness
of such Restricted Subsidiary incurred in accordance with Section 4.10;

 

(25)         Liens securing
Indebtedness or other obligations of a Restricted Subsidiary owing to the
Issuer or another Restricted Subsidiary of the Issuer permitted to be Incurred
in accordance with Section 4.10; and

 

(26)         Liens on the Equity
Interests of Unrestricted Subsidiaries.

 

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

 

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

 

“Product” means any product developed, acquired, produced,
marketed or promoted by the Issuer or any of its Subsidiaries in connection
with the conduct of a Permitted Business.

 

25

 

“Purchase Agreement” means the Agreement and Plan of Merger
dated as of December 15, 2004 among Holdings, Niagara
Acquisition, Inc. and PQ Corporation.

 

“Purchase Money Note” means a promissory note of a
Securitization Subsidiary evidencing a line of credit, which may be
irrevocable, issued by the Issuer or any Subsidiary of the Issuer to such
Securitization Subsidiary in connection with a Qualified Securitization
Financing, which note is intended to finance that portion of the purchase price
that is not paid in cash or a contribution of equity and which (a) shall be
repaid from cash available to the Securitization Subsidiary, other than (i)
amounts required to be established as reserves, (ii) amounts paid to investors
in respect of interest, (iii) principal and other amounts owing to such
investors and (iv) amounts paid in connection with the purchase of newly
generated receivables and (b) may be subordinated to the payments described in
clause (a).

 

“Qualified Institutional Buyer” or “QIB”
shall have the meaning specified in Rule 144A under the Securities Act.

 

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

 

“Qualified Securitization Financing” means
any Securitization Financing of a Securitization Subsidiary that meets the
following conditions: (i) the Board of Directors of the Issuer shall have
determined in good faith that such Qualified Securitization Financing
(including financing terms, covenants, termination events and other provisions)
is in the aggregate economically fair and reasonable to the Issuer and the
Securitization Subsidiary, (ii) all sales of Securitization Assets and
related assets to the Securitization Subsidiary are made at fair market value
(as determined in good faith by the Issuer) and (iii) the financing terms,
covenants, termination events and other provisions thereof shall be market
terms (as determined in good faith by the Issuer) and may include Standard
Securitization Undertakings. The grant of a security interest in any
Securitization Assets of the Issuer or any of its Restricted Subsidiaries
(other than a Securitization Subsidiary) to secure Indebtedness under the
Credit Agreement and any refinancing indebtedness with respect thereto shall
not be deemed a Qualified Securitization Financing.

 

“Record Date” means the applicable Record Date specified in
the Notes; provided that if any such date is not a
Business Day, the Record Date shall be the first day immediately preceding such
specified day that is a Business Day.

 

“Redemption Date,” when used with respect to any Note to be
redeemed, means the date fixed for such redemption pursuant to this Indenture
and the Notes.

 

“Redemption Price,” when used with respect to any Note to be
redeemed, means the price fixed for such redemption, payable in immediately
available funds, pursuant to this Indenture and the Notes.

 

“refinance” means to extend, refinance, renew, replace,
defease or refund, including successively; and “refinancing”
and “refinanced” shall have correlative
meanings.

 

26

 

“Registered Exchange Offer” shall have the
meaning set forth in the Registration Rights Agreement.

 

“Registration Rights Agreement” means (1) with respect to
the Initial Notes issued on the Issue Date, the Registration Rights Agreement
dated as of the Issue Date among the Issuer, the Guarantors, Credit Suisse
First Boston LLC, J.P. Morgan Securities Inc. and UBS Securities LLC and (2)
with respect to each issuance of Additional Notes issued in a transaction
exempt from the registration requirements of the Securities Act, the
registration rights agreement, if any, among the Issuer and the Persons
purchasing such Additional Notes under the related purchase agreement.

 

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

 

“Representative” means the trustee, agent or representative
(if any) for an issue of Senior Debt; provided, however, that if, and for so long as, any Designated Senior
Debt lacks such a representative, then the Representative for such Designated
Senior Debt shall at all times constitute the holders of a majority in
outstanding principal amount of such Designated Senior Debt.

 

“Responsible Officer” means, when used with respect to the
Trustee, any officer in the Corporate Trust Office of the Trustee to whom any
corporate trust matter is referred because of such officer’s knowledge of and
familiarity with the particular subject and shall also mean any officer who
shall have direct responsibility for the administration of this Indenture.

 

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

 

“Restricted Subsidiary” means, at any time, any direct or
indirect Subsidiary of the Issuer (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.

 

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

 

“S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and any successor to its rating
business.

 

“Secured Indebtedness” means any Indebtedness secured by a
Lien.

 

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

 

“Securitization Assets” means
any accounts receivable or other revenue streams from Products subject to a
Qualified Securitization Financing.

 

“Securitization Fees” means reasonable
distributions or payments made directly or by means of discounts with respect
to any participation interest issued or sold in connection 

 

27

 

with, and
other fees paid to a Person that is not a Securitization Subsidiary in
connection with any Qualified Securitization Financing.

 

“Securitization Financing” means
any transaction or series of transactions that may be entered into by the
Issuer or any of its Subsidiaries pursuant to which the Issuer or any of its
Subsidiaries may sell, convey or otherwise transfer to (a) a Securitization
Subsidiary (in the case of a transfer by the Issuer or any of its Subsidiaries)
and (b) any other Person (in the case of a transfer by a Securitization
Subsidiary), or may grant a security interest in, any Securitization Assets
(whether now existing or arising in the future) of the Issuer or any of its
Subsidiaries, and any assets related thereto including all collateral securing
such Securitization Assets, all contracts and all guarantees or other
obligations in respect of such Securitization Assets, proceeds of such
Securitization Assets and other assets which are customarily transferred or in
respect of which security interests are customarily granted in connection with
asset securitization transactions involving Securitization Assets and any
Hedging Obligations entered into by the Issuer or any such Subsidiary in
connection with such Securitization Assets.

 

“Securitization Repurchase Obligation” means
any obligation of a seller of Securitization Assets in a Qualified
Securitization Financing to repurchase Securitization Assets arising as a
result of a breach of a representation, warranty or covenant or otherwise,
including, without limitation, as a result of a receivable or portion thereof
becoming subject to any asserted defense, dispute, off set or counterclaim of
any kind as a result of any action taken by, any failure to take action by or
any other event relating to the seller.

 

“Securitization Subsidiary” means
a Wholly Owned Subsidiary of the Issuer (or another Person formed for the purposes
of engaging in a Qualified Securitization Financing in which the Issuer or any
Subsidiary of the Issuer makes an Investment and to which the Issuer or any
Subsidiary of the Issuer transfers Securitization Assets and related assets)
which engages in no activities other than in connection with the financing of
Securitization Assets of the Issuer or its Subsidiaries, all proceeds thereof
and all rights (contingent and other), collateral and other assets relating
thereto, and any business or activities incidental or related to such business,
and which is designated by the Board of Directors of the Issuer or such other
Person (as provided below) as a Securitization Subsidiary and (a) no portion of
the Indebtedness or any other obligations (contingent or otherwise) of which
(i) is guaranteed by the Issuer or any other Subsidiary of the Issuer
(excluding guarantees of obligations (other than the principal of, and interest
on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii) is
recourse to or obligates the Issuer or any other Subsidiary of the Issuer in
any way other than pursuant to Standard Securitization Undertakings or (iii)
subjects any property or asset of the Issuer or any other Subsidiary of the
Issuer, directly or indirectly, contingently or otherwise, to the satisfaction
thereof, other than pursuant to Standard Securitization Undertakings, (b) with
which neither the Issuer nor any other Subsidiary of the Issuer has any
material contract, agreement, arrangement or understanding other than on terms
which the Issuer reasonably believes to be no less favorable to the Issuer or
such Subsidiary than those that might be obtained at the time from Persons that
are not Affiliates of the Issuer and (c) to which neither the Issuer nor any
other Subsidiary of the Issuer has any obligation to maintain or preserve such
entity’s financial condition or cause such entity to achieve certain levels of
operating results.  Any such designation
by the Board of Directors of the Issuer or such other 

 

28

 

Person shall
be evidenced to the Trustee by filing with the Trustee a certified copy of the
resolution of the Board of Directors of the Issuer or such other Person giving
effect to such designation and an Officer’s Certificate certifying that such
designation complied with the foregoing conditions.

 

“Senior Debt” means the principal of, premium, if any, and
interest (including any interest accruing after the commencement of any
bankruptcy proceeding at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed or allowable claim
under applicable law) on any Indebtedness and any Securitization Repurchase
Obligation of the Issuer, whether outstanding on the Issue Date or thereafter
created, incurred or assumed, unless, in the case of any particular obligation,
the instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such obligation shall be subordinate or pari passu in right of payment to the Notes. Without
limiting the generality of the foregoing, “Senior Debt” shall also include the
principal of, premium, if any, interest (including any interest accruing after
the commencement of any bankruptcy proceeding at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
or allowable claim under applicable law) on, and all other amounts owing in
respect of (including guarantees of the foregoing obligations):

 

(1)           all monetary
obligations of every nature of the Issuer under, or with respect to, the Credit
Agreement, including, without limitation, obligations to pay principal, premium
and interest, reimbursement obligations under letters of credit, fees, expenses
and indemnities (and guarantees thereof); and

 

(2)           all Hedging Obligations
(and guarantees thereof),

 

in each case
whether outstanding on the Issue Date or thereafter incurred.

 

Notwithstanding
the foregoing, “Senior Debt” shall not include:

 

(1)           any Indebtedness of the
Issuer to a Subsidiary of the Issuer (other than any Securitization Repurchase
Obligation);

 

(2)           Indebtedness to, or
guaranteed on behalf of, any shareholder, director, officer or employee of the
Issuer or any Subsidiary of the Issuer (including, without limitation, amounts
owed for compensation) other than Indebtedness under the Credit Agreement;

 

(3)           Indebtedness to trade
creditors and other amounts incurred in connection with obtaining goods,
materials or services (including guarantees thereof or instruments evidencing
such liabilities);

 

(4)           Indebtedness
represented by Capital Stock;

 

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

 

(6)           that portion of any
Indebtedness incurred in violation of Section 4.10 or 4.18; provided, however,
that if such Indebtedness has been Incurred under the Credit Agreement, such
Indebtedness shall be deemed Senior Debt if the holders of such 

 

29

 

Indebtedness or their Representative received an Officers’ Certificate
at the time of such incurrence to the effect that the incurrence of such
Indebtedness does not (or, in the case of a revolving credit facility
thereunder, the incurrence of the entire committed amount thereof at the date
on which the initial borrowing thereunder is made would not) violate such Sections;

 

(7)           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 Issuer; and

 

(8)           any Indebtedness which
is, by its express terms, subordinated in right of payment to any other
Indebtedness of the Issuer.

 

“Senior Subordinated Indebtedness” means the Notes (in the
case of the Issuer), a Guarantee (in the case of a Guarantor) and any other
Indebtedness of the Issuer or a Guarantor that specifically provides that such
Indebtedness is to rank pari passu with
the Notes or such Guarantee, as the case may be, in right of payment and is not
subordinated by its terms in right of payment to any Indebtedness or other
obligation of the Issuer or such Guarantor which is not Senior Debt (in the
case of the Issuer) or Guarantor Senior Debt (in the case of a Guarantor).

 

“Shareholders Agreement” means the Shareholders Agreement
among the Issuer and certain members of management, as in effect on the Issue
Date.

 

“Shelf Registration Statement” has the meaning set forth 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 Issue Date.

 

“Specified Financings” means the financings included in the
Transactions and the offering of the Notes.

 

“Sponsors” means J.P. Morgan Partners (BHCA), L.P. and its
affiliates and Peak Investments, LLC and its affiliates.

 

“Standard Securitization Undertakings” means representations,
warranties, covenants and indemnities entered into by the Issuer or any
Subsidiary of the Issuer which the Issuer has determined in good faith to be
customary in a Securitization Financing, including those relating to the
servicing of the assets of a Securitization Subsidiary, it being understood
that any Securitization Repurchase Obligation shall be deemed to be a Standard
Securitization Undertaking.

 

“Stated Maturity” means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which the
payment of interest or principal was scheduled to be paid in the original
documentation governing such Indebtedness, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior
to the date originally scheduled for the payment thereof.

 

30

 

“Subordinated Indebtedness” means (a) with respect to the
Issuer, any Indebtedness of the Issuer that is by its terms subordinated in
right of payment to the Notes and (b) with respect to any Guarantor, any
Indebtedness of such Guarantor that is by its terms subordinated in right of
payment to its Guarantee of the Notes.

 

“Subsidiary” means, with respect to any specified Person:

 

(1)           any corporation,
association or other business 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 owned or controlled, directly or indirectly,
by that 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 (y) such Person or any
Wholly Owned Restricted Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.

 

“Total Assets” at any time means the total consolidated
assets of the Issuer and its Restricted Subsidiaries, as determined in good
faith by the chief financial officer of the Issuer based on the most recent
balance sheet of the Issuer available to management adjusted to give effect to
any substantial acquisitions or dispositions of assets.

 

“Transactions” means the transactions contemplated by (i) the
Purchase Agreement, (ii) the Credit Agreement and (iii) the offering of the
Notes and any bridge facility entered in lieu of such offering prior to the
Issue Date.

 

“Treasury Rate” means, as
of the applicable 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 such 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 such redemption date to February 15, 2009; provided, however,
that if the period from such redemption date to February 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.

 

“Trustee” means
the party named as such in this Indenture until a successor replaces it in
accordance with the provisions of this Indenture and thereafter means such
successor.

 

“Unrestricted Subsidiary” means (i) any Subsidiary of the
Issuer that at the time of determination is an Unrestricted Subsidiary (as
designated by the Board of Directors of the Issuer, as provided below) and (ii)
any Subsidiary of an Unrestricted Subsidiary. 
The Board of 

 

31

 

Directors of
the Issuer may designate any Subsidiary of the Issuer (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 Issuer or any Subsidiary of the Issuer (other than any
Subsidiary of the Subsidiary to be so designated); provided,
however, 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 Issuer, (b) such designation complies
with Section 4.11 and (c) each of (I) the Subsidiary to be so
designated and (II) 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 Issuer or any Restricted
Subsidiary.  The Board of Directors may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that,
immediately after giving effect to such designation, no Default or Event of
Default shall have occurred and the Issuer could incur $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.10(a)
or the Fixed Charge Coverage Ratio is greater than immediately preceding the
designation.  Any such designation by the
Board of Directors shall be notified by the Issuer 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. Dollar Equivalent” means with respect to any monetary
amount in a currency other than U.S. dollars, at any time for determination
thereof, the amount of U.S. dollars obtained by converting such foreign
currency involved in such computation into U.S. dollars at the spot rate for
the purchase of U.S. dollars with the applicable foreign currency as published
in The Wall Street Journal in the “Exchange
Rates” column under the heading “Currency Trading” on the date two business
days prior to such determination.

 

Except as
provided under Section 4.10, whenever it is necessary to determine
whether the Issuer has complied with any covenant in this Indenture or a
Default has occurred and an amount is expressed in a currency other than U.S.
dollars, such amount will be treated as the U.S. Dollar Equivalent determined
as of the date such amount is initially determined in such currency.

 

“U.S. 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

 

(b)           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,

 

32

 

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 U.S. Government Securities or a specific payment of principal of or
interest on any such U.S. Government Securities held by such custodian for the
account of the holder of such depository receipt; provided, however, 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 U.S. Government Securities or the specific payment of principal of or
interest on the U.S. Government Securities evidenced by such depository
receipt.

 

“U.S. Legal Tender” means such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.

 

“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.

 

“Weighted Average Life to Maturity” means, when applied to
any Indebtedness at any date, the number of years obtained by dividing:

 

(1)           the sum of the products
obtained by multiplying (a) the amount of each then remaining installment,
sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect of the Indebtedness, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by

 

(2)           the then outstanding
principal amount of such Indebtedness.

 

“Wholly Owned Restricted Subsidiary” is 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 and shares issued to foreign
nationals under applicable law) shall at the time be owned by such Person or by
one or more Wholly Owned Subsidiaries of such Person or by such Person and one
or more Wholly Owned Subsidiaries of such Person.

 

SECTION 1.02.  Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Acceleration Notice”

  	
   

  	
  6.02

  	
   

  
	
  “Additional Restricted Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Additional Notes”

  	
   

  	
  Preamble

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.14

  	
   

  

 

33

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.01

  	
   

  
	
  “Alternate Offer”

  	
   

  	
  4.09

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  4.13

  	
   

  
	
  “Asset Sale Offer Amount”

  	
   

  	
  4.13

  	
   

  
	
  “Asset Sale Payment”

  	
   

  	
  4.13

  	
   

  
	
  “Asset Sale Payment Date”

  	
   

  	
  4.13

  	
   

  
	
  “Authenticating Agent”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.09

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Definitive Note”

  	
   

  	
  2.01

  	
   

  
	
  “DTC”

  	
   

  	
  2.01

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.13

  	
   

  
	
  “Exchange Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Exchange Notes”

  	
   

  	
  Preamble

  	
   

  
	
  “Global Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Guarantee Obligations”

  	
   

  	
  11.01

  	
   

  
	
  “IAI”

  	
   

  	
  2.01

  	
   

  
	
  “incur”

  	
   

  	
  4.10

  	
   

  
	
  “Initial Notes”

  	
   

  	
  Preamble

  	
   

  
	
  “Institutional Accredited Investor
  Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Institutional Accredited Investor
  Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Issue Order”

  	
   

  	
  2.02

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Non-payment Default”

  	
   

  	
  10.02

  	
   

  
	
  “Notes”

  	
   

  	
  Preamble

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Payment Blockage Notice”

  	
   

  	
  10.02

  	
   

  
	
  “Payment Blockage Period”

  	
   

  	
  10.02

  	
   

  

 

34

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Payment Default”

  	
   

  	
  10.02

  	
   

  
	
  “Permanent Regulation S Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Permitted Debt”

  	
   

  	
  4.10

  	
   

  
	
  “Private Placement Legend”

  	
   

  	
  2.01

  	
   

  
	
  “Refinancing Indebtedness”

  	
   

  	
  4.10

  	
   

  
	
  “Refunding Capital Stock”

  	
   

  	
  4.11

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Regulation S Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Regulation S Legend”

  	
   

  	
  2.01

  	
   

  
	
  “Regulation S Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Resale Restriction Termination Date”

  	
   

  	
  2.06

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.11

  	
   

  
	
  “Restricted Period”

  	
   

  	
  2.01

  	
   

  
	
  “Restricted Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Retired Capital Stock”

  	
   

  	
  4.11

  	
   

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.01

  	
   

  
	
  “Rule 144A Notes”

  	
   

  	
  2.01

  	
   

  
	
  “Successor Company”

  	
   

  	
  5.01

  	
   

  
	
  “Successor Guarantor”

  	
   

  	
  11.05

  	
   

  
	
  “Temporary Regulation S Global Note”

  	
   

  	
  2.01

  	
   

  

 

SECTION 1.03.  Incorporation
by Reference of TIA.

 

Whenever this
Indenture refers to a provision of the TIA, such provision is incorporated by
reference in, and made a part of, this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Holder or a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee”
means the Trustee.

 

35

 

“obligor” on the indenture securities means the Issuer or any
other obligor on the Notes.

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by the TIA
reference to another statute or defined by Commission rule and not otherwise
defined herein have the meanings assigned to them therein.

 

SECTION 1.04.  Rules of
Construction.

 

Unless the
context otherwise requires:

 

(1)           a term has the meaning
assigned to it herein, whether defined expressly or by reference;

 

(2)           an accounting term not
otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(3)           “or” is not exclusive;

 

(4)           words in the singular
include the plural, and words in the plural include the singular;

 

(5)           words used herein
implying any gender shall apply to both genders;

 

(6)           provisions apply to
successive events and transactions;

 

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

 

(8)           the words “including,” “includes”
and similar words shall be deemed to be followed by “without limitation”;

 

(9)           references to sections
of or rules under the Securities Act shall be deemed to include substitute,
replacement or successor sections or rules adopted by the Commission from time
to time;

 

(10)         unsecured Indebtedness
shall not be deemed to be subordinate or junior to secured Indebtedness merely
by virtue of its nature as unsecured Indebtedness;

 

(11)         secured Indebtedness
shall not be deemed to be subordinate or junior to any other secured
Indebtedness merely because it has a junior priority with respect to the same
collateral;

 

(12)         the principal amount of
any non-interest bearing or other discount security at any date shall be the
principal amount thereof that would be shown on a balance sheet of the issuer
dated such date prepared in accordance with GAAP;

 

36

 

(13)         the principal amount of
any Preferred Stock shall be (i) the maximum liquidation value of such Preferred
Stock or (ii) the maximum mandatory redemption or mandatory repurchase price
with respect to such Preferred Stock, whichever is greater;

 

(14)         unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with GAAP;

 

(15)         “$” and “U.S. Dollars”
each refer to United States dollars, or such other money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts; and

 

(16)         whenever in this
Indenture there is mentioned, in any context, principal, interest or any other
amount payable under or with respect to any Notes, such mention shall be deemed
to include mention of the payment of Additional Interest or Additional Amounts,
to the extent that, in such context, Additional Interest or Additional Amounts
are, were or would be payable in respect thereof.

 

ARTICLE TWO

THE NOTES

 

SECTION 2.01.  Form, Dating
and Terms.

 

(a)           The
aggregate principal amount of Notes that may be authenticated and delivered
under this Indenture is unlimited.  The
Initial Notes issued on the date hereof shall be in an aggregate principal
amount of $275,000,000.  In addition, the
Issuer may issue, from time to time in accordance with the provisions of this
Indenture and subject to Section 4.10, Additional Notes and Exchange Notes.  Furthermore, Notes may be authenticated and
delivered upon registration or transfer, or in lieu of, other Notes pursuant to
Section 2.06, 2.07, 2.10 or 9.06 or in connection
with a Change of Control Offer pursuant to Section 4.09 or an Asset Sale
Offer pursuant to Section 4.13.

 

With respect
to any Additional Notes, the Issuer shall set forth in (a) a Board Resolution
of the Issuer and (b) (i) an Officers’ Certificate or (ii) one or more
indentures supplemental hereto, a copy of each of which shall be delivered to
the Trustee, the following information:

 

(1)           the aggregate principal
amount of such Additional Notes to be authenticated and delivered pursuant to
this Indenture and the provision of Section 4.10 that the Issuer is
relying on to issue such Additional Notes;

 

(2)           the issue price and the
issue date and the CUSIP number of such Additional Notes, including the date
from which interest shall accrue; provided, however, that no Additional Notes may be issued at a price
that would cause such Additional Notes to have “original issue discount” within
the meaning of Section 1273 of the Code; and

 

37

 

(3)           whether such Additional
Notes shall be securities bearing one of the restrictive legends described in Section 2.01(d)
(“Restricted Notes”) or Exchange
Notes.

 

The Initial
Notes, the Additional Notes and the Exchange Notes shall be considered
collectively as a single class for all purposes of this Indenture.  Holders of the Initial Notes, the Additional
Notes and the Exchange Notes shall vote and consent together on all matters to
which such Holders are entitled to vote or consent as one class, and none of
the Holders of the Initial Notes, the Additional Notes or the Exchange Notes
shall have the right to vote or consent as a separate class on any matter to
which such Holders are entitled to vote or consent.

 

If any of the
terms of any Additional Notes are established by action taken pursuant to Board
Resolutions of the Issuer, a copy of an appropriate record of such action shall
be certified by the Secretary or any Assistant Secretary of the Issuer and
delivered to the Trustee at or prior to the delivery of the Officers’
Certificate or the indenture supplemental hereto setting forth the terms of the
Additional Notes.

 

(b)           The
Initial Notes are being offered and sold by the Issuer pursuant to the purchase
agreement related to such Initial Notes. 
The Initial Notes and any Additional Notes (if issued as Restricted
Notes) (the “Additional Restricted Notes”)
shall be resold initially only to (A) QIBs in reliance on Rule 144A
and (B) Non-U.S. Persons in reliance on Regulation S.  Such Initial Notes and Additional Restricted
Notes may thereafter be transferred to, among others, QIBs, purchasers in
reliance on Regulation S and certain institutional accredited investors (“IAI”s) in accordance with Rule 501 of
the Securities Act, in each case, in accordance with the procedure described
herein.  Additional Notes offered after
the date hereof may be offered and sold by the Issuer from time to time
pursuant to one or more purchase agreements in accordance with applicable law.

 

Initial Notes
and Additional Restricted Notes offered and sold to QIBs in the United States
of America in reliance on Rule 144A (the “Rule 144A Notes”) shall be issued in the form of a
permanent global Note, without interest coupons, substantially in the form of Exhibit A,
which is hereby incorporated by reference and made a part of this Indenture,
including appropriate legends as set forth in Section 2.01(d) (the “Rule 144A Global Note”), deposited
with the Trustee, as custodian for The Depository Trust Company (“DTC”), duly executed by the Issuer and authenticated by the
Trustee as hereinafter provided.  The
Rule 144A Global Note may be represented by more than one certificate, if
so required by DTC’s rules regarding the maximum principal amount to be
represented by a single certificate.  The
aggregate principal amount of the Rule 144A Global Note may from time to
time be increased or decreased by adjustments made on the records of the Trustee,
as custodian for DTC or its nominee, as hereinafter provided.

 

Initial Notes
and Additional Notes offered and sold outside the United States of America in
reliance on Regulation S (the “Regulation S
Notes”) shall initially be issued in the form of a temporary global
Note (the “Temporary Regulation S Global
Note”), without interest coupons. 
Beneficial interests in the Temporary Regulation S Global Note
shall be exchangeable for beneficial interests in (a) a corresponding
permanent global Note, without interest coupons, substantially in the form of Exhibit A,
including appropriate legends as set 

 

38

 

forth in Section 2.01(d)
(the “Permanent Regulation S Global Note”  and, together with the Temporary
Regulation S Global Note, each a “Regulation S
Global Note”), (b) a Rule 144A Global Note, (c) an
Institutional Accredited Investor Global Note (as defined below) or (d) a
definitive note in registered certified form (a “Definitive
Note”), in each case, after the expiration of the period beginning
with the later of the commencement of the offering of the Initial Notes and the
Issue Date and ending on the 40th day thereafter (such period through and
including such 40th day, the “Restricted
Period”) and then only in accordance with the Securities Act and the
procedure described herein.  Each
Regulation S Global Note shall be deposited upon issuance with, or on
behalf of, the Trustee, as custodian for DTC, duly executed by the Issuer and
authenticated by the Trustee in the manner described in this Article Two
for credit to the respective accounts of the purchasers (or to such other
accounts as they may direct) at Euroclear or Clearstream.

 

The
Regulation S Global Note may be represented by more than one certificate,
if so required by DTC’s rules regarding the maximum principal amount to be represented
by a single certificate.  The aggregate
principal amount of the Regulation S Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for DTC or its nominee, as hereinafter provided.

 

Initial Notes
and Additional Notes resold to IAIs (the “Institutional
Accredited Investor Notes”) in the United States of America shall be
issued in the form of a permanent global Note, without interest coupons,
substantially in the form of Exhibit A, including appropriate legends
as set forth in Section 2.01(d) (the “Institutional Accredited Investor Global Note”) deposited with
the Trustee, as custodian for DTC, duly executed by the Issuer and authenticated
by the Trustee as hereinafter provided. 
The Institutional Accredited Investor Global Note may be represented by
more than one certificate, if so required by DTC’s rules regarding the maximum
principal amount to be represented by a single certificate.  The aggregate principal amount of the
Institutional Accredited Investor Global Note may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian
for DTC or its nominee, as hereinafter provided.

 

Exchange Notes
exchanged for interests in the Rule 144A Notes, the Regulation S
Notes and the Institutional Accredited Investor Notes shall be issued in the
form of a permanent global Note, substantially in the form of Exhibit A,
which is hereby incorporated by reference and made a part of this Indenture,
deposited with the Trustee as hereinafter provided, including the appropriate
legend set forth in Section 2.01(d) (the “Exchange Global Note”).  The Exchange Global Note shall be deposited
upon issuance with, or on behalf of, the Trustee as custodian for DTC, duly
executed by the Issuer and authenticated by the Trustee as hereinafter
provided.  The Exchange Global Note may
be represented by more than one certificate if so required by DTC’s rules
regarding the maximum principal amount to be represented by a single
certificate.

 

The
Rule 144A Global Note, the Regulation S Global Note, the
Institutional Accredited Investor Global Note and the Exchange Global Note are
sometimes collectively herein referred to as the “Global Notes.”

 

39

 

Payments in
respect of Notes represented by a Global Note (including principal, premium, if
any, and interest) shall be made by wire transfer of immediately available
funds to the accounts specified by DTC. 
Payments in respect of Notes represented by Definitive Notes (including
principal, premium, if any, and interest) held by a Holder shall be made by
(a) wire transfer to a U.S. dollar account maintained by the payee with a
bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than three Business Days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion) or, if no such account is specified,
(b) check mailed to the address of the Person entitled thereto as such
address shall appear on the registry maintained by the Registrar.  All other payments on the Notes shall be payable
at the office or agency of the Issuer as may be maintained for such purpose
pursuant to Section 2.03.

 

The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on Exhibit A and in Section 2.01(d).  The Issuer and the Trustee shall approve the
forms of the Notes and any notation, endorsement or legend on them.  Each Note shall be dated the date of its authentication.  The terms of the Notes set forth in Exhibit A
are part of the terms of this Indenture and, to the extent applicable, the
Issuer, the Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to be bound by such terms.

 

(c)           Denominations.  The Notes shall be issuable only in fully
registered form, without coupons, and only in denominations of $1,000 and an
integral multiple thereof.

 

(d)           Restrictive
Legends.  Unless and until
(i) an Initial Note is sold under an effective registration statement or exchanged
for an Exchange Note in connection with an effective registration statement, in
each case pursuant to the Registration Rights Agreement or a similar agreement
or (ii) there is delivered to the Registrar an Opinion of Counsel
reasonably satisfactory to the Issuer 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:

 

(1)           the Rule 144A
Global Note and the Institutional Accredited Investor Global Note shall bear
the legend set forth in Exhibit B hereto (the “Private Placement Legend”) on the face
thereof.

 

(2)           the Regulation S
Global Note shall bear the legend set forth in Exhibit C hereto (the “Regulation S Legend”) on the face
thereof.

 

(3)           Each Global Note,
whether or not an Initial Note, shall bear the legend set forth in Exhibit D
hereto on the face thereof.

 

(4)           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 shall transfer such Note only as
provided in this Indenture.

 

40

 

The Registrar
shall retain for a period of two years copies of all letters, notices and other
written communications received pursuant to this Section 2.01.  The Issuer shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable notice to the Registrar.

 

(e)           Book-Entry
Provisions.

 

(i)            This Section 2.01(e)
shall apply only to Global Notes deposited with the Trustee, as custodian for
DTC.

 

(ii)           Each Global Note
initially shall (x) be registered in the name of DTC for such Global Note
or the nominee of DTC, (y) be delivered to the Trustee as custodian for
DTC and (z) bear legends as set forth in Section 2.01(d).

 

(iii)          Members of, or
participants in, DTC (“Agent Members”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by DTC or by the Trustee as the custodian of DTC or under such
Global Note, and DTC may be treated by the Issuer, the Trustee and any agent of
the Issuer or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of
the Issuer or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by DTC or impair, as between DTC and its
Agent Members, the operation of customary practices of DTC governing the
exercise of the rights of a Holder of a beneficial interest in any Global Note.

 

(iv)          In connection with any
transfer of a portion of the beneficial interest in a Global Note pursuant to
subsection (f) of this Section 2.01 to beneficial owners who
are required to hold Definitive Notes, the Notes Custodian shall reflect on its
books and records the date and a decrease in the principal amount of such
Global Note in an amount equal to the principal amount of the beneficial
interest in the Global Note to be transferred, and the Issuer shall execute,
and the Trustee shall authenticate and make available for delivery, one or more
Definitive Notes of like tenor and amount.

 

(v)           In connection with the
transfer of an entire Global Note to beneficial owners pursuant to
subsection (f) of this Section 2.01, such Global Note shall be
deemed to be surrendered to the Trustee for cancellation, and the Issuer shall
execute, and the Trustee shall authenticate and make available for delivery, to
each beneficial owner identified by DTC in exchange for its beneficial interest
in such Global Note, an equal aggregate principal amount of Definitive Notes of
authorized denominations.

 

(vi)          The registered Holder of
a Global Note may grant proxies and otherwise authorize any person, including
Agent Members and persons that may hold interests through Agent Members, to
take any action which a Holder is entitled to take under this Indenture or the
Notes.

 

(vii)         Any Holder of a Global
Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through a
book-entry system maintained by (a) the Holder of such Global Note (or its 

 

41

 

agent) or (b)
any Holder of a beneficial interest in such Global Note, and that ownership of
a beneficial interest in such Global Note shall be required to be reflected in
a book entry.

 

(f)            Definitive
Notes.  (i)  Except as provided below, owners of
beneficial interests in Global Notes shall not be entitled to receive
Definitive Notes.  If required to do so
pursuant to any applicable law or regulation, beneficial owners may obtain
Definitive Notes in exchange for their beneficial interests in a Global Note
upon written request in accordance with DTC’s and the Registrar’s
procedures.  In addition, Definitive
Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in a Global Note if (A) DTC notifies the Issuer that
it is unwilling or unable to continue as depositary for such Global Note or DTC
ceases to be a clearing agency registered under the Exchange Act, at a time
when DTC is required to be so registered in order to act as depositary, and, in
each case, a successor depositary is not appointed by the Issuer within
90 days of such notice or, (B) the Issuer in its sole discretion
executes and delivers to the Trustee and Registrar an Officers’ Certificate
stating that such Global Note shall be so exchangeable or (C) a Default
has occurred and is continuing.  In the
event of the occurrence of any of the events specified in clause (A), (B)
or (C) of the preceding sentence, the Issuer shall promptly make available to
the Trustee a reasonable supply of Definitive Notes in fully registered form
without interest coupons.

 

(ii)           Any Definitive Note
delivered in exchange for an interest in a Global Note pursuant to Section 2.01(e)(iv)
or (v) shall, except as otherwise provided by Section 2.06(c),
bear the applicable legend regarding transfer restrictions applicable to the
Definitive Note set forth in Section 2.01(d).

 

(iii)          In connection with the
exchange of a portion of a Definitive Note for a beneficial interest in a
Global Note, (A) the Trustee shall cancel such Definitive Note and
(B) the Issuer shall execute, and the Trustee shall authenticate and make
available for delivery to the transferring Holder, a new Definitive Note
representing the principal amount not so transferred.

 

SECTION 2.02.  Execution and
Authentication.

 

One Officer
shall sign the Notes for the Issuer by manual or facsimile signature.  If an Officer whose signature is on a Note no
longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless.

 

A Note shall
not be valid and shall not be entitled to any benefit under this Indenture
until an authorized signatory of the Trustee authenticates the Note by manual
or facsimile signature.  The signature of
the Trustee on a Note shall be conclusive evidence that such Note has been duly
and validly authenticated, issued and delivered under this Indenture.  A Note shall be dated the date of its
authentication.

 

At any time
and from time to time after the execution and delivery of this Indenture, the
Trustee shall authenticate and make available for delivery:  (1) Initial Notes for original issue on
the Issue Date in an aggregate principal amount of $275,000,000,
(2) subject to the terms of this Indenture (including Section 4.10),
Additional Notes for original issue in an 

 

42

 

unlimited
principal amount and (3) Exchange Notes for issue only in a Registered
Exchange Offer or upon resale under an effective Shelf Registration Statement,
and only in exchange for Initial Notes or Additional Notes of an equal
principal amount, in each case upon a written order of the Issuer signed by an
Officer of the Issuer (the “Issuer Order”).  Such Issuer Order shall (a) specify
whether the Notes shall be in the form of Definitive Notes or Global Notes,
(b) the amount of the Notes to be authenticated and the date on which the
original issue of Notes is to be authenticated, (c) and whether the Notes
are to be Initial Notes, Additional Notes or Exchange Notes and (d) in the
case of any issuance of Additional Notes, certify that such issuance is in
compliance with Section 4.10.

 

The Trustee
may appoint an agent (the “Authenticating
Agent”) reasonably acceptable to the Issuer to authenticate the
Notes.  Any such appointment shall be evidenced
by an instrument signed by a Responsible Officer, a copy of which shall be
furnished to the Issuer.  Unless limited
by the terms of such appointment, any such Authenticating Agent may authenticate
Notes whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by the Authenticating Agent.  An Authenticating Agent has the same rights
as any Registrar, Paying Agent or agent for service of notices and demands.

 

In case the
Issuer, pursuant to Article Five, shall be consolidated or merged
with or into any other Person or shall convey, transfer, lease or otherwise
dispose of all or substantially all of its properties and assets to any Person,
and the successor Person resulting from such consolidation, or surviving such
merger, or into which the Issuer shall have been merged, or the Person which
shall have received a conveyance, transfer, lease or other disposition as
aforesaid, shall have executed an indenture supplemental hereto with the Trustee
pursuant to Article Five, 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 Issuer Order of the
successor Person, shall authenticate and make available for delivery Notes as
specified in such order 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 2.02
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 2.03.  Registrar and
Paying Agent.

 

The Issuer
shall maintain (a) an office or agency where Notes may be presented for
registration of transfer or for exchange (the “Registrar”),
(b) an office or agency where the Notes may be presented for payment (the “Paying Agent”) and (c) an office or agency where notices and
demands to or upon the Issuer, if any, in respect of the Notes and this
Indenture may be served.  The Registrar
shall keep a register of the Notes and of their transfer and exchange.  The Issuer may have one or more co-registrars
and one or more additional Paying Agents. 
The 

 

43

 

term “Registrar” includes any co-registrars.  The Issuer or any Restricted Subsidiary may
act as Registrar or Paying Agent.  The
term “Paying Agent” includes any additional paying agent.

 

The Issuer may
enter into an appropriate agency agreement, which shall incorporate the
provisions of the TIA, with any Agent that is not a party to this
Indenture.  The agreement shall implement
the provisions of this Indenture that relate to such Agent.  The Issuer shall notify the Trustee of the
name and address of any such Agent.  If
the Issuer fails to maintain a Registrar or any required co-registrar or Paying
Agent, or fails to give the foregoing notice, the Trustee shall act as such and
shall be entitled to appropriate compensation in accordance with Section
7.07.

 

The Issuer initially
appoints the Trustee as Registrar and Paying Agent for service of notices and
demands in connection with the Notes and this Indenture.

 

The Issuer may
change the paying agents, the registrars or the transfer agents without prior
notice to the Holders.  Any of the Issuer’s
Wholly Owned Subsidiaries may act as a transfer agent.

 

The Issuer may
also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations.

 

SECTION 2.04.  Paying Agent To
Hold Assets in Trust.

 

Each Paying
Agent shall hold in trust for the benefit of the Holders or the Trustee all
money held by the Paying Agent for the payment of principal of or premium, if
any, or interest on the Notes (whether such money has been paid to it by the
Issuer, one or more of the Guarantors or any other obligor on the Notes), and
the Issuer and each Paying Agent shall notify the Trustee of any Default by the
Issuer (or any other obligor on the Notes) in making any such payment.  Money held in trust by a Paying Agent need
not be segregated except as required by law and in no event shall a Paying
Agent be liable for any interest on any money received by it hereunder.  The Issuer at any time may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed.  The Trustee may at any time
during the continuance of any Event of Default specified in Section 6.01(1)
or (2), upon written request to a Paying Agent, require such Paying
Agent to pay forthwith all money so held by it to the Trustee and to account
for any funds disbursed.  Upon making
such payment, such Paying Agent shall have no further liability for the money
delivered to the Trustee.  The provisions
of Article Ten applicable to the Trustee shall apply to the Paying
Agents, mutatis  mutandis.

 

SECTION
2.05.  Holder Lists.

 

The Trustee
shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders.  If the Trustee is not the Registrar, the
Issuer shall furnish to the Trustee at least two (2) Business Days prior to
each Interest Payment Date and at such other times as the Trustee may request
in writing a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders, which list may be
conclusively relied upon by the Trustee.

 

44

 

SECTION 2.06.  Transfer and
Exchange.

 

(a)           The
following provisions shall apply with respect to any proposed transfer of a
Rule 144A Note or an Institutional Accredited Investor Note prior to the
date which is two years after the later of the date of its original issue and
the last date on which the Issuer or any Affiliate of the Issuer was the owner
of such Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”):

 

(i)            a transfer of a
Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a QIB shall be made upon the representation of
the transferee in the form as set forth on the reverse of the Note that
(A) it is purchasing for its own account or an account with respect to
which it exercises sole investment discretion, (B) it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A,
(C) it 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 Issuer as it has requested pursuant to Rule 144A or has determined not
to request such information and (D) it is aware that the transferor is
relying upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A;

 

(ii)           a transfer of a
Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to an IAI shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth in Exhibit
E from the proposed transferee and, if requested by the Issuer or the
Trustee, the delivery of an opinion of counsel, certification or other
information satisfactory to each of them; and

 

(iii)          a transfer of a
Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a Non-U.S. Person shall be made upon receipt by
the Trustee or its agent of a certificate substantially in the form set forth
in Exhibit F from the proposed transferee and, if requested by the
Issuer or the Trustee, the delivery of an opinion of counsel, certification or
other information satisfactory to each of them.

 

(b)           The
following provisions shall apply with respect to any proposed transfer of a
Regulation S Note after the expiration of the Restricted Period:

 

(i)            a transfer of a Regulation S
Note or a beneficial interest therein to a QIB shall be made upon the
representation of the transferee, in the form of assignment on the reverse of
the Note, that (A) it is purchasing the Note for its own account or an
account with respect to which it exercises sole investment discretion,
(B) it and any such account is a “qualified institutional buyer” within
the meaning of Rule 144A, (C) it 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 Issuer as it has requested pursuant to
Rule 144A or has determined not to request such information and
(D) it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by
Rule 144A;

 

(ii)           a transfer of a
Regulation S Note or a beneficial interest therein to an IAI shall be made
upon receipt by the Trustee or its agent of a certificate substantially in the 

 

45

 

form set forth
in Exhibit E from the proposed transferee and, if requested by the
Issuer or the Trustee, the delivery of an opinion of counsel, certification or
other information satisfactory to each of them; and

 

(iii)          a transfer of a
Regulation S Note or a beneficial interest therein to a Non-U.S. Person
shall be made upon receipt by the Trustee or its agent of a certificate
substantially in the form set forth in Exhibit F hereof from the
proposed transferee and, if requested by the Issuer or the Trustee, receipt by
the Trustee or its agent of an opinion of counsel, certification or other
information satisfactory to each of them.

 

Prior to the
expiration of the Restricted Period, interests in the Temporary
Regulation S Global Note may only be transferred (i) to the Issuer,
(ii) in an offshore transaction in accordance with Regulation S
(other than a transaction resulting in an exchange for interest in a Permanent
Regulation S Global Note), or (iii) pursuant to an effective
registration statement under the Securities Act, in each case in accordance
with any applicable securities laws of any state of the United States.

 

(c)           Restricted
Notes Legend.  Upon the transfer,
exchange or replacement of Notes not bearing a Restricted Notes Legend, the
Registrar shall deliver Notes that do not bear a Restricted Notes Legend.  Upon the transfer, exchange or replacement of
Notes bearing a Restricted Notes Legend, the Registrar shall deliver only Notes
that bear a Restricted Notes Legend unless (i) Initial Notes are being
exchanged for Exchange Notes in a Registered Exchange Offer in which case the
Exchange Notes shall not bear a Restricted Notes Legend, (ii) an Initial
Note is being transferred pursuant to the Shelf Registration Statement or other
effective registration statement or (iii) there is delivered to the
Registrar an Opinion of Counsel reasonably satisfactory to the Issuer 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.  Any Additional Notes
sold in a registered offering shall not be required to bear the Restricted
Notes Legend.  Any Additional Restricted
Notes sold in a private offering shall bear the legends set forth in Exhibits
B and C, as applicable.

 

(d)           The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.01 or this Section 2.06.  The Issuer shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable prior written notice to the
Registrar.

 

(e)           Obligations
with Respect to Transfers and Exchanges of Notes.

 

(i)            To permit
registrations of transfers and exchanges, the Issuer shall, subject to the
other terms and conditions of this Article Two, execute and the Trustee
shall authenticate Definitive Notes and Global Notes at the Registrar’s
request.

 

(ii)           No service charge shall
be made to a Holder for any registration of transfer or exchange, but the
Issuer may require the Holder to pay a sum sufficient to cover any transfer
tax, assessments, or similar governmental charge payable in connection
therewith (other than any such transfer taxes, assessments or similar
governmental charges payable upon exchange or transfer pursuant to Section
9.06).

 

46

 

(iii)          The Issuer (and the
Registrar) shall not be required to register the transfer of or exchange of any
Note for a period (1) beginning 15 days before the mailing of a
notice of an offer to repurchase or redeem Notes and ending at the close of
business on the day of such mailing, (2) selected for redemption in whole
or in part pursuant to Article Three, except the unredeemed portion of
any Note being redeemed in part, and (3) during a Change of Control Offer,
an Alternate Offer or an Asset Sale Offer if such Note is tendered pursuant to
such Change of Control Offer, Alternate Offer or Asset Sale Offer and not
withdrawn.

 

(iv)          Prior to the due
presentation for registration of transfer of any Note, the Issuer, the Trustee,
the Paying Agent or the Registrar may deem and treat the person in whose name a
Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of, premium, if any, and interest on such Note
and for all other purposes whatsoever, including the transfer or exchange of
such Note, whether or not such Note is overdue, and none of the Issuer, the
Trustee, the Paying Agent or the Registrar shall be affected by notice to the
contrary.

 

(v)           Any Definitive Note
delivered in exchange for an interest in a Global Note pursuant to Section 2.01(e)
shall, except as otherwise provided by Section 2.06(c), bear the
applicable legend regarding transfer restrictions applicable to the Global Note
set forth in Section 2.01(d).

 

(vi)          All Notes issued upon
any transfer or exchange pursuant to the terms of this Indenture shall evidence
the same debt and shall be entitled to the same benefits under this Indenture
as the Notes surrendered upon such transfer or exchange.

 

(f)            No
Obligation of the Trustee.

 

(i)            The Trustee shall have
no responsibility or obligation to any beneficial owner of a Global Note, a
member of, or a participant in, DTC or other Person with respect to the
accuracy of the records of DTC or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Notes or with respect to
the delivery to any participant, member, beneficial owner or other Person
(other than DTC) of any notice (including any notice of redemption) or the
payment of any amount or delivery of any Notes (or other security or property)
under or with respect to such Notes.  All
notices and communications to be given to the Holders and all payments to be
made to Holders in respect of the Notes shall be given or made only to or upon
the order of the registered Holders (which shall be DTC or its nominee in the
case of a Global Note).  The rights of
beneficial owners in any Global Note shall be exercised only through DTC
subject to the applicable rules and procedures of DTC.  The Trustee may rely and shall be fully
protected in relying upon information furnished by DTC with respect to its
members, participants and any beneficial owners.

 

(ii)           The Trustee shall have
no obligation or duty to monitor, determine or inquire as to compliance with
any restrictions on transfer imposed under this Indenture or under applicable
law with respect to any transfer of any interest in any Note (including any
transfers between or among DTC participants, members or beneficial owners in
any 

 

47

 

Global Note)
other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by, the terms of this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

 

SECTION
2.07.  Replacement Notes.

 

If a mutilated
Note is surrendered to the Registrar or the Trustee, or if the Holder of a Note
claims that the Note has been lost, destroyed or wrongfully taken, the Issuer
shall issue and the Trustee shall authenticate a replacement Note if the Holder
of such Note (a) furnishes to the Issuer and the Trustee evidence
reasonably acceptable to them of the ownership and the destruction, loss or
theft of such Note and (b) satisfies the requirements of Section 8-405 of
the New York Uniform Commercial Code as in effect on the date of this
Indenture.  If required by the Trustee or
the Issuer, an indemnity bond shall be posted, sufficient in the judgment of
all to protect the Issuer, the Guarantors, if any, the Trustee or any Paying
Agent from any loss that any of them may suffer if such Note is replaced.  The Issuer may charge such Holder for the
Issuer’s reasonable out-of-pocket expenses in replacing such Note, and the
Trustee may charge the Issuer for the Trustee’s expenses (including attorneys’
fees and disbursements) in replacing such Note. 
Every replacement Note shall constitute a contractual Obligation of the
Issuer.

 

SECTION
2.08.  Outstanding Notes.

 

The Notes
outstanding at any time are all the Notes that have been authenticated by the
Trustee except (a) those canceled by the Trustee, (b) those Notes delivered to
the Trustee for cancellation, (c) to the extent set forth in Sections 8.01
and 8.02, on or after the date the conditions set forth in Section
8.01 or 8.02 have been satisfied and (d) those Notes described in
this Section 2.08 as not outstanding. 
A Note does not cease to be outstanding because the Issuer or any of its
Affiliates holds the Note (subject to the provisions of Section 2.09).

 

If a Note is
replaced pursuant to Section 2.07 (other than a mutilated Note surrendered
for replacement), it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a bona fide
purchaser in whose hands such Note is a legal, valid and binding obligation of
the Issuer.  A mutilated Note ceases to
be outstanding upon surrender of such Note and replacement thereof pursuant to Section
2.07.

 

If the
principal amount of any Note is considered paid under Section 4.01,
it ceases to be outstanding and interest ceases to accrue.  If on a Redemption Date or the Maturity Date
the Trustee or Paying Agent (other than the Issuer or an Affiliate thereof)
holds U.S. Legal Tender or U.S. Government Securities sufficient to pay all of
the principal and interest due on the Notes payable on that date, then on and
after that date such Notes cease to be outstanding and interest on them ceases
to accrue.

 

SECTION
2.09.  Treasury Notes.

 

In determining
whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Issuer or any of its
Affiliates shall be disregarded, except that, for the purposes of determining
whether the Trustee 

 

48

 

shall be
protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee actually knows are so owned shall be disregarded.

 

SECTION
2.10.  Temporary Notes.

 

Until
definitive Notes are ready for delivery, the Issuer may prepare and the Trustee
shall authenticate temporary Notes. 
Temporary Notes shall be substantially in the form of definitive Notes
but may have variations that the Issuer considers appropriate for temporary
Notes.  Without unreasonable delay, the
Issuer shall prepare and the Trustee shall authenticate definitive Notes in
exchange for temporary Notes.  Until such
exchange, temporary Notes shall be entitled to the same rights, benefits and
privileges as definitive Notes. 
Notwithstanding the foregoing, so long as the Notes are represented by a
Global Note, such Global Note may be in typewritten form.

 

SECTION
2.11.  Cancellation.

 

The Issuer at
any time may deliver Notes to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment.  The
Trustee and no one else, shall cancel and destroy (subject to the record
retention requirements of the Exchange Act) all Notes surrendered for
registration of transfer, exchange, payment or cancellation and deliver a
certificate of destruction to the Issuer. 
Subject to Section 2.07, the Issuer may not issue new Notes to
replace Notes that it has paid or delivered to the Trustee for
cancellation.  If the Issuer or any
Guarantor shall acquire any of the Notes, 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
pursuant to this Section 2.11.

 

At such time
as all beneficial interests in a Global Note have either been exchanged for
Definitive Notes, transferred, redeemed, repurchased or canceled, such Global
Note shall be returned by DTC to the Trustee for cancellation or retained and
canceled by the Trustee.  At any time
prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for Definitive Notes, transferred in exchange for an interest in
another Global Note, redeemed, repurchased or canceled, the principal amount of
Notes represented by such Global Note shall be reduced and an adjustment shall
be made on the books and records of the Trustee (if it is then the custodian
for such Global Note) with respect to such Global Note, by the Trustee or the
custodian, to reflect such reduction.

 

SECTION 2.12.  Defaulted Interest.

 

If the Issuer
defaults in a payment of interest on the Notes, it shall, unless the Trustee
fixes another Record Date pursuant to Section 6.10, pay the defaulted
interest then borne by the Notes, plus (to the extent lawful) any interest
payable on the defaulted interest, in accordance with the terms hereof.  The Issuer may pay the defaulted interest to
the persons who are Holders on a subsequent special Record Date, which special
Record Date shall be the fifteenth day next preceding the date fixed by the
Issuer for the payment of defaulted interest or the next succeeding Business
Day if such date is not a Business Day. 
At least 15 days before any such subsequent special Record Date, the
Issuer shall mail to each Holder, with a copy to the 

 

49

 

Trustee, a
notice that states the subsequent special Record Date, the payment date, the
amount of defaulted interest and the amount of interest payable on such
defaulted interest, if any, to be paid. 
The Issuer may make payment of any defaulted interest in any other
lawful manner not inconsistent with the requirements (if applicable) of any
securities exchange on which the Notes may be listed and, upon such notice as
may be required by such exchange, if, after written notice given by the Issuer
to the Trustee of the proposed payment pursuant to this sentence, such manner
of payment shall be deemed practicable by the Trustee.

 

SECTION 2.13.  CUSIP, ISIN and
“Common Code” Numbers.

 

The Issuer in
issuing the Notes may use CUSIP numbers, ISINs and “Common Code” numbers (if
then generally in use) and, if so, the Trustee shall use, as applicable, CUSIP
numbers, ISINs and “Common Code” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness or accuracy of such numbers,
either as printed on the Notes or as contained in any notice of a redemption,
that reliance may be placed only on the other identification number(s) printed
on the Notes.  The Issuer shall advise
the Trustee of any change in the CUSIP numbers, ISINs and “Common Code”
numbers.

 

SECTION
2.14.  Deposit of Moneys.

 

Prior to 10:00
a.m. New York City time, on each Interest Payment Date, Maturity Date,
Redemption Date, Change of Control Payment Date and Asset Sale Payment Date,
the Issuer shall have deposited with the Paying Agent in immediately available
funds U.S. Legal Tender sufficient to make cash payments, if any, due on such
Interest Payment Date, Maturity Date, Redemption Date, Change of Control
Payment Date and Asset Sale Payment Date, as the case may be, in a timely
manner which permits the Paying Agent to remit payment to the Holders on such
Interest Payment Date, Maturity Date, Redemption Date, Change of Control
Payment Date and Asset Sale Payment Date, as the case may be.  The principal and interest on Global Notes
shall be payable to the Depository or its nominee, as the sole registered owner
and the sole Holder of the Global Notes represented thereby.  The principal and interest on Definitive
Notes shall be payable, either in person or by mail, at the office of the
applicable Paying Agent.

 

SECTION 2.15.  Computation of
Interest.

 

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

 

SECTION 2.16.  Calculation of
Principal Amount of Notes.

 

The aggregate
principal amount of the Notes, at any date of determination, shall be principal
amount of the Notes at such date of determination. With respect to any matter
requiring consent, waiver, approval or other action of the Holders of a
specified percentage of the principal amount of all the Notes, such percentage
shall be calculated, on the relevant date of determination, by dividing (a) the
principal amount, as of such date of determination, of Notes, the Holders of
which have so consented, by (b) the aggregate principal amount, as of such date
of determination, of the Notes then outstanding, in each case, as determined in
accordance with the preceding sentence and Section 2.08 and Section
2.09 of this Indenture.  Any such 

 

50

 

calculation
made pursuant to this Section 2.16 shall be made by the Issuer and
delivered to the Trustee pursuant to an Officers’ Certificate.

 

ARTICLE THREE

REDEMPTION

 

SECTION
3.01.  Notices to Trustee.

 

If the Issuer
elects to redeem Notes pursuant to Section 5 or Section 6 of the
Notes, it shall notify the Trustee in writing of the Redemption Date, the Redemption
Price and the principal amount of Notes to be redeemed.  The Issuer shall give notice of redemption to
the Paying Agent and Trustee at least 30 days but not more than 60 days before
the Redemption Date (unless a shorter notice shall be agreed to by the Trustee
in writing), together with an Officers’ Certificate stating that such
redemption shall comply with the conditions contained herein.

 

SECTION
3.02.  Selection of Notes To
Be Redeemed.

 

If less than
all of the Notes are to be redeemed at any time, the Trustee shall select Notes
for redemption as follows:

 

(1)           if the Notes are listed
on any national securities exchange, in compliance with the requirements of the
principal national securities exchange on which the Notes are listed; or

 

(2)           if the Notes are not
listed on any securities exchange, on a pro rata basis
to the extent practicable.

 

No Notes of
$1,000 or less shall be redeemed in part.

 

SECTION
3.03.  Notice of Redemption.

 

At least 30
days but not more than 60 days before a Redemption Date, the Issuer shall mail
a notice of redemption by first class mail, postage prepaid, to each Holder
whose Notes are to be redeemed at its registered address, except that redemption
notices may be mailed more than 60 days prior to a Redemption Date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction
and discharge of this Indenture, in each case in accordance with the applicable
provisions of Article VIII.  At
the Issuer’s request, the Trustee shall forward the notice of redemption in the
Issuer’s name and at the Issuer’s expense; provided that
in such case, the Trustee has received notice from the Issuer at least 35 days,
but not more than 60 days (only with respect to notices to which the 60-day
period applies pursuant to the immediately preceding sentence), before a
Redemption Date (unless a shorter notice shall be agreed to in writing by the
Trustee).  Notes called for redemption
become due on the date fixed for redemption. 
On and after the Redemption Date, interest ceases to accrue on Notes or
portions of them called for redemption. 
Each notice of redemption shall identify the Notes (including the CUSIP
number) to be redeemed and shall state:

 

51

 

(1)           the Redemption Date;

 

(2)           the Redemption Price
and the amount of accrued interest, if any, to be paid;

 

(3)           the name and address of
the Paying Agent;

 

(4)           that Notes called for
redemption must be surrendered to the Paying Agent to collect the Redemption
Price, plus accrued interest, if any;

 

(5)           that, unless the Issuer
defaults in making the redemption payment, interest on Notes called for
redemption ceases to accrue on and after the Redemption Date, and the only
remaining right of the Holders of such Notes is to receive payment of the
Redemption Price upon surrender to the Paying Agent of the Notes redeemed;

 

(6)           if any Note is being
redeemed in part, the portion of the principal amount of such Note to be
redeemed and that, after the Redemption Date, and upon surrender of such Note,
a new Note or Notes in aggregate principal amount equal to the unredeemed
portion thereof shall be issued;

 

(7)           if fewer than all the
Notes are to be redeemed, the identification of the particular Notes (or
portion thereof) to be redeemed or the method for selecting the Notes to be
redeemed in accordance with Section 3.02, as well as the aggregate
principal amount of Notes to be redeemed and the aggregate principal amount of
Notes to be outstanding after such partial redemption;

 

(8)           the CUSIP Number, ISIN
or “Common Code” number, if any, printed on the Notes being redeemed;

 

(9)           that no representation
is made as to the correctness or accuracy of the CUSIP number or ISIN or “Common
Code” number, if any, listed in such notice or printed on the Notes; and

 

(10)         the Section of the Notes
pursuant to which the Notes are to be redeemed.

 

The notice, if
mailed in a manner herein provided, shall be conclusively presumed to have been
given, whether or not the Holder receives such notice.  In any case, failure to give such notice by
mail or any defect in the notice to the Holder of any Note designated for
redemption in whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note. 
Unless otherwise specifically provided herein, notices of redemption may
not be conditional.

 

SECTION
3.04.  Effect of Notice of
Redemption.

 

Once notice of
redemption is mailed in accordance with Section 3.03, Notes called
for redemption become due and payable on the Redemption Date and at the Redemption
Price plus accrued interest, if any. 
Upon surrender to the Trustee or Paying Agent, such Notes called for
redemption shall be paid at the Redemption Price (which shall include accrued
interest 

 

52

 

thereon to the
Redemption Date), but installments of interest, the maturity of which is on or
prior to the Redemption Date, shall be payable to Holders of record at the
close of business on the relevant Record Dates. 
On and after the Redemption Date interest shall cease to accrue on Notes
or portions thereof called for redemption.

 

SECTION
3.05.  Deposit of Redemption
Price.

 

With respect
to the Notes, prior to 10:00 a.m., New York time, on the Redemption Date,
the Issuer shall deposit with the Paying Agent (or, if the Issuer or a
Subsidiary is a Paying Agent, shall segregate and hold in trust) U.S. Legal
Tender or U.S. Government Securities sufficient to pay the Redemption Price of
and accrued interest on all Notes or portions thereof to be redeemed on that
date other than Notes or portions of Notes called for redemption that have been
delivered by the Issuer to the Trustee for cancellation.  On and after the Redemption Date, interest
shall cease to accrue on the Notes or portions thereof called for redemption so
long as the Issuer has deposited with the Paying Agent funds sufficient to pay
the principal of, plus accrued and unpaid interest on, the Notes.

 

SECTION
3.06.  Notes Redeemed in
Part.

 

If any Note is
to be redeemed in part only, the notice of redemption that relates to such Note
shall state the portion of the principal amount thereof to be redeemed.  A new Note in principal amount equal to the
unredeemed portion of the original Note shall be issued in the name of the
Holder thereof upon cancellation of the original Note.

 

ARTICLE FOUR

COVENANTS

 

SECTION
4.01.  Payment of Notes.

 

(a)           The
Issuer shall pay the principal of (and premium, if any) and interest on the
Notes on the dates and in the manner provided in the Notes and this
Indenture.  An installment of principal
of or interest on the Notes shall be considered paid on the date it is due if
the Trustee or Paying Agent (other than the Issuer or an Affiliate thereof)
holds on that date, prior to 11:00 am Eastern Standard Time, U.S. Legal Tender
or U.S. Government Securities designated for and sufficient to pay the
installment.  Interest on the Notes shall
be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(b)           The
Issuer shall pay interest on overdue principal (including post-petition
interest in a proceeding under any Bankruptcy Law), and overdue interest, to
the extent lawful, at the same rate per annum borne
by the Notes.

 

SECTION
4.02.  Maintenance of Office
or Agency.

 

(a)           The
Issuer shall maintain the offices or agencies required under Section 2.03.  The Issuer shall give prompt written notice
to the Trustee of the location, and any change in the location, of such offices
or agencies.  If at any time the Issuer
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, 

 

53

 

such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in Section
12.02.

 

(b)           The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations.  The Issuer shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

(c)           The
Issuer hereby initially designates the Corporate Trust Office of the Trustee as
one such office or agency of the Issuer in accordance with Section 2.03.

 

SECTION
4.03.  Corporate Existence.

 

Except as
otherwise permitted by Article Five, the Issuer shall do or cause to be
done all things necessary to preserve and keep in full force and effect its
corporate existence in accordance with its organizational documents.

 

SECTION
4.04.  Payment of Taxes
and Other Claims.

 

The Issuer
shall, and shall cause each of its Restricted Subsidiaries to, pay or discharge
or cause to be paid or discharged, before the same shall become delinquent,
(a) all material taxes, assessments and governmental charges levied or
imposed upon it or any of its Restricted Subsidiaries or upon the income,
profits or property of it or any of its Restricted Subsidiaries and
(b) all lawful claims for labor, materials and supplies except, in each
case, any such tax, assessment, charge or claim as is being contested in good
faith by appropriate actions or where the failure to pay or discharge or cause
to be paid or discharged any such tax, assessment, charge or claim is not
materially adverse to the Holders.

 

SECTION
4.05.  Intentionally Omitted.

 

SECTION
4.06.  Compliance Certificate;
Notice of Default.

 

(a)           The
Issuer shall deliver to the Trustee, within 120 days after the close of each
fiscal year commencing with the fiscal year ending December 31, 2005, an
Officers’ Certificate stating that a review of the activities of the Issuer and
its Restricted Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining
whether the Issuer has kept, observed, performed and fulfilled its obligations
under this Indenture and further stating, as to each such Officer signing such
certificate, that to the best of such Officer’s knowledge, the Issuer during
such preceding fiscal year has kept, observed, performed and fulfilled each and
every such covenant in this Indenture and no Default occurred during such year
and at the date of such certificate there is no Default that has occurred and
is continuing or, if such signing Officers do know of such Default, the
certificate shall describe all such Defaults of which such signing Officer has
actual knowledge and its status with particularity.  The Officers’ Certificate shall also notify
the Trustee should the Issuer elect to change the manner in which it fixes its
fiscal year end.

 

54

 

(b)           The
Issuer shall deliver to the Trustee as soon as possible, and in any event
within five Business Days after the Issuer becomes aware of the occurrence of
any Default or Event of Default, an Officers’ Certificate specifying the
Default or Event of Default and describing its status with particularity and
the action proposed to be taken thereto.

 

(c)           The
Issuer’s fiscal year currently ends on December 31.  The Issuer shall provide written notice to
the Trustee of any change in its fiscal year.

 

SECTION
4.07.  Intentionally Omitted.

 

SECTION
4.08.  Waiver of Stay, Extension
or Usury Laws.

 

The Issuer and
each Guarantor covenants (to the extent permitted by applicable law) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law or any usury law or
other law that would prohibit or forgive the Issuer from paying all or any
portion of the principal of or interest on the Notes as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect
the covenants or the performance of this Indenture, and (to the extent
permitted by applicable law) the Issuer and each Guarantor hereby expressly
waives all benefit or advantage of any such law, and covenants (to the extent
permitted by applicable law) that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

 

SECTION
4.09.  Change of Control.

 

(a)           If
a Change of Control occurs, unless the Issuer at such time has given notice of
redemption under Section 5 or Section 6 of the Notes with respect to all
outstanding Notes, each Holder of Notes shall have the right to require the
Issuer to repurchase all or any part (equal to $1,000 or an integral multiple
of $1,000) of that Holder’s Notes pursuant to a change of control offer (the “Change of Control Offer”) on the terms set
forth in this Indenture. In the Change of Control Offer, the Issuer shall offer
to pay an amount in cash (the “Change of
Control Payment”) equal to 101% of the aggregate principal amount of
Notes repurchased plus accrued and unpaid interest and Additional Interest, if
any, on the Notes repurchased, to the date of purchase.  A Change of Control Offer may be made in
advance of a Change of Control or conditional upon the occurrence of a Change
of Control, if a definitive agreement is in place for the Change of Control at
the time the Change of Control Offer is made.

 

(b)           Within
30 days following any Change of Control, unless the Issuer at such time has
given notice of redemption under Section 5 or Section 6 of the Notes with
respect to all outstanding Notes, the Issuer shall mail a notice to each Holder
describing the transaction or transactions that constitute the Change of
Control and offering to repurchase Notes on the date (the “Change of Control Payment Date”) specified
in the notice, which date shall be no earlier than 30 days and no later than 60
days from the date such notice is mailed, pursuant to the procedures required
by this Indenture and described in such notice. 
Such notice shall state:

 

(1)           that the Change of
Control Offer is being made pursuant to this Section 4.09 and that
all Notes tendered and not withdrawn shall be accepted for payment;

 

55

 

(2)           the purchase price
(including the amount of accrued interest and any Additional Interest) and the
Change of Control Payment Date;

 

(3)           that any Note not
tendered shall continue to accrue interest;

 

(4)           that, unless the Issuer
defaults in making payment therefor, any Note accepted for payment pursuant to
the Change of Control Offer shall cease to accrue interest after the Change of
Control Payment Date;

 

(5)           that Holders electing
to have a Note purchased pursuant to a Change of Control Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date;

 

(6)           that Holders shall be
entitled to withdraw their election if the Paying Agent receives, not later
than the second Business Day prior to the Change of Control Payment Date, a
telegram, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Notes the Holder delivered for purchase and a
statement that such Holder is withdrawing such Holder’s election to have such
Note purchased;

 

(7)           that Holders whose
Notes are purchased only in part shall be issued new Notes in a principal
amount equal to the unpurchased portion of the Notes surrendered; and

 

(8)           the circumstances and
relevant facts regarding such Change of Control.

 

(c)           On
the Change of Control Payment Date, the Issuer shall, to the extent lawful:

 

(1)           accept for payment all
Notes or portions of Notes properly tendered pursuant to the Change of Control
Offer;

 

(2)           deposit with the Paying
Agent an amount equal to the Change of Control Payment in respect of all Notes
or portions of Notes properly tendered; and

 

(3)           deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’
Certificate stating the aggregate principal amount of Notes or portions of
Notes being purchased by the Issuer.

 

(d)           The
Paying Agent shall promptly mail to each Holder of Notes properly tendered the
Change of Control Payment for such Notes, and the Trustee shall promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder
a new Note equal in principal amount to any unpurchased portion of the Notes
surrendered, if any; provided, however, that each new Note shall be in a principal amount
of $1,000 or an integral multiple of $1,000. 
The Issuer shall publicly announce the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Payment Date.

 

56

 

Prior to
complying with any of the provisions of this Section 4.09, but in
any event within 90 days following a Change of Control, to the extent required
to permit the Issuer to comply with this Section 4.09, the Issuer
shall either repay all outstanding Senior Debt or obtain the requisite
consents, if any, under all agreements governing outstanding Senior Debt.  If the Change of Control Payment Date is on
or after an interest Record Date and on or before the related Interest Payment
Date, any accrued and unpaid interest shall be paid to the Person in whose name
a Note is registered at the close of business on such Record Date, and no
additional interest shall be payable to Holders who tender Notes pursuant to
the Change of Control Offer.

 

(e)           In
addition, the Issuer shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer (an
“Alternate 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 Issuer and
purchases all Notes properly tendered and not withdrawn under the Alternate
Offer.  The Alternate Offer must comply
with all the other provisions applicable to the Change of Control Offer, shall
remain, if commenced prior to the Change of Control, open for acceptance until
the consummation of the Change of Control and must permit Holders to withdraw
any tenders of Notes made into the Alternate Offer until the final expiration
or consummation thereof, subject to Sections 4.09(b)(5) and (6).  An Alternate Offer may be made in advance of
a Change of Control or conditional upon the occurrence of a Change in Control,
if a definitive agreement is in place for the Change of Control at the time the
Alternate Offer is made.

 

(f)            The
Issuer shall comply, and shall use commercially reasonable efforts to cause any
third party making a Change of Control Offer or an Alternate Offer to 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 and
regulations are applicable in connection with the repurchase of the Notes as a
result of a Change of Control or an Alternate Offer.  To the extent that the provisions of any
applicable securities laws or regulations conflict with the Change of Control
provisions of this Indenture, the Issuer shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under the Change of Control provisions of this Indenture by virtue
of such conflict.

 

SECTION 4.10.  Incurrence of Indebtedness and Issuance of
Preferred Stock.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect
to (collectively “incur”) any
Indebtedness (including Acquired Debt) and shall not permit any of its
Restricted Subsidiaries to issue any shares of Preferred Stock; provided, however, that
the Issuer, and any Restricted Subsidiary that is a Guarantor or any Foreign
Subsidiary may incur Indebtedness (including Acquired Debt) and any Restricted
Subsidiary that is a Guarantor or any Foreign Subsidiary may issue Preferred
Stock if the Fixed Charge Coverage Ratio of the Issuer for its 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 Preferred Stock is issued would have been at least 2.0 to 1
determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred or the Preferred Stock had been
issued, as the case may be, and the application of proceeds

 

57

 

therefrom had occurred at the beginning of
such four-quarter period; provided,
however, the principal amount of
all such Indebtedness incurred, and the liquidation value of all Preferred
Stock issued, by Foreign Subsidiaries under this provision shall not exceed
$50 million outstanding at any time.

 

(b)           Section
4.10(a) shall not prohibit the incurrence of any of the following
(collectively, “Permitted Debt”):

 

(1)           the incurrence by the
Issuer, a Guarantor or a Foreign Subsidiary of Indebtedness under the Credit
Agreement together with the incurrence by the Issuer, any Restricted Subsidiary
or a Foreign Subsidiary of the guarantees thereunder 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
outstanding at any one time, not to exceed the sum of (x) $375 million
and (y) the greater of (i) $100 million and (ii) the sum of
(A) 50% of the book value of the inventory of the Issuer and the
Restricted Subsidiaries and (B) 70% of the book value of the accounts
receivable of the Issuer and the Restricted Subsidiaries, less (z) the amount
of all mandatory principal payments (with respect to revolving borrowings and
letters of credit, only to the extent revolving commitments are correspondingly
reduced) actually made by the borrower thereunder in respect of Indebtedness
thereunder with Net Proceeds from Asset Sales; provided, however,
such Indebtedness incurred by Foreign Subsidiaries under this clause (1)
shall not exceed the aggregate amount of $50 million outstanding at any
time;

 

(2)           the incurrence by the
Issuer and the Guarantors of Indebtedness represented by the Notes (including
any Guarantee thereof) issued on the Issue Date and the incurrence by the
Issuer and the Guarantors of Indebtedness represented by the Exchange Notes
issued in exchange for the Notes issued on the Issue Date (including any
Guarantee thereof);

 

(3)           Existing Indebtedness
(other than Indebtedness described in clauses (1) and (2));

 

(4)           Indebtedness (including
Capitalized Lease Obligations) incurred by the Issuer or any Restricted
Subsidiary to finance the purchase, lease or improvement of property (real or
personal) or equipment that is used or useful in a Permitted Business (whether
through the direct purchase of assets or the Capital Stock of any Person owning
such assets) in an aggregate principal amount that, when aggregated with the
principal amount of all other Indebtedness then outstanding and incurred
pursuant to this clause (4), does not exceed the greater of (x) $50 million and
(y) 5.0% of Total Assets;

 

(5)           Indebtedness incurred
by the Issuer or any Restricted Subsidiary constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business, including letters of credit in respect of workers’ compensation
claims, health, disability or other employee benefits or property, casualty or
liability insurance or self-insurance or other Indebtedness with respect to
reimbursement-type obligations regarding workers’ compensation claims; provided,

 

58

 

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 Issuer or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the acquisition or disposition of
any business, assets or a Subsidiary, other than guarantees of Indebtedness
incurred by any Person acquiring all or any portion of such disposed business,
assets or a Subsidiary for the purpose of financing such acquisition; provided, however, that
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
Issuer and any Restricted Subsidiaries in connection with such disposition;

 

(7)           Indebtedness of the
Issuer owed to and held by any Restricted Subsidiary or Indebtedness of a
Restricted Subsidiary owed to and held by the Issuer or any other Restricted
Subsidiary; provided, however,
that (A) any subsequent issuance or transfer of any Capital Stock or any other
event that results in any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any subsequent transfer of any such Indebtedness (except to the
Issuer or a Restricted Subsidiary) shall be deemed, in each case, to constitute
the incurrence of such Indebtedness by the issuer thereof and (B) if the Issuer
or a Guarantor is the obligor on such Indebtedness and the obligee thereunder
is not the Issuer, such Indebtedness is expressly subordinated in right of
payment to all obligations of the Issuer or such Guarantor with respect to the
Notes;

 

(8)           shares of Preferred
Stock of a Restricted Subsidiary issued to the Issuer or a Restricted
Subsidiary; provided, however,
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 Issuer or a Restricted Subsidiary) shall be
deemed in each case to be an issuance of such shares of Preferred Stock;

 

(9)           Hedging Obligations of
the Issuer or any Restricted Subsidiary (excluding Hedging Obligations entered
into for speculative purposes) for the purpose of limiting (A) interest rate
risk with respect to any Indebtedness that is permitted by the terms of this
Indenture to be outstanding, (B) exchange rate risk with respect to any
currency exchange or (C) commodity price risk;

 

(10)         obligations in respect of
performance, bid and surety bonds and performance and completion guarantees
provided by the Issuer or any Restricted Subsidiary or obligations in respect
of letters of credit related thereto, in each case in the ordinary course of
business or consistent with past practice;

 

(11)         Indebtedness or Preferred
Stock of the Issuer or any Restricted Subsidiary not otherwise permitted
hereunder in an aggregate principal amount or liquidation

 

59

 

preference
which, when aggregated with the principal amount and liquidation preference of
all other Indebtedness and Preferred Stock then outstanding and incurred
pursuant to this clause (11), does not at any one time outstanding exceed $75
million;

 

(12)         (x) any guarantee by the
Issuer 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; provided, however, that
if such Indebtedness is by its express terms subordinated in right of payment
to the Notes or the Guarantee of such Restricted Subsidiary any such guarantee
of such Guarantor with respect to such Indebtedness shall be subordinated in
right of payment to such Guarantor’s Guarantee with respect to the Notes
substantially to the same extent as such Indebtedness is subordinated to the
Notes or the Guarantee of such Restricted Subsidiary as applicable, (y) any
guarantee by a Restricted Subsidiary that is not a Guarantor of Indebtedness of
another Restricted Subsidiary that is not a Guarantor incurred in accordance
with the terms of this Indenture, and (z) any guarantee by a Guarantor of
Indebtedness of the Issuer incurred in accordance with the terms of this
Indenture;

 

(13)         the incurrence by the
Issuer or any Restricted Subsidiary of Indebtedness or Preferred Stock that
serves to refund, refinance, defease or discharge any Indebtedness incurred as
permitted under Section 4.10(a) or clauses (2), (3) or (4) above, this
clause (13) and clauses (14), (19) and (20) below or any Indebtedness issued to
so refund or refinance such Indebtedness including additional Indebtedness
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 being refunded or refinanced, (B) to the extent such Refinancing
Indebtedness refinances Indebtedness subordinated or pari passu
to the Notes or the Guarantees, such Refinancing Indebtedness is subordinated
or pari passu to the Notes or the
Guarantees at least to the same extent as the Indebtedness being refinanced or
refunded, (C) shall not include (x) Indebtedness or Preferred Stock of a
Subsidiary that is not a Guarantor that refinances Indebtedness or Preferred
Stock of the Issuer or a Guarantor or (y) Indebtedness or Preferred Stock of
the Issuer or a Restricted Subsidiary that refinances Indebtedness or Preferred
Stock of an Unrestricted Subsidiary, (D) shall not be in a principal amount in
excess of the principal amount of, premium, if any, accrued interest on, and
related fees and expenses of, the Indebtedness being refunded or refinanced and
(E) shall not have a stated maturity date prior to the Stated Maturity of the
Notes or the Indebtedness being refunded or refinanced; and provided further, however, that
subclauses (A), (B) and (E) of this clause (13) shall not apply to any
refunding or refinancing of any Senior Debt;

 

(14)         Indebtedness or Preferred
Stock of a Person incurred and outstanding on or prior to the date on which
such Person was acquired by the Issuer or any Restricted Subsidiary or merged
into the Issuer or a Restricted Subsidiary in accordance with the terms of this
Indenture; provided, however,
that such Indebtedness or Preferred Stock is not incurred in connection with or
in contemplation of, or to provide all or any portion of

 

60

 

the funds or
credit support utilized to consummate, such acquisition or merger; and provided further, however, that
after giving effect to such incurrence of Indebtedness either (A) the
Issuer would be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.10(a)
or (B) such Fixed Charge Coverage Ratio would be greater than immediately
prior to such acquisition;

 

(15)         Indebtedness arising from
the honoring by a bank or financial institution of a check, draft or similar
instrument drawn against insufficient funds in the ordinary course of business;
provided, however,
that such Indebtedness is extinguished within five Business Days of its
incurrence;

 

(16)         Indebtedness of the
Issuer or any of its Restricted Subsidiaries supported by a letter of credit
issued pursuant to the Credit Agreement in a principal amount not in excess of
the stated amount of such letter of credit;

 

(17)         Indebtedness incurred by
a Securitization Subsidiary in a Qualified Securitization Financing that is non
recourse to the Issuer or any of its Restricted Subsidiaries, other than a
Securitization Subsidiary (except for Standard Securitization Undertakings);

 

(18)         Indebtedness consisting
of promissory notes issued by the Issuer or any Guarantor to current or former
officers, directors and employees, their respective estates, spouses or former
spouses to finance the purchase or redemption of Equity Interests of the Issuer
or any of its direct or indirect parent entities permitted by Section 4.11;

 

(19)         Contribution Indebtedness;

 

(20)         Indebtedness of the
Issuer or a Guarantor incurred in connection with or in contemplation of, or to
provide all or any portion of the funds or credit support utilized to
consummate, the acquisition by the Issuer or such Guarantor of property used or
useful in a Permitted Business (including a Product) (whether through the
direct purchase of assets or the purchase of Capital Stock of, or merger or
consolidation with, any Person owning such assets); provided, however, that the Fixed Charge Coverage Ratio of the Issuer
for its most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
Indebtedness is incurred, determined on a pro forma basis
as if such Indebtedness had been incurred and the application of proceeds
therefrom had occurred at the beginning of such four-quarter period, (A) would
have been at least 1.75 to 1 and (B) would have been greater than such Fixed
Charge Coverage Ratio immediately prior to such acquisition or merger; and

 

(21)         Indebtedness of the
Issuer or any Restricted Subsidiary consisting of (x) the financing
insurance premiums or (y) take-or-pay obligations contained in supply
arrangements, in each case, in the ordinary course of business.

 

(c)           For
purposes of determining compliance with this Section 4.10, in the
event that an item of proposed Indebtedness meets the criteria of more than one
of the categories of Permitted Debt described in clauses (1) through (21) of Section 4.10(b),
or is entitled to be

 

61

 

incurred pursuant to Section 4.10(a),
the Issuer shall be permitted to classify and later reclassify such item of
Indebtedness in any manner that complies with this Section 4.10,
and such item of Indebtedness shall be treated as having been incurred pursuant
to only one of such categories. Accrual of interest, the accretion of accreted
value and the payment of interest in the form of additional Indebtedness shall
not be deemed to be an incurrence of Indebtedness for purposes of this Section
4.10. Notwithstanding the foregoing, Indebtedness under the Credit
Agreement outstanding on the Issue Date shall be deemed to have been incurred
on such date in reliance on Section 4.10(b)(1) and the Issuer shall not
be permitted to reclassify all or any portion of such Indebtedness.

 

(d)           For
purposes of determining compliance with any U.S. dollar restriction on the
incurrence of Indebtedness where the Indebtedness incurred is denominated in a
different currency, the amount of such Indebtedness shall be the
U.S. Dollar Equivalent determined on the date of the incurrence of such
Indebtedness; provided, however, that if any such Indebtedness
denominated in a different currency is subject to a currency agreement with
respect to U.S. dollars covering all principal, premium, if any, and
interest payable on such Indebtedness, the amount of such Indebtedness
expressed in U.S. dollars shall be as provided in such currency agreement.  The principal amount of any refinancing
Indebtedness incurred in the same currency as the Indebtedness being refinanced
shall be the U.S. Dollar Equivalent of the Indebtedness being refinanced,
except to the extent that (1) such U.S. Dollar Equivalent was determined
based on a currency agreement, in which case the refinancing Indebtedness shall
be determined in accordance with the preceding sentence, and (2) the principal
amount of the refinancing Indebtedness exceeds the principal amount of the
Indebtedness being refinanced, in which case the U.S. Dollar Equivalent of
such excess shall be determined on the date such refinancing Indebtedness is
incurred.  The maximum amount of
Indebtedness that the Issuer and its Restricted Subsidiaries may incur pursuant
to this Section 4.10 shall not be deemed to be exceeded, with
respect to any outstanding Indebtedness, solely as a result of fluctuations in
the exchange rate of currencies.

 

SECTION 4.11.  Restricted Payments.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly:

 

(i)            declare or pay any
dividend or make any other distribution on account of the Issuer’s or any of
its Restricted Subsidiaries’ Equity Interests, including any dividend or
distribution payable in connection with any merger or consolidation (other than
(x) dividends or distributions by the Issuer payable in Equity Interests (other
than Disqualified Stock) of the Issuer or in options, warrants or other rights
to purchase such Equity Interests (other than Disqualified Stock), (y)
dividends or distributions by a Restricted Subsidiary payable solely to the
Issuer or any other Restricted Subsidiary or (z) in the case of any
dividend or distribution payable on or in respect of any class or series of
securities issued by a Restricted Subsidiary other than a Wholly Owned
Subsidiary, pro rata dividends or
distributions to minority stockholders of such Restricted Subsidiary (or owners
of an equivalent interest in the case of a Subsidiary that is an entity other
than a corporation); provided, however, that the Issuer or a Restricted

 

62

 

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);

 

(ii)           purchase, redeem or
otherwise acquire or retire for value any Equity Interests of the Issuer or any
direct or indirect parent entity of the Issuer held by any Person (other than
by a Restricted Subsidiary), including in connection with any merger or
consolidation;

 

(iii)          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 by
Sections 4.10(b)(7) and (8) or (y) the purchase, repurchase or
other acquisition or retirement of Indebtedness subordinated or junior in right
of payment to the Notes 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 retirement); or

 

(iv)          make any Restricted
Investment (all such payments and other actions set forth in these clauses (i)
through (iv) being collectively referred to as “Restricted Payments”),

 

unless, at the
time of and after giving effect to such Restricted Payment:

 

(1)           no Default has occurred
and is continuing or would occur as a consequence of such Restricted Payment;

 

(2)           the Issuer would, at
the time of such Restricted Payment and after giving pro forma
effect thereto as if such Restricted Payment had been made at the beginning of
the applicable four-quarter period, have been permitted to incur at least $1.00
of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set
forth in Section 4.10(a); and

 

(3)           such Restricted
Payment, together with the aggregate amount of all other Restricted Payments
made by the Issuer and the Restricted Subsidiaries after the Issue Date
(excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6),
(7), (8), (10), (11), (12), (13), (14), (16), (17) and (18) of Section 4.11(b)),
is less than the sum, without duplication, of

 

(A)          50% of the Consolidated
Net Income of the Issuer for the period (taken as one accounting period) from
January 1, 2005 to the end of the Issuer’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

 

(B)           100% of the aggregate
net cash proceeds and the fair market value, as determined in good faith by the
Board of Directors of the Issuer, of property and marketable securities
received by the Issuer after the Issue Date from the

 

63

 

issue or sale
of (x) Equity Interests of the Issuer (including Retired Capital Stock (as
defined in Section 4.11(b)(2))) but excluding (i) cash
proceeds received from the sale of Equity Interests of the Issuer and, to the
extent actually contributed to the Issuer, Equity Interests of the Issuer’s
direct or indirect parent entities to members of management, directors or
consultants of the Issuer, any direct or indirect parent entity of the Issuer
and the Subsidiaries of the Issuer after the Issue Date to the extent such
amounts have been applied to Restricted Payments made in accordance with Section 4.11(b)(4),
(ii) cash proceeds received from the sale of Refunding Capital Stock (as
defined in Section 4.11(b)(2)) to the extent such amounts have been
applied to Restricted Payments made in accordance with Section 4.11(b)(2),
(iii) Designated Preferred Stock, (iv) the Cash Contribution Amount
and (v) Disqualified Stock) or (y) debt securities of the Issuer that have
been converted into such Equity Interests of the Issuer (other than Refunding
Capital Stock or Equity Interests or convertible debt securities of the Issuer
sold to a Restricted Subsidiary or the Issuer, as the case may be, and other
than Disqualified Stock or Designated Preferred Stock or debt securities that
have been converted into Disqualified Stock or Designated Preferred Stock), plus

 

(C)           100% of the aggregate
amount of cash and the fair market value, as determined in good faith by the
Board of Directors of the Issuer, of property and marketable securities
contributed to the capital of the Issuer after the Issue Date (other than (i)
by a Restricted Subsidiary, (ii) any Excluded Contributions, (iii) any
Disqualified Stock, (iv) any Refunding Capital Stock, (v) any Designated
Preferred Stock, (vi) the Cash Contribution Amount and (vii) cash proceeds
applied to Restricted Payments made in accordance with Section 4.11(b)(4),
plus

 

(D)          without duplication of
any amounts included in Section 4.11(b)(4), and to the extent not
already included in Consolidated Net Income, 100% of the aggregate amount
received in cash and the fair market value, as determined in good faith by the
Board of Directors of the Issuer, of property and marketable securities
received after the Issue Date by means of (A) the sale or other disposition
(other than to the Issuer or a Restricted Subsidiary) of Restricted Investments
made by the Issuer or its Restricted Subsidiaries and repurchases and
redemptions of such Restricted Investments from the Issuer or its Restricted
Subsidiaries and repayments of loans or advances which constitute Restricted
Investments of the Issuer or its Restricted Subsidiaries or (B) the sale (other
than to the Issuer or a Restricted Subsidiary) of the Capital 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 Issuer or a Restricted Subsidiary pursuant to Section 4.11(b)(7)
or (10) or to the extent such Investment constituted a Permitted
Investment) or a dividend from an Unrestricted Subsidiary, plus

 

(E)           in the case of the
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary or the
merger or consolidation of an Unrestricted Subsidiary into the Issuer or a
Restricted Subsidiary or the transfer of assets of an Unrestricted Subsidiary
to the Issuer or a Restricted Subsidiary, the fair market

 

64

 

value of the
Investment in such Unrestricted Subsidiary, as determined by the Board of
Directors of the Issuer in good faith at the time of the redesignation of such
Unrestricted Subsidiary as a Restricted Subsidiary or at the time of such
merger, consolidation or transfer of assets (other than an Unrestricted
Subsidiary to the extent the Investment in such Unrestricted Subsidiary was
made by the Issuer or a Restricted Subsidiary pursuant to Section 4.11(b)(7)
or (10) or to the extent such Investment constituted a Permitted
Investment), plus;

 

(F)           $15 million.

 

(b)           Notwithstanding
the foregoing the provisions set forth in Section 4.11(a) 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 of the
Issuer or any direct or indirect parent entity of the Issuer (“Retired Capital Stock”) or Indebtedness
subordinated to the Notes in exchange for or out of the net cash proceeds of
the substantially concurrent sale (other than to a Restricted Subsidiary or the
Issuer) of Equity Interests of the Issuer or contributions to the equity
capital of the Issuer (in each case, other than Disqualified Stock and the Cash
Contribution Amount) (“Refunding Capital
Stock”) and (B) the declaration and payment of dividends on the
Retired Capital Stock out of the net cash proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Issuer or to an employee
stock ownership plan or any trust established by the Issuer or any of its
Subsidiaries) of Refunding Capital Stock;

 

(3)           the redemption,
repurchase or other acquisition or retirement of Indebtedness subordinated to
the Notes made by exchange for, or out of the proceeds of the substantially
concurrent sale of, new Indebtedness of the borrower thereof, the Issuer or a
Guarantor which is incurred in compliance with Section 4.10 so long as
(A) the principal amount of such new Indebtedness does not exceed the principal
amount of the Indebtedness subordinated to the Notes being so redeemed,
repurchased, acquired or retired for value plus related fees and expenses and
the amount of any reasonable premium required to be paid under the terms of the
instrument governing the Indebtedness subordinated to the Notes being so
redeemed, repurchased, acquired or retired, (B) such new Indebtedness is
subordinated to the Notes and any Guarantees thereof at least to the same
extent as such Indebtedness subordinated to such Notes so redeemed,
repurchased, acquired or retired, (C) such new Indebtedness has a final
scheduled maturity date equal to or later than the Notes or the final scheduled
maturity date of the Indebtedness subordinated to such Notes being so redeemed,
repurchased, acquired or retired and (D) such new Indebtedness has a Weighted
Average Life to Maturity equal to or greater than the remaining Weighted
Average Life to Maturity of the Notes or the Indebtedness subordinated to such
Notes being so redeemed, repurchased, acquired or retired;

 

65

 

(4)           a Restricted Payment to
pay for the repurchase, retirement or other acquisition or retirement for value
of common Equity Interests of the Issuer or any of its direct or indirect
parent entities held by any future, present or former employee, director or
consultant of the Issuer, any of its Subsidiaries or any of its direct or
indirect parent entities (or their permitted transferees, assigns, estates or
heirs) pursuant to any management equity plan or stock option plan or any other
management or employee benefit plan or other similar agreement or arrangement; provided, however, that
the aggregate amount of Restricted Payments made under this clause (4) does not
exceed in any calendar year $5.0 million (with unused amounts in any calendar
year being carried over to the immediately succeeding calendar year); and provided further, however, 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 (other than
Disqualified Stock) of the Issuer and, to the extent contributed to the Issuer,
Equity Interests of any of its direct or indirect parent entities, in each case
to members of management, directors or consultants of the Issuer, any of its
Subsidiaries or any of its direct or indirect parent entities that occurs after
the Issue Date plus (B) the amount of any cash
bonuses otherwise payable to members of management, directors or consultants of
the Issuer or any of its Subsidiaries or any of its direct or indirect parent
entities in connection with the Transactions that are foregone in return for
the receipt of Equity Interests of the Issuer or any of its direct or indirect
parent entities pursuant to a deferred compensation plan of such corporation plus (C) the cash proceeds of “key man” life insurance
policies received by the Issuer or its Restricted Subsidiaries after the Issue
Date; provided, however,
that the Issuer may elect to apply all or any portion of the aggregate increase
contemplated by clauses (A), (B) and (C) of this clause (4) in any calendar
year less (D) the amount of any Restricted
Payments previously made pursuant to clauses (A), (B) and (C) of this clause
(4);

 

(5)           the declaration and
payment of dividends to holders of any class or series of Disqualified Stock of
the Issuer or any Restricted Subsidiary issued or incurred in accordance with
this Section 4.10 to the extent such dividends are included in the
definition of Fixed Charges for such entity;

 

(6)           the declaration and
payment of dividends or distributions to holders of any class or series of
Designated Preferred Stock (other than Disqualified Stock) issued after the
Issue Date and the declaration and payment of dividends to any direct or
indirect parent entity of the Issuer, the proceeds of which shall be used to
fund the payment of dividends to holders of any class or series of Designated
Preferred Stock (other than Disqualified Stock) of any direct or indirect
parent entity of the Issuer issued after the Issue Date; provided,
however, that (A) 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, after giving effect to such issuance (and the payment of
dividends or distributions thereon) on a pro forma
basis, the Issuer would have had a Fixed Charge Coverage Ratio of at least 2.0
to 1 and (B) the aggregate amount of dividends declared and paid pursuant to
this clause (6) does not exceed the net cash proceeds actually received by the
Issuer from any such sale of Designated Preferred Stock (other than
Disqualified Stock) issued after the Issue Date;

 

66

 

(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, not to exceed $15 million (with the fair market
value of each Investment being measured at the time made and without giving
effect to subsequent changes in value);

 

(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 Issuer’s common stock following the first public offering of
the Issuer’s common stock or the common stock of any of its direct or indirect
parent entities after the Issue Date, of up to 6.0% per annum of the net cash
proceeds received by or contributed to the Issuer after the Issue Date in any
such public offering, other than public offerings with respect to the Issuer’s
common stock registered on Form S-4 or Form S-8;

 

(10)         Investments that are made
with Excluded Contributions;

 

(11)         other Restricted Payments
in an aggregate amount not to exceed $50 million;

 

(12)         cash dividends or other
distributions on the Issuer’s or any Restricted Subsidiary’s Capital Stock used
to, or the making of loans, the proceeds of which shall be used to, fund the
payment of fees and expenses incurred in connection with the Transactions or
this offering, in each case to the extent permitted (to the extent applicable)
by Section 4.14;

 

(13)         distributions or payments
of Securitization Fees and purchases of Securitization Assets pursuant to a
Securitization Repurchase Obligation in connection with a Qualified
Securitization Financing;

 

(14)         the repurchase,
redemption or other acquisition or retirement for value of any Subordinated
Indebtedness pursuant to provisions similar to Sections 4.09 and 4.13;
provided, however,
that a Change of Control Offer or Asset Sale Offer, as applicable, has been
made and all Notes tendered by Holders of the Notes in connection with a Change
of Control Offer or Asset Sale Offer, as applicable, have been repurchased,
redeemed or acquired for value in accordance with the terms of this Indenture;

 

(15)         intentionally omitted;

 

(16)         the declaration and
payment of dividends to, or the making of loans to, a direct or indirect parent
entity of the Issuer in amounts required for such Person to pay, without
duplication:

 

(A)          franchise taxes and
other fees, taxes and expenses required to maintain its corporate existence;

 

67

 

(B)           income taxes pursuant
to the tax allocation agreement between the Company and Holdings entered into
as of the date hereof;

 

(C)           customary salary,
bonus, severance and other benefits payable to, and indemnities provided on
behalf of, officers and employees of such direct or indirect parent entity of
the Issuer to the extent such salaries, bonuses, severance, indemnities and
other benefits are attributable to the ownership or operation of the Issuer and
its Restricted Subsidiaries;

 

(D)          general corporate
overhead expenses for such direct or indirect parent entity of the Issuer to
the extent such expenses are attributable to the ownership or operation of the
Issuer and its Restricted Subsidiaries; and

 

(E)           reasonable fees and
expenses incurred in connection with any unsuccessful debt or equity offering
by such direct or indirect parent entity of the Issuer;

 

(17)         any payments made in
connection with the consummation of the Transactions or as contemplated by the
related Purchase Agreement (other than payments to any Permitted Holder or any
Affiliate thereof);

 

(18)         cash payments in lieu of
the issuance of fractional shares in connection with the exercise of warrants,
options or other securities convertible into or exchangeable for Capital Stock
of the Issuer; provided, however,
that any such cash payment shall not be for the purpose of evading the
limitation of this Section 4.11 (as determined in good faith by the
Board of Directors of the Issuer); or

 

(19)         the payment of dividends
and other distributions to any direct or indirect parent entity of the Issuer
in an amount equal to any reduction in taxes actually realized by the Issuer
and its Restricted Subsidiaries in the form of refunds or from deductions when
applied to offset income or gain as a direct result of (i) transaction
fees, (ii) commitment and other financing fees or (iii) severance,
change in control and other compensation expense incurred in connection with
the repurchase or rollover of stock options or transaction bonuses, in each
case in connection with the Transactions;

 

provided, however, that at the time of, and after giving effect to,
any Restricted Payment permitted under clauses (6), (9), (11), (14) and (19)
above, no Default shall have occurred and be continuing or would occur as a
consequence thereof.

 

(c)           The
amount of all Restricted Payments (other than cash) shall be the fair market
value on the date of the Restricted Payment of the assets or securities
proposed to be transferred or issued by the Issuer or the applicable
Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair
market value of any assets or securities that are required to be valued by this
Section 4.11 shall be determined in good faith by the Board of
Directors of the Issuer.

 

(d)           The
Issuer shall not permit any Unrestricted Subsidiary to become a Restricted
Subsidiary except pursuant to the second to last sentence of the definition of

 

68

 

Unrestricted Subsidiary.  For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding investments by the
Issuer and the 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 second paragraph of the definition of “Investments.”  Such designation shall be permitted only if a
Restricted Payment in such amount would be permitted at such time under this Section 4.11
or the definition of “Permitted Investments” and if such Subsidiary otherwise
meets the definition of an “Unrestricted Subsidiary.”

 

SECTION 4.12.  Liens.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume or suffer to exist any Lien that
secures obligations under any Indebtedness ranking pari passu
with or subordinated to the Notes or a related Guarantee on any asset or
property of the Issuer or any Restricted Subsidiary, or any income or profits
therefrom, or assign or convey any right to receive income therefrom, unless:

 

(1)           in the case of Liens
securing Indebtedness subordinated to the Notes or the Guarantees, the Notes
and any related Guarantees are secured by a Lien on such property, assets or
proceeds that is senior in priority to such Liens; or

 

(2)           in all other cases, the
Notes and any related Guarantees are equally and ratably secured,

 

except that
the foregoing shall not apply to:

 

(i)            Liens existing on the
Issue Date to the extent and in the manner such Liens are in effect on the
Issue Date;

 

(ii)           Liens securing the
Notes and the related Guarantees and the Exchange Notes (including Exchange
Notes issued in exchange for Additional Notes issued and secured by a Lien in
each case in accordance with the terms of this Indenture) and the related
Guarantees;

 

(iii)          Liens securing Senior
Debt or Guarantor Senior Debt and the related guarantees of such Senior Debt or
Guarantor Senior Debt; and

 

(iv)          Permitted Liens.

 

SECTION 4.13.  Asset Sales.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

 

(1)           the Issuer (or such
Restricted Subsidiary, as the case may be) receives consideration at the time
of the Asset Sale at least equal to the fair market value of the assets or
Equity Interests issued or sold or otherwise disposed of; and

 

69

 

(2)           except for any
Permitted Asset Swap, at least 75% of the consideration received in the Asset
Sale by the Issuer or such Restricted Subsidiary is in the form of cash or Cash
Equivalents.

 

For purposes
of clause (2) above, the amount of (i) any liabilities (as shown on the
Issuer’s or the applicable Restricted Subsidiary’s most recent balance sheet or
in the notes thereto) of the Issuer or any Restricted Subsidiary (other than
liabilities that are by their terms subordinated to the Notes or the
Guarantees) that are assumed by the transferee of any such assets and from
which the Issuer and all Restricted Subsidiaries have been validly released by
all creditors in writing, (ii) any securities received by the Issuer or such
Restricted Subsidiary from such transferee that are converted by the Issuer or
such Restricted Subsidiary into cash (to the extent of the cash received)
within 180 days following the closing of such Asset Sale and (iii) any
Designated Non-cash Consideration received by the Issuer or any of its
Restricted Subsidiaries in such Asset Sale having an aggregate fair market
value (as determined in good faith by the Board of Directors of the Issuer),
taken together with all other Designated Non-cash Consideration received
pursuant to this clause (iii) not to exceed the greater of (x) $35 million and
(y) 31⁄2% of Total Assets (with the fair market value of each item of
Designated Non-cash Consideration being measured at the time received without
giving effect to subsequent changes in value), shall be deemed to be cash for
purposes of Section 4.13(a)(2) and for no other purpose.

 

(b)           Within
365 days after the receipt of any Net Proceeds from an Asset Sale, the Issuer
may apply those Net Proceeds at its option:

 

(1)           to permanently reduce Obligations
under Senior Debt (and to correspondingly reduce commitments with respect
thereto) or Indebtedness that ranks pari passu with
the Notes; provided, however,
that if the Issuer shall so reduce Obligations under Indebtedness that ranks pari passu with the Notes, it shall equally and ratably
reduce Obligations under the Notes by causing the Issuer to make an offer (in
accordance with the procedures set forth in Section 4.13(c) for an Asset
Sale Offer) to all Holders of Notes to purchase at a purchase price equal to
100% of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest, if any, on the pro rata
principal amount of Notes or Indebtedness of a Restricted Subsidiary is not a
Guarantor, in each case other than Indebtedness owed to the Issuer or an
Affiliate of the Issuer;

 

(2)           to an investment in (A)
any one or more businesses; provided, however, that such investment in any business is in the form
of the acquisition of Capital Stock and results in the Issuer or a Restricted
Subsidiary owning an amount of the Capital Stock of such business such that
such business constitutes a Restricted Subsidiary, (B) capital expenditures or
(C) other assets, in each of (A), (B) and (C), used or useful in a Permitted
Business; or

 

(3)           to an investment in (A)
any one or more businesses; provided, however, that such investment in any business is in the form
of the acquisition of Capital Stock and it results in the Issuer or a
Restricted Subsidiary owning an amount of the Capital Stock of such business
such that such business constitutes a Restricted Subsidiary, (B) properties or
(C) assets that, in each of (A), (B) and (C), replace the businesses,
properties and assets that are the subject of such Asset Sale.

 

70

 

Any Net
Proceeds from an Asset Sale not applied or invested in accordance with the
preceding paragraph within 365 days from the date of the receipt of such Net
Proceeds shall constitute “Excess Proceeds”;
provided, however,
that if during such 365-day period the Issuer or a Restricted Subsidiary enters
into a definitive binding agreement committing it to apply such Net Proceeds in
accordance with the requirements of Section 4.13(b)(2) or (3)
after such 365th day, such 365-day period shall be extended with respect to the
amount of Net Proceeds so committed for a period not to exceed 180 days until
such Net Proceeds are required to be applied in accordance with such agreement
(or, if earlier, until termination of such agreement).

 

(c)           When
the aggregate amount of Excess Proceeds exceeds $15 million, the Issuer, or the
applicable Restricted Subsidiary, shall make an offer (an “Asset Sale Offer”) to all Holders of Notes
and holders of Indebtedness that ranks pari passu with
the Notes and contains provisions similar to those set forth in this Indenture
with respect to offers to purchase with the proceeds of sales of assets to
purchase, on a pro rata basis, the maximum
principal amount of Notes and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds (the “Asset Sale Offer Amount”). The offer price
in any Asset Sale Offer shall be equal to 100% of principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the date
of purchase, and shall be payable in cash.

 

(d)           Pending
the final application of any Net Proceeds, the Issuer, or the applicable
Restricted Subsidiary, may temporarily reduce revolving credit borrowings or
otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

 

(e)           If
any Excess Proceeds remain after consummation of an Asset Sale Offer, the
Issuer, or the applicable Restricted Subsidiary of the Issuer, may use those
Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If
the aggregate principal amount of Notes tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Trustee shall select the Notes to be
purchased on a pro rata basis. Upon completion
of each Asset Sale Offer, the Excess Proceeds which served as the basis for
such Asset Sale Offer will be reset at zero.

 

(f)            Upon
the commencement of an Asset Sale Offer, the Issuer, or the applicable
Restricted Subsidiary, shall send, by first class mail, a notice to the Trustee
and to each Holder at its registered address. 
The notice shall contain all instructions and materials necessary to
enable such Holder to tender Notes pursuant to the Asset Sale Offer.  Any Asset Sale Offer shall be made to all
Holders.  The notice, which shall govern
the terms of the Asset Sale Offer, shall state:

 

(1)           that the Asset Sale
Offer is being made pursuant to this Section 4.13;

 

(2)           the Asset Sale Offer
Amount, the Asset Sale Payment and the date on which Notes tendered and
accepted for payment shall be purchased, which date shall be at least 30 days
and no later than 60 days from the date such notice is mailed (the “Asset Sale Payment Date”);

 

(3)           that any Notes not
tendered or accepted for payment shall continue to accrue interest;

 

71

 

(4)           that, unless the Issuer
defaults in making such payment, any Notes accepted for payment pursuant to the
Asset Sale Offer shall cease to accrue interest after the Asset Sale Payment
Date;

 

(5)           that Holders electing
to have a Note purchased pursuant to any Asset Sale Offer shall be required to
surrender the Note, with the form entitled “Option of Holder To Elect Purchase”
on the reverse of the Notes completed, or transfer such Note by book-entry
transfer, to the Paying Agent at the address specified in the notice at least
three Business Days before the Asset Sale Payment Date;

 

(6)           that Holders shall be
entitled to withdraw their election if the Paying Agent receives, not later
than the second Business Day prior to the Asset Sale Payment Date, a notice
setting forth the name of the Holder, the principal amount of the Note the
Holder delivered for purchase and a statement that such Holder is withdrawing
such Holder’s election to have such Note purchased;

 

(7)           that, if the aggregate
principal amount of Notes surrendered by Holders exceeds the Asset Sale Offer
Amount, the Issuer shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by the Issuer so that only Notes in denominations of $1,000 or
integral multiples of $1,000 shall be purchased); and

 

(8)           that Holders whose
Notes were purchased only in part shall be issued new Notes equal in principal
amount to the unpurchased portion of the Notes surrendered (or transferred by
book-entry transfer); provided that
such Notes shall be in denominations of $1,000 or integral multiples $1,000.

 

(g)           On
the Asset Sale Payment Date, the Issuer, or the applicable Restricted
Subsidiary of the Issuer, shall, to the extent lawful:  (1) accept for payment all Notes or
portions thereof properly tendered pursuant to the Asset Sale Offer; (2)
deposit with the Paying Agent U.S. Legal Tender or U.S. Government Securities
sufficient to pay the Asset Sale Payment in respect of all Notes or portions
thereof so tendered; and (3) deliver or cause to be delivered to the Trustee
the Notes so accepted together with an Officers’ Certificate stating the
aggregate principal amount of Notes or portions thereof being repurchased by
the Issuer.  The Issuer shall publicly announce
the results of the Asset Sale Offer on the Asset Sale Payment Date.

 

(h)           The
Paying Agent shall promptly mail to each Holder so tendered the Asset Sale
Payment for such Notes, and the Trustee shall promptly authenticate pursuant to
an Issuer Order and mail (or cause to be transferred by book entry) to each
Holder a new Note equal in principal amount to any unrepurchased portion of the
Notes surrendered, if any; provided that
each such new Note shall be in a principal amount of $1,000 or an integral
multiple of $1,000.  However, if the
Asset Sale Payment Date is on or after an interest Record Date and on or before
the related Interest Payment Date, any accrued and unpaid interest shall be
paid to the Person in whose name a Note is registered at the close of business
on such Record Date, and no additional interest shall be payable to Holders who
tender Notes pursuant to the Asset Sale Offer.

 

72

 

(i)            The
Issuer, or the applicable Restricted Subsidiary, shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset
Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with this Section 4.13, the Issuer, or the
applicable Restricted Subsidiary, shall comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.13 by virtue of such conflict.

 

SECTION 4.14.  Transactions with Affiliates.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, assign, 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
(each, an “Affiliate Transaction”)
involving aggregate consideration in excess of $5 million, unless:

 

(1)           the Affiliate
Transaction is on terms that are no less favorable to the Issuer or the
relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by the Issuer or such Restricted Subsidiary with an
unrelated Person; and

 

(2)           with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $10 million, a majority of the
disinterested members of the Board of Directors of the Issuer have determined
in good faith that the criteria set forth in the immediately preceding clause
(1) are satisfied and have approved the relevant Affiliate Transaction as
evidenced by a resolution of the Board of Directors of the Issuer.

 

(b)           The
following items shall not be deemed to be Affiliate Transactions and,
therefore, shall not be subject to the provisions of Section 4.14(a).

 

(1)           any transaction with
the Issuer, a Restricted Subsidiary or joint venture or similar entity which
would constitute an Affiliate Transaction solely because the Issuer or a
Restricted Subsidiary owns an equity interest in or otherwise controls such
Restricted Subsidiary, joint venture or similar entity;

 

(2)           Restricted Payments
(other than pursuant to Section 4.11(b)(7)) and Permitted Investments
(other than pursuant to clauses (3) and (10) of the definition thereof)
permitted by this Indenture;

 

(3)           the payment to the
Sponsors, any of their Affiliates, and officers of the Issuer or any of its
Restricted Subsidiaries, of management, consulting, monitoring and advisory
fees, termination payments and related reasonable expenses pursuant to the
Management Agreement or any amendment thereto (so long as any such amendment is
not less advantageous to the holders of the Notes in any material respect than
the Management Agreement);

 

73

 

(4)           the payment of
reasonable and customary compensation and fees paid to, and indemnities
provided on behalf of (and entering into related agreements with), officers,
directors, employees or consultants of the Issuer, any of its direct or
indirect parent entities or any Restricted Subsidiary, as determined in good faith
by the Board of Directors of the Issuer or senior management thereof;

 

(5)           payments made by the
Issuer or any Restricted Subsidiary to the Sponsors and any of their Affiliates
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 disinterested members of the Board of Directors of the Issuer
in good faith;

 

(6)           transactions in which
the Issuer or any Restricted Subsidiary delivers to the Trustee a letter from
an Independent Financial Advisor stating that such transaction is fair to the
Issuer or such Restricted Subsidiary from a financial point of view or meets
the requirements of Section 4.14(a)(1);

 

(7)           payments or loans (or
cancellations of loans) to employees or consultants of the Issuer or any of its
direct or indirect parent entities or any Restricted Subsidiary which are
approved by the Board of Directors of the Issuer and which are otherwise
permitted under this Indenture but in any event not to exceed $5 million in the
aggregate outstanding at any one time;

 

(8)           payments made or
performance under any agreement as in effect on the Issue Date and described in
the Offering Circular (other than the Management Agreement and Shareholders
Agreement, but including, without limitation, each of the other agreements
entered into in connection with the Transactions) or any amendment thereto (so
long as any such amendment is not less advantageous to the holders of the Notes
in any material respect than the original agreement as in effect on the Issue
Date);

 

(9)           the existence of, or
the performance by the Issuer, any of its Restricted Subsidiaries of its
obligations under the terms of, the Shareholders Agreement (including any
registration rights agreement or purchase agreements related thereto to which
it is a party on the Issue Date and any similar agreement that it may enter
into thereafter); provided, however,
that the existence of, or the performance by the Issuer or any of its
Restricted Subsidiaries of its obligations under, any future amendment to the
Shareholders 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 existing agreement together with all amendments thereto,
taken as a whole, or new agreement are not otherwise more disadvantageous to
Holders of the Notes in any material respect than the original agreement as in
effect on the Issue Date;

 

(10)         the Transactions and the
payment of all transaction, underwriting, commitment and other fees and
expenses incurred in connection with the Transactions;

 

74

 

(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 that are fair to the Issuer or its Restricted
Subsidiaries, in the reasonable determination of the members of the Board of
Directors of the Issuer or the senior management thereof, or are on terms at
least as favorable as would reasonably have been entered into at such time with
an unaffiliated party;

 

(12)         the issuance of Equity
Interests (other than Disqualified Stock) of the Issuer to any Person;

 

(13)         the issuances of
securities or other payments, awards or grants in cash, securities or otherwise
pursuant to, or the funding of, employment arrangements, stock option and stock
ownership plans or similar employee benefit plans approved by the Board of
Directors of the Issuer or any direct or indirect parent company of the Issuer
or a Restricted Subsidiary of the Issuer, as appropriate, in good faith;

 

(14)         the entering into of any
tax sharing agreement or arrangement and any payments permitted by

Section 4.11(b)(16)(B);

 

(15)         any contribution to the
capital of the Issuer;

 

(16)         transactions between the
Issuer or any of its Restricted Subsidiaries and any Person, a director of
which is also a director of the Issuer or any direct or indirect parent company
of the Issuer and such director is the sole cause for such Person to be deemed
an Affiliate of the Issuer or any of its Restricted Subsidiaries; provided, however, that
such director abstains from voting as director of the Issuer or such direct or
indirect parent company, as the case may be, on any matter involving such other
Person;

 

(17)         pledges of Equity
Interests of Unrestricted Subsidiaries; and

 

(18)         any employment agreements
entered into by the Issuer or any of its Restricted Subsidiaries in the
ordinary course of business.

 

SECTION 4.15.  Dividend and Other Payment Restrictions
Affecting Subsidiaries.

 

(a)           The
Issuer shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any
consensual encumbrance or restriction on the ability of any such Restricted
Subsidiary to:

 

(1)           pay dividends or make
any other distributions on its Capital Stock to the Issuer or any of its
Restricted Subsidiaries, or with respect to any other interest or participation
in, or measured by, its profits, or pay any Indebtedness owed to the Issuer or
any of its Restricted Subsidiaries;

 

(2)           make loans or advances
to the Issuer or any of its Restricted Subsidiaries; or

 

75

 

(3)           sell, lease or transfer
any of its properties or assets to the Issuer or any of its Restricted
Subsidiaries.

 

(b)           However,
the preceding restrictions in Section 4.15(a) shall not apply to
encumbrances or restrictions existing under or by reason of:

 

(1)           contractual
encumbrances or restrictions in effect (x) pursuant to the Credit Agreement or
related documents as in effect on the Issue Date or (y) on the Issue Date,
including pursuant to Existing Indebtedness and related documentation;

 

(2)           this Indenture, the
Notes and the Guarantees (including any Exchange Notes with respect to the
Notes and related Guarantees);

 

(3)           purchase money
obligations or other obligations described in Section 4.10(b)(4) (but
not subject to the dollar limit in such clause (4)) for property acquired in
the ordinary course of business that in each case impose restrictions of the
nature discussed in Section 4.15(a)(3) 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 Issuer or any Restricted Subsidiary in
existence at the time of such acquisition (but not created in connection
therewith or in contemplation thereof or to provide all or a portion of the
funds or credit support utilized to consummate such acquisition), 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 4.10 and 4.12
that limits 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 or
Preferred Stock of the Issuer, any Restricted Subsidiary that is a Guarantor or
any Foreign Subsidiary, in each case that is incurred subsequent to the Issue
Date pursuant to Section 4.10(b);

 

(10)         customary provisions in
joint venture agreements and other similar agreements entered into in the
ordinary course of business;

 

(11)         customary provisions
contained in leases, subleases, licenses or asset sale agreements and other
agreements;

 

76

 

(12)         any encumbrance or
restriction of a Securitization Subsidiary effected in connection with a
Qualified Securitization Financing; provided, however,
that such restrictions apply only to such Securitization Subsidiary; and

 

(13)         any encumbrances or
restrictions of the type referred to in clauses (1), (2) and (3) of Section 4.15(a)
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 (12) of this Section
4.15(b); provided, however, that the encumbrances or restrictions imposed by such
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings are, in the good faith judgment of the
Issuer’s Board of Directors, not materially less favorable to the holders of
the Notes than encumbrances and restrictions contained in such predecessor
agreements.

 

SECTION 4.16.  Additional Guarantees.

 

(a)           After
the Issue Date, the Issuer shall cause each of its Domestic Subsidiaries (other
than a Domestic Subsidiary that is at the time a Guarantor) that incurs any
Indebtedness under the Credit Agreement or guarantees any Indebtedness
outstanding under the Credit Agreement, at the same time, to execute and
deliver to the Trustee a Guarantee pursuant to which such Domestic Subsidiary
shall unconditionally Guarantee, on a joint and several basis, the full and
prompt payment of the principal of, premium, if any and interest on the Notes
and all other obligations under this Indenture on the same terms and conditions
as those set forth in this Indenture with respect to the original Guarantors.

 

(b)           Each
such Guarantee shall be subject to being released in accordance with the
provisions of this Indenture described under Article Eleven.

 

SECTION 4.17.  Reports to Holders.

 

(a)           Whether
or not required by the Commission, so long as any Notes are outstanding, if not
filed electronically with the Commission through the Commission’s Electronic
Data Gathering, Analysis, and Retrieval System (or any successor system), the
Issuer shall furnish to the holders of Notes and the Trustee, within the time
periods specified in the Commission’s rules and regulations:

 

(1)           all quarterly and
annual financial information that would be required to be contained in a filing
with the Commission on Forms 10-Q and 10-K (or Form 20-F if the Issuer is a “foreign
private issuer” as such term is defined under the rules and regulations of the
Commission), other than the Quarterly Report or Form 10-Q for the fiscal
quarter ended December 31, 2004, if the Issuer were required to file such
Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual information only, a
report on the annual financial statements by the Issuer’s certified independent
accountants; and

 

(2)           all current reports
that would be required to be filed with the Commission on Form 8-K if the
Issuer were required to file such reports.

 

77

 

(b)           Notwithstanding
Section 4.17(a), the Issuer shall not be required to furnish any
information, certifications or reports required by Items 307 or 308 of
Regulation S-K prior to the effectiveness of the Exchange Offer
Registration Statement or Shelf Registration Statement.

 

(c)           In
addition, whether or not required by the Commission, after the consummation of
the Registered Exchange Offer or the effectiveness of the Shelf Registration
Statement, the Issuer shall file a copy of all of the information and reports
referred to in clauses (1) and (2) of Section 4.17(a) with the
Commission for public availability within the time periods specified in the
Commission’s rules and regulations (unless the Commission shall not accept such
a filing) and make such information available to securities analysts and
prospective investors upon request. In addition, the Issuer has agreed that,
for so long as any Notes remain outstanding, it shall furnish to the Holders of
the 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.

 

(d)           Notwithstanding
the foregoing provisions of this Section 4.17, such requirements shall
be deemed satisfied with respect to the Form 10-K for fiscal year ended
December 31, 2004 prior to the commencement of the Registered Exchange Offer or
the effectiveness of the Shelf Registration Statement by the filing within 120
days of the Issue Date with the Commission of the Exchange Offer Registration
Statement or Shelf Registration Statement, and any amendments thereto, with
such financial information that satisfies Regulation S-X of the Securities Act
with respect to fiscal year ended December 31, 2004.

 

(e)           In
the event that any direct or indirect parent company of the Issuer is or
becomes a Guarantor of the Notes, the indenture will permit the Issuer to
satisfy its obligations in this Section 4.17 with respect to financial
information relating to the Issuer by furnishing financial information relating
to such direct or indirect parent company; provided,
however, that the same is
accompanied by consolidating information that explains in reasonable detail the
differences between the information relating to such direct or indirect parent
company and any of its Subsidiaries other than the Issuer and its Subsidiaries,
on the one hand, and the information relating to the Issuer, the Guarantors and
the other Subsidiaries of the Issuer on a standalone basis, on the other hand.

 

SECTION 4.18.  Limitation on Layering.

 

The Issuer
shall not, and shall not permit any Restricted Subsidiary that is a Guarantor
to, directly or indirectly, incur any Indebtedness that is contractually
subordinated or junior in right of payment to any Senior Debt (including
Acquired Debt) or Guarantor Senior Debt (including Acquired Debt) of the Issuer
or such Guarantor, as the case may be, unless such Indebtedness is either:

 

(1)           Senior Subordinated
Indebtedness; or

 

(2)           subordinate in right of
payment to the Notes or the Guarantees, as the case may be.

 

78

 

SECTION 4.19.  Business Activities.

 

The Issuer
shall not, and shall not permit any Restricted Subsidiary to, engage in any
business other than Permitted Businesses, except to such extent as would not be
material to the Issuer and its Subsidiaries taken as a whole.

 

SECTION 4.20.  Payments for Consent.

 

The Issuer
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Holder of Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes
that so consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

ARTICLE FIVE

SUCCESSOR
CORPORATION

 

SECTION 5.01.  Merger, Consolidation, or Sale of Assets.

 

(a)           The
Issuer may not, directly or indirectly: (1) consolidate or merge with or into
another Person (whether or not the Issuer is the surviving corporation); or (2)
sell, assign, transfer, convey, lease or otherwise dispose of all or substantially
all of the properties or assets of the Issuer and its Subsidiaries, taken as a
whole, in one or more related transactions, to another Person; unless:

 

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

 

(2)           the Successor Company
(if other than the Issuer), assumes all the obligations of the Issuer under the
Notes, this Indenture and any Registration Rights Agreement pursuant to
agreements reasonably satisfactory to the Trustee;

 

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

 

(4)           immediately after
giving pro forma effect to such transaction and
any related financing transactions, as if the same had occurred at the
beginning of the applicable four-quarter period, either (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
4.10(a) or (b) the Fixed Charge Coverage Ratio for the

 

79

 

Successor
Company and its Restricted Subsidiaries would be greater than such ratio for
the Issuer and its Restricted Subsidiaries immediately prior to such
transaction.

 

(b)           For
purposes of this Section 5.01, the sale, lease, conveyance, assignment,
transfer or other disposition of all or substantially all of the properties and
assets of one or more Restricted Subsidiaries of the Issuer, which properties
and assets, if held by the Issuer, instead of such Restricted Subsidiaries,
would constitute all or substantially all of the properties and assets of the
Issuer, on a consolidated basis, shall be deemed to be the sale, lease,
conveyance, assignment, transfer or other disposition of all or substantially
all of the properties and assets of the Issuer.

 

(c)           The
predecessor company shall be released from its obligations under this Indenture
and the Successor Company shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture, but, in the
case of a lease of all or substantially all its assets, the predecessor shall
not be released from the obligation to pay the principal of and interest on the
Notes.

 

(d)           This
Section 5.01 shall not apply to a sale, assignment, transfer,
conveyance, lease or other disposition of assets between or among the Issuer
and its Restricted Subsidiaries. Notwithstanding the foregoing, Section
5.01(a)(3) and (4) shall not be applicable to (a) any Restricted
Subsidiary consolidating with, merging into or selling, assigning,
transferring, conveying, leasing or otherwise disposing of all or part of its
properties and assets to the Issuer or to another Restricted Subsidiary and (b)
the Issuer merging with an Affiliate solely for the purpose and with the sole
effect of reincorporating the Issuer in another jurisdiction so long as the
amount of Indebtedness of the Issuer and its Restricted Subsidiaries is not
increased thereby.

 

ARTICLE SIX

DEFAULT
AND REMEDIES

 

SECTION 6.01.  Events of Default.

 

Each of the
following is an “Event of Default”:

 

(1)           the Issuer defaults in
payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Notes, whether or not such payment is
prohibited by Article Ten;

 

(2)           the Issuer defaults in
the payment when due of interest on or with respect to the Notes and such
default continues for a period of 30 days, whether or not such payment is
prohibited by Article Ten;

 

(3)           the Issuer defaults in
the performance of, or breaches any covenant, warranty or other agreement
contained in, this Indenture (other than a default in the performance or breach
of a covenant, warranty or agreement which is specifically dealt with in Section
6.01(1) or (2)) and such default or breach continues for a period of
60 days after the notice specified below;

 

80

 

(4)           a 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 Issuer or
any Restricted Subsidiary or the payment of which is guaranteed by the Issuer
or any Restricted Subsidiary (other than Indebtedness owed to the Issuer or a
Restricted Subsidiary), whether such Indebtedness or guarantee now exists or is
created after the Issue Date, if (A) such default either (1) results
from the failure to pay any such Indebtedness at its stated final maturity
(after giving effect to any applicable grace periods) or (2) 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
$25 million (or its foreign currency equivalent) or more at any one time
outstanding;

 

(5)           the Issuer or any
Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(A)          commences a voluntary
case,

 

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

 

(C)           consents to the
appointment of a Custodian of it or for all or substantially all of its
property,

 

(D)          makes a general
assignment for the benefit of its creditors,

 

(E)           takes any comparable
action under any foreign laws relating to insolvency,

 

(F)           generally is not able
to pay its debts as they become due, or

 

(G)           takes any corporate
action to authorize or effect any of the foregoing;

 

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

 

(A)          is for relief against
the Issuer or any Significant Subsidiary in an involuntary case,

 

(B)           appoints a Custodian of
the Issuer or any Significant Subsidiary or for all or substantially all of the
property or assets of the Issuer or any Significant Subsidiary, or

 

(C)           orders the liquidation
of the Issuer or any Significant Subsidiary,

 

81

 

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

 

(7)           the failure by the
Issuer or any Significant Subsidiary to pay final judgments aggregating in
excess of $25 million, which final judgments remain unpaid, undischarged
and unstayed for a period of more than 60 days after the applicable judgment
becomes final, and, with respect to any such judgments covered by insurance, an
enforcement proceeding has been commenced by any creditor upon such judgment or
decree which is not promptly stayed; or

 

(8)           the Guarantee of a
Significant Subsidiary or any group of Subsidiaries that, taken together as of
the date of the most recent audited financial statements of the Issuer, would
constitute a Significant Subsidiary ceasing to be in full force and effect
(except as contemplated by the terms hereof) or any Guarantor denies or disaffirms
its obligations under this Indenture or any Guarantee, other than by reason of
the release of the Guarantee in accordance with this Indenture, and such
Default continues for 10 days.

 

SECTION 6.02.  Acceleration.

 

(a)           If
an Event of Default specified in Sections 6.01(5) or (6) above
occurs with respect to the Issuer and is continuing, then all unpaid principal
of, and premium, if any, and accrued and unpaid interest on all of the
outstanding Notes shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

 

(b)           If
any Event of Default (other than an Event of Default specified in Section
6.01(5) or (6) with respect to the Issuer) shall occur and be
continuing, the Trustee or the Holders of at least 25% in principal amount of
outstanding Notes under this Indenture may declare the principal of and accrued
interest on such Notes to be due and payable by notice in writing to the Issuer
and the Trustee specifying the respective Event of Default and that it is a “notice
of acceleration” (the “Acceleration Notice”),
and the same shall become immediately due and payable upon the first to occur
of an acceleration under the Credit Agreement and five Business Days after
receipt by the Issuer and the Representative under the Credit Agreement of such
Acceleration Notice but only if such Event of Default is then continuing.  Upon receipt of an Acceleration Notice, the
Issuer shall promptly provide written notice of such acceleration to holders of
Senior Debt or their Representative.

 

At any time
after a declaration of acceleration with respect to the Notes as described in
the two preceding paragraphs, the Holders of a majority in principal amount of
the Notes may rescind and cancel such declaration and its consequences:

 

(1)           if the rescission would
not conflict with any judgment or decree;

 

(2)           if all existing Events
of Default have been cured or waived except nonpayment of principal or interest
that has become due solely because of the acceleration;

 

82

 

(3)           to the extent the
payment of such interest is lawful, if interest on overdue installments of
interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

 

(4)           if the Issuer has paid
the Trustee its reasonable compensation and reimbursed the Trustee for its
expenses, disbursements and advances; and

 

(5)           in the event of the
cure or waiver of an Event of Default of the type described in Section
6.01(5) or (6), if the Trustee shall have received an Officers’
Certificate and an Opinion of Counsel that such Event of Default has been cured
or waived.

 

No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

 

SECTION 6.03.  Other Remedies.

 

(a)           If
a Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal of or
interest on the Notes or to enforce the performance of any provision of the
Notes or this Indenture.

 

(b)           The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon a Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Default.  No remedy is exclusive of any
other remedy.  All available remedies are
cumulative to the extent permitted by law.

 

(c)           In
the event of any Event of Default specified in clause (4) of Section 6.01,
such Event of Default and all consequences thereof (excluding, however, any
resulting payment default) shall be annulled, waived and rescinded,
automatically and without any action by the Trustee or the Holders, if within
20 days after such Event of Default arose the Issuer delivers an Officers’
Certificate to the Trustee stating that (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) the default that is
the basis for such Event of Default has been cured, it being understood that in
no event shall an acceleration of the principal amount of the Notes as
described in Section 6.02 be annulled, waived or rescinded upon the
happening of any such events.

 

(d)           Holders
may not enforce this Indenture or the Notes except as provided in this
Indenture and under the TIA.  Subject to
the provisions of this Indenture relating to the duties of the Trustee, the
Trustee is under no obligation to exercise any of its rights or powers under
this Indenture at the request, order or direction of any of the Holders, unless
such Holders have offered to the Trustee reasonable indemnity.  Subject to all provisions of this Indenture
and applicable law, the holders of a majority in aggregate principal amount of
the then outstanding Notes issued under such Indenture 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.

 

83

 

(e)           The
Issuer is required to deliver to the Trustee annually a statement regarding
compliance with this Indenture. Upon becoming aware of any Default or Event of
Default, the Issuer is required to deliver to the Trustee a statement
specifying such Default or Event of Default.

 

SECTION 6.04.
 Waiver of Defaults.

 

The Holders of
a majority in aggregate principal amount of Notes at the time outstanding may
on behalf of the Holders of all the Notes waive any Default with respect to
such Notes and its consequences by providing written notice thereof to the
Issuer and the Trustee, except a Default in the payment of interest on or the
principal of such Notes.  In the case of
any such waiver, the Issuer, the Trustee and the Holders shall be restored to
their former positions and rights under this Indenture, respectively; provided, however, that
no such waiver shall extend to any subsequent or other Default or impair any
right consequent thereto.

 

SECTION 6.05.  Control by Majority.

 

Subject to the
other provisions of this Indenture and applicable law, the Holders of not less
than a majority in principal amount of the outstanding Notes may 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 it.  Subject to Section 7.01, however,
the Trustee may refuse to follow any direction that conflicts with any law or
this Indenture, that the Trustee determines may be unduly prejudicial to the
rights of another Holder, or that may involve the Trustee in personal
liability; provided, however,
that the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction. 
In the event the Trustee takes any action or follows any direction
pursuant to this Indenture, the Trustee shall be entitled to indemnification
against any loss or expense caused by taking such action or following such
direction.

 

SECTION 6.06.  Limitation on Suits.

 

A Holder may
not pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)           the Holder gives to the
Trustee written notice of a continuing Event of Default;

 

(2)           the Holder or Holders
of at least 25% in principal amount of the outstanding Notes make a written
request to the Trustee to pursue the remedy;

 

(3)           such Holder or Holders
offer and provide to the Trustee indemnity reasonably satisfactory to the
Trustee against any loss, liability or expense;

 

(4)           the Trustee does not
comply with the request within 45 days after receipt of the request and the
offer and the provision of indemnity; and

 

84

 

(5)           during such 45-day
period the Holder or Holders of a majority in principal amount of the
outstanding Notes do not give the Trustee a direction in accordance with Section
6.04 which, in the opinion of the Trustee, is inconsistent with the
request.

 

A Holder may
not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over such other Holder.

 

SECTION 6.07.  Rights of Holders To Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal of and interest on a Note, on or after the respective due
dates expressed in such Note, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of the Holder.

 

SECTION 6.08.  Collection Suit by Trustee.

 

If a Default
in payment of principal or interest specified in Section 6.01(1) or
(2) occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Issuer or any other
obligor on the Notes for the whole amount of principal and accrued interest and
fees remaining unpaid, together with interest on overdue principal and, to the
extent that payment of such interest is lawful, interest on overdue installments
of interest, in each case at the rate per annum borne
by the Notes and 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.

 

SECTION 6.09.  Trustee May File Proofs of Claim.

 

The Trustee
may file such proofs of claim and 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 the Holders allowed in any judicial
proceedings relating to the Issuer, its creditors or its property and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same, and any
Custodian in any such judicial proceedings 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 to the
Trustee any amount due to it for the compensation, expenses, disbursements and
advances of the Trustee, its agent and counsel, and any other amounts due the
Trustee under Section 7.07. 
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.  The Trustee shall be entitled to participate
as a member of any official committee of creditors in the matters as it deems
necessary or advisable.

 

85

 

SECTION 6.10.  Priorities.

 

Subject to the
provisions of Article Ten, if the Trustee collects any money or property
pursuant to this Article Six, it shall pay out the money or property in
the following order:

 

FIRST:  to the Trustee for
amounts due under Section 7.07;

 

SECOND:  to Holders for interest
accrued on the Notes, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for interest;

 

THIRD:  to Holders for principal
amounts due and unpaid on the Notes, ratably, without preference or priority of
any kind, according to the amounts due and payable on the Notes for principal;
and

 

FOURTH:  to the Issuer or, if
applicable, the Guarantors, as their respective interests may appear.

 

The Trustee,
upon prior notice to the Issuer, may fix a Record Date and payment date for any
payment to Holders pursuant to this Section 6.10.

 

SECTION 6.11.  Undertaking for Costs.

 

In any suit
for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07,
or a suit by a Holder or Holders of more than 10% in principal amount of the
outstanding Notes.

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01.  Duties of Trustee.

 

(a)           If
an Event of Default has occurred and is continuing, 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 his or her own affairs.

 

86

 

(b)           Except
during the continuance of an Event of Default:

 

(1)           The Trustee need
perform only those duties as are specifically set forth herein or in the TIA
and no duties, covenants, responsibilities or obligations shall be implied in
this Indenture against the Trustee.

 

(2)           In the absence of bad
faith 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 (including Officers’ Certificates) or opinions (including Opinions
of Counsel) furnished to the Trustee and conforming to the requirements of this
Indenture.  However, in the case of any
such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)           Notwithstanding
anything to the contrary herein, the Trustee may not be relieved from liability
for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

 

(1)           This paragraph does not
limit the effect of paragraph (b) of this Section 7.01.

 

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

 

(3)           The Trustee shall not
be liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.05.

 

(d)           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 to take or omit to take any action under this Indenture
or take any action at the request or direction of Holders if it shall have
reasonable grounds for believing that repayment of such funds is not assured to
it.

 

(e)           Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to this Section 7.01.

 

(f)            The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Issuer.  Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

 

(g)           In
the absence of bad faith, negligence or willful misconduct on the part of the
Trustee, the Trustee shall not be responsible for the application of any money
by any Paying Agent other than the Trustee.

 

87

 

SECTION 7.02.  Rights of Trustee.

 

Subject to Section
7.01:

 

(a)           The
Trustee may rely conclusively on any document believed by it to be genuine and
to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)           Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate and an Opinion of Counsel, which shall conform to the provisions of
Section 12.05.  The Trustee shall
not be liable for any action it takes or omits to take in good faith in
reliance on such certificate or opinion. 
The Trustee may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel shall be full and complete authorization
and protection from liability in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon.

 

(c)           The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent (other than an agent who is an
employee of the Trustee) appointed with due care.

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it reasonably believes to be authorized or within its rights or
powers conferred upon it by this Indenture.

 

(e)           The
Trustee may consult with counsel of its selection and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and
protection from liability in respect of any action taken, omitted or suffered
by it hereunder in good faith and in accordance with the advice or opinion of
such counsel.

 

(f)            The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Holders pursuant to the provisions of this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred therein or
thereby.

 

(g)           The
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate (including any Officers’ Certificate),
statement, instrument, opinion (including any Opinion of Counsel), 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, upon reasonable notice to the Issuer, to
examine the books, records, and premises of the Issuer, personally or by agent
or attorney at the sole cost of the Issuer and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation.

 

(h)           The
Trustee shall not be required to give any bond or surety in respect of the
performance of its powers and duties hereunder.

 

88

 

(i)            The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as duties.

 

(j)            The
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a Default is received
by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture.

 

(k)           The
rights, privileges, protections, immunities and benefits given to the Trustee,
including its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder.

 

(l)            Delivery
of reports, information and documents to the Trustee under Section 4.17
is for informational purposes only and the Trustee’s receipt of the foregoing
shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Issuer’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificate).

 

SECTION 7.03.  Individual Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise engage with the Issuer, its Subsidiaries or their respective
Affiliates in other transactions with the same rights it would have if it were
not Trustee.  However, in the event that
the Trustee acquires any conflicting interest it must eliminate such conflict
within 90 days, apply to the Commission for permission to continue as
trustee or resign.  Any Agent may do the
same with like rights.  However, the
Trustee must comply with Sections 7.10 and 7.11.

 

SECTION 7.04.  Trustee’s Disclaimer.

 

The Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the
Issuer’s use of the proceeds from the Notes, it shall not be responsible for
the use or application of any money received by any Paying Agent other than the
Trustee, and it shall not be responsible for any statement of the Issuer in or
pursuant to this Indenture or any document issued in connection with the sale
of Notes or any statement in the Notes other than the Trustee’s certificate of
authentication.  The Trustee makes no
representations with respect to the effectiveness or adequacy of this Indenture.

 

SECTION 7.05.  Notice of Default.

 

If a Default
or an Event of Default occurs and is continuing and the Trustee receives actual
notice of such Default or an Event of Default, the Trustee shall mail to each
Holder notice of the uncured Default within 60 days after such Default
occurs.  Except in the case of a Default
or an Event of Default in payment of principal of, premium, if any, or interest

 

89

 

on, any Note,
including an accelerated payment and the failure to make payment on the Change
of Control Payment Date pursuant to a Change of Control Offer or Alternate
Offer or the Asset Sale Payment Date pursuant to an Asset Sale Offer, the
Trustee may withhold the notice if and so long as the Board of Directors, the executive
committee, or a trust committee of directors or Responsible Officers, of the
Trustee in good faith determines that withholding the notice is in the interest
of the Holders.

 

SECTION 7.06.  Reports by Trustee to Holders.

 

Within 60 days
after each February 1, beginning with February 1, 2006, and for as
long as the Notes remain outstanding, the Trustee shall, to the extent that any
of the events described in TIA § 313(a) occurred within the previous
twelve months, but not otherwise, mail to each Holder a brief report dated as
of such date that complies with TIA § 313(a) (but if no event described in
TIA § 313(a) has occurred within the twelve months preceding the reporting
date, no report need be transmitted). 
The Trustee also shall comply with TIA §§ 313(b), 313(c) and
313(d).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Issuer and
filed with the Commission and each securities exchange, if any, on which the
Notes are listed.

 

The Issuer
shall notify the Trustee if the Notes become listed on any securities exchange
or of any delisting thereof and the Trustee shall comply with TIA
§ 313(d).

 

SECTION 7.07.  Compensation and Indemnity.

 

The Issuer
shall pay to the Trustee from time to time such compensation as the Issuer and
the Trustee shall from time to time agree in writing for the Trustee’s services
hereunder.  The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express
trust.  The Issuer shall reimburse the
Trustee upon request for all reasonable disbursements, expenses and advances
(including reasonable fees and expenses of counsel) incurred or made by it in
addition to the compensation for its services, except any such disbursements,
expenses and advances as may be attributable to the Trustee’s negligence, bad
faith or willful misconduct.  Such
expenses shall include the reasonable fees and expenses of the Trustee’s agents
and counsel.

 

The Issuer
shall indemnify each of the Trustee or any predecessor Trustee and its agents,
employees, officers, stockholders and directors for, and hold them harmless
against, any and all loss, damage, claims including taxes (other than taxes
based upon, measured by or determined by the income of the Trustee), liability
or expense incurred by them except for such actions to the extent caused by any
negligence, bad faith or willful misconduct on their part, arising out of or in
connection with the acceptance or administration of this trust including the
costs and expenses of enforcing this Indenture or a Guarantee against the
Issuer or a Guarantor (including this Section 7.07) and the reasonable
costs and expenses of defending themselves against or investigating any claim
or liability in connection with the exercise or performance of any of the Trustee’s
rights, powers or duties hereunder (whether asserted by the Issuer, any
Guarantor, any Holder or any other Person). 
The Trustee shall notify the Issuer promptly of any

 

90

 

claim asserted
against the Trustee or any of its agents, employees, officers, stockholders and
directors for which it may seek indemnity. 
Failure by the Trustee to so notify the Issuer shall not relieve the
Issuer of its Obligations hereunder.  The
Issuer may, subject to the approval of the Trustee (which approval shall not be
unreasonably withheld), defend the claim and the Trustee shall cooperate in the
defense.  The Trustee and its agents,
employees, officers, stockholders and directors subject to the claim may have
separate counsel and the Issuer shall pay the reasonable fees and expenses of
such counsel; provided, however,
that the Issuer shall not be required to pay such fees and expenses if, subject
to the approval of the Trustee (which approval shall not be unreasonably withheld),
it assumes the Trustee’s defense and there is no conflict of interest between
the Issuer and the Trustee and its agents, employees, officers, stockholders
and directors subject to the claim in connection with such defense as
reasonably determined by the Trustee. 
The Issuer need not pay for any settlement made without its written
consent, which consent shall not be unreasonably withheld.  The Issuer need not reimburse any expense or
indemnify against any loss or liability to the extent incurred by the Trustee
through its negligence, bad faith or willful misconduct.

 

To secure the
Issuer’s and the Guarantors’ payment obligations in this Section 7.07,
the Trustee shall have a Lien prior to the Notes against all money or property
held or collected by the Trustee, in its capacity as Trustee, except money held
in trust to pay interest on particular Notes. 
The obligations of the Issuer and the Guarantors to the Trustee under
this Section shall not be subordinated to the payment of Senior Debt pursuant
to Article Ten or Section 11.02 except assets or money held in
trust to pay principal of or interest on particular Notes (with the exception
of Permitted Junior Securities and trusts established pursuant to Article Eight).

 

When the
Trustee incurs expenses or renders services after a Default specified in Section
6.01(5) or (6) occurs, such expenses and the compensation for such
services shall be paid to the extent allowed under any Bankruptcy Law and are
intended to constitute expenses of administration under any Bankruptcy Law.

 

Notwithstanding
any other provision in this Indenture, the foregoing provisions of this Section
7.07 shall survive the satisfaction and discharge of this Indenture or the
appointment of a successor Trustee.

 

The Trustee
shall comply with the provisions of TIA§ 313(b)(2) to the extent
applicable.

 

SECTION 7.08.  Replacement of Trustee.

 

The Trustee
may resign at any time by so notifying the Issuer in writing.  The Holders of a majority in principal amount
of the outstanding Notes may remove the Trustee by so notifying the Issuer and
the Trustee and may appoint a successor Trustee.  The Issuer may remove the Trustee if:

 

(1)           the Trustee fails to
comply with Section 7.10;

 

(2)           the Trustee is adjudged
a bankrupt or an insolvent;

 

91

 

(3)           a receiver or other
public officer takes charge of the Trustee or its property; or

 

(4)           the Trustee becomes
incapable of acting.

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuer shall notify each Holder of such event and shall promptly
appoint a successor Trustee.  Within one
year after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the successor
Trustee appointed by the Issuer.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer.  Immediately
after that, the retiring Trustee shall transfer, after payment of all sums then
owing to the Trustee pursuant to Section 7.07, all property held by it
as Trustee to the successor Trustee under this Indenture, subject to the Lien
provided in Section 7.07, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  A successor Trustee shall mail notice of its
succession to each Holder.

 

If a successor
Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Issuer or the Holders of at least 10%
in principal amount of the outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee at the
expense of the Issuer.

 

If the Trustee
fails to comply with Section 7.10, any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Issuer’s
obligations under Section 7.07 shall continue for the benefit of
the retiring Trustee.

 

SECTION 7.09.  Successor Trustee by Merger, Etc.

 

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting,
surviving or transferee corporation without any further act shall, if such
resulting, surviving or transferee corporation is otherwise eligible hereunder,
be the successor Trustee; provided, however, that such corporation shall be otherwise qualified
and eligible under this Article Seven.

 

SECTION 7.10.  Eligibility; Disqualification.

 

This Indenture
shall always have a Trustee who satisfies the requirement of TIA
§§ 310(a)(1), 310(a)(2) and 310(a)(5). 
The Trustee shall have a combined capital and surplus of at least
$150,000,000 as set forth in its most recent published annual report of
condition.  In addition, if the Trustee
is a corporation included in a bank holding company system, the Trustee,
independently of the bank holding company, shall meet the capital requirements
of TIA § 310(a)(2).  The Trustee
shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of
TIA § 310(b)(1) any indenture or indentures under which other

 

92

 

securities, or
certificates of interest or participation in other securities, of the Issuer
are outstanding, if the requirements for such exclusion set forth in TIA
§ 310(b)(1) are met.  The provisions
of TIA § 310 shall apply to the Issuer and any other obligor of the Notes.

 

SECTION 7.11.  Preferential Collection of Claims Against
the Issuer.

 

The Trustee,
in its capacity as Trustee hereunder, shall comply with TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated therein.

 

ARTICLE EIGHT

DISCHARGE OF INDENTURE; DEFEASANCE

 

SECTION 8.01.  Termination of the Issuer’s Obligations.

 

(a)           The
Issuer may terminate its obligations and the obligations of the Guarantors
under the Notes and this Indenture, except those obligations referred to in the
Section 8.01(b), if all Notes previously authenticated and
delivered (other than destroyed, lost or stolen Notes which have been replaced
or paid or Notes for whose payment U.S. Legal Tender or U.S. Government
Securities, or a combination thereof, in such amount as is, in the opinion of a
nationally recognized firm of independent public accountants, sufficient
without consideration of reinvestment of such interest, to pay principal of,
premium, if any, and interest on the outstanding Notes to maturity or
redemption, has theretofore been deposited with the Trustee or the Paying Agent
in trust or segregated and held in trust by the Issuer and thereafter repaid to
the Issuer, as provided in Section 8.05) have been delivered to the
Trustee for cancellation and the Issuer has paid all sums payable by it hereunder,
or if:

 

(1)           either
(i) pursuant to Article Three, the Issuer shall have given notice
to the Trustee and mailed a notice of redemption to each Holder of the
redemption of all of the Notes in accordance with the provisions hereof or
(ii) all Notes have otherwise become or shall become due and payable by
reason of the mailing of a notice of redemption or otherwise within one (1)
year hereunder;

 

(2)           the Issuer shall have
irrevocably deposited or caused to be deposited with the Trustee or a trustee
satisfactory to the Trustee, under the terms of an irrevocable trust agreement
in form and substance satisfactory to the Trustee, as trust funds in trust
solely for the benefit of the Holders, U.S. Legal Tender, non-callable U.S.
Government Securities, or a combination thereof, in amounts as is, in the
opinion of a nationally recognized firm of independent public accountants,
sufficient without consideration of reinvestment of such interest, to pay and
discharge the entire Indebtedness on the Notes not delivered to the Trustee for
cancellation for principal, premium, if any, and Additional Interest, if any,
and accrued interest on the outstanding Notes to maturity or redemption, as
applicable; provided, however,
that from and after the time of deposit, the U.S. Legal Tender or U.S.
Government Securities, or the combination thereof, deposited shall not be
subject to the rights of holders of Senior Debt pursuant to the provisions of Article
Ten;

 

93

 

(3)           no Default or Event of
Default 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 (other than a Default resulting from borrowing of funds to be applied
to such deposit and the grant of any Lien securing such borrowing) and such
deposit shall not result in a breach or violation of, or constitute a default
under, any material debt instrument to which the Issuer or any Guarantor is a
party or by which it is bound;

 

(4)           the Issuer shall have
paid all other sums payable by it hereunder; and

 

(5)           the Issuer shall have
delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of the Notes at maturity or the Redemption
Date, as the case may be.

 

The Issuer
shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent providing for or relating
to the termination of the Issuer’s obligations under the Notes and this
Indenture have been complied with.  Such
Opinion of Counsel shall also state that such satisfaction and discharge does
not result in a default under the Credit Agreement or any other material agreement
or instrument then known to such counsel that binds or affects the Issuer or
any Guarantor.

 

(b)           Subject
to the next sentence and notwithstanding anything in Section 8.01(a),
the Issuer’s obligations in Sections 2.05, 2.06, 2.07, 2.08,
4.01, 4.02, 7.07, 8.05 and 8.06 shall
survive until the Notes are no longer outstanding pursuant to the last
paragraph of Section 2.08.  After
the Notes are no longer outstanding, the Issuer’s obligations in Sections
7.07, 8.05 and 8.06 shall survive.

 

After such
delivery or irrevocable deposit, the Trustee upon request shall acknowledge in
writing the discharge of the Issuer’s obligations under the Notes and this Indenture
except for those surviving obligations specified above.

 

SECTION 8.02.  Legal Defeasance and Covenant Defeasance.

 

(a)           The
Issuer may, at its option and at any time, elect to have either paragraph (b)
or (c) below applied to all outstanding Notes upon compliance with the conditions
set forth in Section 8.03.

 

(b)           Upon
the Issuer’s exercise under paragraph (a) hereof of the option applicable to
this paragraph (b), the Issuer and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.03, be deemed to
have been discharged from their obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Issuer 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 8.04 hereof and the other Sections
of this Indenture (with respect to such Notes) referred to in (i) and (ii)
below, and to have satisfied all its other obligations under such Notes and
this Indenture (with respect to such Notes) and the Guarantors shall be deemed
to have satisfied all of their obligations under the Guarantees and this
Indenture (and the Trustee, on demand of and at

 

94

 

the expense of the Issuer, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder:

 

(i)            the rights of Holders
of outstanding Notes issued hereunder to receive payments in respect of the
principal of, or interest or premium and Additional Interest, if any, on such
Notes when such payments are due from the trust referred to below;

 

(ii)           the Issuer’s
obligations with respect to the Notes issued hereunder concerning issuing
temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen
Notes and the maintenance of an office or agency for payment and money for
security payments held in trust;

 

(iii)          the rights, powers,
trusts, duties and immunities of the Trustee, and the Issuer’s obligations in
connection therewith; and

 

(iv)          this Article Eight.

 

Subject to
compliance with this Article Eight, the Issuer may exercise its option
under this Section 8.02(b) notwithstanding the prior exercise of its
option under Section 8.02(c) hereof.

 

(c)           Upon
the Issuer’s exercise under paragraph (a) hereof of the option applicable to
this paragraph (c), the Issuer and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.03 hereof, be
released from their obligations under the covenants contained in Sections
4.04 and 4.09 through 4.18 and clause (4) of Section
5.01(a) hereof with respect to the outstanding Notes on and after the date
the conditions set forth in Section 8.03 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration 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 (it being understood that such Notes shall not
be deemed outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Issuer 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 an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby.  In
addition, upon the Issuer’s exercise under paragraph (a) hereof of the option
applicable to this paragraph (c), subject to the satisfaction of the conditions
set forth in Section 8.03 hereof, clauses (3), (4), (5) (with respect to
a Significant Subsidiary), (6) (with respect to a Significant Subsidiary), (7)
and (8) of Section 6.01 hereof shall not constitute Events of Default.

 

95

 

SECTION 8.03.  Conditions to Legal Defeasance or Covenant
Defeasance.

 

The following
shall be the conditions to the application of either Section 8.02(b) or 8.02(c)
hereof to the outstanding Notes:

 

(a)           the
Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the applicable Notes issued hereunder, cash in U.S. Legal
Tender, non-callable U.S. Government Securities, or a combination thereof, in
amounts as will be sufficient, in the opinion of a nationally recognized firm
of independent public accountants, to pay the principal of, or interest and
premium and Additional Interest, if any, on the outstanding Notes issued
hereunder on the Stated Maturity or on the applicable Redemption Date, as the
case may be, and the Issuer must specify whether the Notes are being defeased
to maturity or to a particular Redemption Date;

 

(b)           in
the case of an election under Section 8.02(b) hereof, the Issuer has
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the
Trustee confirming that (a) the Issuer has received from, or there has been
published by, the Internal Revenue Service a ruling or (b) since the date of
this Indenture, there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel will confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of
such Legal Defeasance and will be subject to 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;

 

(c)           in
the case of an election under Section 8.02(c) hereof, the Issuer has
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income 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;

 

(d)           no
Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing
of funds to be applied to such deposit and the grant of any Lien securing such
borrowings) or insofar as Events of Default resulting from the borrowing of
funds or insolvency events are concerned, at any time in the period ending on
the 123rd day after the date of deposit;

 

(e)           such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under any material agreement or
instrument (other than this Indenture) to which the Issuer or any Guarantor is
a party or by which the Issuer or any Guarantor is bound;

 

(f)            the
Issuer must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Issuer with the intent of preferring Holders over
other creditors of the Issuer or any Guarantor or with the intent of defeating,
hindering, delaying or defrauding creditors of the Issuer or any Guarantors or
others;

 

96

 

(g)           the
Issuer must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal
Defeasance or the Covenant Defeasance have been complied with; and

 

(h)           the
Issuer must deliver to the Trustee an Opinion of Counsel to the effect that (A)
the trust funds will not be subject to any rights of holders of Senior Debt or
Guarantor Senior Debt, including those arising under this Indenture, and
(B) the trust funds will not be subject to the effect of the preference
provisions of Section 547 of the United States Federal Bankruptcy Code.

 

SECTION 8.04.  Application of Trust Money.

 

The Trustee or
Paying Agent shall hold in trust U.S. Legal Tender or U.S. Government
Securities, deposited with it pursuant to this Article Eight, and shall
apply the deposited U.S. Legal Tender or the money from U.S. Government Notes,
in accordance with this Indenture to the payment of principal of and interest
on the Notes.  The Trustee shall be under
no obligation to invest said U.S. Legal Tender or U.S. Government Securities,
except as it may agree with the Issuer.

 

The Issuer
shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the U.S. Legal Tender or U.S. Government
Securities, deposited pursuant to Section 8.03 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.

 

SECTION 8.05.  Repayment to the Issuer.

 

Anything in
this Article Eight to the contrary notwithstanding, the Trustee shall
deliver or pay to the Issuer from time to time upon the Issuer’s request any
U.S. Legal Tender or U.S. Government Securities, held by it as provided in Section
8.03 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 that would then be required to
be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance
and thereupon shall be relieved from all liability with respect to such
money.  The Trustee and the Paying Agent
shall pay to the Issuer upon request any money held by them for the payment of
principal or interest that remains unclaimed for two years; provided, however, that
the Trustee or such Paying Agent, before being required to make any payment,
may at the expense of the Issuer cause to be published once in a newspaper of
general circulation in the City of New York or mail to each Holder entitled to
such money notice that such money remains unclaimed and that after a date
specified therein which shall be at least 30 days from the date of such
publication or mailing any unclaimed balance of such money then remaining shall
be repaid to the Issuer.  After payment
to the Issuer, Holders entitled to such money must look to the Issuer for
payment as general creditors unless an applicable law designates another Person.

 

SECTION 8.06.  Reinstatement.

 

If the Trustee
or Paying Agent is unable to apply any U.S. Legal Tender or U.S. Government
Securities, in accordance with this Article Eight by reason of any legal
proceeding

 

97

 

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

 

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION 9.01.
 Without Consent of Holders.

 

Subject to Section
9.03, without the consent of any Holder, the Issuer, the Guarantors and the
Trustee may amend or supplement this Indenture or the Notes:

 

(1)           to cure any ambiguity,
mistake, defect or inconsistency;

 

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

 

(3)           to provide for the
assumption by a successor company of the Issuer or a successor company of a
Guarantor, as applicable, of the Issuer’s or such Guarantor’s obligations under
this Indenture;

 

(4)           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 Holder;

 

(5)           to secure the Notes;

 

(6)           to comply with requirements
of the Commission in order to effect or maintain the qualification of this
Indenture under the TIA;

 

(7)           to add a Guarantee of
the Notes; or

 

(8)           to release a Guarantor
upon its sale or designation as an Unrestricted Subsidiary or other permitted
release from its Guarantee; provided, however,
that such sale, designation or release is in accordance with the applicable
provisions of this Indenture;

 

provided,
however, that the Issuer has delivered
to the Trustee an Opinion of Counsel and an Officers’ Certificate, each stating
that such amendment or supplement complies with the provisions of this Section
9.01.

 

98

 

SECTION 9.02.  With Consent of Holders.

 

(a)           Subject
to Sections 6.07 and 9.03, the Issuer, the Guarantors and the
Trustee, together, with the written consent of the Holder or Holders of at
least a majority in aggregate principal amount of the outstanding Notes
(including consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes), may amend or supplement this Indenture or the
Notes without notice to any other Holders. 
Subject to Sections 6.07 and 9.03, the Holder or Holders
of a majority in aggregate principal amount of then outstanding Notes may waive
compliance with any provision of this Indenture or the Notes (including
consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Notes) without notice to any other Holders (except a default in
respect of the payment of principal or interest on the Notes).

 

(b)           Notwithstanding
Section 9.02(a), without the consent of each Holder affected, an
amendment, supplement or waiver, including a waiver pursuant to Section 6.04,
may not (with respect to any Notes held by a non-consenting Holder):

 

(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 fixed maturity of any Note or alter the provisions with respect
to the redemption of the Notes (other than, subject to clause (10) below,
the provisions of Sections 4.09 and 4.13);

 

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

 

(4)           waive a Default or
Event of Default in the payment of principal, or interest or premium, if any,
on the Notes (except a rescission of acceleration of the Notes by the Holders
of at least a majority in aggregate principal amount of the Notes with respect
to a nonpayment default and a waiver of the payment default that resulted from
such acceleration);

 

(5)           make any Note payable
in money other than that stated in the Notes;

 

(6)           make any change in the
provisions of this Indenture relating to waivers of past Defaults or the rights
of Holders to receive payments of principal of, or interest or premium, if any,
on the Notes or impair the right of any Holder to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

 

(7)           waive a redemption
payment with respect to any Note (other than, subject to clause (10)
below, a payment required by one of the provisions of Section 4.09
or Section 4.13);

 

(8)           make any change in the
ranking or priority of any Note that would adversely affect the Holders;

 

(9)           modify the Guarantees
in any manner adverse to the Holders; or

 

99

 

(10)         make any change in the
preceding amendment and waiver provisions.

 

(c)           It
shall not be necessary for the consent of the Holders under this Section to
approve the particular form of any proposed amendment, supplement or waiver but
it shall be sufficient if such consent approves the substance thereof.

 

(d)           After
an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Issuer shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver.  Any failure of the Issuer to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amendment, supplement or waiver.

 

SECTION 9.03.  Effect on Senior Debt.

 

No amendment
of, or supplement or waiver to, this Indenture shall adversely affect the
rights of any holder of Senior Debt under the subordination provisions of this
Indenture (including the provisions of Article Ten and Section 11.02
hereof) and the defined terms as used therein without the consent of such
holder or its Representative.

 

SECTION 9.04.  Compliance with TIA.

 

From the date
on which this Indenture is qualified under the TIA, every amendment, waiver or
supplement of this Indenture, the Notes or the Guarantees shall comply with the
TIA as then in effect.

 

SECTION 9.05.  Revocation and Effect of Consents.

 

(a)           Until
an amendment, waiver or supplement becomes effective, consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note,
even if notation of the consent is not made on any Note.  However, any such Holder or subsequent Holder
may revoke the consent as to his Note or portion of his Note by notice to the
Trustee or the Issuer received before the date on which the Trustee receives an
Officers’ Certificate certifying that the Holders of the requisite principal
amount of Notes have consented (and not theretofore revoked such consent) to
the amendment, supplement or waiver.

 

(b)           The
Issuer may, but shall not be obligated to, fix a Record Date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or
waiver which record date shall be at least 30 days prior to the first
solicitation of such consent.  If a
record date is fixed, then notwithstanding the last sentence of the immediately
preceding paragraph, those Persons who were Noteholders at such Record Date (or
their duly designated proxies), and only those Persons, shall be entitled to
revoke any consent previously given, whether or not such Persons continue to be
Holders after such Record Date.  No such
consent shall be valid or effective for more than 90 days after such Record
Date.  The Issuer shall inform the
Trustee in writing of the fixed Record Date if applicable.

 

(c)           After
an amendment, supplement or waiver becomes effective, it shall bind every
Noteholder, unless it makes a change described in any of clauses (1) through
(11) of

 

100

 

Section 9.02(b), in
which case, the amendment, supplement or waiver shall bind only each Holder of
a Note who has consented to it and every subsequent Holder of a Note or portion
of a Note that evidences the same debt as the consenting Holder’s Note; provided, however, that
any such waiver shall not impair or affect the right of any Holder to receive
payment of principal of and interest on a Note, on or after the respective due
dates expressed in such Note, or to bring suit for the enforcement of any such
payment on or after such respective dates without the consent of such Holder.

 

SECTION 9.06.  Notation on or Exchange of Notes.

 

If an
amendment, supplement or waiver changes the terms of a Note, the Issuer may
require the Holder of the Note to deliver it to the Trustee.  The Issuer shall provide the Trustee with an
appropriate notation on the Note about the changed terms and cause the Trustee
to return it to the Holder at the Issuer’s expense.  Alternatively, if the Issuer or the Trustee
so determines, the Issuer in exchange for the Note shall issue and the Trustee
shall authenticate a new Note that reflects the changed terms.  Failure to make the appropriate notation or
issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver.

 

SECTION 9.07.  Trustee To Sign Amendments, Etc.

 

The Trustee
shall execute any amendment, supplement or waiver authorized pursuant to this Article
Nine; provided, however,
that the Trustee may, but shall not be obligated to, execute any such
amendment, supplement or waiver which affects the Trustee’s own rights, duties
or immunities under this Indenture.  The
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate each stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article
Nine is authorized or permitted by this Indenture and constitutes the
legal, valid and binding obligations of the Issuer enforceable in accordance
with its terms.  Such Opinion of Counsel
shall be at the expense of the Issuer.

 

ARTICLE TEN

SUBORDINATION OF SECURITIES

 

SECTION 10.01.  Notes Subordinated to Senior Debt.

 

Notwithstanding
anything to the contrary contained herein, the Issuer, for itself and its
successors, and each Holder, by his or her acceptance of Notes, agrees that the
payment of all Obligations owing to the Holders in respect of the Notes is
subordinated in right of payment, to the extent and in the manner provided in
this Article Ten, to the prior payment in full in cash or Cash Equivalents,
or such payment duly provided for to the satisfaction of the holders of Senior
Debt, of all Obligations on Senior Debt (including the Obligations with respect
to the Credit Agreement that constitute Senior Debt, whether outstanding on the
Issue Date or thereafter incurred and including interest after the
commencement of any bankruptcy proceeding at the rate specified in the
applicable Senior Debt, whether or not a claim for such interest would be
allowed in such proceeding). 
Notwithstanding the foregoing, the Holders may receive and retain
Permitted Junior Securities and payments and distributions made relating to the
Notes

 

101

 

from the trust
established pursuant to Article Eight shall not be so subordinated in
right of payment, so long as the conditions specified in Article Eight
(without any waiver or modification of the requirement that the deposits pursuant
thereto do not conflict with the terms of the Credit Agreement or any other
Senior Debt) with respect to the trust established pursuant to Article Eight
are satisfied on the date of any deposit pursuant to said trust.

 

This Article
Ten shall constitute a continuing offer to all Persons who become holders
of, or continue to hold, Senior Debt, and such provisions are made for the
benefit of the holders of Senior Debt and such holders are made obligees
hereunder and any one or more of them may enforce such provisions.

 

SECTION 10.02.  Suspension of Payment When Designated
Senior Debt Is in Default.

 

(a)           If
any default occurs and is continuing beyond any applicable grace period when
payment is due, whether at maturity, upon any redemption, by declaration or
otherwise, of any principal of, interest on, unpaid drawings for letters of
credit issued in respect of, or fees or other amounts payable with respect to,
any Designated Senior Debt (a “Payment
Default”), then no payment or distribution of any kind or character
shall be made by or on behalf of the Issuer or any other Person on its or their
behalf with respect to any Obligations on or relating to the Notes or to
acquire, defease or redeem any of the Notes for cash or assets or otherwise
unless the default has been cured or waived; provided,
however, that the Issuer may pay the
Notes without regard to the foregoing if the Issuer and the Trustee receive
written notice approving such payment from the Representative of the holders of
such Designated Senior Debt.

 

(b)           If
any other event of default (other than a Payment Default) occurs and is
continuing with respect to any Designated Senior Debt (as such event of default
is defined in the instrument creating or evidencing such Designated Senior
Debt) permitting the holders of such Designated Senior Debt then outstanding to
accelerate the maturity thereof without further notice (except such notice as
may be required to effect such acceleration) (a “Non-payment Default”) and if the Representative for the
respective issue of Designated Senior Debt gives notice of the event of default
to the Trustee stating that such notice is a payment blockage notice (a “Payment Blockage Notice”), then during the
period (the “Payment Blockage Period”)
beginning upon the delivery of such Payment Blockage Notice and ending on the
earlier of the 179th day after such delivery and the date on which
(x) such Nonpayment Default with respect to such Designated Senior Debt
has been cured or waived or ceases to exist, (y) all Designated Senior
Debt with respect to which any such event of default has occurred and is
continuing is discharged or paid in full in cash or Cash Equivalents, or
(z) the Trustee receives notice thereof from the Representative for the
respective issue of Designated Senior Debt terminating the Payment Blockage
Period (unless the maturity of any Designated Senior Debt has been accelerated
or a Payment Default exists), neither the Issuer nor any other Person on its
behalf shall (x) make any payment of any kind or character with respect to any
Obligations on or with respect to the Notes or (y) acquire, defease or redeem
any of the Notes for cash or assets or otherwise.  Notwithstanding anything herein to the
contrary, (x) in no event shall a Payment Blockage Period extend beyond 179
days from the date the applicable Payment Blockage Notice is received by the
Trustee and (y) no new Payment Blockage Notice may be delivered unless and
until (i) 360 days have elapsed since the delivery of the immediately
prior Payment Blockage

 

102

 

Notice and (ii) all scheduled payments
of principal, interest and premium and Additional Interest, if any, on the
Notes that have come due have been paid in full in cash.  For all purposes of this Section 10.02(b),
no event of default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Designated
Senior Debt shall be, or be made, the basis for the commencement of a second
Payment Blockage Period by the Representative of such Designated Senior Debt
whether or not within a period of 360 consecutive days, unless such event of default
shall have been cured or waived for a period of not less than 90 consecutive
days (it being acknowledged that any subsequent action, or any breach of any
financial covenants for a period ending after the date of commencement of such
Payment Blockage Period that, in either case, would give rise to an event of
default pursuant to any provisions under which an event of default previously
existed or was continuing shall constitute a new event of default for this
purpose).

 

(c)           The
foregoing Sections 10.02(a) and (b) shall not apply to (x)
payments and distributions made relating to the Notes from the trust
established pursuant to Article Eight, so long as the conditions
specified in Article Eight (without any waiver or modification of the
requirement that the deposits pursuant thereto do not conflict with the terms
of the Credit Agreement or any other Senior Debt and provided that the
provisions of this Article Ten were not violated at the time the
deposits pursuant thereto were made) are satisfied on the date of any deposit
pursuant to said trust and (y) payment in the form of Permitted Junior
Securities.  In addition, Holders may
also receive and retain Permitted Junior Securities.

 

(d)           In
the event that any payment or distribution shall be received by the Trustee or
any Holder when such payment or distribution is prohibited by the foregoing
provisions of this Section 10.02, such payment or distribution
shall be held in trust for the benefit of, and shall be paid over or delivered
to, the holders of Senior Debt (pro rata to
such holders on the basis of the respective amount of Senior Debt held by such
holders) or their respective Representatives, as their respective interests may
appear.  The Trustee shall be entitled to
rely on information regarding amounts then due and owing on the Senior Debt, if
any, received from the holders of Senior Debt (or their Representatives) or, if
such information is not received from such holders or their Representatives,
from the Issuer and only amounts included in the information provided to the
Trustee shall be paid to the holders of Senior Debt.

 

(e)           Nothing
contained in this Article Ten shall limit the right of the Trustee or
the Holders of Notes to take any action to accelerate the maturity of the Notes
pursuant to Section 6.02 or to pursue any rights or remedies hereunder; provided, however, that
all Senior Debt thereafter due or declared to be due shall first be paid in
full in cash or Cash Equivalents before the Holders are entitled to receive any
payment of any kind or character with respect to Obligations on the Notes (and
such Holders may receive such payments only to the extent then permitted to do
so by Section 10.02(a) and (b)).

 

SECTION 10.03.  Notes Subordinated to Prior Payment of All
Senior Debt on Dissolution, Liquidation or Reorganization of the Issuer.

 

(a)           Upon
any payment or distribution of assets of the Issuer of any kind or character,
whether in cash, assets or securities, to creditors upon any total or partial
liquidation, dissolution, winding-up, reorganization, assignment for the
benefit of creditors or marshaling of

 

103

 

assets and liabilities of the Issuer or in a
bankruptcy, reorganization, insolvency, receivership or other similar
proceeding relating to the Issuer or its assets, whether voluntary or
involuntary, all Obligations due or to become due upon all Senior Debt shall
first be paid in full in cash or Cash Equivalents, or such payment duly
provided for to the satisfaction of the holders of Senior Debt, before any
payment or distribution of any kind or character is made on account of any
Obligations on or relating to the Notes (except that Holders may receive and
retain Permitted Junior Securities and payments from the trusts described in Article
Eight), or for the acquisition, defeasance or redemption of any of the
Notes for cash or assets or otherwise. 
Upon any such dissolution, winding-up, liquidation, reorganization,
receivership or similar proceeding, any payment or distribution of assets of
the Issuer of any kind or character, whether in cash, assets or securities, to
which the Holders or the Trustee under this Indenture would be entitled, except
for the provisions hereof, shall be paid by the Issuer or by any receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such
payment or distribution, or by the Holders or by the Trustee under this
Indenture if received by them, directly to the holders of Senior Debt (pro rata to such holders on the basis of the respective
amounts of Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Debt may have been issued, as their respective
interests may appear, for application to the payment of Senior Debt remaining
unpaid until all such Senior Debt has been paid in full in cash or Cash
Equivalents after giving effect to any concurrent payment, distribution or
provision therefor to or for the holders of Senior Debt.

 

(b)           To
the extent any payment of Senior Debt (whether by or on behalf of the Issuer,
as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to
any receiver, trustee in bankruptcy, liquidating trustee, agent or other
similar Person under any bankruptcy, insolvency, receivership, fraudulent conveyance
or similar law, then the Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

 

It is further
agreed that any diminution (whether pursuant to court decree or otherwise,
including for any of the reasons described in the preceding sentence) of the
Issuer’s obligation to make any distribution or payment pursuant to any Senior
Debt, except to the extent such diminution occurs by reason of the repayment
(which has not been disgorged or returned) of such Senior Debt in cash or Cash
Equivalents, shall have no force or effect for purposes of the subordination
provisions contained in this Article Ten, with any turnover of payments
as otherwise calculated pursuant to this Article Ten to be made as if no
such diminution had occurred.

 

(c)           In
the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Issuer of any kind or character, whether in cash, assets or
securities, shall be received by the Trustee or any Holder when such payment or
distribution is prohibited by this Section 10.03, such payment or
distribution shall be held in trust for the benefit of, and shall be paid over
or delivered to, the holders of Senior Debt (pro rata to
such holders on the basis of the respective amount of Senior Debt held by such
holders) or their respective Representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Debt may have been
issued, as their respective interests may appear, for application to the
payment of Senior Debt remaining unpaid until all such Senior Debt has been
paid in full in cash

 

104

 

or Cash Equivalents, after giving effect to
any concurrent payment, distribution or provision therefor to or for the
holders of such Senior Debt.

 

(d)           The
consolidation of the Issuer with, or the merger of the Issuer with or into,
another corporation, partnership, trust or limited liability company or the
liquidation or dissolution of the Issuer following the conveyance or transfer
of all or substantially all of its assets, to another corporation, partnership,
trust or limited liability company upon the terms and conditions provided in Article
Five hereof and as long as permitted under the terms of the Senior Debt
shall not be deemed a dissolution, winding-up, liquidation or reorganization
for the purposes of this Section 10.03 if such other corporation shall,
as a part of such consolidation, merger, conveyance or transfer, assume the
Issuer’s obligations hereunder in accordance with Article Five hereof.

 

SECTION 10.04.  Payments May Be Made Prior to Dissolution.

 

Nothing
contained in this Article Ten or elsewhere in this Indenture shall
prevent (i) the Issuer, except under the conditions described in Sections
10.02 and 10.03, from making payments at any time for the purpose of
making payments of principal of and interest on the Notes, or from depositing
with the Trustee any moneys for such payments, or (ii) in the absence of actual
knowledge by the Trustee that a given payment would be prohibited by Section
10.02 or 10.03, the application by the Trustee of any moneys
deposited with it for the purpose of making such payments of principal of, and
interest on, the Notes to the Holders entitled thereto unless at least two
Business Days prior to the date upon which such payment would otherwise become
due and payable a Responsible Officer of the Trustee shall have actually
received the written notice provided for in the first sentence of Section
10.02(b) or in Section 10.07; provided, however, that, notwithstanding the foregoing, the Holders
receiving any payments made in contravention of Section 10.02 or 10.03
(and the respective such payments) shall otherwise be subject to the provisions
of Section 10.02 and Section 10.03.  The Issuer shall give prompt written notice
to the Trustee of any dissolution, winding-up, liquidation or reorganization of
the Issuer, although any delay or failure to give any such notice shall have no
effect on the subordination provisions contained herein.

 

SECTION 10.05.  Holders To Be Subrogated to Rights of
Holders of Senior Debt.

 

Subject to the
payment in full in cash or Cash Equivalents of all Senior Debt, the Holders of
the Notes shall be subrogated to the rights of the holders of Senior Debt to
receive payments or distributions of cash, assets or securities of the Issuer
applicable to the Senior Debt until the Notes shall be paid in full; and, for
the purposes of such subrogation, no such payments or distributions to the
holders of the Senior Debt by or on behalf of the Issuer, or by or on behalf of
the Holders by virtue of this Article Ten, which otherwise would
have been made to the Holders shall, as between the Issuer and the Holders, be
deemed to be a payment by the Issuer to or on account of the Senior Debt, it
being understood that the provisions of this Article Ten 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 Debt, on the other hand.

 

105

 

SECTION 10.06.  Obligations of the Issuer Unconditional.

 

Nothing
contained in this Article Ten or elsewhere in this Indenture or in the
Notes is intended to or shall impair, as among the Issuer, its creditors other
than the holders of Senior Debt, and the Holders, the obligation of the Issuer,
which is absolute and unconditional, to pay to the Holders the principal of and
any interest on the Notes as and when the same shall become due and payable in
accordance with their terms, or is intended to or shall affect the relative
rights of the Holders and creditors of the Issuer other than the holders of the
Senior Debt, nor shall anything herein or therein prevent the Holder of any
Note or the Trustee on its behalf from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, in respect of cash, assets or securities of the Issuer received
upon the exercise of any such remedy.

 

SECTION 10.07.  Notice to Trustee.

 

The Issuer
shall give prompt written notice to the Trustee of any fact known to the Issuer
which would prohibit the making of any payment to or by the Trustee in respect
of the Notes pursuant to the provisions of this Article Ten, although
any delay or failure to give any such notice shall have no effect on the
subordination provisions contained herein. 
Regardless of anything to the contrary contained in this Article Ten
or elsewhere in this Indenture, the Trustee shall not be charged with knowledge
of the existence of any default or event of default with respect to any Senior
Debt or of any other facts which would prohibit the making of any payment to or
by the Trustee unless and until the Trustee shall have received notice in
writing from the Issuer, or from a holder of Senior Debt or a Representative
therefor and, prior to the receipt of any such written notice, the Trustee
shall be entitled to assume (in the absence of actual knowledge to the contrary)
that no such facts exist.  The Trustee
shall be entitled to rely on the delivery to it of any notice pursuant to this Section
10.07 to establish that such notice has been given by a holder of Senior
Debt (or a trustee thereof).

 

In the event
that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Senior Debt to participate in
any payment or distribution pursuant to this Article Ten, the Trustee
may request such Person to furnish evidence to the satisfaction of the Trustee
as to the amounts of Senior Debt 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 Ten, 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.

 

SECTION 10.08.  Reliance on Judicial Order or Certificate
of Liquidating Agent.

 

Upon any
payment or distribution of assets of the Issuer referred to in this Article
Ten, the Trustee, subject to the provisions of Article Seven hereof,
and the Holders of the Notes shall be entitled to rely upon any order or decree
made by any court of competent jurisdiction in which any insolvency,
bankruptcy, receivership, dissolution, winding-up, liquidation, reorganization
or similar case or proceeding is pending, or upon a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, assignee for the benefit of
creditors, agent or other person making such payment or distribution, delivered
to the Trustee or the Holders, for the

 

106

 

purpose of
ascertaining the persons entitled to participate in such payment or distribution,
the holders of the Senior Debt and other Indebtedness of the Issuer, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Ten.

 

SECTION 10.09.  Trustee’s Relation to Senior Debt.

 

The Trustee
and any agent of the Issuer or the Trustee shall be entitled to all the rights
set forth in this Article Ten with respect to any Senior Debt which may
at any time be held by it in its individual or any other capacity to the same
extent as any other holder of Senior Debt and nothing in this Indenture shall
deprive the Trustee or any such agent of any of its rights as such holder.

 

With respect
to the holders of Senior Debt, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in
this Article Ten, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the
Trustee.  The Trustee shall not be deemed
to owe any fiduciary duty to the holders of Senior Debt.

 

Whenever a
distribution is to be made or a notice given to holders or owners of Senior
Debt, the distribution may be made and the notice may be given to their
Representative, if any.

 

SECTION 10.10.  Subordination Rights Not Impaired by Acts
or Omissions of the Issuer or Holders of Senior Debt.

 

No right of
any present or future holders of any Senior Debt to enforce subordination as
provided herein shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Issuer or by any act or failure to
act, in good faith, by any such holder, or by any noncompliance by the Issuer
with the terms of this Indenture, regardless of any knowledge thereof which any
such holder may have or otherwise be charged with.

 

Without in any
way limiting the generality of the foregoing paragraph, the holders of Senior
Debt may, at any time and from time to time, without the consent of or notice
to the Trustee, without incurring responsibility to the Trustee or the Holders
and without impairing or releasing the subordination provided in this Article
Ten or the obligations hereunder of the Holders to the holders of the
Senior Debt, do any one or more of the following:  (i) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt, or
otherwise amend or supplement in any manner Senior Debt, or any instrument
evidencing the same or any agreement under which Senior Debt is outstanding;
(ii) sell, exchange, release or otherwise deal with any property pledged,
mortgaged or otherwise securing Senior Debt; (iii) release any Person
liable in any manner for the payment or collection of Senior Debt; and
(iv) exercise or refrain from exercising any rights against the Issuer and
any other Person.

 

107

 

SECTION 10.11.  Noteholders Authorize Trustee To
Effectuate Subordination of Notes.

 

Each Holder by
its acceptance of Notes authorizes and expressly directs the Trustee on its
behalf to take such action as may be necessary or appropriate to effectuate, as
between the holders of Senior Debt and the Holders, the subordination provided
in this Article Ten, and appoints the Trustee its attorney-in-fact for
such purposes, including in the event of any dissolution, winding-up,
liquidation or reorganization of the Issuer (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for
the benefit of credits or otherwise) tending towards liquidation of the
business and assets of the Issuer, the filing of a claim for the unpaid balance
of its Notes and accrued interest in the form required in those proceedings.

 

If the Trustee
does not file a proper claim or proof of debt in the form required in such
proceeding prior to 30 days before the expiration of the time to file such
claim or claims, then the holders of the Senior Debt or their Representative
are or is hereby authorized to have the right to file and are or is hereby
authorized to file an appropriate claim for and on behalf of the Holders of
said Notes.  Nothing herein contained
shall be deemed to authorize the Trustee or the holders of Senior Debt or their
Representative 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 or the holders of Senior Debt or their Representative to vote in
respect of the claim of any Holder in any such proceeding.

 

SECTION 10.12.  This Article Ten Not To Prevent Events of
Default.

 

The failure to
make a payment on account of principal of, premium, if any, or interest on the
Notes by reason of any provision of this Article Ten shall not be
construed as preventing the occurrence of an Event of Default.

 

SECTION 10.13.  Trustee’s Compensation Not Prejudiced.

 

Nothing in
this Article Ten shall apply to amounts due to the Trustee for its own
account (other than payments of Obligations owing to Holders in respect of
Notes) pursuant to other sections of this Indenture.

 

ARTICLE ELEVEN

GUARANTEES

 

SECTION 11.01.  Unconditional Guarantee.

 

Subject to the
provisions of this Article Eleven, each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably guarantees, as a primary
obligor and not merely as a surety, on a senior subordinated basis to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Notes or the obligations of the Issuer or any other
Guarantors to the Holders or the Trustee hereunder or thereunder:  (a) (x) the due and

 

108

 

punctual
payment of the principal of, premium, if any, and interest on the Notes when
and as the same shall become due and payable, whether at maturity, upon
redemption or repurchase, by acceleration or otherwise, (y) the due and
punctual payment of interest on the overdue principal and (to the extent
permitted by law) interest, if any, on the Notes (including interest accruing
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding relating to the Issuer or any Guarantor,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) and (z) the due and punctual payment and performance of
all other obligations of the Issuer and all other obligations of the other Guarantors
(including under the Guarantees), in each case, to the Holders or the Trustee
hereunder or thereunder (including amounts due the Trustee under Section 7.07
hereof), all in accordance with the terms hereof and thereof (collectively, the
“Guarantee Obligations”); and
(b) in case of any extension of time of payment or renewal of any Notes or
any of such other obligations, the due and punctual payment and performance of
Guarantee Obligations in accordance with the terms of the extension or renewal,
whether at maturity, upon redemption or repurchase, by acceleration or
otherwise.  Failing payment when due of
any amount so guaranteed, or failing performance of any other obligation of the
Issuer to the Holders under this Indenture or under the Notes, for whatever
reason, each Guarantor shall be obligated to pay, or to perform or cause the
performance of, the same immediately.  An
Event of Default under this Indenture or the Notes shall constitute an event of
default under the Guarantees, and shall entitle the Holders to accelerate the
obligations of the Guarantors thereunder in the same manner and to the same
extent as the obligations of the Issuer.

 

Each of the
Guarantors 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 Issuer, any
action to enforce the same, whether or not a Guarantee is affixed to any
particular Note, or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a Guarantor.  Each of the Guarantors hereby waives the
benefit of diligence, presentment, demand of payment, filing of claims with a
court in the event of insolvency or bankruptcy of the Issuer, any right to
require a proceeding first against the Issuer, protest, notice and all demands
whatsoever and covenants that its Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes, this Indenture
and the Guarantee.  The Guarantee is a guarantee
of payment and not of collection.  If any
Holder or the Trustee is required by any court or otherwise to return to the
Issuer or to any Guarantor, or any custodian, trustee, liquidator or other
similar official acting in relation to the Issuer or such Guarantor, any amount
paid by the Issuer or such Guarantor to the Trustee or such Holder, the
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.  Each Guarantor further
agrees that, as between it, on the one hand, and the Holders of Notes and the
Trustee, on the other hand, (a) subject to this Article Eleven, the
maturity of the obligations guaranteed hereby may be accelerated as provided in
Article Six for the purposes of the Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (b) in the event of any acceleration of
such obligations as provided in Article Six hereof, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of the Guarantee.

 

109

 

SECTION 11.02.  Subordination of Guarantee.

 

The
obligations of each Guarantor under its Guarantee pursuant to this Article
Eleven shall be junior and subordinated to the prior payment in full in
cash or Cash Equivalents of the applicable Guarantor Senior Debt on the same
basis as the Notes are junior and subordinated to Senior Debt of the
Issuer.  For the purposes of the
foregoing sentence, the Trustee and the Holders shall have the right to receive
or retain payments by any of the Guarantors only at such times as they may
receive or retain payments in respect of the Notes pursuant to this Indenture,
including Article Ten hereof.

 

SECTION 11.03.  Limitation on Guarantor Liability.

 

Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar federal or state law to the extent applicable to any
Guarantee.  To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of each Guarantor under its Guarantee pursuant to this Article
Eleven shall be limited to the maximum amount as will, after giving effect
to such maximum amount and all other contingent and fixed liabilities of such
Guarantor that are relevant under such laws, and after giving effect to any
collections from rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under this Article Eleven, result in the obligations of such
Guarantor under its Guarantee not constituting a fraudulent transfer or
conveyance.

 

SECTION 11.04.  Execution and Delivery of Guarantee for
Future Guarantors.

 

To further
evidence its Guarantee set forth in Section 11.01, each Restricted
Subsidiary that is required to become a Guarantor pursuant to Section 4.16
hereby agrees to execute a supplement to this Indenture or a Guarantee,
substantially in the form of Exhibit G hereto, and deliver it to the
Trustee.  Such Guarantee or supplement to
this Indenture shall be executed on behalf of each Guarantor by either manual
or facsimile signature of one Officer or other person duly authorized by all
necessary corporate action of each Guarantor who shall have been duly
authorized to so execute by all requisite corporate action.  The validity and enforceability of any
Guarantee shall not be affected by the fact that it is not affixed to any
particular Note.

 

Each of the
Guarantors hereby agrees that its Guarantee set forth in Section 11.01
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Guarantee.

 

If an Officer
of a Guarantor whose signature is on this Indenture or a Guarantee no longer
holds that office at the time the Trustee authenticates the Note on which such
Guarantee is endorsed or at any time thereafter, such Guarantor’s Guarantee of
such Note shall nevertheless be valid.

 

110

 

The delivery
of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of any Guarantee set forth in this Indenture on behalf
of each Guarantor.

 

SECTION 11.05.  Release of a Guarantor; Merger, Consolidation
or Sale of Assets of a Guarantor.

 

(a)           The
Guarantee of a Guarantor shall be released:

 

(1)           (a) (x) upon the sale,
disposition or other transfer (including through merger or consolidation) of
all of the Capital Stock (or any sale, disposition or other transfer of Capital
Stock following which such Guarantor is no longer a Restricted Subsidiary), or
all or substantially all the assets, of such Guarantor, if such sale,
disposition or other transfer is made in compliance with Section 4.13(a)
and (y) such Guarantor is released from its Indebtedness and guarantee, if any,
of, and all pledges and security, if any, granted in connection with, the
Credit Agreement;

 

(b)           if
the Issuer designates any Restricted Subsidiary that is a Guarantor as an
Unrestricted Subsidiary in accordance with Section 4.11 and the
definition of “Unrestricted Subsidiary;”

 

(c)           if
the Issuer (1) exercises its option under Section 8.02(b) or 8.02(c)
or (2) discharges its Obligations under this Indenture in accordance with Section
8.01; or

 

(d)           if
such Guarantor has been released from its Indebtedness and guarantee, if any,
of, and all pledges and security, if any, granted in connection with the Credit
Agreement.

 

The Trustee
shall execute an appropriate instrument prepared by the Issuer evidencing the
release of a Guarantor from its obligations under its Guarantee upon receipt of
a request by the Issuer or such Guarantor accompanied by an Officers’
Certificate and an Opinion of Counsel certifying as to the compliance with this
Section 11.05; provided, however, that the legal counsel delivering such Opinion of
Counsel may rely as to matters of fact on one or more Officers’ Certificates of
the Issuer.

 

(b)           In
addition, the Issuer shall not permit any Guarantor to consolidate with, merge
with or into any person (other than the Issuer or another Guarantor) and shall
not permit the conveyance, transfer or lease of all or substantially all of the
assets of any such Guarantor, unless:

 

(A)(1)     either: (a) such Guarantor is
the surviving Person; or (b) the Person formed by or surviving any such
consolidation or merger (if other than such Guarantor) or to which such sale,
assignment, transfer, conveyance, lease or other disposition has been made is a
corporation, partnership, trust or limited liability company organized and
existing under the laws of the United States of America, any State of the
United States of America, the District of Columbia or Puerto Rico (such Person
being herein called the “Successor Guarantor”);

 

111

 

(2)           the Successor Guarantor
(if other than such Guarantor) assumes by means of a supplemental indenture all
the obligations of such Guarantor under its Guarantee, this Indenture and the
Registration Rights Agreement; and

 

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

 

(B)           the transaction is made
in compliance with Section 4.13(a).

 

Except as set
forth in Articles Four and Five and this Section 11.05,
nothing contained in this Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Issuer or another
Guarantor or shall prevent any sale, assignment, transfer, conveyance or other
disposition of all or substantially all of the assets of a Guarantor to the
Issuer or another Guarantor.

 

SECTION 11.06.  Waiver of Subrogation.

 

Until this
Indenture is discharged and all of the Notes are discharged and paid in full,
each Guarantor hereby irrevocably waives and agrees not to exercise any claim
or other rights which it may now or hereafter acquire against the Issuer that
arise from the existence, payment, performance or enforcement of the Issuer’s
obligations under the Notes or this Indenture and such Guarantor’s obligations
under the Guarantee and this Indenture, in any such instance including any
right of subrogation, reimbursement, exoneration, contribution,
indemnification, and any right to participate in any claim or remedy of the Holders
against the Issuer, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including the right to take
or receive from the Issuer, directly or indirectly, in cash or other assets or
by set-off or in any other manner, payment or security on account of such claim
or other rights.  If any amount shall be
paid to any Guarantor in violation of the preceding sentence and any amounts
owing to the Trustee or the Holders under the Notes, this Indenture, or any
other document or instrument delivered under or in connection with such agreements
or instruments, shall not have been paid in full, such amount shall have been
deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Trustee or the Holders and shall forthwith be
paid to the Trustee for the benefit of itself or such Holders to be credited
and applied to the obligations in favor of the Trustee or the Holders, as the
case may be, whether matured or unmatured, in accordance with the terms of this
Indenture.  Each Guarantor acknowledges that
it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section
11.06 is knowingly made in contemplation of such benefits.

 

SECTION 11.07.  Immediate Payment.

 

Each Guarantor
agrees to make immediate payment to the Trustee on behalf of the Holders of all
Guarantee Obligations owing or payable to the respective Holders upon receipt
of a demand for payment therefor by the Trustee to such Guarantor in writing.

 

112

 

SECTION 11.08.  No Setoff.

 

Each payment
to be made by a Guarantor hereunder in respect of the Guarantee Obligations
shall be payable in the currency or currencies in which such Guarantee Obligations
are denominated, and shall be made without set-off, counterclaim, reduction or
diminution of any kind or nature.

 

SECTION 11.09.  Guarantee Obligations Absolute.

 

Subject to the
provisions of Section 11.02, the obligations of each Guarantor
hereunder are and shall be absolute and unconditional and any monies or amounts
expressed to be owing or payable by each Guarantor hereunder which may not be
recoverable from such Guarantor on the basis of a Guarantee shall be
recoverable from such Guarantor as a primary obligor and principal debtor in
respect thereof.

 

SECTION 11.10.  Guarantee Obligations Continuing.

 

Subject to the
other provisions of this Indenture, the obligations of each Guarantor hereunder
shall be continuing and shall remain in full force and effect until all such
obligations have been paid and satisfied in full.  Each Guarantor agrees with the Trustee that
it shall from time to time deliver to the Trustee suitable acknowledgments of
this continued liability hereunder and under any other instrument or instruments
in such form as counsel to the Trustee may advise and as shall prevent any
action brought against it in respect of any default hereunder being barred by
any statute of limitations now or hereafter in force and, in the event of the
failure of a Guarantor so to do, it hereby irrevocably appoints the Trustee the
attorney and agent of such Guarantor to make, execute and deliver such written
acknowledgment or acknowledgments or other instruments as may from time to time
become necessary or advisable, in the judgment of the Trustee on the advice of
counsel, to fully maintain and keep in force the liability of such Guarantor
hereunder.

 

SECTION 11.11.  Guarantee Obligations Not Reduced.

 

The
obligations of each Guarantor hereunder shall not be satisfied, reduced or
discharged solely by the payment of such principal, premium, if any, interest,
fees and other monies or amounts as may at any time prior to discharge of this
Indenture pursuant to Article Eight be or become owing or payable under
or by virtue of or otherwise in connection with the Notes or this Indenture.

 

SECTION 11.12.  Guarantee Obligations Reinstated.

 

The
obligations of each Guarantor hereunder shall continue to be effective or shall
be reinstated, as the case may be, if at any time any payment which would
otherwise have reduced the obligations of any Guarantor hereunder (whether such
payment shall have been made by or on behalf of the Issuer or by or on behalf
of a Guarantor) is rescinded or reclaimed from any of the Holders upon the
insolvency, bankruptcy, liquidation or reorganization of the Issuer or any
Guarantor or otherwise, all as though such payment had not been made.  If demand for, or acceleration of the time
for, payment by the Issuer or any other Guarantor is stayed upon the insolvency,
bankruptcy, liquidation or reorganization of the Issuer or such Guarantor, all
such

 

113

 

Indebtedness
otherwise subject to demand for payment or acceleration shall nonetheless be
payable by each Guarantor as provided herein.

 

SECTION 11.13.  Guarantee Obligations Not Affected.

 

The
obligations of each Guarantor hereunder shall not be affected, impaired or
diminished in any way by any act, omission, matter or thing whatsoever,
occurring before, upon or after any demand for payment hereunder (and whether
or not known or consented to by any Guarantor or any of the Holders) which, but
for this provision, might constitute a whole or partial defense to a claim
against any Guarantor hereunder or might operate to release or otherwise
exonerate any Guarantor from any of its obligations hereunder or otherwise
affect such obligations, whether occasioned by default of any of the Holders or
otherwise, including:

 

(i)            any limitation of
status or power, disability, incapacity or other circumstance relating to the
Issuer or any other Person, including any insolvency, bankruptcy, liquidation,
reorganization, readjustment, composition, dissolution, winding-up or other
proceeding involving or affecting the Issuer or any other Person;

 

(ii)           any irregularity,
defect, unenforceability or invalidity in respect of any indebtedness or other
obligation of the Issuer or any other Person under this Indenture, the Notes or
any other document or instrument;

 

(iii)          any failure of the Issuer
or any other Guarantor, whether or not without fault on its part, to perform or
comply with any of the provisions of this Indenture, the Notes or any
Guarantee, or to give notice thereof to a Guarantor;

 

(iv)          the taking or enforcing
or exercising or the refusal or neglect to take or enforce or exercise any
right or remedy from or against the Issuer or any other Person or their
respective assets or the release or discharge of any such right or remedy;

 

(v)           the granting of time,
renewals, extensions, compromises, concessions, waivers, releases, discharges
and other indulgences to the Issuer or any other Person;

 

(vi)          any change in the time,
manner or place of payment of, or in any other term of, any of the Notes, or
any other amendment, variation, supplement, replacement or waiver of, or any
consent to departure from, any of the Notes or this Indenture, including any
increase or decrease in the principal amount of or premium, if any, or interest
on any of the Notes;

 

(vii)         any change in the
ownership, control, name, objects, businesses, assets, capital structure or
constitution of the Issuer or a Guarantor;

 

(viii)        any merger or amalgamation
of the Issuer or a Guarantor with any Person or Persons;

 

(ix)           the occurrence of any
change in the laws, rules, regulations or ordinances of any jurisdiction by any
present or future action of any governmental authority or court amending,
varying, reducing or otherwise affecting, or purporting to amend, vary, reduce

 

114

 

or otherwise
affect, any of the Guarantee Obligations or the obligations of a Guarantor
under its Guarantee; and

 

(x)            any other
circumstance, including release of the Guarantor pursuant to Section 11.05
(other than by complete, irrevocable payment) that might otherwise constitute a
legal or equitable discharge or defense of the Issuer under this Indenture or
the Notes or of a Guarantor in respect of its Guarantee hereunder.

 

SECTION 11.14.  Waiver.

 

Without in any
way limiting the provisions of Section 11.01, each Guarantor hereby
waives notice of acceptance hereof, notice of any liability of any Guarantor
hereunder, notice or proof of reliance by the Holders upon the obligations of
any Guarantor hereunder, and diligence, presentment, demand for payment on the
Issuer, protest, notice of dishonor or non-payment of any of the Guarantee
Obligations, or other notice or formalities to the Issuer or any Guarantor of
any kind whatsoever.

 

SECTION 11.15.  No Obligation To Take Action Against the
Issuer.

 

Neither the
Trustee nor any other Person shall have any obligation to enforce or exhaust
any rights or remedies against the Issuer or any other Person or any property
of the Issuer or any other Person before the Trustee is entitled to demand
payment and performance by any or all Guarantors of their liabilities and
obligations under their Guarantees or under this Indenture.

 

SECTION 11.16.  Dealing with the Issuer and Others.

 

The Holders,
without releasing, discharging, limiting or otherwise affecting in whole or in
part the obligations and liabilities of any Guarantor hereunder and without the
consent of or notice to any Guarantor, may

 

(i)            grant time, renewals,
extensions, compromises, concessions, waivers, releases, discharges and other
indulgences to the Issuer or any other Person;

 

(ii)           take or abstain from
taking security or collateral from the Issuer or from perfecting security or
collateral of the Issuer;

 

(iii)          release, discharge,
compromise, realize, enforce or otherwise deal with or do any act or thing in
respect of (with or without consideration) any and all collateral, mortgages or
other security given by the Issuer or any third party with respect to the
obligations or matters contemplated by this Indenture or the Notes;

 

(iv)          accept compromises or
arrangements from the Issuer;

 

(v)           apply all monies at any
time received from the Issuer or from any security upon such part of the
Guarantee Obligations as the Holders may see fit or change any such application
in whole or in part from time to time as the Holders may see fit; and

 

115

 

(vi)          otherwise deal with, or
waive or modify their right to deal with, the Issuer and all other Persons and
any security as the Holders or the Trustee may see fit.

 

SECTION 11.17.  Default and Enforcement.

 

If any
Guarantor fails to pay in accordance with Section 11.07 hereof, the
Trustee may proceed in its name as trustee hereunder in the enforcement of the
Guarantee of any such Guarantor and such Guarantor’s obligations thereunder and
hereunder by any remedy provided by law, whether by legal proceedings or
otherwise, and to recover from such Guarantor the obligations.

 

SECTION 11.18.  Amendment, Etc.

 

No amendment,
modification or waiver of any provision of this Indenture relating to any Guarantor
or consent to any departure by any Guarantor or any other Person from any such
provision shall in any event be effective unless it is signed by such Guarantor
and the Trustee.

 

SECTION 11.19.  Acknowledgment.

 

Each
Guarantor, if any, hereby acknowledges communication of the terms of this
Indenture and the Notes and consents to and approves of the same.

 

SECTION 11.20.  Costs and Expenses.

 

Each Guarantor
shall pay on demand by the Trustee any and all costs, fees and expenses
(including legal fees on a solicitor and client basis) incurred by the Trustee,
its agents, advisors and counsel or any of the Holders in enforcing any of
their rights under any Guarantee.

 

SECTION 11.21.  No Merger or Waiver; Cumulative Remedies.

 

No Guarantee
shall operate by way of merger of any of the obligations of a Guarantor under
any other agreement, including this Indenture. 
No failure to exercise and no delay in exercising, on the part of the
Trustee or the Holders, any right, remedy, power or privilege hereunder or under
this Indenture or the Notes, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
or under this Indenture or the Notes preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
in the Guarantee and under this Indenture, the Notes and any other document or
instrument between a Guarantor or the Issuer and the Trustee are cumulative and
not exclusive of any rights, remedies, powers and privilege provided by law.

 

SECTION 11.22.  Guarantee in Addition to Other Guarantee
Obligations.

 

The
obligations of each Guarantor under its Guarantee and this Indenture are in
addition to and not in substitution for any other obligations to the Trustee or
to any of the Holders in relation to this Indenture or the Notes and any
guarantees or security at any time held by or for the benefit of any of them.

 

116

 

SECTION 11.23.  Severability.

 

Any provision
of this Article Eleven which is prohibited or unenforceable in any
jurisdiction shall not invalidate the remaining provisions and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction unless its
removal would substantially defeat the basic intent, spirit and purpose of this
Indenture and this Article Eleven.

 

SECTION 11.24.  Successors and Assigns.

 

Each Guarantee
shall be binding upon and inure to the benefit of each Guarantor and the
Trustee and the other Holders and their respective successors and permitted assigns,
except that no Guarantor may assign any of its obligations hereunder or
thereunder.

 

The
obligations described under this Section shall survive any termination,
defeasance or discharge of this Indenture and shall apply mutatis mutandis to
any jurisdiction in which any successor Person to the Issuer is organized or
any political subdivision or taxing authority or agency thereof or therein.

 

ARTICLE TWELVE

MISCELLANEOUS

 

SECTION 12.01.  TIA Controls.

 

If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required or deemed to be included in this Indenture by the
TIA, such required or deemed provision shall control.

 

SECTION 12.02.  Notices.

 

Any notices or
other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telex, by nationally
recognized overnight courier service, by telecopier or registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

 

if to the
Issuer or any Guarantor:

 

PQ Corporation

1200 West Swedesford Road

Berwyn, PA 19312

Attention:                                         General
Counsel

Facsimile:                                            610-651-4504

 

117

 

with a copy
to:

 

Latham &
Watkins LLP

885 Third Avenue

New York, NY 10022

Attention:  Gregory A. Ezring, Esq.

Telephone:                                    212-906-1200

Facsimile:                                            212-751-4864

 

if to the
Trustee:

 

Wells Fargo
Bank, National Association

213 Court Street, Suite 703

Middletown, CT 06457

Attention:                                         Joseph
P. O’Donnell

Telephone:                                    860-704-6217

Facsimile:                                            860-704-6219

 

Each of the
Issuer and the Trustee by written notice to each other such Person and the
Representative under the Credit Agreement may designate additional or different
addresses for notices to such Person. 
Any notice or communication to the Issuer, any Guarantor or the Trustee,
shall be deemed to have been given or made as of the date so delivered if
personally delivered; when answered back; when receipt is acknowledged, if
telecopied; five (5) calendar days after mailing if sent by registered or
certified mail, postage prepaid (except that a notice of change of address
shall not be deemed to have been given until actually received by the
addressee); and next Business Day if by nationally recognized overnight courier
service.

 

Any notice or
communication mailed to a Noteholder shall be mailed to him by first class mail
or other equivalent means at his address as it appears on the registration
books of the Registrar and shall be sufficiently given to him if so mailed
within the time prescribed.

 

Failure to
mail a notice or communication to a Noteholder or any defect in it shall not affect
its sufficiency with respect to other Noteholders.  If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

SECTION 12.03.  Communications by Holders with Other
Holders.

 

Noteholders
may communicate pursuant to TIA § 312(b) with other Noteholders with
respect to their rights under this Indenture, the Notes or the Guarantees.  The Issuer, the Guarantors, the Trustee, the
Registrar and any other Person shall have the protection of TIA § 312(c).

 

SECTION 12.04.  Certificate and Opinion as to Conditions
Precedent.

 

Upon any
request or application by the Issuer to the Trustee to take any action under
this Indenture, the Issuer shall furnish to the Trustee at the request of the
Trustee:

 

118

 

(a)           an
Officers’ Certificate, in form and substance reasonably satisfactory to the
Trustee, stating that, in the opinion of the signers, all conditions precedent
to be performed or effected by the Issuer, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

 

(b)           an
Opinion of Counsel stating that, in the opinion of such counsel, any and all
such conditions precedent have been complied with.

 

SECTION 12.05.
 Statements Required in Certificate or
Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture, other than the Officers’ Certificate required
by Section 4.06, shall include:

 

(a)           a
statement that the Person making such certificate or opinion has read such
covenant or condition;

 

(b)           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;

 

(c)           a
statement that, in the opinion of such Person, 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 or
satisfied; and

 

(d)           a
statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with; provided,
however, that with respect to matters of
fact an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.

 

SECTION 12.06.  Rules by Trustee, Paying Agent, Registrar.

 

The Trustee,
Paying Agent or Registrar may make reasonable rules for its functions.

 

SECTION 12.07.  Legal Holidays.

 

If a payment
date is not a Business Day, payment may be made on the next succeeding day that
is a Business Day and no interest shall accrue on such payment for the
intervening period.

 

SECTION 12.08.  Governing Law.

 

This
Indenture, the Notes and the Guarantees shall be governed by and construed in
accordance with the laws of the State of New York.

 

119

 

SECTION 12.09.  No Adverse Interpretation of Other
Agreements.

 

This Indenture
may not be used to interpret another indenture, loan or debt agreement of the
Issuer or any of its Subsidiaries.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

SECTION 12.10.  No Recourse Against Others.

 

No director,
officer, employee, incorporator, partner or stockholder of the Issuer, any of
its Subsidiaries or any of its direct or indirect parent entities, as such
shall have any liability for any obligations of the Issuer or any Guarantor
under the Notes, this Indenture, the Guarantees, or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  Such waiver
and release are part of the consideration for issuance of the Notes.  The waiver may not be effective to
waive liabilities under the federal securities laws, and it is the view of the
Commission that such waiver is against public policy.

 

SECTION 12.11.  Successors.

 

All agreements
of the Issuer and of the Guarantors in this Indenture and the Notes shall bind
its and their successors.  All agreements
of the Trustee in this Indenture shall bind its successor.

 

SECTION 12.12.  Duplicate Originals.

 

All parties
may sign any number of copies of this Indenture.  Each signed copy or counterpart shall be an
original, but all of them together shall represent the same agreement.

 

SECTION 12.13.  Severability.

 

In case any
one or more of the provisions in this Indenture or in the Notes shall be held
invalid, illegal or unenforceable, in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions shall not in any way be affected or impaired thereby,
it being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

 

120

 

SIGNATURES

 

IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed all
as of the date first written above.

 

	
   

  	
  NIAGARA ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  A. Aube

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Aube

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Assistant

  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
  The
  undersigned hereby acknowledges and agrees

  	
   

  	
   

  	
   

  
	
  that, upon
  the effectiveness of the merger of Niagara

  	
   

  	
   

  	
   

  
	
  Acquisition, Inc.
  with and into PQ Corporation with

  	
   

  	
   

  	
   

  
	
  PQ
  Corporation continuing as the surviving corporation,

  	
   

  	
   

  	
   

  
	
  it will
  succeed by operation of law to all of the rights and

  	
   

  	
   

  	
   

  
	
  obligations
  of Niagara Acquisition, Inc. set forth

  	
   

  	
   

  	
   

  
	
  herein and
  that all references herein to the

  	
   

  	
   

  	
   

  
	
  “Issuer”
  shall thereupon be deemed to be

  	
   

  	
   

  	
   

  
	
  references
  to the undersigned.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PQ
  CORPORATION,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  By

  	
  /s/ Walter
  J. Stickley, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Walter J. Stickley, Jr.

  	
   

  
	
   

  	
  Title:

  	
  Vice President, Secretary and

  	
   

  
	
   

  	
   

  	
  General Counsel

  	
   

  
								

 

S-1

 

	
  Each
  Guarantor listed on Exhibit H hereto hereby

  	
   

  	
   

  
	
  acknowledges
  and agrees that, upon the effectiveness

  	
   

  	
   

  
	
  of the
  merger of Niagara Acquisition, Inc. with and

  	
   

  	
   

  
	
  into PQ
  Corporation with PQ Corporation continuing

  	
   

  	
   

  
	
  as the
  surviving corporation, all references

  	
   

  	
   

  
	
  herein to “Guarantors”
  shall thereupon be deemed

  	
   

  	
   

  
	
  to include
  the undersigned.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EACH
  GUARANTOR LISTED ON EXHIBIT H HERETO,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMMERCIAL
  RESEARCH ASSOCIATES, INC.

  	
   

  	
   

  
	
  DELPEN
  CORPORATION

  	
   

  	
   

  
	
  PHILADELPHIA
  QUARTZ COMPANY

  	
   

  	
   

  
	
  PQ ASIA INC.

  	
   

  	
   

  
	
  PQ EXPORT
  COMPANY

  	
   

  	
   

  
	
  PQ HOLDING,
  INC.

  	
   

  	
   

  
	
  PQ
  INTERNATIONAL, INC.

  	
   

  	
   

  
	
  PQ SYSTEMS
  INC.

  	
   

  	
   

  
	
   

  
	
  By

  	
  /s/ Walter
  J. Stickley, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Walter J. Stickley, Jr.

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  
	
   

  
	
  POTTERS
  INDUSTRIES INC.,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/ William
  J. Levy

  	
   

  
	
   

  	
  Name:

  	
  William J. Levy.

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
						

 

S-1

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank
  McDonald

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frank McDonald

  
					

 

S-2

 

EXHIBIT A

 

[FORM OF INITIAL NOTE]

 

NIAGARA ACQUISITION, INC.

 

71⁄2% Senior Subordinated
Notes due 2013

 

	
   

  	
   

  	
   

  	
   

  	
  CUSIP No.

  
	
   

  	
   

  	
   

  	
   

  	
  ISIN No.

  
	
  No.

  	
   

  	
   

  	
  $[                   ]

  

 

NIAGARA
ACQUISITION, INC., a Delaware corporation (the “Issuer,” which term includes
any successor corporation), for value received promises to pay to CEDE &
CO. or its registered assigns, the principal sum of [                     ]
dollars ($                )
on February 15, 2013.

 

Interest
Payment Dates:  February 15 and August 15,
commencing August 15, 2005.

 

Record
Dates:  February 1 and August 1.

 

Reference is
made to the further provisions of this Note contained herein, which shall for
all purposes have the same effect as if set forth at this place.

 

A-1

 

IN WITNESS
WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile
by its duly authorized officers.

 

	
   

  	
  NIAGARA ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The
  undersigned hereby acknowledges and agrees

  	
   

  	
   

  	
   

  
	
  that, upon
  the effectiveness of the merger of Niagara

  	
   

  	
   

  	
   

  
	
  Acquisition, Inc.
  with and into PQ Corporation with

  	
   

  	
   

  	
   

  
	
  PQ
  Corporation continuing as the surviving corporation,

  	
   

  	
   

  	
   

  
	
  it will
  succeed by operation of law to all of the rights and

  	
   

  	
   

  	
   

  
	
  obligations
  of Niagara Acquisition, Inc. set forth

  	
   

  	
   

  	
   

  
	
  herein and
  that all references herein to the

  	
   

  	
   

  	
   

  
	
  “Issuer”
  shall thereupon be deemed to be

  	
   

  	
   

  	
   

  
	
  references
  to the undersigned.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PQ
  CORPORATION,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

A-2

 

CERTIFICATE OF AUTHENTICATION

 

This is one of
the 71⁄2% Senior Subordinated Notes due 2013 described in the within-mentioned
Indenture.

 

	
  Dated:

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-3

 

(Reverse of
Note)

NIAGARA ACQUISITION, INC.

 

71⁄2% Senior
Subordinated Notes due 2013

 

 

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

 

[Insert the
Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

 

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

 

SECTION 1.  Interest.  Niagara Acquisition, Inc., a Delaware
corporation (such corporation and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Issuer”), promises
to pay interest on the principal amount of this Note at 71⁄2% per annum from February 11,
2005 until maturity; provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest shall accrue on this
Security at a rate of 0.25% per annum (increasing by an additional 0.25% per
annum after each consecutive 90-day period that occurs after the date on which
such Registration Default occurs up to a maximum additional interest rate of
1.00%) from and including the date on which any such Registration Default shall
occur to but excluding the date on which all Registration Defaults have been
cured.(1)  The Issuer shall pay interest semi-annually on February 15
and August 15 of each year, or if any such day is not a Business Day, on
the next succeeding Business Day (each an “Interest Payment Date”).  Interest on the Notes shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the date of original issuance; provided that
if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided further,
however, that the first Interest Payment
Date shall be August 15, 2005.  The
Issuer shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal and premium, if any, from time
to time on demand to the extent lawful at the interest rate applicable to the
Notes; it shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard
to any applicable grace periods) from time to time on demand at the same rate
to the extent lawful.  Interest shall be
computed on the basis of a 360-day year of twelve 30 day months.

 

SECTION 2.  Method of Payment.  The Issuer shall pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on February 1 or August 1 immediately
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest.  The Notes shall be issued in denominations of
$1,000 and integral multiples of $1,000. 
The Issuer shall pay

 

(1) Insert if at the date of issuance of
the Exchange Note any Registration Default has occurred with respect to the
related Initial Note during the interest period in which such date of issuance occurs.

 

A-4

 

the principal of, premium, if any, and interest on the Notes in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts (“U.S. Legal
Tender”).  The principal of,
premium, if any, and interest on the Notes shall be payable at the office or
agency of the Issuer maintained for such purpose pursuant to Section 2.03
of the Indenture; provided, however,
that, at the option of the Issuer, each installment of interest may be paid by (i) check
mailed to addresses of the Persons entitled thereto as such addresses shall
appear on the registry maintained by the Registrar or (ii) wire transfer
to an account located in the United States maintained by the payee.  Payments in respect of Notes represented by a
Global Note (including principal, premium, if any, and interest) shall be made
by wire transfer of immediately available funds to the accounts specified by
DTC.  Payments in respect of Notes
represented by Definitive Notes (including principal, premium, if any, and
interest) held by a Holder shall be made by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than three
Business Days immediately preceding the relevant due date for payment (or such
other date as the Trustee may accept in its discretion).

 

SECTION 3.  Paying Agent and Registrar.  Initially, Wells Fargo Bank, National
Association, the Trustee under the Indenture, shall act as Paying Agent and
Registrar.  The Issuer may change any
Paying Agent or Registrar without notice to any Holder.  The Issuer or any Affiliate may act in any
such capacity.

 

SECTION 4.  Indenture.  The Issuer issued the Notes under an
Indenture dated as of February 11, 2005 (“Indenture”)
among the Issuer, the Guarantors and the Trustee.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the
“TIA”). 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of such terms.  To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.

 

SECTION 5.  Optional Redemption.  (a) The Notes may be redeemed, in whole
or in part, at any time prior to February 15, 2009, at the option of the
Issuer 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 Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest to, the applicable 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).

 

For purposes
of the preceding paragraph, the following terms shall have the following
definitions:

 

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

 

(1)           1.0%
of the then outstanding principal amount of the Note; and

 

A-5

 

(2)           the
excess of:

 

(a)           the
present value at such redemption date of (i) the Redemption Price of the
Note at February 15, 2009 (such Redemption Price being set forth in the
table appearing under paragraph (b) of this Section 5) plus (ii) all
required interest payments due on the Note through February 15, 2009
(excluding accrued but unpaid interest to such Redemption Date), computed using
a discount rate equal to the Treasury Rate as of such Redemption Date plus 50
basis points; over

 

(b)           the
then outstanding principal amount of the Note.

 

“Treasury Rate” means, as of the applicable 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 such 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 such redemption date
to February 15, 2009; provided, however, that if the period from such redemption date to February 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 shall be
used.

 

(b)           On
or after February 15, 2009, the Notes shall be subject to redemption at
any time at the option of the Issuer, in whole or in part, upon not less than
30 nor more than 60 days’ notice mailed by first class mail to each Holder’s
registered address, at the Redemption Prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest, to the
applicable 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), if redeemed during the twelve-month period beginning on February 15
of the years indicated below: 

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  103.750

  	
  %

  
	
  2010

  	
   

  	
  101.875

  	
  %

  
	
  2011 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

SECTION 6.  Optional Redemption upon Equity Offering.  At any time prior to February 15, 2008,
the Issuer may on any one or more occasions redeem in the aggregate up to 35%
of the aggregate principal amount of Notes issued under the Indenture
(calculated after giving effect to the issuance of Additional Notes), with the
net cash proceeds of one or more Equity Offerings, at a Redemption Price equal
to 107.500% of the principal amount thereof, plus accrued and unpaid interest,
to the redemption date (provided, however, that if the Equity Offering is an offering by any
direct or indirect parent entity of the Issuer, a portion of the net cash
proceeds thereof equal to the amount required to redeem any such Notes is
contributed to the equity capital of the Issuer); provided, however, that (i) at least 65% of the aggregate
principal amount of Notes issued under the Indenture (calculated after giving
effect to any issuance of Additional Notes) remains outstanding immediately
after the occurrence of each such redemption (excluding Notes held by the
Issuer and its Subsidiaries) and (ii) such redemption

 

A-6

 

shall occur within 90 days of the date of the closing of such Equity
Offering (disregarding the date of the closing of any over-allotment option
with respect thereto).

 

SECTION 7.  Mandatory Redemption.  For the avoidance
of doubt, an offer to purchase pursuant to Section 8 hereof shall
not be deemed a redemption.  The Issuer
shall not be required to make mandatory redemption or sinking fund payments
with respect to the Notes.

 

SECTION 8.  Offers To Purchase.  The Indenture provides that upon the
occurrence of a Change of Control or an Asset Sale and subject to further
limitations contained therein, the Issuer shall make an offer to purchase
outstanding Notes in accordance with the procedures set forth in the Indenture.

 

SECTION 9.  Notice of Redemption.  Notice of redemption shall be mailed by first
class mail at least 30 days but not more than 60 days before the redemption
date to each Holder of Notes to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption
date if a notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of the Indenture. 
Notes in denominations larger than $1,000 may be redeemed in part.  If any Note is to be redeemed in part only,
the notice of redemption that relates to such Note shall state the portion of
the principal amount thereof to be redeemed. 
A new Note in principal amount equal to the unredeemed portion thereof
shall be issued in the name of the Holder thereof upon cancellation of the
original Note.  On and after the
redemption date interest ceases to accrue on Notes or portions thereof called
for redemption.

 

SECTION 10.  Denominations, Transfer, Exchange.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuer may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. 
The Issuer or the Registrar is not required to transfer or exchange any
Note selected for redemption.  Also, the
Issuer or the Registrar is not required to transfer or exchange any Notes for a
period of 15 days before a selection of Notes to be redeemed.

 

SECTION 11.  Persons Deemed Owners.  The registered Holder of a Note may be
treated as its owner for all purposes.

 

SECTION 12.  Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture
and the Notes may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, 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 Notes then outstanding (except a payment default or in respect of
a covenant or provision that cannot be modified without the consent of each
affected Holder).  Without notice to or
consent of any Holder, the parties thereto may amend or supplement the
Indenture and the Notes to, among other things, cure any ambiguity, mistake, defect
or inconsistency in the Indenture, provide for uncertificated Notes in addition
to or in place of certificated Notes, comply with any requirements of the
Commission in connection with the qualification of the Indenture under the TIA,
or make any

 

A-7

 

change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights of any Holder of a
Note.

 

SECTION 13.  Defaults and Remedies.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes generally may declare all the Notes to be
due and payable immediately.  Notwithstanding
the foregoing, in the case of an Event of Default arising from certain events
of bankruptcy or insolvency as set forth in the Indenture, with respect to the
Issuer, all outstanding Notes shall become due and payable without further
action or notice.  Holders of the Notes
may not enforce the Indenture or the Notes except as provided in the
Indenture.  Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders notice of any continuing Default (except a Default relating to the
payment of principal or interest) if it determines that withholding notice is
in the interest of the Holders.  The
Holders of a majority in aggregate principal amount of the Notes then outstanding
by notice to the Trustee may on behalf of the Holders of all of the Notes waive
any Default and its consequences under the Indenture except a continuing
Default in the payment of interest on, or the principal of, the Notes or in
respect of certain covenants set forth in the Indenture.

 

SECTION 14.  Restrictive Covenants.  The Indenture contains certain covenants
that, among other things, limit the ability of the Issuer and its Restricted
Subsidiaries to make restricted payments, to incur indebtedness or issue
preferred stock, to create liens, to sell assets, to permit restrictions on
dividends and other payments by Restricted Subsidiaries, to consolidate, merge
or sell all or substantially all of its assets or to engage in transactions
with affiliates.  The limitations are
subject to a number of important qualifications and exceptions.  the Issuer must annually report to the
Trustee on compliance with such limitations.

 

SECTION 15.  No Recourse Against Others.  No director, officer, employee, incorporator,
stockholder of the Issuer or any of its direct or indirect parent corporations,
as such (and, for the avoidance of doubt, excluding any Guarantor), shall have
any liability for any obligations of the Issuer or any Guarantor under the
Notes, the Indenture, the Guarantees, or for any claim based on, in respect of,
or by reason of, such obligations or their creation. Each holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes. The waiver may not be
effective to waive liabilities under the federal securities laws, and it is the
view of the Commission that such waiver is against public policy.

 

SECTION 16.  Trustee Dealings with the Issuer.  Subject to certain limitations imposed by the
Securities Act, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with
the Issuer, its Subsidiaries or their respective Affiliates as if it were not
the Trustee.

 

SECTION 17.  Authentication.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent
on the other side of this Security.

 

SECTION 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

 

A-8

 

the entirety), 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).

 

SECTION 19.  Additional Rights of Holders of Restricted
Global Notes and Restricted Definitive Notes.  Pursuant to, but subject to the exceptions
in, the Registration Rights Agreement, the Issuer and the Guarantors, if any,
shall be obligated to consummate an exchange offer pursuant to which the Holder
of this Note shall have the right to exchange this Initial Note for a 71⁄2%
Senior Subordinated Note due 2013 of the Issuer which shall have been
registered under the Securities Act, in like principal amount and having terms
identical in all material respects to this Initial Note (except that such note
shall not be entitled to Additional Interest and shall not include provisions
with respect to transfer restrictions). 
The Holders shall be entitled to receive certain Additional Interest in
the event such exchange offer is not consummated or the Notes are not offered
for resale and upon certain other conditions, all pursuant to and in accordance
with the terms of the Registration Rights Agreement.(2)

 

SECTION 20.  Guarantees.  The Notes shall be entitled to the benefits
of certain Guarantees made for the benefit of the Holders.  The Guarantees are subordinated to the
payment of Guarantor Senior Debt. 
Reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations thereunder of
the Guarantors, the Trustee and the Holders.

 

SECTION 21.
Subordination. The Notes are subordinated to Senior Debt, as defined in
the Indenture.  To the extent provided in
the Indenture, Senior Debt must be paid before the Notes may be paid.  The Issuer agrees, and each Holder by
accepting a Note agrees, to the subordination provisions contained in the
Indenture and authorizes the Trustee to give them effect and appoints the
Trustee as attorney-in-fact for such purpose.

 

SECTION 22.  CUSIP Numbers and ISINs.  The Issuer has caused CUSIP numbers and ISINs
to be printed on the Notes and has directed the Trustee to use CUSIP numbers
and ISINs in notices of redemption as a convenience to the Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

SECTION 23.  Governing Law.  This Note shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

The Issuer
shall furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to:

 

PQ Corporation

1200 West Swedesford Road

Berwyn, PA 
19312

Attention: 
General Counsel

 

(2) This Section not to appear on
Exchange Notes.

 

A-9

 

ASSIGNMENT FORM

 

I or we assign
and transfer this Note to:

 

	
   

  
	
  (Insert
  assignee’s social security or tax I.D. number)

  

 

	
   

  
	
  (Print or
  type name, address and zip code of assignee)

  

 

 

and
irrevocably appoint:

 

Agent to
transfer this Note on the books of the Issuer. 
The Agent may substitute another to act for him.

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  	
   

  
									

 

SIGNATURE GUARANTEE

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the 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 Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Issuer pursuant to Section 4.09
or Section 4.13 of the Indenture, check the appropriate box:

 

	
  Section 4.09 [          ]

  	
   

  	
  Section 4.13 [            ]

  

 

If you want to
elect to have only part of this Note purchased by the Issuer pursuant to Section 4.09
or Section 4.13 of the Indenture, state the amount:  $

 

	
  Dated: 

  	
   

  	
   

  	
  Signed: 

  	
   

  	
   

  
	
   

  	
  (Sign exactly as name

  appears on the other

  side of this Note)

  	
   

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  Participant in a recognized Signature
  Guarantee

  Medallion Program (or other signature guarantor program

  reasonably acceptable to the Trustee)

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
									

 

SIGNATURE GUARANTEE

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the 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 Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

A-11

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN
GLOBAL SECURITY

 

The following
increases or decreases in this Global Note have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in Principal

  Amount of this Global Note

  	
   

  	
  Amount of increase in Principal

  Amount of this Global Note

  	
   

  	
  Principal Amount of this Global

  Note following such decrease or

  increase

  	
   

  	
  Signature of authorized

  signatory of Trustee or

  Securities Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-12

 

EXHIBIT B

 

[FORM OF LEGEND FOR RULE 144A NOTES AND

OTHER NOTES THAT ARE RESTRICTED NOTES]

 

THIS NOTE (OR
ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

THE HOLDER OF
THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED
STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT IS NOT A
QUALIFIED INSTITUTIONAL BUYER THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF $250,000, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (V)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF
THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

BY ITS
ACQUISITION OF THIS SECURITY THE HOLDER HEREOF SHALL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO
ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT
PLAN THAT IS SUBJECT TO TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS, INDIVIDUAL RETIREMENT ACCOUNTS OR
OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE U.S.

 

B-1

 

INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), OR PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER
LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (“SIMILAR
LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN
ASSETS” OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR (II) THE PURCHASE AND
HOLDING OF THIS SECURITY SHALL NOT CONSTITUTE A NON-EXEMPT PROHIBITED
TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR
A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

 

B-2

 

[FORM OF ASSIGNMENT FOR RULE 144A NOTES

AND OTHER NOTES THAT ARE RESTRICTED NOTES]

 

I or we assign
and transfer this Note to:

 

	
   

  
	
  (Insert
  assignee’s social security or tax I.D. number)

  

 

	
   

  
	
  (Print or
  type name, address and zip code of assignee)

  

 

and
irrevocably appoint:

 

Agent to
transfer this Note on the books of the Issuer. 
The Agent may substitute another to act for him.

 

[Check One]

 

o  (a)     this Note is being
transferred in compliance with the exemption from registration under the
Securities Act provided by Rule 144A thereunder.

 

or

 

o  (b)     this 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
Note and the Indenture.

 

If none of the
foregoing boxes is checked, the Trustee or Registrar shall not be obligated to
register this 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 2.01 and 2.06 of the Indenture shall have
been satisfied.

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    (Sign exactly as your name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
    appears on the face of this
  Note)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

SIGNATURE GUARANTEE

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the 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 Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

B-3

 

TO BE COMPLETED BY TRANSFEROR IF (A) ABOVE
IS CHECKED

 

The Transfer
is being effected pursuant to and in accordance with Rule 144A under the
Securities Act, and, accordingly, the Transferor hereby further certifies that
the beneficial interest or certificated Note is being Transferred to a Person
that the Transferor reasonably believed and believes is purchasing the
beneficial interest or certificated Note for its own account, or for one or
more accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional
buyer” within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A and such Transfer is in compliance with any
applicable securities laws of any state of the United States.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the Transferred beneficial interest
or certificated Note shall be subject to the restrictions on transfer
enumerated on the Rule 144A Notes or the certificated Note and in the
Indenture and the Securities Act.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NOTICE:

  	
  To be executed by an executive

  officer

  

 

B-4

EXHIBIT C

 

[FORM OF LEGEND FOR REGULATION S NOTES]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY
U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE
SECURITIES ACT.

 

EXCEPT AS SET FORTH BELOW, BENEFICIAL
OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE SHALL NOT BE EXCHANGEABLE
FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER SECURITY
REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A
LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY
DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(3) OF
REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN
FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE
OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS
IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT.  DURING SUCH 40-DAY DISTRIBUTION
COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED
(I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION
IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OR
(III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  HOLDERS OF INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE SHALL NOTIFY ANY PURCHASER OF THIS NOTE OF THE
RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

AFTER THE EXPIRATION OF THE RESTRICTED
PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE
MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL NOTE ONLY IF (1) SUCH
EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH
RULE 144A, AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST
DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THE
INDENTURE) TO

 

C-1

 

THE EFFECT
THAT THE REGULATION S GLOBAL NOTE IS BEING TRANSFERRED TO A PERSON (A) WHO THE
TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A, (B) PURCHASING FOR ITS OWN ACCOUNT OR THE
ACCOUNT OF A AN INSTITUTIONAL “ACCREDITED INVESTOR” IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

AFTER THE EXPIRATION OF THE RESTRICTED
PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE
MAY BE EXCHANGED FOR INTERESTS IN AN INSTITUTIONAL ACCREDITED INVESTOR GLOBAL
NOTE ONLY IF SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES TO
AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7)
UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING
THE SECURITIES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE
SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT.

 

BENEFICIAL INTEREST IN A RULE 144A GLOBAL
NOTE MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN
INTEREST IN THE REGULATION S GLOBAL NOTE, WHETHER BEFORE OR AFTER THE
EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR
FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO
THE INDENTURE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE
WITH RULE 903 OR 904 OF REGULATION S.

 

C-2

 

[FORM OF ASSIGNMENT FOR REGULATION S NOTE]

 

I or we assign
and transfer this Note to:

 

	
   

  
	
  (Insert assignee’s social security or tax
  I.D. number)

  

 

	
   

  
	
  (Print or type name, address and zip code
  of assignee)

  

 

 

and
irrevocably appoint:

 

Agent to
transfer this Note on the books of the Issuer. 
The Agent may substitute another to act for him.

 

[Check One]

 

o 
(a)   this Note is being
transferred in compliance with the exemption from registration under the
Securities Act provided by Regulation S thereunder.

 

or

 

o 
(b)   this 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 Note
and the Indenture.

 

If none of the
foregoing boxes is checked, the Trustee or Registrar shall not be obligated to
register this 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 2.01 and 2.06 of the Indenture shall have
been satisfied.

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the

  face of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
								

 

SIGNATURE GUARANTEE

 

Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the 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 Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

C-3

 

TO BE COMPLETED BY TRANSFEROR IF (A) ABOVE IS CHECKED

 

The Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and, accordingly, the Transferor hereby further certifies
that (i) the Transfer is not being made to a person in the United States and
(x) at the time the buy order was originated, the Transferee was outside the
United States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in contravention
of the requirements of Rule 903(a)(2) or Rule 904(a)(2) of Regulation S under
the Securities Act, (iii) the transaction is not part of a plan or scheme to
evade the registration requirements of the Securities Act and (iv) if the
proposed Transfer is being made prior to the expiration of the restricted
period under Regulation S, the Transfer is not being made to a U.S. Person or
for the account or benefit of a U.S. Person (other than an initial purchaser).  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the Transferred beneficial interest
or certificated Note shall be subject to the restrictions on Transfer
enumerated on the Regulation S Notes or the certificated Note and in the Indenture
and the Securities Act.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:      To be executed by an
  executive officer

  

 

C-4

 

EXHIBIT D

 

[FORM OF LEGEND FOR GLOBAL NOTE]

 

Any Global
Note authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required in the case of a Restricted Note) in
substantially the following form:

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), 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 IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

TRANSFERS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
DTC, TO NOMINEES OF DTC 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 THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

 

D-1

 

EXHIBIT E

 

PQ Corporation

1200 West Swedesford Road

Berwyn, PA  19312

 

Ladies and Gentlemen:

 

This
certificate is delivered to request a transfer of $[                   ]
principal amount of the 71⁄2% Senior Subordinated Notes due 2013 (the “Note”) of
PQ Corporation (the “Company”).

 

Upon transfer,
the Securities shall be registered in the name of the new beneficial owner as
follows:

 

	
  Name:

  	
   

  	
   

  
	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
					

 

The
undersigned represents and warrants to you that:

 

1.  We are an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act of 1933, as amended (the “Securities Act”)),
purchasing for our own account or for the account of such an institutional “accredited
investor” at least $250,000 principal amount of the Notes, and we are acquiring
the Notes not with a view to, or for offer or sale in connection with, any
distribution in violation of the Securities Act.  We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Notes, and we invest in or purchase securities
similar to the Notes in the normal course of our business.  We, and any accounts for which we are acting,
are each able to bear the economic risk of our or its investment.

 

2.  We acknowledge that (a) neither the Company,
nor the Initial Purchasers (as defined in the Offering Circular dated February
3, 2005, relating to the Notes (the “Final Circular”))
nor any person acting on behalf of the Company or the Initial Purchasers has
made any representation to us with respect to the Company or the offer or sale
of any Notes; and (b) any information we desire concerning the Company and the
Notes or any other matter relevant to our decision to purchase the Notes
(including a copy of the Final Circular) is or has been made available to us.

 

3.  We understand that the Notes have not been
registered under the Securities Act and, unless so registered, may not be sold
except as permitted in the following sentence. 
We agree on our own behalf and on behalf of any investor account for
which we are purchasing Notes to offer, sell or otherwise transfer such Notes
prior to the date that is two years after the later of the date of original
issue and the last date on which the Company or any affiliate of the Company
was the owner of such Notes (or any predecessor thereto) (the “Resale Restriction Termination

 

E-1

 

Date”)
only (i) to the Company or any of its Subsidiaries, (ii) in the United States
to a person whom we reasonably believe is a qualified institutional buyer in a
transaction meeting the requirements of Rule 144A, (iii) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act that is an institutional accredited
investor purchasing for its own account or for the account of an institutional
accredited investor, in each case in a minimum principal amount of the Notes of
$250,000, (iv) outside the United States in a transaction complying with the
provisions of Rule 904 of Regulation S under the Securities Act, (v)
pursuant to an exemption from registration under the Securities Act provided by
Rule 144 (if available) or (vi) pursuant to an effective registration statement
under the Securities Act, in each of cases (i) through (vi) subject to any
requirement of law that the disposition of our property or the property of such
investor account or accounts be at all times within our or their control and in
compliance with any applicable state securities laws.  The foregoing restrictions on resale shall
not apply subsequent to the Resale Restriction Termination Date.  If any resale or other transfer of the Notes
is proposed to be made pursuant to clause (iii) above prior to the Resale
Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to the Company and the
Trustee, which shall provide, among other things, that the transferee is an
institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act and that it is acquiring such Notes
for investment purposes and not for distribution in violation of the Securities
Act.  Each purchaser acknowledges that
the Company and the Trustee reserve the right prior to the offer, sale or other
transfer prior to the Resale Restriction Termination Date of the Notes pursuant
to clause (iii), (iv) or (v) above to require the delivery of an
opinion of counsel, certifications or other information satisfactory to the
Company and the Trustee.

 

TRANSFEREE:                                     ,

 

E-2

 

EXHIBIT F

 

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

 

Wells Fargo
Bank, National Association

213 Court Street, Suite 703

Middletown, CT 06457

Attention:  Joseph P. O’Donnell

 

Re:                               PQ Corporation (“the
Issuer”) 71⁄2% Senior

Subordinated Notes due 2013 (the “Notes”)

 

Ladies and
Gentlemen:

 

In connection
with our proposed sale of $[                ]
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the United
States Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, we represent that:

 

(a)           the offer of the
Notes was not made to a person in the United States;

 

(b)           either (i) at
the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States or (ii) the transaction was
executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the
transaction has been prearranged with a buyer in the United States;

 

(c)           no directed selling
efforts have been made in the United States in contravention of the
requirements of Rule 903(a)(2) or Rule 904(a)(2) of
Regulation S, as applicable; and

 

(d)           the transaction is
not part of a plan or scheme to evade the registration requirements of the
Securities Act.

 

In addition,
if the sale is made during a restricted period and the provisions of
Rule 903(b)(2) or Rule 904(b)(1) of Regulation S are applicable
thereto, we confirm that such sale has been made in accordance with the
applicable provisions of Rule 903(b)(3) or Rule 904(b)(3), as the
case may be.

 

The Trustee
and the Issuer are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or

 

F-1

 

legal proceedings 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 Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

F-2

 

EXHIBIT G

 

FORM OF INDENTURE SUPPLEMENT TO ADD NOTE GUARANTORS

 

This
Supplemental Indenture, dated as of [                
      ], 20     (this “Supplemental
Indenture” or “Guarantee”), among [name of future Notes Guarantor] (the “Guarantor”),
PQ Corporation (together with its successors and assigns, the “Company”),
each other then existing Guarantor under the Indenture referred to below (the “Notes
Guarantors”), and Wells Fargo Bank, National Association, as Trustee under
the Indenture referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the
Company, the Notes Guarantors and the Trustee have heretofore executed and
delivered an Indenture, dated as of February 11, 2005 (as amended,
supplemented, waived or otherwise modified, the “Indenture”), providing
for the issuance of 71⁄2% Senior Subordinated Notes due 2013 of the Company (the “Notes”);

 

WHEREAS, Section 4.16
of the Indenture provides that in certain circumstances the Issuer is required
to cause certain of its Restricted Subsidiaries to execute and deliver to the
Trustee a supplemental indenture pursuant to which such Restricted Subsidiary
shall unconditionally Guarantee, on a joint and several basis, the full and
prompt payment of the principal of, premium, if any, and interest on the Notes
and all other obligations under the Indenture on the same terms and conditions
as those set forth in the Indenture; and

 

WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee and the
Company are authorized to execute and deliver this Supplemental Indenture to
amend or supplement the Indenture, without the consent of any Holder;

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor, the
Company, the other Notes Guarantors and the Trustee mutually covenant and agree
for the equal and ratable benefit of the Holders of the Notes as follows:

 

ARTICLE I

 

Definitions

 

SECTION
1.1  Defined Terms.  As used
in this Supplemental Indenture, terms defined in the Indenture or in the
preamble or recital hereto are used herein as therein defined, except that the
term “Holders” in this Guarantee shall refer to the term “Holders”
as defined in the Indenture and the Trustee acting on behalf or for the benefit
of such Holders.  The words “herein,” “hereof”
and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any
particular section hereof.

 

G-1

 

ARTICLE II

 

Agreement to be Bound; Guarantee

 

SECTION
2.1  Agreement to be Bound. 
The Guarantor hereby becomes a party to the Indenture as a Notes
Guarantor and as such shall have all of the rights and be subject to all of the
obligations and agreements of a Notes Guarantor under the Indenture.  The Guarantor agrees to be bound by all of
the provisions of the Indenture applicable to a Notes Guarantor and to perform
all of the obligations and agreements of a Notes Guarantor under the Indenture.

 

SECTION
2.2   Guarantee.  The Guarantor agrees, on a joint and several
basis with all the existing Notes Guarantors, to fully, unconditionally and
irrevocably Guarantee to each Holder of the Notes and the Trustee the
Obligations on a senior subordinated basis as provided in Articles Ten
and Eleven of the Indenture.

 

ARTICLE III

 

Miscellaneous

 

SECTION
3.1   Notices.  All notices and other communications to the
Guarantor shall be given as provided in the Indenture to the Guarantor, at its
address set forth below, with a copy to the Company as provided in the
Indenture for notices to the Company.

 

SECTION
3.2   Parties.  Nothing expressed or mentioned herein is
intended or shall be construed to give any Person, firm or corporation, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture or the Indenture or any
provision herein or therein contained.

 

SECTION
3.3   Governing Law.  This Supplemental Indenture shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

SECTION
3.4   Severability Clause.  In case any provision in this Supplemental Indenture
shall be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions; and the invalidity of a particular provision in a
particular jurisdictions shall not invalidate such provision in any other
jurisdiction.

 

SECTION
3.5  Ratification of Indenture; Supplemental Indentures Part of
Indenture.  Except as expressly
amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and
effect.  This Supplemental Indenture
shall form a part of the Indenture for all purposes, and every Holder of Notes
heretofore or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or
warranty as to the validity or sufficiency of this Supplemental Indenture.

 

G-2

 

SECTION
3.6  Counterparts.  The
parties hereto may sign one or more copies of this Supplemental Indenture in
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute one and the same agreement.

 

SECTION
3.7  Headings.  The headings
of the Articles and the sections in this Guarantee are for convenience of
reference only, are not part of this Supplemental Indenture and shall not be
deemed to alter or affect the meaning or interpretation of any provisions
hereof.

 

G-3

 

IN WITNESS
WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first above written.

 

	
   

  	
  [GUARANTOR],

  
	
   

  	
  as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  [Address]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PQ CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

G-4

 

EXHIBIT H

 

Guarantors

 

	
  Name

  	
   

  	
  Jurisdiction of Incorporation

  
	
  Delpen Corporation

  	
   

  	
  Delaware

  
	
  PQ Systems Inc.

  	
   

  	
  Pennsylvania

  
	
  Commercial Research Associates, Inc.

  	
   

  	
  Pennsylvania

  
	
  Philadelphia Quartz Company

  	
   

  	
  Pennsylvania

  
	
  PQ Export Company

  	
   

  	
  Delaware

  
	
  PQ International, Inc.

  	
   

  	
  Pennsylvania

  
	
  PQ Asia Inc.

  	
   

  	
  Delaware

  
	
  Potters Industries Inc.

  	
   

  	
  New York

  
	
  PQ Holding, Inc.

  	
   

  	
  Delaware

  

 

H-1

 

EXHIBIT I

 

[FORM OF NOTATION OF GUARANTEE]

 

For value
received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the
Indenture dated as of February 11, 2005 (the “Indenture”) among Niagara
Acquisition, Inc., a Delaware corporation which will be merged with and into PQ
Corporation, a Pennsylvania corporation, with PQ Corporation continuing as the
surviving corporation (the “Issuer”), the Guarantors party thereto and Wells
Fargo Bank, National Association, as trustee (the “Trustee”), (a) the due
and punctual payment of the principal of, premium and Additional Interest, if
any, and interest on, the Notes, whether at maturity, by acceleration,
redemption or otherwise, the due and punctual payment of interest on overdue
principal of and interest on the Notes, if any, if lawful, and the due and
punctual performance of all other obligations of the Issuer to the Holders or
the Trustee all in accordance with the terms of the Indenture and (b) in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that the same will be promptly 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. 
The obligations of the Guarantors to the Holders of Notes and to the
Trustee pursuant to the Guarantee and the Indenture are expressly set forth in
Article 11 of the Indenture and reference is hereby made to the Indenture for
the precise terms of the Note Guarantee. 
Each Holder of a Note, by accepting the same, agrees to and shall be
bound by such provisions.

 

Capitalized
terms used but not defined herein have the meanings given to them in the
Indenture.

 

[Signature
page follows]

 

I-1

 

	
   

  	
  COMMERCIAL
  RESEARCH ASSOCIATES, INC.

  DELPEN CORPORATION

  PHILADELPHIA QUARTZ COMPANY

  POTTERS INDUSTRIES INC.

  PQ ASIA INC.

  PQ EXPORT COMPANY

  PQ HOLDING, INC.

  PQ INTERNATIONAL INC.
PQ SYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

I-2Exhibit 4.3

 

EXECUTION COPY

 

$275,000,000

 

PQ Corporation

 

71⁄2% Senior
Subordinated Notes due 2013

 

REGISTRATION RIGHTS AGREEMENT

 

February 11, 2005

 

CREDIT SUISSE FIRST BOSTON
LLC

J.P. MORGAN SECURITIES
INC.

UBS SECURITIES LLC

c/o Credit
Suisse First Boston LLC

Eleven Madison
Avenue

New York, New
York 10010-3629

 

Dear Sirs:

 

Niagara
Acquisition, Inc., a Delaware corporation (the “Company”),
proposes to issue and sell to Credit Suisse First Boston LLC (“CSFB”), J.P. Morgan Securities Inc. (“JPMorgan”) and UBS Securities LLC (collectively, the “Initial Purchasers”), upon the terms set forth in a purchase
agreement of even date herewith (the “Purchase Agreement”),
$275,000,000 aggregate principal amount of its 71⁄2% Senior Subordinated Notes
due 2013 (the “Initial Securities”) to be
unconditionally guaranteed (the “Guaranties”)
by  each of the guarantors listed in Schedule I
hereto (collectively, the “Guarantors”).  The Initial Securities will be issued
pursuant to an Indenture, dated as of February 11, 2005, (the “Indenture”) among the Company, the Guarantors and Wells
Fargo Bank, National Association (the “Trustee”).  As an inducement to the Initial Purchasers to
enter into the Purchase Agreement, the Company and the Guarantors have agreed
to enter into this Agreement.  Immediately
following the consummation of the Merger (as defined in the Purchase
Agreement), references in this Agreement to the Company will mean PQ
Corporation, a Pennsylvania corporation as the surviving company in the
Merger.  Accordingly, the Company and the
Guarantors agree 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”) and the
Market Maker (as defined below), as follows:

 

1.  Registered Exchange Offer.  Unless
not permitted by applicable law (after the Company has complied with the
ultimate paragraph of this Section 1), the Company shall, at its own cost,
prepare and, not later than 120 days (or if the 120th
day is not a business day, the first business day thereafter) (such 120th
day, or the first business day thereafter, being a “Filing Deadline”) after the date of original issue 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 7 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 7 hereof) that
would be registered under the Securities Act. 
The Company shall use its commercially reasonable efforts to (i) cause
such Exchange Offer Registration Statement to become effective under the
Securities Act within 330 days (or if the 330th day is not a business day,
the first business day thereafter) after the Issue Date of the Initial
Securities (such 330th day, or the first business day thereafter,
being an “Effectiveness Deadline”)

 

 

and (ii) keep the Exchange Offer
Registration Statement effective for not less than 30 days (or longer, if
required by applicable law) after the date notice of the Registered Exchange
Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”).

 

If the Company
commences the Registered Exchange Offer, the Company (i) will be required
to consummate the Registered Exchange Offer 30 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 and (ii) will be required to consummate the Registered
Exchange Offer not later than 40 days (or if the 40th
day is not a business day, the first business day thereafter)after the date on
which the Exchange Offer Registration Statement is declared effective (such 40th day, or the first business
day thereafter, the “Consummation Deadline”).

 

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 electing to exchange the Initial Securities for Exchange
Securities (assuming that such Holder is not an affiliate of the Company within
the meaning of 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 or dealer
registered under the Exchange Act (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 Private Exchange
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold allotment is required to deliver a
prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection with such
sale.  All references in this Agreement
to “prospectus” shall, except when context otherwise requires, include any
prospectus (or amendment or supplement thereto) filed with the Commission
pursuant to Section 4 of this Agreement.

 

The Company
shall use its 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 180 days (or such shorter period during
which such persons are required by law to deliver such prospectus) 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 thereto, available to any broker-dealer or other person with
similar prospectus delivery requirements for use in connection with any resale
of any Exchange Securities for a period of not less than 180 days after
the effective date of the Exchange Offer Registration Statement (or such
shorter period during which such persons are required by law to deliver such
prospectus).

 

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

 

2

 

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 7 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 not less than 30 days (or longer,
if required by applicable 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 Securities at any time prior to the close of
business, 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 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 issued pursuant to the
Registered Exchange Offer and in the Private Exchange 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.

 

Each Holder
participating in the Registered Exchange Offer shall be required to represent
to the Company that at the time of the consummation of the Registered Exchange
Offer (i) any Exchange Securities received by such Holder will be acquired
in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange
Securities, (iii) such Holder is not an “affiliate,”
as defined

 

3

 

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 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 will be required to
acknowledge that it will 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 required to be stated therein or
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) for any other reason the Registered
Exchange Offer is not consummated within 370 days of the Issue Date, (iii) any
Initial Purchaser shall notify the Company following consummation of the
Registered Exchange Offer that the Initial Securities (or the Private Exchange
Securities) held by it are not eligible to be exchanged for Exchange Securities
in the Registered Exchange Offer or (iv) any Holder (other than an
Exchanging Dealer) is prohibited by law or Commission policy from participating
in the Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such
Holder may not resell the Exchange Securities acquired by it in the Registered
Exchange Offer to the public without delivering a prospectus, the Company shall
take the following actions (the date on which any of the conditions described
in the foregoing clauses (i) through (iv) occur being a “Trigger Date”):

 

(a)  The
Company shall (x) at its cost, as promptly as practicable (but in no event more
than 30 days after the Trigger Date (or if the 30th
day is not a business day, the first business day thereafter) file with the
Commission and thereafter shall use its commercially reasonable efforts to, in
the case of a Shelf Registration Statement filed pursuant to clause (i) of
the foregoing paragraph, no later than 330 days after the Issue Date (or if the
330th day is
not a business day, the first business day thereafter) and (y) at its cost, as
promptly as practicable (but in no event more than 60 days after the Trigger
Date (or if the 60th
day is not a business day, the first business day thereafter) (such 30th or 60th day, or the first business
day thereafter, as the case may be, being a “Filing
Deadline”) file with the Commission and thereafter shall use its
commercially reasonable efforts to, in the case of a Shelf Registration
Statement filed pursuant to clause (ii), (iii) or (iv) of the
foregoing paragraph, no later than 90 days after the applicable Filing Deadline
(or if the 90th day
is not a business day, the first business day thereafter) (such 330th or 90th day, or the first business
day thereafter, as the case may be, being an “Effectiveness Deadline”), cause
to be declared effective under the Securities Act a registration statement (the
“Shelf Registration Statement” and, together with the Exchange Offer
Registration Statement and any Market Making Registration Statement (as defined
below), a “Registration Statement”) on an appropriate form under the Securities
Act relating to the offer and sale of the Transfer Restricted Securities by the
Holders 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

 

4

 

unless such Holder agrees in writing to be
bound by all the provisions of this Agreement applicable to such Holder.

 

(b)  The
Company shall use its 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 such longer period if extended
pursuant to Section 3(j) below) from the Issue Date or such shorter period
that will terminate when all the Securities covered by the Shelf Registration
Statement (i) have been sold pursuant thereto or (ii) can be sold
pursuant to Rule 144 under the Securities Act without any limitations
under clauses (c), (e), (f) and (h) thereof.  The Company shall be deemed not to have used
its 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 pursuant to  Section 7(b) 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, in the event that an Initial Purchaser (with respect to any
portion of an unsold allotment from the original offering) is participating in
the Registered Exchange Offer or the Shelf Registration Statement, the Company
shall use its commercially reasonable efforts to reflect in each such document,
when so filed with the Commission, such comments as such Initial Purchaser
reasonably may propose; (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 an Initial Purchaser,
include the information required by Items 507 or 508 of Regulation S-K under
the Securities Act, as applicable, in the prospectus forming a part of the
Exchange Offer Registration Statement; (iv) include within the prospectus
contained in the Exchange Offer Registration Statement a section entitled “Plan of Distribution,” reasonably
acceptable to the Initial Purchasers, which shall contain a summary statement
of the positions taken or policies made by the staff of the Commission with
respect to the potential “underwriter”
status of 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”), whether such
positions or policies have been publicly disseminated by the staff of the
Commission or such positions or policies, in the reasonable judgment of the
Initial Purchasers based upon advice of counsel (which may be in-house
counsel), represent the

 

5

 

prevailing views of the staff of the
Commission; and (v) in the case of a Shelf Registration Statement, include
the names of the Holders, who propose to sell Securities pursuant to the Shelf
Registration Statement, as selling security holders, and who have furnished to
the Company the information required by Section 3(n).

 

(b)  The
Company shall give written notice to the Initial Purchasers, the Holders of the
Securities 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;

 

(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 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 use its commercially reasonable efforts 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, 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 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, 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

 

6

 

of this Agreement, to the use of the
prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities 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.

 

(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 as may
be reasonably requested 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 and any known Participating Broker-Dealer shall have received
such amended or supplemented prospectus pursuant to this Section 3(j).

 

7

 

(k)  Not later than the effective date of the
applicable Registration Statement, the Company will provide a CUSIP number for
the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, and provide the applicable 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.

 

(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 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 of
Securities to be sold pursuant to the Shelf Registration Statement to furnish
to the Company such information regarding the Holder 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
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 during normal
business hours of the Company by the Holders of the Securities, 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 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 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 5
hereof; provided, however, that any information that is designated in writing by the Company,
in good faith, as confidential at the time of delivery of such information
shall be kept confidential by each such person, unless such disclosure is made
in connection with a court proceeding, to any governmental or regulatory
authority having jurisdiction over each such person or their respective
affiliates or required by law, or such information becomes available to the
public generally or through a third party without an accompanying obligation of
confidentiality.

 

8

 

(q)  In the case of any Shelf Registration, the
Company, if requested by any Holder of Securities covered thereby, shall cause (i) its
counsel to deliver opinions and updates thereof relating to the Securities
addressed to such Holders and the Managing Underwriters (as defined below), if
any, thereof and dated, in the case of the initial opinion, the effective date
of such Shelf Registration Statement substantially in the form of the opinion
delivered by such counsel on the Closing Date pursuant to Sections 6(c), (d) and
(e) of the Purchase Agreement with such changes as are customary in
connection with the preparation of a Shelf Registration Statement; (ii) its
officers to execute and deliver all customary documents and certificates and
updates thereof reasonably requested by any underwriters of the applicable
Securities and (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 of the applicable Securities and any underwriter
therefor a comfort letter in customary form and covering matters of the type
customarily covered in comfort letters in connection with primary underwritten
offerings, subject to receipt of appropriate documentation as contemplated, and
only if permitted, by Statement of Auditing Standards No. 72.

 

(r)  In the case of the Registered Exchange Offer,
if requested by any Initial Purchaser or any known Participating Broker-Dealer,
the Company shall use its commercially reasonable efforts to cause (i) its
counsel to deliver to such Initial Purchaser or such Participating
Broker-Dealer signed opinions in the form set forth in Sections 6(c), (d) and
(e) of the Purchase Agreement with such changes as are customary in
connection with the preparation of a Registration Statement 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(a) and
(h) 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 cause 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 commercially
reasonable 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

 

9

 

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 6 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 commercially reasonable efforts to take all other steps
necessary to effect the registration of the Securities covered by a
Registration Statement contemplated hereby.

 

4.  Market Making.

 

(a)  For
so long as any of the Securities are outstanding and JPMorgan (in such
capacity, the “Market Maker”) or
any of its affiliates (as defined in the rules and regulations of the
Commission) owns any equity securities of the Company, the Guarantors or any of
their affiliates and proposes to make a market in the Securities part of its
business in the ordinary course, the following provisions shall apply for the
sole benefit of the Market Maker:

 

(i) The
Company shall (A) on the date that the Exchange Offer Registration
Statement or, if required hereby, the Shelf Registration Statement is filed
with the Commission, file a registration statement (the “Market Making Registration Statement”)
(which may be the Exchange Offer Registration Statement or the Shelf
Registration Statement if permitted by the rules and regulations of the
Commission) and use its commercially reasonable efforts to cause such Market
Making Registration Statement to be declared effective by the Commission on or
prior to the consummation of the Registered Exchange Offer or the effective
date of the Shelf Registration Statement, as applicable; (B) periodically
amend such Market Making Registration Statement so that the information
contained therein complies with the requirements of Section 10(a) under
the Securities Act; (C) amend the Market Making Registration Statement or
amend or supplement the related prospectus when necessary to reflect any
material changes in the information provided therein; and (D) amend the Market
Making Registration Statement when required to do so in order to comply with Section 10(a)(3) of
the Securities Act; provided, however, that (1) prior to filing the Market
Making Registration Statement, any amendment thereto or any amendment or
supplement to the related prospectus, the Company will furnish to the Market
Maker copies of all such documents proposed to be filed, which documents will
be subject to the review of the Market Maker and its counsel, (2) the
Company  will not file the Market Making
Registration Statement, any amendment thereto or any amendment or supplement to
the related prospectus to which the Market Maker and its counsel shall
reasonably object unless the Company is advised by counsel that such Market
Making Registration Statement, amendment or supplement is required to be filed
under applicable securities laws and (3) the Company will provide the Market
Maker and its counsel with copies of the Market Making Registration Statement,
the related prospectus and each amendment and supplement thereto filed.

 

(ii) The
Company shall notify the Market Maker and, if requested by the Market Maker,
confirm such advice in writing, (A) when any Market Making Registration
Statement, any post effective amendment to the Market Making Registration
Statement or any amendment or supplement to the related prospectus has been
filed, and, with respect to any Market Making Registration Statement or any
post effective amendment, when the same has become effective; (B) of any
request by the Commission for any post effective

 

10

 

amendment to the Market Making Registration
Statement, any supplement or amendment to the related prospectus or for
additional information; (C) the issuance by the Commission of any stop
order suspending the effectiveness of the Market Making Registration Statement
or the initiation of any proceedings for that purpose; (D) of the receipt
by the Company of any notification with respect to the suspension of the qualification
of the Securities for sale in any jurisdiction or the initiation or threatening
of any proceedings for such purpose; and (E) of the happening of any event
that makes any statement made in the Market Making Registration Statement, the
related prospectus or any amendment or supplement thereto untrue or that
requires the making of any changes in the Market Making Registration Statement,
such prospectus or any amendment or supplement thereto, in order to make the
statements therein not misleading.

 

(iii) If
any event contemplated by Section 4(a)(ii)(B) through (E) occurs
during the period for which the Company is required to maintain an effective Market
Making Registration Statement, the Company shall promptly prepare and file with
the Commission a post-effective amendment to the Market Making Registration
Statement or an amendment or supplement to the related prospectus or file any
other required document so that the prospectus will 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.

 

(iv) In
the event of the issuance of any stop order suspending the effectiveness of the
Market Making Registration Statement or of any order suspending the
qualification of the Securities for sale in any jurisdiction, the Company shall
promptly use its commercially reasonable efforts to obtain its withdrawal.

 

(v) The
Company shall furnish to the Market Maker, without charge, (i) at least
one conformed copy of the Market Making Registration Statement and any post
effective amendment thereto; and (ii) as many copies of the related
prospectus and any amendment or supplement thereto as the Market Maker may
reasonably request.

 

(vi) The
Company shall consent to the use of the prospectus contained in the Market
Making Registration Statement or any amendment or supplement thereto by the Market
Maker in connection with its market making activities.

 

(vii) Notwithstanding
the foregoing provisions of this Section 4, the Company may for valid
business reasons, including without limitation, a potential material
acquisition, divestiture of assets or other material corporate transaction,
notify the Market Maker in writing that the Market Making Registration
Statement is no longer effective or the prospectus included therein is no
longer usable for offers and sales of Securities; provided that the use of the Market
Making Registration Statement or the prospectus contained therein shall not be
suspended for more than 60 days (whether or not consecutive) in the aggregate
in any 12-month period.  The Market Maker
agrees that upon receipt of any notice from the Company pursuant to this Section 4(a)(vii),
it will discontinue use of the prospectus contained in the Market Making
Registration Statement until receipt of copies of the supplemented or amended
prospectus relating thereto or until advised in writing by the Company that the
use of the prospectus contained in the Market Making Registration Statement may
be resumed.

 

11

 

(b)  In
connection with the Market Making Registration Statement, the Company shall (i) make
reasonably available for inspection by a representative of, and counsel acting
for, the Market Maker all relevant financial and other records, pertinent
corporate documents and properties of the Company and its subsidiaries and (ii) use
its commercially reasonable efforts to have its officers, directors, employees,
accountants and counsel supply all relevant information reasonably requested by
such representative or counsel or the Market Maker; provided, however, that any information that is designated
in writing by the Company, in good faith, as confidential at the time of
delivery of such information shall be kept confidential by the Market Maker or
any representative or counsel, unless such disclosure is made in connection
with a court proceeding, to any governmental or regulatory authority having
jurisdiction over the Market Maker or its affiliates or required by law, or
such information becomes available to the public generally or through a third
party without an accompanying obligation of confidentiality.

 

(c)  Prior
to the effective date of the Market Making Registration Statement, the Company
shall use its commercially reasonable efforts to register or qualify the
Securities for offer and sale under the securities or blue sky laws of such
jurisdictions as the Market Maker 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 the Market Making Registration
Statement; provided that the Company shall not be required to (i) qualify
as a foreign corporation or other entity or as a dealer in securities in any
jurisdiction where it would not otherwise be required to so qualify, (ii) file
any general consent to subject itself to service of process in any such
jurisdictions or (iii) subject itself to taxation in any such jurisdiction
where it is not then so subject.

 

(d)  The
Company represents and agrees that the Market Making Registration Statement,
any post effective amendments thereto, any amendments or supplements to the
related prospectus and any documents filed by them under the Exchange Act will,
when they become effective or are filed with the Commission, as the case may
be, conform in all respects to the requirements of the Securities Act and the
Exchange Act and the rules and regulations of the Commission thereunder
and will not, as of the effective date of such Market Making Registration
Statement or post effective amendments and as of the filing date of amendments
or supplements to such prospectus or filings under the Exchange Act, contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that
no representation or warranty is made as to information contained in or omitted
from the Market Making Registration Statement or the related prospectus in
reliance upon and in conformity with written information furnished to the
Company by the Market Maker specifically for inclusion therein, which
information the parties hereto agree will be limited to the statements
concerning the market making activities of the Market Maker to be set forth on
the cover page in the “Plan of Distribution” section and in the analogous
sections of the Canadian wrapper, if any, of the prospectus (the “Market Maker’s Information”).

 

(e)  At
the time of effectiveness of the Market Making Registration Statement and
concurrently with each time the Market Making Registration Statement or the
related prospectus shall be amended or such prospectus shall be supplemented,
the Company shall (if requested by the Market Maker) furnish the Market Maker
and its counsel with a certificate of its President or any Vice President and a
principal financial or accounting officer to the effect that:

 

(i) the Market
Making Registration Statement has been declared effective; (ii) in the
case of an amendment to the Market Making Registration Statement, such
amendment has become effective under the Securities Act as of the date and time
specified in such certificate, if applicable; and in the case of an amendment
or supplement to the prospectus, such amendment or supplement to the prospectus
was filed with the Commission pursuant to the subparagraph of Rule 424(b) under
the Securities Act specified in such certificate on the date specified therein;
(iii) to the knowledge of such officers, no stop order

 

12

 

suspending the effectiveness of the Market
Making Registration Statement has been issued and no proceeding for that
purpose is pending or threatened by the Commission; and (iv) such officers
have carefully examined the Market Making Registration Statement and the
prospectus (and, in the case of an amendment or supplement, such amendment or
supplement) and as of the date of such Market Making Registration Statement, prospectus,
amendment or supplement, as applicable, the Market Making Registration
Statement and the prospectus, as amended or supplemented, if applicable, did
not include any untrue statement of a material fact and did not omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading.

 

(f)  At
the time of effectiveness of the Market Making Registration Statement and
concurrently with each time the Market Making Registration Statement or the
related prospectus shall be amended or such prospectus shall be supplemented,
the Company shall (if requested by the Market Maker) furnish the Market Maker
and its counsel with the written opinion of counsel for the Company reasonably satisfactory
to the Market Maker to the effect that:

 

(i) the Market
Making Registration Statement has been declared effective; (ii) in the
case of an amendment to the Market Making Registration Statement, such
amendment has become effective under the Securities Act as of the date and time
specified in such opinion, if applicable; and in the case of an amendment or
supplement to the prospectus, such amendment or supplement to the prospectus
was filed with the Commission pursuant to the subparagraph of Rule 424(b) under
the Securities Act specified in such opinion on the date specified therein; (iii) to
the knowledge of such counsel, no stop order suspending the effectiveness of
the Market Making Registration Statement has been issued and no proceeding for
that purpose is pending or threatened by the Commission; and (iv) such
counsel has reviewed the Market Making Registration Statement and the
prospectus (and, in the case of an amendment or supplement, such amendment or
supplement) and participated with officers of the Company and independent
public accountants for the Company in the preparation of such Market Making
Registration Statement and prospectus (and, in the case of an amendment or
supplement, such amendment or supplement) and has no reason to believe that
(except for the financial statements and other financial and statistical data
contained therein as to which such counsel need express no belief) as of the
date of such Market Making Registration Statement, prospectus, amendment or
supplement, as applicable, the Market Making Registration Statement and the
prospectus, as amended or supplemented, if applicable, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading.

 

(g)  At
the time of effectiveness of the Market Making Registration Statement and
concurrently with each time the Market Making Registration Statement or the
related prospectus shall be amended or such prospectus shall be supplemented to
include audited annual financial information, the Company shall (if requested
by the Market Maker) furnish the Market Maker and its counsel with a letter
of  PricewaterhouseCoopers LLP (or other
independent public accountants for the Company of nationally recognized
standing) in form reasonably satisfactory to the Market Maker, addressed to the
Market Maker and dated the date of delivery of such letter, (i) confirming
that they are independent public accountants within the meaning of the
Securities Act and are in compliance with the applicable requirements relating
to the qualification of accountants under Rule 2-01 of Regulation S-X of
the Commission and (ii) in all other respects, substantially in the form
of the letter delivered to the Initial Purchasers pursuant to Sections 6(a) and
6(h) of the Purchase Agreement, with, in the case of an amendment or
supplement that includes audited financial information, such changes as may be
necessary to reflect the amended or supplemented financial information.

 

13

 

(h)  The
Company, on the one hand, and the Market Maker, on the other hand, hereby agree
to indemnify each other, and, if applicable, contribute to the other, in
accordance with Section 6 of this Agreement.

 

(i)  The
Company will comply with the provisions of this Section 4 at its own
expense and will reimburse the Market Maker for its expenses associated with
this Section 4 (including reasonable fees of counsel for the Market Maker).

 

(j)  The agreements contained in this Section 4
and the representations, warranties and agreements contained in this Agreement
shall survive all offers and sales of the Securities 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.

 

(k)  For purposes of this Section 4, (i) any
reference to the terms “amend”, “amendment” or “supplement” with respect to the
Market Making Registration Statement or the prospectus contained therein shall
be deemed to refer to and include the filing under the Exchange Act of any
document deemed to be incorporated therein by reference and (ii) any
reference to the term “Securities” shall be deemed to refer to and include any
securities issued in exchange for or with respect to such Securities or
Exchange Securities.

 

5.  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 (including the reasonable fees and expenses, if any, of Cravath
Swaine & Moore LLP, counsel for the Initial Purchasers, incurred in
connection with the Registered Exchange Offer), whether or not the Exchange
Offer Registration Statement 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 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.

 

6.  Indemnification.  (a)  The Company agrees to indemnify and
hold harmless (x) each Holder of the Securities (including each Market Maker),
any Participating Broker-Dealer and each person, if any, who controls such
Holder (including each Market Maker) or such Participating Broker-Dealer within
the meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer 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 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 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 or Market Maker
(the “Market Maker Information”),
respectively, and furnished to the Company by or on behalf of such Holder or Market
Maker, respectively, 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 Holder or Participating Broker-

 

14

 

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 Holder or Participating Broker-Dealer under the Securities
Act in connection with such purchase and any such loss, claim, damage or
liability of such Holder or Participating Broker-Dealer 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
Holder or Participating Broker-Dealer; and (y) the Market-Maker from and
against any and all losses, claims, damages and liabilities (including, without
limitation, legal fees and other expenses reasonably incurred in connection
with any suit, action or proceeding or any claim asserted, as such fees and
expenses are incurred), that arise out of, or are based upon, any breach of the
Company of its representations, warranties and agreements contained in Section 4
of this Agreement; 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 Holders of the Securities if requested by such
Holders.

 

(b)  Each
Holder (including the Market Maker) 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 Registration Statement 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 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 or Market Maker Information, respectively, and furnished to the Company
by or on behalf of such Holder or Market Maker, as the case may be, 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 6 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 6, 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 6 for any legal
or other expenses, other than reasonable costs of investigation, subsequently
incurred by such indemnified party in connection with the defense thereof.  In any such proceeding, any indemnified party
shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to

 

15

 

the contrary; (ii) the indemnifying
party has failed within a reasonable time to retain counsel reasonably
satisfactory to the indemnified party; (iii) the indemnified party shall
have reasonably concluded that there may be legal defenses available to it that
are different from or in addition to those available to the indemnifying party,
or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them.  It is understood and agreed that the
indemnifying party shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
indemnified parties, and that all such fees and expenses shall be reimbursed as
they are incurred.  Any such separate
firm for any Initial Purchaser, its affiliates, directors and officers and any
control persons of such Initial Purchaser shall be designated in writing by
CSFB and any such separate firm for the Company, the Guarantors and any control
persons of the Company and the Guarantors shall be designated in writing by the
Company.  Any such separate firm for the
Market–Maker shall be designated in writing by the Market–Maker.  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 6 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 or the Market Maker Information, 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 this subsection (d).  Notwithstanding any other provision of this Section 6(d),
the Holders of the Securities (including the Market Maker) 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 (or the
Market Maker) have otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, nor shall such Market
Maker be required to contribute any amount of its commission from the market
making transactions at issue.  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.

 

16

 

(e)  The
agreements contained in this Section 6 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.

 

7.  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) any
Registration Statement (other than a Market Making Registration Statement) required
by this Agreement is not filed with the Commission on or prior to the
applicable Filing Deadline;

 

(ii) any
Registration Statement (other than a Market Making Registration Statement) required
by this Agreement is not declared effective by the Commission on or prior to
the applicable Effectiveness Deadline;

 

(iii) the
Registered Exchange Offer has not been consummated on or prior to the
Consummation Deadline; or

 

(iv) any
Registration Statement (other than a Market Making Registration Statement) required
by this Agreement has been declared effective (A) such Registration
Statement thereafter ceases to be effective; or (B) such Registration
Statement or the related prospectus ceases to be usable 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.

 

Additional
Interest shall accrue on the Initial Securities over and above the interest set
forth in the title of the Securities from and including the date on which any
such Registration Default shall occur to but excluding the earlier of (x) the
date on which all such Registration Defaults have been cured and (y) the
date the Company’s obligation to keep the Registration Statement effective
ceases under Section 2(b) hereof, at a rate of 0.25% per annum (the
“Additional Interest Rate”) for the first 90-day period
immediately following the occurrence of such Registration Default.  The Additional Interest Rate shall increase
by an additional 0.25% per annum with respect to each subsequent 90-day period
until all Registration Defaults have been cured, up to a maximum Additional
Interest Rate of 1.00% per annum.

 

(b)  A
Registration Default referred to in Section 7(a)(iv) 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 45 days, Additional Interest shall be
payable in accordance with the above paragraph from the day such Registration
Default occurs until such Registration Default is cured.

 

17

 

(c)  Any
amounts of Additional Interest due pursuant to Section 7(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 an Initial
Security for an Exchange Security, the date on which such Exchange Security 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 Securities 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.

 

8.  Rules 144 and 144A.  The
Company shall use its commercially reasonable 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 or the Market
Maker, 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 or the Market Maker may
reasonably request, all to the extent required from time to time to enable such
Holder or the Market Maker 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, or the Market
Maker, the Company shall deliver to such Holder, or the Market Maker a written
statement as to whether it has complied with such requirements. Notwithstanding
the foregoing, nothing in this Section 8 shall be deemed to require the
Company to register any of its securities pursuant to the Exchange Act.

 

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)  Remedies.  The Company
acknowledges and agrees that any failure by the Company to comply with its
obligations under Section 1 and 2 hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Sections 1 and 2
hereof.  The Company further agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

 

18

 

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

 

(c)  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.  The provisions of Section 4
may not be amended, modified or supplemented without prior written consent of the
Market Maker.

 

(d)  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:

 

Cravath,
Swaine & Moore LLP

825 Eighth
Avenue

Worldwide
Plaza

New York, NY
10019-7475

Fax No.:  (212) 474-3700

Attention:  Kris F. Heinzelman

 

(3)                                  if
to the Company, at its address as follows:

 

PQ Corporation

1200 W.
Swedesford Road

Berwyn Pennsylvania
19312

Fax No.:  (610) 651-4504

Attention:  William J. Levy

 

with a copy
to:

 

Latham &
Watkins LLP

885 Third
Avenue

New York,
NY  10022-4834

Fax No.:  (212) 751-4864

Attention:  Gregory Ezring

 

(4)                                  if
to JPMorgan as Market Maker:

 

19

 

J.P. Morgan
Securities Inc.

270 Park
Avenue

New York,
NY  10017

Fax No.:    (212) 270-1063

Attention:  Pierre Maman

 

with a copy
to:

 

Cravath,
Swaine & Moore LLP

825 Eighth
Avenue

Worldwide
Plaza

New York, NY
10019-7475

Fax No.:  (212) 474-3700

Attention:  Kris F. Heinzelman

 

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.

 

(b)  Successors and Assigns.  This
Agreement shall be binding upon the Company and its successors and assigns.

 

(c)  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.

 

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

 

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

 

(f)  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.

 

(g)  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.

 

(h)  Submission to Jurisdiction; Waiver of Immunities.  Each of the parties hereto hereby submits to
the non-exclusive jurisdiction of the Federal and state courts in the Borough
of Manhattan in The City of New York in any suit or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby.  To the extent that any such party may acquire
any immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it
hereby irrevocably waives such immunity in respect of this Agreement, to the
fullest extent permitted by law.

 

20

 

If the
foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers, the Company and the Guarantors in accordance with its
terms.

 

Very truly yours,

 

	
   

  	
   

  	
  NIAGARA ACQUISITION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
  /s/
  Richard A. Aube

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Richard A. Aube

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President and Assistant Secretary

  

 

21

 

The foregoing
Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

 

CREDIT SUISSE FIRST BOSTON
LLC

 

	
  By:

  	
  /s/ Robert
  A. Kobre

  	
   

  	
   

  
	
   

  	
   Name: 

  	
  Robert A. Kobre

  	
   

  
	
   

  	
   Title: 

  	
  Managing Director

  	
   

  
					

 

J.P. MORGAN SECURITIES
INC.

 

	
  By:

  	
  /s/ David J.
  Lynch

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  David J. Lynch

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  	
   

  
					

 

UBS SECURITIES LLC

 

	
  By:

  	
  /s/ Michael
  Johnson

  	
   

  	
   

  
	
   

  	
   Name: 

  	
  Michael Johnson

  	
   

  
	
   

  	
   Title: 

  	
  Director

  	
   

  
					

 

22

 

SCHEDULE I

 

Guarantors

 

	
  Name

  	
   

  	
  Jurisdiction of Incorporation

  
	
   

  	
   

  	
   

  
	
  Delpen Corporation

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  PQ Systems Inc.

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  
	
  Commercial Research Associates, Inc.

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  
	
  Philadelphia Quartz Company

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  
	
  PQ Export Company

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  PQ International, Inc.

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  
	
  PQ Asia Inc.

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  Potters Industries Inc.

  	
   

  	
  New York

  
	
   

  	
   

  	
   

  
	
  PQ Holding, Inc.

  	
   

  	
  Delaware

  

 

23

 

EXHIBIT A

 

Counterpart to the Registration Rights
Agreement

 

[TO BE SIGNED BY PQ CORPORATION]

 

The undersigned hereby
agrees to assume and be bound by all of the obligations of Niagara Acquisition, Inc.,
a Delaware corporation, under the Registration Rights Agreement dated February 11,
2005, among Niagara Acquisition, Inc., the Guarantors named therein and
the Initial Purchasers (as defined therein). For the avoidance of doubt, such
obligations shall include, but not be limited to, the obligations enumerated in
Section 6(a) of the Registration Rights Agreement.

 

	
  Dated

  	
   

  	
   

  	
  PQ CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
   

  	
    Title:

  

 

Counterpart to the
Registration Rights Agreement

 

[TO BE SIGNED BY EACH GUARANTOR]

 

The undersigned hereby
agrees to be bound by all of the obligations of the Guarantors under the Registration
Rights Agreement dated February 11, 2005, among Niagara Acquisition, Inc.,
the Guarantors named therein and the Initial Purchasers (as defined
therein).  For the avoidance of doubt,
such obligations shall include, but not be limited to, the obligations
enumerated in Section 6(a) of the Registration Rights Agreement.

 

	
  Dated

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
   

  	
    Title:

  
							

 

24

 

ANNEX A

 

Each
broker-dealer that receives 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 Exchange
Securities received in exchange for 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 180 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.”

 

25

 

ANNEX B

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for 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.”

 

26

 

ANNEX C

 

PLAN OF
DISTRIBUTION

 

Each
broker-dealer that receives 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 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 180 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 [ • ], 2005, 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 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 at 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 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 180 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(e) of Regulation S-K will
appear on the back cover page of the Exchange Offer prospectus.

 

27

 

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 Exchange
Securities.  If the undersigned is a
broker-dealer that will receive 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, 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.

 

28

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