Document:

Exhibit 4.4

 

EXECUTION COPY

 

OWENS-BROCKWAY
GLASS CONTAINER INC.

 

73⁄4% Senior
Secured Notes due 2011

 

REGISTRATION
RIGHTS AGREEMENT

 

	
   

  	
  New York, New York

  
	
   

  	
  May 6, 2003

  
	
   

  	
   

  
	
  Deutsche Bank Securities Inc.

  	
   

  
	
  Banc of America Securities LLC

  	
   

  
	
  Citigroup Global Markets Inc.

  	
   

  
	
  Banc One Capital Markets, Inc.

  	
   

  
	
  BNP Paribas Securities Corp.

  	
   

  
	
  Credit Lyonnais Securities (USA) Inc.

  	
   

  
	
  Fleet Securities, Inc.

  	
   

  
	
  Goldman, Sachs & Co.

  	
   

  
	
  Scotia Capital (USA) Inc.

  	
   

  
	
  c/o Deutsche Bank Securities Inc.

  	
   

  
	
  31 West 52nd Street

  	
   

  
	
  New York, New York 10019

  	
   

  

 

Dear Sirs:

 

Owens-Brockway Glass Container
Inc., a corporation organized under the laws of Delaware (the “Company”),
proposes to issue and sell to certain purchasers (the “Initial Purchasers”),
upon the terms set forth in a purchase agreement dated April 29, 2003 (the “Purchase
Agreement”), its 7 3/4% Senior
Secured Notes due 2011 (the “Notes”) guaranteed by the Guarantors
(the “Guarantees” and, together with the Notes, the “Securities”)
relating to the initial placement of the Securities (the “Initial Placement”).  To induce the Initial Purchasers to enter
into the Purchase Agreement and to satisfy a condition of your obligations
thereunder, each of the Company and the Guarantors agree, as follows:

 

1.             Definitions.  Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following capitalized defined terms shall have the following meanings:

 

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

 

“Additional Securities” shall have the
meaning set forth in the Indenture.

 

“Advice” shall have the meaning set
forth in Section 6 hereof.

 

“Affiliate” of any specified Person
shall mean any other Person that, directly or indirectly, is in control of, is
controlled by, or is under common control with, such specified 

 

 

Person. 
For purposes of this definition, “control” of a Person shall mean the
power, direct or indirect, to direct or cause the direction of the management
and policies of such Person whether by contract or otherwise, and the terms
“controlling” and “controlled” shall have meanings correlative to the
foregoing.

 

“Broker-Dealer” shall mean any broker
or dealer registered as such under the Exchange Act.

 

“Broker-Dealer Transfer Restricted
Securities” shall mean New Securities that are acquired by a Broker-Dealer
in the Exchange Offer in exchange for Securities that such Broker-Dealer
acquired for its own account as a result of market-making activities or other
trading activities (other than Securities acquired directly from the Company or
any of its Affiliates).

 

“Business Day” shall mean any day
other than a Saturday, a Sunday or a legal holiday or a day on which banking
institutions or trust companies are authorized or obligated by law to close in
New York City or in the city of the corporate trust office of the Trustee.

 

“Closing Date” shall mean the date of
this Agreement.

 

“Commission” shall mean the Securities
and Exchange Commission.

 

“Consummate” an Exchange Offer shall
be deemed “Consummated” for purposes of this Agreement upon the occurrence of
(i) the filing and effectiveness under the Act of the Exchange Offer
Registration Statement relating to the New Securities to be issued in the
Exchange Offer, (ii) the maintenance of such Exchange Offer Registration
Statement continuously effective and the keeping of the Exchange Offer open for
a period not less than the minimum period required pursuant to Section 3(b)
hereof, and (iii) the delivery by the Company to the Registrar under the
Indenture of New Securities in the same aggregate principal amount as the
aggregate principal amount of Securities that were tendered by Holders thereof
pursuant to the Exchange Offer.

 

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

 

“Exchange
Offer” shall mean the registration by the Company and the
Guarantors under the Act of the New Securities pursuant to a Registration Statement pursuant
to which the Company offers the Holders of all outstanding Transfer Restricted
Securities the opportunity to exchange all such outstanding Transfer Restricted
Securities held by such Holders for New Securities in an aggregate principal amount equal to the
aggregate principal amount of the Transfer Restricted Securities tendered in
such exchange offer by such Holders.

 

“Exchange
Offer Registration Statement” shall mean a registration statement of the Company and
the Guarantors on an appropriate form
under the Act with respect to the Exchange Offer, all amendments and
supplements to such registration statement, including post-effective amendments
thereto, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

2

 

“Final
Memorandum” shall have the meaning set forth in the Purchase
Agreement.

 

“Guarantors” shall mean the guarantors
listed on the signature pages hereof (each individually, a “Guarantor”
and collectively, the “Guarantors”).

 

“Holder”
shall have
the meaning set forth in Section 2(b) hereof.

 

“indemnified
party”shall have the meaning set forth in Section 8(c) hereof.

 

“indemnifying
party” shall have the meaning set forth in Section 8(c) hereof.

 

“Indenture”
shall mean
the Indenture,
dated as of January 24, 2002,
among the Company, the Guarantors and U.S. Bank,  N.A., as trustee (the “Trustee”), as supplemented by the Fourth
Supplemental Indenture, dated as of May 6, 2003, among the Company, the
Guarantors and the Trustee, pursuant to which the Securities and the New
Securities are to be issued as such Indenture and Fourth Supplemental Indenture
may be amended or
supplemented from time to time in
accordance with the terms thereof.

 

“Initial
Placement” shall have the meaning set forth in the preamble
hereto.

 

“Initial Purchaser” shall have the
meaning set forth in the preamble hereto.

 

“Interest Payment Date” shall have the
meaning set forth in the Indenture and the Notes.

 

“Liquidated Damages” shall have the
meaning set forth in Section 5 hereof.

 

“NASD” shall mean the National
Association of Securities Dealers, Inc.

 

“New
Securities” shall mean debt securities of the Company,
including guarantees thereon,
identical in all material respects to the Securities and any
Additional Securities (except that the cash
interest, interest rate step-up provisions and transfer restrictions shall be modified or eliminated, as appropriate) to
be issued under the Indenture in exchange for Transfer Restricted Securities.

 

“Notes” shall have the meaning set
forth in the preamble hereto.

 

“Person”
shall mean an individual,
partnership, corporation, trust or unincorporated organization, or a government
or agency or political subdivision thereof.

 

“Prospectus”
shall mean
the prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective Registration Statement in reliance
upon Rule 430A under the Act), as amended or supplemented by any prospectus
supplement, with respect to an Exchange Offer or a Shelf
Registration, and all amendments
and supplements thereto and all material incorporated by
reference therein.

 

3

 

“Purchase Agreement” shall have the
meaning set forth in the preamble hereto.

 

“Registration Default” shall have the
meaning set forth in Section 5 hereof.

 

“Registration
Statement” shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or
the New Securities pursuant to the provisions of this Agreement, any
amendments and supplements to
such registration statement, including post-effective amendments (in each case
including the Prospectus contained therein), all exhibits thereto and all material
incorporated by reference therein.

 

“Securities”
shall have the meaning set forth in the preamble
hereto.

 

“Shelf Filing
Deadline” shall have the meaning set forth in Section 4(a) hereof.

 

“Shelf
Registration” shall mean a registration effected pursuant to
Section 4
hereof.

 

“Shelf
Registration Statement” shall have the meaning
set forth in Section 4(a) hereof.

 

“Transfer
Restricted Securities” shall mean each Security, until the earliest to occur of
(a) the date on which such Security has been exchanged by a Person other than a
broker-dealer for a New Security in the Exchange Offer, (b) following the
exchange by a broker-dealer in the Exchange Offer of a Security for a New
Security, the date on which
such New 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, (c) the date on which such Security has
been effectively registered under the Act and disposed of in accordance with
the Shelf Registration Statement, or (d) the date on which such Security is
distributed to the public pursuant to Rule 144 under the Act.

 

“Trust Indenture Act” shall mean the
Trust Indenture Act of 1939, as amended.

 

“Trustee”
shall mean
the trustee with respect to the Securities under the Indenture.

 

“underwriter”
shall mean
any underwriter of Securities in connection with an offering thereof under a
Shelf Registration Statement.

 

“Underwritten Registration” or “Underwritten
Offering” shall mean a registration in which securities of the Company are
sold to an underwriter for reoffering to the public.

 

2.             Securities Subject to this
Agreement.

 

(a)           Transfer
Restricted Securities.  The
securities entitled to the benefits of this Agreement are the Transfer
Restricted Securities.

 

(b)           Holders
of Transfer Restricted Securities. 
A Person is deemed to be a holder of Transfer Restricted Securities
(each, a “Holder”) whenever such Person owns Transfer Restricted
Securities.

 

4

 

3.             Registered Exchange Offer.

 

(a)           Unless the Exchange Offer shall not
be permissible under applicable law or Commission policy (after the procedures
set forth in Section 6(a) below have been complied with), the Company and the
Guarantors shall (i) use their best efforts to cause to be filed with the
Commission on or prior to September 3, 2003, the Exchange Offer Registration
Statement under the Act relating to the New Securities and the Exchange Offer,
(ii) use their commercially reasonable efforts to cause such Exchange Offer
Registration Statement to become effective on or prior to November 22, 2003,
(iii) in connection with the foregoing, file (A) all pre-effective amendments
to such Exchange Offer Registration Statement as may be necessary in order to
cause such Exchange Offer Registration Statement to become effective, (B) if
applicable, a post-effective amendment to such Exchange Offer Registration
Statement pursuant to Rule 430A under the Act and (C) cause all necessary
filings in connection with the registration and qualification of the New
Securities to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence the
Exchange Offer.  The Exchange Offer
shall be on the appropriate form permitting registration of the New Securities
to be offered in exchange for the Transfer Restricted Securities and to permit
resales of Broker-Dealer Transfer Restricted Securities by Broker-Dealers as
contemplated by Section 3(c) below.

 

(b)           The Company and the Guarantors shall
cause the Exchange Offer Registration Statement to be effective continuously
and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to
Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 Business Days.  The Company and the Guarantors shall cause
the Exchange Offer to comply with all applicable federal and state securities
laws.  No securities other than the New
Securities and the securities which will be registered and exchanged for the
Company’s 8 1/4% Senior Notes due 2013 and the related guarantees thereto shall
be included in the Exchange Offer Registration Statement.  The Company and the Guarantors shall use
their commercially reasonable efforts to cause the Exchange Offer to be
Consummated within 40 days after the Exchange Offer Registration Statement has
become effective.

 

(c)           The Company shall indicate in a “Plan
of Distribution” section contained in the Prospectus forming a part of the
Exchange Offer Registration Statement that any Broker-Dealer who holds
Securities that are Transfer Restricted Securities and that were acquired for
its own account as a result of market-making activities or other trading
activities (other than Transfer Restricted Securities acquired directly from
the Company or one of its Affiliates), may exchange such Securities pursuant to
the Exchange Offer; however, such Broker-Dealer may be deemed to be an
“underwriter” within the meaning of the Act and must, therefore, deliver a
prospectus meeting the requirements of the Act in connection with any resales
of the New Securities received by such Broker-Dealer in the Exchange Offer,
which prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration
Statement.  Such “Plan of Distribution”
section shall also contain all other information with respect to such resales
by Broker-Dealers that the Commission may require in order to permit such
resales pursuant thereto, but such “Plan of Distribution” shall not name any
such Broker-Dealer or disclose the amount of Securities held by any such
Broker-

 

5

 

Dealer except to the
extent required by the Commission as a result of a change in policy after the
date of this Agreement.

 

The Company and the Guarantors shall use
their commercially reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) below to the extent necessary to ensure that it is
available for resales of Broker-Dealer Transfer Restricted Securities acquired
by Broker-Dealers, and to ensure that it conforms with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period ending on the earlier of (i) 90 days
from the date on which the Exchange Offer Registration Statement is declared
effective and (ii) the date on which a Broker-Dealer is no longer required to
deliver a prospectus in connection with market-making or other trading
activities.

 

The Company shall provide sufficient copies
of the latest version of such Prospectus to such Broker-Dealers promptly upon
request at any time during such 90-day (or shorter as provided in the foregoing
sentence) period in order to facilitate such resales.

 

4.             Shelf Registration.

 

(a)           Shelf Registration.  If (i) the Company and the Guarantors are
not permitted to Consummate the Exchange Offer because the Exchange Offer is
not permitted by applicable law or Commission policy (after the procedures set
forth in Section 6(a) below have been complied with), or (ii) any Holder of
Transfer Restricted Securities shall notify the Company on or prior to the 20th
day following the Consummation of the Exchange Offer that (A) such Holder is
prohibited by applicable law or Commission policy from participating in the
Exchange Offer, (B) such Holder may not resell the New Securities acquired by
it in the Exchange Offer to the public without delivering a prospectus and that
the Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder, or (C) such Holder is
a Broker-Dealer and owns Securities acquired directly from the Company or an
Affiliate of the Company, then, the Company and the Guarantors shall:

 

(x)  use their best efforts to
cause to be filed a shelf registration statement pursuant to Rule 415 under the
Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the “Shelf Registration Statement”) on or prior to 60 days
after such filing obligation arises pursuant to this paragraph 4(a), (such date
being the “Shelf Filing Deadline”), which Shelf Registration Statement
shall provide for resales of all Transfer Restricted Securities the Holders of
which shall have provided the information required pursuant to Section 4(b)
hereof; and

 

(y)  use their commercially
reasonable efforts to cause such Shelf Registration Statement to be declared
effective by the Commission on or prior to 120 days after such filing
obligation arises pursuant to paragraph 4(a) above.

 

The Company and the Guarantors shall use
their commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective, supplemented and amended as required by 

 

6

 

the provisions of Sections 6(b) and (c)
hereof to the extent necessary to ensure that it is available for resales of
Notes by the Holders of Transfer Restricted Securities entitled to the benefit
of this Section 4(a), and to ensure that it conforms with the requirements of
this Agreement, the Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of at least two years
following the effective date of such Shelf Registration Statement (or shorter
period that will terminate when all the Securities covered by such Shelf Registration
Statement have been sold pursuant to such Shelf Registration Statement).

 

(b)           Provision by Holders of Certain
Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted Securities
may include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor,
such information as the Company may reasonably request for use in connection
with any Shelf Registration Statement or Prospectus or preliminary Prospectus
included therein.  Each Holder as to
which any Shelf Registration Statement is being effected agrees to furnish
promptly to the Company all information required to be disclosed in order to
make the information previously furnished to the Company by such Holder not
materially misleading.

 

5.             Liquidated Damages.

 

If (i) any Registration Statement required by
this Agreement is not filed with the Commission on or prior to the date
specified for such filing in this Agreement, (ii) any such Registration
Statement has not been declared effective by the Commission on or prior to the
date specified for such effectiveness in this Agreement, (iii) the Exchange Offer
has not been Consummated within 40 days after the Exchange Offer Registration
Statement is declared effective or (iv) any Registration Statement required by
this Agreement is filed and declared effective but shall thereafter cease to be
effective or fail to be usable for its intended purpose without being succeeded
immediately by a post-effective amendment to such Registration Statement that
cures such failure and that is itself immediately declared effective (each such
event referred to in clauses (i) through (iv), a “Registration Default”),
the Company and the Guarantors hereby agree to pay liquidated damages to each
Holder of outstanding Securities (“Liquidated Damages”) during the
period of one or more Registration Defaults, with respect to the first 90-day
period immediately following the occurrence of the first Registration Default
in an amount equal to 0.25% per annum (which amount will be increased by an
additional 0.25% per annum for each subsequent 90-day period that any
Liquidated Damages continue to accrue; provided that the amounts at which
Liquidated Damages accrue may in no event exceed 1.0% per annum) in respect of
the Transfer Restricted Securities held by such Holder until the applicable
Registration Statement is filed, the Exchange Offer Registration Statement is
declared effective and the Exchange Offer is Consummated or the Shelf
Registration Statement is declared effective or again becomes effective, as the
case may be.  All accrued Liquidated Damages
will be paid by the Company and the Guarantors on each Interest Payment Date to
Holders of global Securities by wire transfer of immediately available funds or
by federal funds check and to holders of certificated Securities by wire
transfer to the accounts specified by them or by mailing checks to their
registered addresses if no such accounts have been specified.  Following the cure of all Registration
Defaults, the accrual of Liquidated Damages will cease; provided, however,
that, if after the cessation of the accrual of Liquidated Damages, a different 

 

7

 

Registration Default occurs, Liquidated
Damages shall again accrue pursuant to the foregoing provisions.

 

All obligations of the Company and the
Guarantors set forth in the preceding paragraph that are outstanding with
respect to any Transfer Restricted Security at the time such security ceases to
be a Transfer Restricted Security shall survive until such time as all such
obligations with respect to such Security shall have been satisfied in full.

 

6.             Registration Procedures.

 

(a)           Exchange Offer Registration
Statement.  In connection with the
Exchange Offer, the Company and the Guarantors shall comply with the applicable
provisions of Section 6(c) below, shall use their commercially reasonable
efforts to effect such exchange to permit the sale of Broker-Dealer Transfer
Restricted Securities being sold in accordance with the intended method or
methods of distribution thereof (which shall be in a manner consistent with the
terms of this Agreement), and shall comply with all of the following
provisions:

 

(i)            If
in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, the Company and the
Guarantors hereby agree to seek a no-action letter or other favorable decision
from the Commission allowing the Company and the Guarantors to Consummate an
Exchange Offer for such Securities.  The
Company and the Guarantors each hereby agree to pursue the issuance of such a
decision to the Commission staff level but shall not be required to take
commercially unreasonable action to effect a change of Commission policy.  The Company and the Guarantors each hereby
agree, however, to (A) participate in telephonic conferences with the staff of
Commission, (B) deliver to the Commission staff an analysis prepared by counsel
to the Company setting forth the legal bases, if any, upon which such counsel
has concluded that such an Exchange Offer should be permitted and (C) use
commercially reasonable efforts to diligently pursue a favorable resolution by
the Commission staff of such submission.

 

(ii)           As
a condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Securities shall furnish,
upon the request of the Company, prior to the Consummation thereof, a written
representation to the Company (which may be contained in the letter of
transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that (A) it is not an Affiliate of the Company, (B) it is not engaged
in, and does not intend to engage in, and has no arrangement or understanding
with any person to participate in, a distribution of the New Securities to be
issued in the Exchange Offer and (C) it is acquiring the New Securities in its
ordinary course of business.  In
addition, all such Holders of Transfer Restricted Securities shall otherwise
cooperate in the Company’s and the Guarantor’s preparations for the Exchange
Offer.  Each Holder hereby acknowledges
and agrees that any Broker-Dealer and any such Holder using the Exchange Offer
to participate in a distribution of the securities to be acquired in the
Exchange Offer (1) could not under Commission policy as in effect on the date
of this Agreement rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital
Holdings Corporation (available May 13, 1988), as 

 

8

 

interpreted in the Commission’s letter to Shearman
& Sterling dated July 2, 1993, and similar no-action letters (which may
include any no-action letter obtained pursuant to clause (i) above), and (2)
must comply with the registration and prospectus delivery requirements of the
Act in connection with a secondary resale transaction and that such a secondary
resale transaction should be covered by an effective registration statement
containing the selling security holder information required by Item 507 or 508,
as applicable, of Regulation S-K under the Act if the resales are of New
Securities obtained by such Holder in exchange for Securities acquired by such
Holder directly from the Company or one of its Affiliates.

 

(iii)          Prior
to effectiveness of the Exchange Offer Registration Statement, the Company and
the Guarantors shall provide a supplemental letter to the Commission (A)
stating that the Company and the Guarantors are registering the Exchange Offer
in reliance on the position of the Commission enunciated in Exxon Capital
Holdings Corporation (available May 13, 1988), Morgan Stanley and Co.,
Inc. (available June 5, 1991) and, if applicable, any no-action letter
obtained pursuant to clause (i) above, (B) including a representation that
neither the Company nor any Guarantor has entered into any arrangement or
understanding with any Person to distribute the New Securities to be received
in the Exchange Offer and that, to the best of the Company’s information and
belief, each Holder participating in the Exchange Offer is acquiring the New
Securities in its ordinary course of business and has no arrangement or
understanding with any Person to participate in the distribution of the New
Securities received in the Exchange Offer and (C) any other undertaking or
representation required by the Commission as set forth in any no-action letter
obtained pursuant to clause (i) above.

 

(b)           Shelf Registration Statement.  In connection with the Shelf Registration
Statement, the Company and the Guarantors shall comply with all the provisions
of Section 6(c) below and shall use their commercially reasonable efforts to
effect such registration to permit the sale of the Transfer Restricted
Securities being sold in accordance with the intended method or methods of
distribution thereof, and pursuant thereto the Company and the Guarantors will
as expeditiously as possible prepare and file with the Commission a
Registration Statement relating to the registration on any appropriate form
under the Act, which form shall be available for the sale of the Transfer Restricted
Securities in accordance with the intended method or methods of distribution
thereof.

 

(c)           General Provisions.  In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Broker-Dealer Transfer Restricted Securities by Broker-Dealers), the Company
and the Guarantors shall:

 

(i)            use
their commercially reasonable efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements
(including, if required by the Act or any regulation thereunder, financial
statements of the Guarantors) for the period specified in Section 3 or 4 of
this Agreement, as applicable; upon the occurrence of any event that would
cause any such Registration Statement or the 

 

9

 

Prospectus contained therein (A) to contain a material
misstatement or omission or (B) not to be effective and usable for resale of
Transfer Restricted Securities during the period required by this Agreement,
the Company and the Guarantors shall file promptly an appropriate amendment to
such Registration Statement, in the case of clause (A), correcting any such
misstatement or omission, and, in the case of either clause (A) or (B), use
their commercially reasonable efforts to cause such amendment to be declared
effective and such Registration Statement and the related Prospectus to become
usable for their intended purpose(s) as soon as practicable thereafter;

 

(ii)           use
commercially reasonable efforts to prepare and file with the Commission such
amendments and post-effective amendments to the Registration Statement as may
be necessary to keep the Registration Statement effective for the applicable
period set forth in Section 3 or 4 hereof, as applicable, or such shorter
period as will terminate when all Transfer Restricted Securities covered by
such Registration Statement have been sold; cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Act, and to comply fully with the
applicable provisions of Rules 424 and 430A under the Act in a timely manner;
and comply with the provisions of the Act with respect to the disposition of
all securities covered by such Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

 

(iii)          advise
the underwriter(s), if any, and selling Holders promptly and, if requested by
such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with
respect to any Registration Statement or any post-effective amendment thereto,
when the same has become effective, (B) of any request by the Commission for
amendments to the Registration Statement or amendments or supplements to the
Prospectus or for additional information relating thereto, (C) of the issuance
by the Commission of any stop order suspending the effectiveness of the
Registration Statement under the Act or of the suspension by any state
securities commission of the qualification of the Transfer Restricted
Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, (D) of the existence of any fact
or the happening of any event that makes any statement of a material fact made
in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Registration
Statement or the Prospectus in order to make the statements therein not
misleading.  If at any time the
Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, or any state securities commission or other regulatory
authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or
Blue Sky laws, the Company and the Guarantors shall use their commercially
reasonable efforts to obtain the withdrawal or lifting of such order at the
earliest possible time;

 

(iv)          in
the case of a Shelf Registration Statement, furnish without charge to each of
the Initial Purchasers, each selling Holder named in any Registration 

 

10

 

Statement, and each of the underwriter(s), if any,
before filing with the Commission, copies of any Registration Statement or any
Prospectus included therein or any amendments or supplements to any such
Registration Statement or Prospectus (including all documents incorporated by
reference after the initial filing of such Registration Statement), which
documents will be subject to the review of such Holders and underwriter(s) in connection
with such sale, if any, for a period of at least three Business Days, and
neither the Company nor the Guarantors will file any such Registration
Statement or Prospectus or any amendment or supplement to any such Registration
Statement or Prospectus (including all such documents incorporated by
reference) to which an Initial Purchaser or the underwriter(s), if any, shall
reasonably object in writing within five Business Days after the receipt
thereof (such objection to be deemed timely made upon confirmation of telecopy
transmission within such period).  The
objection of an Initial Purchaser or underwriter, if any, shall be deemed to be
reasonable if such Registration Statement, amendment, Prospectus or supplement,
as applicable, as proposed to be filed, contains a material misstatement or
omission;

 

(v)           in
connection with any underwritten offering pursuant to a Shelf Registration
Statement, promptly prior to the filing of any document that is to be
incorporated by reference into a Shelf Registration Statement or Prospectus,
provide copies of such document to the Initial Purchasers, each selling Holder
named in any Shelf Registration Statement, and to the underwriter(s), if any,
make the Company’s representatives and representatives of the Guarantors available
for discussion of such document and other customary due diligence matters, and
include such information in such document prior to the filing thereof as such
selling Holders or underwriter(s), if any, reasonably may request;

 

(vi)          in
connection with any underwritten offering pursuant to a Shelf Registration
Statement, make available at reasonable times during normal business hours for
inspection by the Initial Purchasers, any managing underwriter participating in
any disposition pursuant to such Registration Statement and any attorney or
accountant retained by such Initial Purchasers or any of the underwriter(s),
all financial and other records, pertinent corporate documents and properties
of the Company and the Guarantors and cause the Company’s and the Guarantors’
officers, directors and employees to supply all information reasonably
requested by any such Holder, underwriter, attorney or accountant in connection
with such Registration Statement subsequent to the filing thereof and prior to
its effectiveness;

 

(vii)         if
requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in any Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have
included therein, including, without limitation, information relating to the
“Plan of Distribution” of the Transfer Restricted Securities, information with
respect to the principal amount of Transfer Restricted Securities being sold to
such underwriter(s), the purchase price being paid therefor and any other terms
of the offering of the Transfer Restricted Securities to be sold in such
offering; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company or a
Guarantor is 

 

11

 

notified of the matters to be incorporated in such
Prospectus supplement or post-effective amendment;

 

(viii)        furnish
to each selling Holder and each of the underwriter(s), if any, without charge,
at least one copy of the Registration Statement, as first filed with the
Commission, and of each amendment thereto, including financial statements and
schedules, all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);

 

(ix)           deliver
to each selling Holder and each of the underwriter(s), if any, without charge,
as many copies of the Prospectus (including each preliminary Prospectus) and
any amendment or supplement thereto as such Persons reasonably may request; the
Company and the Guarantors hereby consent to the use of the Prospectus and any
amendment or supplement thereto by each of the selling Holders and each of the
underwriter(s), if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or
supplement thereto;

 

(x)            in
connection with any underwritten offering of Transfer Restricted Securities
pursuant to a Shelf Registration Statement, enter into, and cause the
Guarantors to enter into, such agreements (including an underwriting
agreement), and make, and cause the Guarantors to make, such representations
and warranties, and take all such other actions in connection therewith
reasonably necessary to expedite or facilitate the disposition of the Transfer
Restricted Securities, all to such extent as may be reasonably requested by any
Holder of Transfer Restricted Securities or underwriter in connection with any
sale or resale pursuant to underwritten offerings of Transfer Restricted
Securities pursuant to a Shelf Registration Statement contemplated by this
Agreement and shall:

 

(A)          furnish
to each Initial Purchaser, each selling Holder and each underwriter, if any, in
such substance and scope as they may reasonably request and as are customarily
made by issuers to underwriters in primary underwritten offerings, upon the
date of the Consummation of the Exchange Offer and, if applicable, the
effectiveness of the Shelf Registration Statement:

 

(1)           a
certificate, dated the date of effectiveness of the Shelf Registration
Statement, signed by (y) the Chairman of the Board, the Chief Executive
Officer, President, any Executive Vice President or any Vice President and (z)
a principal financial or accounting officer of each of the Company and
Owens-Illinois Group, Inc., confirming, as of the date thereof, the matters set
forth in paragraphs (i) and (ii) of Section 6(c) of the Purchase Agreement or
such other matters as such parties may reasonably request;

 

(2)           opinions,
dated the date of effectiveness of the Shelf Registration Statement of counsel
for the Company and the Guarantors, covering the matters set forth in paragraph
(a) of Section 6 of the Purchase 

 

12

 

Agreement and Exhibits B and C referred to therein and
such other matters as such parties may reasonably request; and

 

(3)           a
customary comfort letter, dated as of the date of effectiveness of the Shelf
Registration Statement from the Company’s independent accountants, in the
customary form and covering matters of the type customarily covered in comfort
letters by underwriters in connection with primary underwritten offerings, and
affirming the matters set forth in the comfort letter delivered pursuant to
Section 6(e) of the Purchase Agreement;

 

(B)           set
forth in full or incorporate by reference in the underwriting agreement, if
any, indemnification provisions and procedures of Section 8 hereof with respect
to all parties to be indemnified pursuant to said Section (or such other
provisions or procedures acceptable to selling Holders representing a majority
in aggregate principal amount of Transfer Restricted Securities covered by such
Shelf Registration Statement and the underwriters, if any); and

 

(C)           deliver
such other documents and certificates as may be reasonably requested by such
parties to evidence compliance with clause (A) above and with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the Company or the Guarantors pursuant to this clause (x), if any.

 

If at any time the representations and
warranties of the Company and the Guarantors contemplated in clause (A)(1)
above cease to be true and correct in all material respects, the Company or the
Guarantors shall so advise the Initial Purchasers and the underwriter(s), if
any, and each selling Holder promptly and, if requested by such Persons, shall
confirm such advice in writing;

 

(xi)           prior
to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in
connection with the registration and qualification of the Transfer Restricted
Securities under the securities or Blue Sky laws of such jurisdictions as the
selling Holders or underwriter(s) may request and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions
of the Transfer Restricted Securities covered by the Shelf Registration
Statement; provided, however, that neither the Company nor the
Guarantors shall be required to register or qualify as a foreign corporation
where it is not then so qualified or to take any action that would subject it
to the service of process in suits or to taxation, other than as to matters and
transactions relating to any Registration Statement, in any jurisdiction where
it is not then so subject;

 

(xii)          shall
issue, upon the request of any Holder of Securities covered by the Shelf
Registration Statement, New Securities, having an aggregate principal amount
equal to the aggregate principal amount of Securities surrendered to the
Company by such Holder in exchange therefor or being sold by such Holder; such
New Securities to 

 

13

 

be registered in the name of such Holder or in the
name of the purchaser(s) of such New Securities, as the case may be; in return,
the Securities held by such Holder shall be surrendered to the Company for
cancellation;

 

(xiii)         cooperate
with the selling Holders and the underwriter(s), if any, to facilitate the
timely preparation and delivery of certificates representing Transfer
Restricted Securities to be sold and not bearing any restrictive legends; and
enable such Transfer Restricted Securities to be in such denominations and
registered in such names as the Holders or the underwriter(s), if any, may
request at least two Business Days prior to any sale of Transfer Restricted
Securities made by such underwriter(s);

 

(xiv)        use
their commercially reasonable efforts to cause the Transfer Restricted
Securities covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the seller or sellers thereof or the underwriter(s), if any, to
consummate the disposition of such Transfer Restricted Securities, subject to
the proviso contained in clause (xi) above;

 

(xv)         if
any fact or event contemplated by clause 6(c)(iii)(D) above shall exist or have
occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading;

 

(xvi)        provide
a CUSIP number for all Transfer Restricted Securities not later than the
effective date of the Registration Statement and provide the Trustee under the
Indenture with printed certificates for the Transfer Restricted Securities
which are in a form eligible for deposit with the Depositary Trust Company;

 

(xvii)       cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including
any “qualified independent underwriter”) that is required to be retained in
accordance with the rules and regulations of the NASD, and use their
commercially reasonable efforts to cause such Registration Statement to become
effective and approved by such governmental agencies or authorities as may be
necessary to enable the Holders selling Transfer Restricted Securities to
consummate the disposition of such Transfer Restricted Securities;

 

(xviii)      otherwise
use their commercially reasonable efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to the
Company’s security holders, as soon as practicable, a consolidated earnings
statement meeting the requirements of Rule 158 under the Act (which need not be
audited) for the twelve-month period (A) commencing at the end of any fiscal
quarter in which Transfer Restricted Securities are sold to underwriters in a
firm or best efforts Underwritten Offering or (B) if not sold to underwriters
in such an offering, beginning with the first 

 

14

 

month of the Company’s first fiscal quarter commencing
after the effective date of the Registration Statement;

 

(xix)         cause
the Indenture to be qualified under the Trust Indenture Act not later than the
effective date of the first Registration Statement required by this Agreement,
and, in connection therewith, cooperate, and cause the Guarantors to cooperate
with, with the Trustee and the Holders of Notes to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance
with the terms of the Trust Indenture Act; and to execute, and use their
commercially reasonable efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so
qualified in a timely manner; and

 

(xx)          provide
promptly to each Holder upon request each document filed with the Commission
pursuant to the requirements of Section 13 or Section 15 of the Exchange Act or
provide each such requesting Holder the location where such Holder can obtain
such information without charge.

 

Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of any notice from the Company
or any Guarantor of the existence of any fact of the kind described in Section
6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration
Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(c)(xv) hereof, or until it is
advised in writing (the “Advice”) by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus.  If so directed by the Company, each Holder
will deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of such notice.  In the event
the Company or any Guarantor shall give any such notice, the time period
regarding the effectiveness of such Registration Statement set forth in Section
3 or 4 hereof, as applicable, shall be extended by the number of days during
the period from and including the date of the giving of such notice pursuant to
Section 6(c)(iii)(D) hereof to and including the date when each selling Holder
covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xv) hereof or
shall have received the Advice; however, no such extension shall be
taken into account in determining whether Liquidated Damages are due pursuant
to Section 5 hereof or the amount of such Liquidated Damages, it being agreed
that the Company’s and the Guarantor’s option to suspend use of a Registration
Statement pursuant to this paragraph shall be treated as a Registration Default
for purposes of Section 5.

 

7.             Registration
Expenses.

 

(a)           All
expenses incident to the Company’s or the Guarantors’ performance of or
compliance with this Agreement will be borne by the Company or the Guarantors,
regardless of whether a Registration Statement becomes effective, including
without limitation: (i) all registration and filing fees and expenses
(including filings made by any Initial Purchaser or 

 

15

 

Holder with the NASD (and, if applicable, the fees and
expenses of any “qualified independent underwriter” and its counsel that may be
required by the rules and regulations of the NASD)); (ii) all fees and expenses
of compliance with federal securities and state Blue Sky or securities laws;
(iii) all expenses of printing (including printing certificates for the New
Securities to be issued in the Exchange Offer and printing of Prospectuses),
messenger and delivery services and telephone; (iv) all fees and disbursements
of counsel for the Company, the Guarantors and, subject to Section 7(b) below,
the Holders of Transfer Restricted Securities; (v) all application and filing
fees in connection with listing the New Securities on a national securities exchange or
automated quotation system pursuant to the requirements thereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company and the Guarantors (including the expenses of any special audit and
comfort letters required by or incident to such performance).

 

The Company
and the Guarantors will, in any event, bear their internal expenses (including,
without limitation, all salaries and expenses of their officers and employees
performing legal or accounting duties), the expenses of any annual audit and
the fees and expenses of any Person, including special experts, retained by the
Company or the Guarantors.

 

(b)           In
connection with any Registration Statement required by this Agreement
(including, without limitation, the Exchange Offer Registration Statement and
the Shelf Registration Statement), the Company and the Guarantors will
reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities being tendered in the Exchange Offer and/or resold pursuant to the
“Plan of Distribution” contained in the Exchange Offer Registration Statement
or registered pursuant to the Shelf Registration Statement, as applicable, for
the reasonable fees and disbursements of not more than one counsel, who shall
be Simpson Thacher & Bartlett or such other counsel as may be chosen by the
Holders of a majority in principal amount of the Transfer Restricted Securities
for whose benefit such Registration Statement is being prepared.

 

8.             Indemnification.

 

(a)           Indemnification of the Holders.  The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Holder, its directors,
officers and employees, and each person, if any, who controls any Holder within
the meaning of the Act and the Exchange Act against any loss, claim, damage, liability
or expense, as incurred, to which such Holder or such controlling person may
become subject, under the Act, the Exchange Act or other federal or state
statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of the Company or Owens-Illinois Group, Inc.), insofar as such loss,
claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement or Prospectus, or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided,
however, that the foregoing indemnity agreement shall not apply to any
loss, claim, damage, liability or expense to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished 

 

16

 

to the Company by the
Holders expressly for use in any Registration Statement or Prospectus; provided,
further, that the foregoing indemnity agreement shall not inure to the
benefit of any Holder, its directors, officers and employees, and each person,
if any, who controls such Holder within the meaning of the Act and the Exchange
Act, who, in contravention of a requirement of applicable law, failed to
deliver, or otherwise convey the information contained in, any Prospectus (as
then amended or supplemented) to the person asserting any losses, claims, damages,
liabilities or expenses, caused by any untrue statement or alleged untrue
statement of a material fact contained in any preliminary Prospectus, or caused
by any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading, if such material misstatement or omission or alleged material
misstatement or omission was cured in the Prospectus (as then amended or
supplemented) and such Prospectus was required by law to be delivered at or
prior to the written confirmation of sale to such person and the Prospectus and
any amendment or supplement thereto was provided by the Company to the Holder
in the requisite quantity and on a timely basis to permit proper delivery on or
prior to the closing of such sale by such Holder.  The indemnity agreement set forth in this Section 8 shall be in
addition to any liabilities that the Company or any of the Guarantors may
otherwise have.

 

(b)           Indemnification of the Company,
the Guarantors and their Directors and Officers.  Each Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company and the Guarantors and each of their respective
directors, and each person, if any, who controls the Company or the Guarantors,
as the case may be, within the meaning of the Act or the Exchange Act, against
any loss, claim, damage, liability or expense, as incurred, to which the
Company or such Guarantor or any such director, or controlling person may
become subject, under the Act, the Exchange Act, or other federal or state
statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of such Holder), insofar as such loss, claim, damage, liability or
expense (or actions in respect thereof as contemplated below) arises out of or
is based upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or Prospectus, or the omission or
alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged
omission was made in any Registration Statement or Prospectus, in reliance upon
and in conformity with written information furnished to the Company by the
Holders expressly for use therein; and to reimburse the Company and the
Guarantors, or any such director or controlling person for any legal and other
expenses reasonably incurred by the Company and the Guarantors, or any such
director or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability,
expense or action.  The indemnity
agreement set forth in this Section 8 shall be in addition to any liabilities
that each Holder may otherwise have.  In
no event shall the liability of any selling Holder hereunder be greater in
amount than the dollar amount of proceeds received by such Holder upon the sale
of the Securities giving rise to such indemnification obligation.

 

(c)           Notifications and Other
Indemnification Procedures. 
Promptly after receipt by any person in respect of which indemnity may
be sought pursuant to Section 8(a) or 8(b) (the “indemnified party”) of
notice of the commencement of any action, such indemnified 

 

17

 

party shall, if a claim
in respect thereof is to be made against any person against whom indemnity may
be sought pursuant to Section 8(a) or 8(b) (the “indemnifying party”),
notify the indemnifying party in writing of the commencement thereof, but the
omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party for contribution or
otherwise than under the indemnity agreement contained in this Section 8 or to
the extent it is not prejudiced as a proximate result of such failure.  In case any such action is brought against
any indemnified party and such indemnified party seeks or intends to seek
indemnity from an indemnifying party, the indemnifying party shall be entitled
to participate in and, to the extent that it shall elect, jointly with all
other indemnifying parties similarly notified, by written notice delivered to
the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded,
based on the advice of legal counsel, that a conflict may arise between the
positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, the indemnified party or parties
shall have the right to select separate counsel to assume such legal defenses
and to otherwise participate in the defense of such action on behalf of such
indemnified party or parties.  Upon
receipt of notice from the indemnifying party to such indemnified party of such
indemnifying party’s election so to assume the defense of such action and
approval by the indemnified party of counsel, the indemnifying party shall not
be liable to such indemnified party under this Section 8 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof unless the indemnified party shall have employed separate
counsel in accordance with the proviso to the next preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the
expenses of more than one separate counsel (together with local counsel),
approved by the indemnifying party, representing the indemnified parties who
are parties to such action) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the
expense of the indemnifying party.

 

(d)           Settlements.  The indemnifying party under this Section 8
shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by this Section 8, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such
settlement.  No indemnifying party
shall, without the prior written consent of the indemnified party, effect any
settlement, compromise or consent to the entry of judgment in any pending or
threatened action, suit or proceeding in respect of which any indemnified party
is or could have 

 

18

 

been a party and
indemnity was or could have been sought hereunder by such indemnified party,
unless such settlement, compromise or consent includes an unconditional release
of such indemnified party from all liability on claims that are the subject
matter of such action, suit or proceeding.

 

(e)           Contribution.  If the indemnification provided for in this
Section 8 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party under Section 8(a) or Section 8(b) hereof
(other than by reason of exceptions provided in those Sections) in respect of
any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or
payable by such indemnified party, as incurred, as a result of any losses, claims,
damages, liabilities or expenses referred to therein (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, from the
Initial Placement (which, in the case of the Company and the Guarantors shall
be deemed to be equal to the total gross proceeds from the Initial Placement as
set forth on the cover page to the Final Memorandum), the amount of Liquidated
Damages which did not become payable as a result of the filing of the
Registration Statement resulting in such losses, claims, damages, liabilities,
judgments actions or expenses, and such Registration Statement, or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
the Guarantors, on the one hand, and the Holders, on the other hand, in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
benefits received by the Company and the Guarantors, on the one hand, and the
Holders, on the other, with respect to such offering shall be deemed to be in
the same proportion as the total net proceeds from Initial Placement (before
deducting expenses) received by the Company and the Guarantors, on the one
hand, and the total net proceeds received by such Holder upon its resale of
Notes less the amount paid by such Holder for such Notes, on the other hand,
bear to the total sum of such amounts. 
The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information
supplied by the Company and the Guarantors or such Holder, the intent of the
parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
For the purposes of the preceding two sentences, the net proceeds deemed
to be received by the Company shall be deemed to be also for the benefit of the
Guarantors and the information supplied by the Company shall also be deemed to
have been supplied by the Guarantors.

 

The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
Section 8(a), any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.  The provisions set forth in this Section 8
with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 8(e); provided, however,
that no additional notice shall be required with respect to any action for
which notice has been given under this Section 8 for purposes of
indemnification.

 

19

 

The Company, the Guarantors and the Holders
agree that it would not be just and equitable if contribution pursuant to this
Section 8(e) were determined by pro rata allocation (even if the Holders were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this
Section 8(e).  Notwithstanding the
provisions of this Section 8(e), no Holder shall be required to contribute any
amount in excess of the amount by which the total net proceeds received by such
Holder upon its resale of Notes exceeds the sum of the amount paid by such
Holder for such Notes (or, if such Notes have not been sold by such Holder, the
total discount received by such Holder with respect to such Notes) and the
amount of any damages which such Holder has otherwise paid or become liable to
pay by reason of any untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11 of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
Holders’ obligations to contribute pursuant to this Section 8(e) are several,
and not joint, in proportion to the respective principal amount of Notes held
by each of the Holders hereunder.  For
purposes of this Section 8(e), each director, officer and employee of an Holder
and each person, if any, who controls an Holder within the meaning of the Act
and the Exchange Act shall have the same rights to contribution as such Holder,
and each director of the Company and the Guarantors, and each person, if any,
who controls the Company with the meaning of the Act and the Exchange Act shall
have the same rights to contribution as the Company and the Guarantors.

 

(f)            The remedies provided for in this
Section 8 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.

 

9.             Rule 144A.

 

The Company and the Guarantors each hereby
agree with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, to make available to any Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities from such Holder
or beneficial owner, the information required by Rule 144A(d)(4) under the Act
in order to permit resales of such Transfer Restricted Securities pursuant to
Rule 144A.

 

10.           Participation In Underwritten
Registrations.

 

No Holder may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder’s
Transfer Restricted Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting arrangements.

 

11.           Selection
Of Underwriters.

 

The Holders of Transfer Restricted Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Transfer Restricted Securities in an Underwritten 

 

20

 

Offering. 
In any such Underwritten Offering, the investment banker or investment
bankers and manager or managers that will administer the offering shall be
selected by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities included in such offering; provided, that
such investment bankers and managers must be reasonably satisfactory to the
Company.

 

12.           Miscellaneous.

 

(a)           Remedies.  The Company and the Guarantors each hereby
agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Agreement and
hereby agree to waive the defense in any action for specific performance that a
remedy at law would be adequate.

 

(b)           No Inconsistent Agreements.  The Company shall not, and shall cause the
Guarantors not to, on or after the date of this Agreement enter into any
agreement with respect to the Company’s securities that would prevent the
Company or any Guarantor from satisfying its obligations hereunder or that
would otherwise conflict with the provisions hereof.  Other than the Registration Rights Agreement dated as of January
24, 2002 with respect to the Company’s 8 7/2% Senior Secured Notes due 2009,
the Registration Rights Agreement dated as of November 13, 2002 with respect to
the Company’s outstanding 8 3/4% Senior Secured Notes due 2012, the
Registration Rights Agreement dated December 18, 2002 with respect to the
Company’s outstanding 8 3/4% Senior Notes due 2012 and the Registration Rights
Agreement dated the date hereof with respect to the Company’s 8 1/4% Senior
Notes due 2013 issued concurrently with the Notes, neither the Company nor any
of the Guarantors has entered into any agreement granting any registration
rights with respect to the Company’s securities to any Person. The rights
granted to the Holders 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)           Adjustments Affecting the
Securities.  Neither the Company nor
the Guarantors shall take any action, or permit any change to occur, with
respect to the Securities that would materially and adversely affect the
ability of the Holders to Consummate any Exchange Offer.

 

(d)           Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities. 
Notwithstanding the foregoing, a waiver or consent to departure from the
provisions hereof that relates exclusively to the rights of Holders whose
securities are being tendered pursuant to the Exchange Offer and that does not
affect directly or indirectly the rights of other Holders whose securities are
not being tendered pursuant to such Exchange Offer may be given by the Holders
of a majority of the outstanding principal amount of Transfer Restricted
Securities being tendered or registered; provided  that, with
respect to any matter that directly or indirectly affects the rights of any
Initial Purchaser hereunder, the Company shall obtain the written consent of
each such Initial Purchaser with respect to which such amendment,
qualification, supplement, waiver, consent or departure is to be effective.

 

21

 

(e)           Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail (registered or certified, return receipt requested), telex,
telecopier, or air courier guaranteeing overnight delivery:

 

(i)            if
to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

 

(ii)           if
to the Company:

 

Owens-Brockway
Glass Container Inc. 

One SeaGate

Toledo, OH 43666

Telecopier No.: 419-247-1218

Attention:  Treasurer

 

With a copy to:

 

Latham &
Watkins

505 Montgomery Street, Suite 1900

San Francisco, CA 94111

Telecopier No.: 415-395-8095

Attention:  Tracy K. Edmonson, Esq.

 

All such notices and communications shall be
deemed to have been duly given:  at the
time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next Business
Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

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

 

(f)            Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided, however,
that this Agreement shall not inure to the benefit of or be binding upon a
successor or assign of a Holder unless and to the extent such successor or
assign acquired Transfer Restricted Securities from such Holder.

 

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

 

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

 

22

 

(i)            Severability.  In the event that 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.

 

(j)            Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect
of the subject matter contained herein. 
There are no restrictions, promises, warranties or undertakings, other
than those set forth or referred to herein with respect to the registration
rights granted by the Company and the Guarantors with respect to the Transfer
Restricted Securities.  This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.

 

(k)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(l)            Securities
Held by the Company, etc.  Whenever
the consent or approval of Holders of a specified percentage of principal
amount of Securities or New Securities is required hereunder, Securities or New
Securities, as applicable, held by the Company or its Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

23

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
building agreement among the Company, each of the Guarantors and the several Initial
Purchasers.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OWENS-BROCKWAY GLASS
  CONTAINER INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ James W. Baehren

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James W. Baehren

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf of each entity named on the attached Exhibit
  A, in the capacity set forth for such entity on such Exhibit A

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ James W. Baehren

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James W. Baehren

  
	
   

  	
   

  	
   

  
	
  The foregoing Agreement
  is hereby confirmed and accepted
  as of the date first above written.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEUTSCHE BANK
  SECURITIES INC.

  	
   

  	
   

  
	
  BANC OF AMERICA
  SECURITIES LLC

  	
   

  	
   

  
	
  CITIGROUP GLOBAL
  MARKETS INC.

  	
   

  	
   

  
	
  BANC ONE CAPITAL
  MARKETS, INC.

  	
   

  	
   

  
	
  BNP PARIBAS SECURITIES CORP.

  	
   

  	
   

  
	
  CREDIT LYONNAIS SECURITIES (USA) INC.

  	
   

  	
   

  
	
  FLEET SECURITIES, INC.

  	
   

  	
   

  
	
  GOLDMAN, SACHS &
  CO.

  	
   

  	
   

  
	
  SCOTIA CAPITAL (USA)
  INC.

  	
   

  	
   

  
								

 

	
  By:

  	
    DEUTSCHE
  BANK SECURITIES INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Thomas V. Cole

  	
   

  	
   

  
	
   

  	
    Name: 
  Thomas V. Cole

  	
   

  
	
   

  	
    Title:  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ James J. Paris

  	
   

  	
   

  
	
   

  	
    Name: 
  James J. Paris

  	
   

  
	
   

  	
    Title:  Vice President

  	
   

  

 

24

 

Exhibit
A

 

	
  Name of Entity

  	
   

  	
  Title of
  Officer Executing

  on Behalf of Such Entity

  
	
  ACI America Holdings Inc.

  	
   

  	
  Vice President and Secretary

  
	
  Brockway Realty
  Corporation

  	
   

  	
  Vice President
  and Secretary

  
	
  Brockway
  Research, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Continental PET
  Technologies, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  NHW Auburn, LLC

  	
   

  	
  Vice President
  and Secretary of its sole member

  
	
  OB Cal South
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI AID STS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Auburn Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Australia
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Brazil
  Closure Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI California
  Containers Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Castalia STS
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Consol STS
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Ecuador STS
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Europe &
  Asia Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI General
  Finance Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI General FTS
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  O-I Health Care
  Holding Corp.

  	
   

  	
  Vice President
  and Secretary

  
	
  O-I Holding
  Company, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Hungary Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI International
  Holdings Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Levis Park
  STS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Medical Inc.

  	
   

  	
  Vice President
  and Secretary

  

 

 

	
  Name of Entity

  	
   

  	
  Title of
  Officer Executing

  on Behalf of Such Entity

  
	
  OI Peru STS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Plastic
  Products FTS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Poland Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Puerto Rico
  STS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Regioplast
  STS Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OI Venezuela
  Plastic Products Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  OIB Produvisa
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Overseas Finance
  Company

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Brockway
  Glass Container Trading Company

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Brockway
  Packaging, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Brockway
  Plastic Products Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Illinois
  Closure Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Illinois
  General Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Illinois
  Group, Inc.

  	
   

  	
  Vice President,
  Director of Finance and Secretary

  
	
  Owens-Illinois
  Prescription Products Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Owens-Illinois
  Specialty Products Puerto Rico, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Product Design
  & Engineering, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  SeaGate II, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  SeaGate III,
  Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  SeaGate, Inc.

  	
   

  	
  Vice President
  and Secretary

  
	
  Specialty
  Packaging Licensing Company

  	
   

  	
  Vice President
  and Secretary

  
	
  Universal
  Materials, Inc.

  	
   

  	
  Vice President
  and Secretary

  

 

2Exhibit 4.5

 

EXECUTION COPY

 

OWENS-BROCKWAY
GLASS CONTAINER INC.

 

81⁄4% Senior
Notes due 2013

 

REGISTRATION
RIGHTS AGREEMENT

 

New York,
New York

May 6, 2003

 

Deutsche Bank Securities Inc.

Banc of America Securities LLC

Citigroup Global Markets Inc. 

Banc One Capital Markets, Inc.

BNP
Paribas Securities Corp.

Credit Lyonnais Securities (USA) Inc.

Fleet Securities, Inc.
Goldman, Sachs & Co.

Scotia Capital (USA) Inc.

c/o Deutsche Bank Securities Inc.

31 West 52nd Street

New York, New York 10019

 

Dear Sirs:

 

Owens-Brockway Glass Container
Inc., a corporation organized under the laws of Delaware (the “Company”),
proposes to issue and sell to certain purchasers (the “Initial Purchasers”),
upon the terms set forth in a purchase agreement dated April 29, 2003 (the “Purchase
Agreement”), its 8 1/4% Senior
Notes due 2013 (the “Notes”) guaranteed by the Guarantors (the “Guarantees”
and, together with the Notes, the “Securities”) relating to the initial
placement of the Securities (the “Initial Placement”).  To induce the Initial Purchasers to enter
into the Purchase Agreement and to satisfy a condition of your obligations
thereunder, each of the Company and the Guarantors agree, as follows:

 

1.             Definitions.  Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following capitalized defined terms shall have the following meanings:

 

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

 

“Additional Securities” shall have the
meaning set forth in the Indenture.

 

“Advice” shall have the meaning set
forth in Section 6 hereof.

 

“Affiliate” of any specified Person
shall mean any other Person that, directly or indirectly, is in control of, is
controlled by, or is under common control with, such specified

 

 

Person. 
For purposes of this definition, “control” of a Person shall mean the
power, direct or indirect, to direct or cause the direction of the management
and policies of such Person whether by contract or otherwise, and the terms
“controlling” and “controlled” shall have meanings correlative to the
foregoing.

 

“Broker-Dealer” shall mean any broker
or dealer registered as such under the Exchange Act.

 

“Broker-Dealer Transfer Restricted
Securities” shall mean New Securities that are acquired by a Broker-Dealer
in the Exchange Offer in exchange for Securities that such Broker-Dealer
acquired for its own account as a result of market-making activities or other
trading activities (other than Securities acquired directly from the Company or
any of its Affiliates).

 

“Business Day” shall mean any day
other than a Saturday, a Sunday or a legal holiday or a day on which banking
institutions or trust companies are authorized or obligated by law to close in
New York City or in the city of the corporate trust office of the Trustee.

 

“Closing Date” shall mean the date of
this Agreement.

 

“Commission” shall mean the Securities
and Exchange Commission.

 

“Consummate” an Exchange Offer shall
be deemed “Consummated” for purposes of this Agreement upon the occurrence of
(i) the filing and effectiveness under the Act of the Exchange Offer
Registration Statement relating to the New Securities to be issued in the
Exchange Offer, (ii) the maintenance of such Exchange Offer Registration
Statement continuously effective and the keeping of the Exchange Offer open for
a period not less than the minimum period required pursuant to Section 3(b)
hereof, and (iii) the delivery by the Company to the Registrar under the
Indenture of New Securities in the same aggregate principal amount as the
aggregate principal amount of Securities that were tendered by Holders thereof
pursuant to the Exchange Offer.

 

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

 

“Exchange
Offer” shall mean the registration by the Company and the
Guarantors under the Act of the New Securities pursuant to a Registration Statement pursuant
to which the Company offers the Holders of all outstanding Transfer Restricted
Securities the opportunity to exchange all such outstanding Transfer Restricted
Securities held by such Holders for New Securities in an aggregate principal amount equal to the
aggregate principal amount of the Transfer Restricted Securities tendered in
such exchange offer by such Holders.

 

“Exchange
Offer Registration Statement” shall mean a registration statement of the Company and
the Guarantors on an appropriate form
under the Act with respect to the Exchange Offer, all amendments and
supplements to such registration statement, including post-effective amendments
thereto, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

2

 

“Final
Memorandum” shall have the meaning set forth in the Purchase
Agreement.

 

“Guarantors” shall mean the guarantors
listed on the signature pages hereof (each individually, a “Guarantor”
and collectively, the “Guarantors”).

 

“Holder”
shall have
the meaning set forth in Section 2(b) hereof.

 

“indemnified
party”shall have the meaning set forth in Section 8(c) hereof.

 

“indemnifying
party” shall have the meaning set forth in Section 8(c) hereof.

 

“Indenture”
shall mean
the Indenture,
dated as of May 6, 2003,
among the Company, the Guarantors and U.S. Bank,  N.A., as trustee (the “Trustee”), pursuant to which the
Securities and the New Securities are to be issued as such Indenture may be amended or supplemented from time to time in accordance with the
terms thereof.

 

“Initial
Placement” shall have the meaning set forth in the preamble
hereto.

 

“Initial Purchaser” shall have the
meaning set forth in the preamble hereto.

 

“Interest Payment Date” shall have the
meaning set forth in the Indenture and the Notes.

 

“Liquidated Damages” shall have the
meaning set forth in Section 5 hereof.

 

“NASD” shall mean the National
Association of Securities Dealers, Inc.

 

“New
Securities” shall mean debt securities of the Company,
including guarantees thereon,
identical in all material respects to the Securities and any
Additional Securities (except that the cash
interest, interest rate step-up provisions and transfer restrictions shall be modified or eliminated, as appropriate)
to be issued under the Indenture in exchange for Transfer Restricted
Securities.

 

“Notes” shall have the meaning set
forth in the preamble hereto.

 

“Person”
shall mean an individual,
partnership, corporation, trust or unincorporated organization, or a government
or agency or political subdivision thereof.

 

“Prospectus”
shall mean
the prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective Registration Statement in reliance
upon Rule 430A under the Act), as amended or supplemented by any prospectus
supplement, with respect to an Exchange Offer or a Shelf
Registration, and all amendments and
supplements thereto and all material incorporated by reference
therein.

 

“Purchase Agreement” shall have the
meaning set forth in the preamble hereto.

 

“Registration Default” shall have the
meaning set forth in Section 5 hereof.

 

3

 

“Registration
Statement” shall mean any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or
the New Securities pursuant to the provisions of this Agreement, any
amendments and supplements to
such registration statement, including post-effective amendments (in each case
including the Prospectus contained therein), all exhibits thereto and all material
incorporated by reference therein.

 

“Securities”
shall have the meaning set forth in the preamble
hereto.

 

“Shelf
Filing Deadline” shall have the meaning set forth in Section 4(a) hereof.

 

“Shelf
Registration” shall mean a registration effected pursuant to
Section 4
hereof.

 

“Shelf
Registration Statement” shall have the meaning
set forth in Section 4(a) hereof.

 

“Transfer
Restricted Securities” shall mean each Security, until the earliest to occur of
(a) the date on which such Security has been exchanged by a Person other than a
broker-dealer for a New Security in the Exchange Offer, (b) following the
exchange by a broker-dealer in the Exchange Offer of a Security for a New
Security, the date on which
such New 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, (c) the date on which such Security has
been effectively registered under the Act and disposed of in accordance with
the Shelf Registration Statement, or (d) the date on which such Security is
distributed to the public pursuant to Rule 144 under the Act.

 

“Trust Indenture Act” shall mean the
Trust Indenture Act of 1939, as amended.

 

“Trustee”
shall mean
the trustee with respect to the Securities under the Indenture.

 

“underwriter”
shall mean
any underwriter of Securities in connection with an offering thereof under a
Shelf Registration Statement.

 

“Underwritten Registration” or “Underwritten
Offering” shall mean a registration in which securities of the Company are
sold to an underwriter for reoffering to the public.

 

2.             Securities Subject to this
Agreement.

 

(a)           Transfer
Restricted Securities.  The
securities entitled to the benefits of this Agreement are the Transfer
Restricted Securities.

 

(b)           Holders
of Transfer Restricted Securities. 
A Person is deemed to be a holder of Transfer Restricted Securities
(each, a “Holder”) whenever such Person owns Transfer Restricted
Securities.

 

4

 

3.             Registered
Exchange Offer.

 

(a)           Unless the Exchange Offer shall not
be permissible under applicable law or Commission policy (after the procedures
set forth in Section 6(a) below have been complied with), the Company and the
Guarantors shall (i) use their best efforts to cause to be filed with the
Commission on or prior to September 3, 2003, the Exchange Offer Registration
Statement under the Act relating to the New Securities and the Exchange Offer,
(ii) use their commercially reasonable efforts to cause such Exchange Offer
Registration Statement to become effective on or prior to November 22, 2003,
(iii) in connection with the foregoing, file (A) all pre-effective amendments
to such Exchange Offer Registration Statement as may be necessary in order to
cause such Exchange Offer Registration Statement to become effective, (B) if
applicable, a post-effective amendment to such Exchange Offer Registration
Statement pursuant to Rule 430A under the Act and (C) cause all necessary
filings in connection with the registration and qualification of the New
Securities to be made under the Blue Sky laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence the
Exchange Offer.  The Exchange Offer
shall be on the appropriate form permitting registration of the New Securities
to be offered in exchange for the Transfer Restricted Securities and to permit
resales of Broker-Dealer Transfer Restricted Securities by Broker-Dealers as
contemplated by Section 3(c) below.

 

(b)           The Company and the Guarantors shall
cause the Exchange Offer Registration Statement to be effective continuously
and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to
Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 Business Days.  The Company and the Guarantors shall cause
the Exchange Offer to comply with all applicable federal and state securities
laws.  No securities other than the New
Securities and the securities which will be registered and exchanged for the
Company’s 7 3/4% Senior Secured Notes due 2011 and the related guarantees
thereto shall be included in the Exchange Offer Registration Statement.  The Company and the Guarantors shall use
their commercially reasonable efforts to cause the Exchange Offer to be
Consummated within 40 days after the Exchange Offer Registration Statement has
become effective.

 

(c)           The Company shall indicate in a “Plan
of Distribution” section contained in the Prospectus forming a part of the
Exchange Offer Registration Statement that any Broker-Dealer who holds
Securities that are Transfer Restricted Securities and that were acquired for
its own account as a result of market-making activities or other trading
activities (other than Transfer Restricted Securities acquired directly from
the Company or one of its Affiliates), may exchange such Securities pursuant to
the Exchange Offer; however, such Broker-Dealer may be deemed to be an
“underwriter” within the meaning of the Act and must, therefore, deliver a
prospectus meeting the requirements of the Act in connection with any resales
of the New Securities received by such Broker-Dealer in the Exchange Offer,
which prospectus delivery requirement may be satisfied by the delivery by such
Broker-Dealer of the Prospectus contained in the Exchange Offer Registration
Statement.  Such “Plan of Distribution”
section shall also contain all other information with respect to such resales
by Broker-Dealers that the Commission may require in order to permit such
resales pursuant thereto, but such “Plan of Distribution” shall not name any
such Broker-Dealer or disclose the amount of Securities held by any such
Broker-Dealer except to the extent required by the Commission as a result of a
change in policy after the date of this Agreement.

 

5

 

The Company and the Guarantors shall use
their commercially reasonable efforts to keep the Exchange Offer Registration
Statement continuously effective, supplemented and amended as required by the
provisions of Section 6(c) below to the extent necessary to ensure that it is
available for resales of Broker-Dealer Transfer Restricted Securities acquired
by Broker-Dealers, and to ensure that it conforms with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period ending on the earlier of (i) 90 days
from the date on which the Exchange Offer Registration Statement is declared
effective and (ii) the date on which a Broker-Dealer is no longer required to
deliver a prospectus in connection with market-making or other trading
activities.

 

The Company shall provide sufficient copies
of the latest version of such Prospectus to such Broker-Dealers promptly upon
request at any time during such 90-day (or shorter as provided in the foregoing
sentence) period in order to facilitate such resales.

 

4.             Shelf Registration.

 

(a)           Shelf Registration.  If (i) the Company and the Guarantors are
not permitted to Consummate the Exchange Offer because the Exchange Offer is
not permitted by applicable law or Commission policy (after the procedures set
forth in Section 6(a) below have been complied with), or (ii) any Holder of
Transfer Restricted Securities shall notify the Company on or prior to the 20th
day following the Consummation of the Exchange Offer that (A) such Holder is
prohibited by applicable law or Commission policy from participating in the
Exchange Offer, (B) such Holder may not resell the New Securities acquired by
it in the Exchange Offer to the public without delivering a prospectus and that
the Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder, or (C) such Holder is
a Broker-Dealer and owns Securities acquired directly from the Company or an
Affiliate of the Company, then, the Company and the Guarantors shall:

 

(x)  use their best efforts to
cause to be filed a shelf registration statement pursuant to Rule 415 under the
Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the “Shelf Registration Statement”) on or prior to 60 days
after such filing obligation arises pursuant to this paragraph 4(a), (such date
being the “Shelf Filing Deadline”), which Shelf Registration Statement
shall provide for resales of all Transfer Restricted Securities the Holders of
which shall have provided the information required pursuant to Section 4(b)
hereof; and

 

(y)  use their commercially
reasonable efforts to cause such Shelf Registration Statement to be declared
effective by the Commission on or prior to 120 days after such filing
obligation arises pursuant to paragraph 4(a) above.

 

The Company and the Guarantors shall use
their commercially reasonable efforts to keep such Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions
of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is
available for resales of Notes by the Holders of Transfer Restricted Securities
entitled to the benefit of this Section 4(a), and to ensure that it conforms
with the requirements of this Agreement, the Act and

 

6

 

the policies, rules and regulations of the
Commission as announced from time to time, for a period of at least two years
following the effective date of such Shelf Registration Statement (or shorter
period that will terminate when all the Securities covered by such Shelf
Registration Statement have been sold pursuant to such Shelf Registration
Statement).

 

(b)           Provision by Holders of Certain
Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted Securities
may include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, such
information as the Company may reasonably request for use in connection with
any Shelf Registration Statement or Prospectus or preliminary Prospectus
included therein.  Each Holder as to
which any Shelf Registration Statement is being effected agrees to furnish
promptly to the Company all information required to be disclosed in order to
make the information previously furnished to the Company by such Holder not
materially misleading.

 

5.             Liquidated Damages.

 

If (i) any Registration Statement required by
this Agreement is not filed with the Commission on or prior to the date
specified for such filing in this Agreement, (ii) any such Registration
Statement has not been declared effective by the Commission on or prior to the
date specified for such effectiveness in this Agreement, (iii) the Exchange
Offer has not been Consummated within 40 days after the Exchange Offer
Registration Statement is declared effective or (iv) any Registration Statement
required by this Agreement is filed and declared effective but shall thereafter
cease to be effective or fail to be usable for its intended purpose without
being succeeded immediately by a post-effective amendment to such Registration
Statement that cures such failure and that is itself immediately declared
effective (each such event referred to in clauses (i) through (iv), a “Registration
Default”), the Company and the Guarantors hereby agree to pay liquidated
damages to each Holder of outstanding Securities (“Liquidated Damages”)
during the period of one or more Registration Defaults, with respect to the
first 90-day period immediately following the occurrence of the first
Registration Default in an amount equal to 0.25% per annum (which amount will
be increased by an additional 0.25% per annum for each subsequent 90-day period
that any Liquidated Damages continue to accrue; provided that the amounts at
which Liquidated Damages accrue may in no event exceed 1.0% per annum) in
respect of the Transfer Restricted Securities held by such Holder until the
applicable Registration Statement is filed, the Exchange Offer Registration
Statement is declared effective and the Exchange Offer is Consummated or the
Shelf Registration Statement is declared effective or again becomes effective,
as the case may be.  All accrued Liquidated
Damages will be paid by the Company and the Guarantors on each Interest Payment
Date to Holders of global Securities by wire transfer of immediately available
funds or by federal funds check and to holders of certificated Securities by
wire transfer to the accounts specified by them or by mailing checks to their
registered addresses if no such accounts have been specified.  Following the cure of all Registration
Defaults, the accrual of Liquidated Damages will cease; provided, however,
that, if after the cessation of the accrual of Liquidated Damages, a different
Registration Default occurs, Liquidated Damages shall again accrue pursuant to
the foregoing provisions.

 

7

 

All obligations of the Company and the
Guarantors set forth in the preceding paragraph that are outstanding with
respect to any Transfer Restricted Security at the time such security ceases to
be a Transfer Restricted Security shall survive until such time as all such
obligations with respect to such Security shall have been satisfied in full.

 

6.             Registration Procedures.

 

(a)           Exchange Offer Registration
Statement.  In connection with the
Exchange Offer, the Company and the Guarantors shall comply with the applicable
provisions of Section 6(c) below, shall use their commercially reasonable
efforts to effect such exchange to permit the sale of Broker-Dealer Transfer
Restricted Securities being sold in accordance with the intended method or
methods of distribution thereof (which shall be in a manner consistent with the
terms of this Agreement), and shall comply with all of the following
provisions:

 

(i)            If
in the reasonable opinion of counsel to the Company there is a question as to
whether the Exchange Offer is permitted by applicable law, the Company and the
Guarantors hereby agree to seek a no-action letter or other favorable decision
from the Commission allowing the Company and the Guarantors to Consummate an
Exchange Offer for such Securities.  The
Company and the Guarantors each hereby agree to pursue the issuance of such a
decision to the Commission staff level but shall not be required to take
commercially unreasonable action to effect a change of Commission policy.  The Company and the Guarantors each hereby
agree, however, to (A) participate in telephonic conferences with the staff of
Commission, (B) deliver to the Commission staff an analysis prepared by counsel
to the Company setting forth the legal bases, if any, upon which such counsel
has concluded that such an Exchange Offer should be permitted and (C) use
commercially reasonable efforts to diligently pursue a favorable resolution by
the Commission staff of such submission.

 

(ii)           As
a condition to its participation in the Exchange Offer pursuant to the terms of
this Agreement, each Holder of Transfer Restricted Securities shall furnish,
upon the request of the Company, prior to the Consummation thereof, a written
representation to the Company (which may be contained in the letter of
transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that (A) it is not an Affiliate of the Company, (B) it is not engaged
in, and does not intend to engage in, and has no arrangement or understanding
with any person to participate in, a distribution of the New Securities to be
issued in the Exchange Offer and (C) it is acquiring the New Securities in its
ordinary course of business.  In
addition, all such Holders of Transfer Restricted Securities shall otherwise
cooperate in the Company’s and the Guarantor’s preparations for the Exchange
Offer.  Each Holder hereby acknowledges
and agrees that any Broker-Dealer and any such Holder using the Exchange Offer
to participate in a distribution of the securities to be acquired in the
Exchange Offer (1) could not under Commission policy as in effect on the date
of this Agreement rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital
Holdings Corporation (available May 13, 1988), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar
no-action letters (which may include any no-action letter obtained pursuant to
clause (i) above), and (2) must comply with the registration and prospectus
delivery

 

8

 

requirements of the Act in connection with a secondary
resale transaction and that such a secondary resale transaction should be
covered by an effective registration statement containing the selling security
holder information required by Item 507 or 508, as applicable, of Regulation
S-K under the Act if the resales are of New Securities obtained by such Holder
in exchange for Securities acquired by such Holder directly from the Company or
one of its Affiliates.

 

(iii)          Prior
to effectiveness of the Exchange Offer Registration Statement, the Company and
the Guarantors shall provide a supplemental letter to the Commission (A)
stating that the Company and the Guarantors are registering the Exchange Offer
in reliance on the position of the Commission enunciated in Exxon Capital
Holdings Corporation (available May 13, 1988), Morgan Stanley and Co.,
Inc. (available June 5, 1991) and, if applicable, any no-action letter
obtained pursuant to clause (i) above, (B) including a representation that neither
the Company nor any Guarantor has entered into any arrangement or understanding
with any Person to distribute the New Securities to be received in the Exchange
Offer and that, to the best of the Company’s information and belief, each
Holder participating in the Exchange Offer is acquiring the New Securities in
its ordinary course of business and has no arrangement or understanding with
any Person to participate in the distribution of the New Securities received in
the Exchange Offer and (C) any other undertaking or representation required by
the Commission as set forth in any no-action letter obtained pursuant to clause
(i) above.

 

(b)           Shelf Registration Statement.  In connection with the Shelf Registration
Statement, the Company and the Guarantors shall comply with all the provisions
of Section 6(c) below and shall use their commercially reasonable efforts to
effect such registration to permit the sale of the Transfer Restricted
Securities being sold in accordance with the intended method or methods of distribution
thereof, and pursuant thereto the Company and the Guarantors will as
expeditiously as possible prepare and file with the Commission a Registration
Statement relating to the registration on any appropriate form under the Act,
which form shall be available for the sale of the Transfer Restricted
Securities in accordance with the intended method or methods of distribution
thereof.

 

(c)           General Provisions.  In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Broker-Dealer Transfer Restricted Securities by Broker-Dealers), the Company and
the Guarantors shall:

 

(i)            use
their commercially reasonable efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements
(including, if required by the Act or any regulation thereunder, financial statements
of the Guarantors) for the period specified in Section 3 or 4 of this
Agreement, as applicable; upon the occurrence of any event that would cause any
such Registration Statement or the Prospectus contained therein (A) to contain
a material misstatement or omission or (B) not to be effective and usable for
resale of Transfer Restricted Securities during the period required by this
Agreement, the Company and the Guarantors shall file promptly

 

9

 

an appropriate amendment to such Registration
Statement, in the case of clause (A), correcting any such misstatement or
omission, and, in the case of either clause (A) or (B), use their commercially
reasonable efforts to cause such amendment to be declared effective and such
Registration Statement and the related Prospectus to become usable for their
intended purpose(s) as soon as practicable thereafter;

 

(ii)           use
commercially reasonable efforts to prepare and file with the Commission such
amendments and post-effective amendments to the Registration Statement as may
be necessary to keep the Registration Statement effective for the applicable
period set forth in Section 3 or 4 hereof, as applicable, or such shorter
period as will terminate when all Transfer Restricted Securities covered by
such Registration Statement have been sold; cause the Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 under the Act, and to comply fully with the applicable
provisions of Rules 424 and 430A under the Act in a timely manner; and comply
with the provisions of the Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period
in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

 

(iii)          advise
the underwriter(s), if any, and selling Holders promptly and, if requested by
such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with
respect to any Registration Statement or any post-effective amendment thereto,
when the same has become effective, (B) of any request by the Commission for
amendments to the Registration Statement or amendments or supplements to the
Prospectus or for additional information relating thereto, (C) of the issuance
by the Commission of any stop order suspending the effectiveness of the
Registration Statement under the Act or of the suspension by any state
securities commission of the qualification of the Transfer Restricted
Securities for offering or sale in any jurisdiction, or the initiation of any
proceeding for any of the preceding purposes, (D) of the existence of any fact
or the happening of any event that makes any statement of a material fact made
in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any document incorporated by reference therein untrue, or that
requires the making of any additions to or changes in the Registration
Statement or the Prospectus in order to make the statements therein not
misleading.  If at any time the
Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, or any state securities commission or other regulatory
authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or
Blue Sky laws, the Company and the Guarantors shall use their commercially
reasonable efforts to obtain the withdrawal or lifting of such order at the
earliest possible time;

 

(iv)          in
the case of a Shelf Registration Statement, furnish without charge to each of
the Initial Purchasers, each selling Holder named in any Registration
Statement, and each of the underwriter(s), if any, before filing with the
Commission, copies of any Registration Statement or any Prospectus included
therein or any amendments or supplements to any such Registration Statement or
Prospectus (including

 

10

 

all documents incorporated by reference after the
initial filing of such Registration Statement), which documents will be subject
to the review of such Holders and underwriter(s) in connection with such sale,
if any, for a period of at least three Business Days, and neither the Company
nor the Guarantors will file any such Registration Statement or Prospectus or
any amendment or supplement to any such Registration Statement or Prospectus
(including all such documents incorporated by reference) to which an Initial
Purchaser or the underwriter(s), if any, shall reasonably object in writing
within five Business Days after the receipt thereof (such objection to be
deemed timely made upon confirmation of telecopy transmission within such
period).  The objection of an Initial
Purchaser or underwriter, if any, shall be deemed to be reasonable if such
Registration Statement, amendment, Prospectus or supplement, as applicable, as
proposed to be filed, contains a material misstatement or omission;

 

(v)           in
connection with any underwritten offering pursuant to a Shelf Registration
Statement, promptly prior to the filing of any document that is to be
incorporated by reference into a Shelf Registration Statement or Prospectus,
provide copies of such document to the Initial Purchasers, each selling Holder
named in any Shelf Registration Statement, and to the underwriter(s), if any,
make the Company’s representatives and representatives of the Guarantors
available for discussion of such document and other customary due diligence
matters, and include such information in such document prior to the filing
thereof as such selling Holders or underwriter(s), if any, reasonably may
request;

 

(vi)          in
connection with any underwritten offering pursuant to a Shelf Registration
Statement, make available at reasonable times during normal business hours for
inspection by the Initial Purchasers, any managing underwriter participating in
any disposition pursuant to such Registration Statement and any attorney or
accountant retained by such Initial Purchasers or any of the underwriter(s),
all financial and other records, pertinent corporate documents and properties
of the Company and the Guarantors and cause the Company’s and the Guarantors’
officers, directors and employees to supply all information reasonably
requested by any such Holder, underwriter, attorney or accountant in connection
with such Registration Statement subsequent to the filing thereof and prior to
its effectiveness;

 

(vii)         if
requested by any selling Holders or the underwriter(s), if any, promptly
incorporate in any Registration Statement or Prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have
included therein, including, without limitation, information relating to the
“Plan of Distribution” of the Transfer Restricted Securities, information with
respect to the principal amount of Transfer Restricted Securities being sold to
such underwriter(s), the purchase price being paid therefor and any other terms
of the offering of the Transfer Restricted Securities to be sold in such
offering; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company or a
Guarantor is notified of the matters to be incorporated in such Prospectus
supplement or post-effective amendment;

 

11

 

(viii)        furnish
to each selling Holder and each of the underwriter(s), if any, without charge,
at least one copy of the Registration Statement, as first filed with the
Commission, and of each amendment thereto, including financial statements and
schedules, all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);

 

(ix)           deliver
to each selling Holder and each of the underwriter(s), if any, without charge,
as many copies of the Prospectus (including each preliminary Prospectus) and
any amendment or supplement thereto as such Persons reasonably may request; the
Company and the Guarantors hereby consent to the use of the Prospectus and any
amendment or supplement thereto by each of the selling Holders and each of the
underwriter(s), if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or
supplement thereto;

 

(x)            in
connection with any underwritten offering of Transfer Restricted Securities
pursuant to a Shelf Registration Statement, enter into, and cause the
Guarantors to enter into, such agreements (including an underwriting
agreement), and make, and cause the Guarantors to make, such representations
and warranties, and take all such other actions in connection therewith
reasonably necessary to expedite or facilitate the disposition of the Transfer
Restricted Securities, all to such extent as may be reasonably requested by any
Holder of Transfer Restricted Securities or underwriter in connection with any
sale or resale pursuant to underwritten offerings of Transfer Restricted
Securities pursuant to a Shelf Registration Statement contemplated by this
Agreement and shall:

 

(A)          furnish
to each Initial Purchaser, each selling Holder and each underwriter, if any, in
such substance and scope as they may reasonably request and as are customarily
made by issuers to underwriters in primary underwritten offerings, upon the
date of the Consummation of the Exchange Offer and, if applicable, the
effectiveness of the Shelf Registration Statement:

 

(1)           a
certificate, dated the date of effectiveness of the Shelf Registration
Statement, signed by (y) the Chairman of the Board, the Chief Executive
Officer, President, any Executive Vice President or any Vice President and (z)
a principal financial or accounting officer of each of the Company and
Owens-Illinois Group, Inc., confirming, as of the date thereof, the matters set
forth in paragraphs (i) and (ii) of Section 6(c) of the Purchase Agreement or
such other matters as such parties may reasonably request;

 

(2)           opinions,
dated the date of effectiveness of the Shelf Registration Statement of counsel
for the Company and the Guarantors, covering the matters set forth in paragraph
(a) of Section 6 of the Purchase Agreement and Exhibits B and C referred to
therein and such other matters as such parties may reasonably request; and

 

12

 

(3)           a
customary comfort letter, dated as of the date of effectiveness of the Shelf
Registration Statement from the Company’s independent accountants, in the
customary form and covering matters of the type customarily covered in comfort
letters by underwriters in connection with primary underwritten offerings, and
affirming the matters set forth in the comfort letter delivered pursuant to
Section 6(e) of the Purchase Agreement;

 

(B)           set
forth in full or incorporate by reference in the underwriting agreement, if
any, indemnification provisions and procedures of Section 8 hereof with respect
to all parties to be indemnified pursuant to said Section (or such other
provisions or procedures acceptable to selling Holders representing a majority
in aggregate principal amount of Transfer Restricted Securities covered by such
Shelf Registration Statement and the underwriters, if any); and

 

(C)           deliver
such other documents and certificates as may be reasonably requested by such
parties to evidence compliance with clause (A) above and with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the Company or the Guarantors pursuant to this clause (x), if any.

 

If at any time the representations and
warranties of the Company and the Guarantors contemplated in clause (A)(1)
above cease to be true and correct in all material respects, the Company or the
Guarantors shall so advise the Initial Purchasers and the underwriter(s), if
any, and each selling Holder promptly and, if requested by such Persons, shall
confirm such advice in writing;

 

(xi)           prior
to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders, the underwriter(s), if any, and their respective counsel in
connection with the registration and qualification of the Transfer Restricted
Securities under the securities or Blue Sky laws of such jurisdictions as the
selling Holders or underwriter(s) may request and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions
of the Transfer Restricted Securities covered by the Shelf Registration
Statement; provided, however, that neither the Company nor the
Guarantors shall be required to register or qualify as a foreign corporation
where it is not then so qualified or to take any action that would subject it
to the service of process in suits or to taxation, other than as to matters and
transactions relating to any Registration Statement, in any jurisdiction where
it is not then so subject;

 

(xii)          shall
issue, upon the request of any Holder of Securities covered by the Shelf
Registration Statement, New Securities, having an aggregate principal amount
equal to the aggregate principal amount of Securities surrendered to the
Company by such Holder in exchange therefor or being sold by such Holder; such
New Securities to be registered in the name of such Holder or in the name of
the purchaser(s) of such New Securities, as the case may be; in return, the
Securities held by such Holder shall be surrendered to the Company for
cancellation;

 

13

 

(xiii)         cooperate
with the selling Holders and the underwriter(s), if any, to facilitate the
timely preparation and delivery of certificates representing Transfer
Restricted Securities to be sold and not bearing any restrictive legends; and
enable such Transfer Restricted Securities to be in such denominations and
registered in such names as the Holders or the underwriter(s), if any, may
request at least two Business Days prior to any sale of Transfer Restricted
Securities made by such underwriter(s);

 

(xiv)        use
their commercially reasonable efforts to cause the Transfer Restricted
Securities covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the seller or sellers thereof or the underwriter(s), if any, to
consummate the disposition of such Transfer Restricted Securities, subject to
the proviso contained in clause (xi) above;

 

(xv)         if
any fact or event contemplated by clause 6(c)(iii)(D) above shall exist or have
occurred, prepare a supplement or post-effective amendment to the Registration
Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of Transfer Restricted Securities, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading;

 

(xvi)        provide
a CUSIP number for all Transfer Restricted Securities not later than the
effective date of the Registration Statement and provide the Trustee under the
Indenture with printed certificates for the Transfer Restricted Securities
which are in a form eligible for deposit with the Depositary Trust Company;

 

(xvii)       cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter (including
any “qualified independent underwriter”) that is required to be retained in
accordance with the rules and regulations of the NASD, and use their
commercially reasonable efforts to cause such Registration Statement to become
effective and approved by such governmental agencies or authorities as may be
necessary to enable the Holders selling Transfer Restricted Securities to
consummate the disposition of such Transfer Restricted Securities;

 

(xviii)      otherwise
use their commercially reasonable efforts to comply with all applicable rules
and regulations of the Commission, and make generally available to the
Company’s security holders, as soon as practicable, a consolidated earnings
statement meeting the requirements of Rule 158 under the Act (which need not be
audited) for the twelve-month period (A) commencing at the end of any fiscal
quarter in which Transfer Restricted Securities are sold to underwriters in a
firm or best efforts Underwritten Offering or (B) if not sold to underwriters
in such an offering, beginning with the first month of the Company’s first
fiscal quarter commencing after the effective date of the Registration
Statement;

 

14

 

(xix)         cause
the Indenture to be qualified under the Trust Indenture Act not later than the
effective date of the first Registration Statement required by this Agreement,
and, in connection therewith, cooperate, and cause the Guarantors to cooperate
with, with the Trustee and the Holders of Notes to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in
accordance with the terms of the Trust Indenture Act; and to execute, and use
their commercially reasonable efforts to cause the Trustee to execute, all
documents that may be required to effect such changes and all other forms and
documents required to be filed with the Commission to enable such Indenture to
be so qualified in a timely manner; and

 

(xx)          provide
promptly to each Holder upon request each document filed with the Commission
pursuant to the requirements of Section 13 or Section 15 of the Exchange Act or
provide each such requesting Holder the location where such Holder can obtain
such information without charge.

 

Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of any notice from the Company
or any Guarantor of the existence of any fact of the kind described in Section
6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration
Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(c)(xv) hereof, or until it is
advised in writing (the “Advice”) by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus.  If so directed by the Company, each Holder
will deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of such notice.  In the event
the Company or any Guarantor shall give any such notice, the time period
regarding the effectiveness of such Registration Statement set forth in Section
3 or 4 hereof, as applicable, shall be extended by the number of days during
the period from and including the date of the giving of such notice pursuant to
Section 6(c)(iii)(D) hereof to and including the date when each selling Holder
covered by such Registration Statement shall have received the copies of the
supplemented or amended Prospectus contemplated by Section 6(c)(xv) hereof or
shall have received the Advice; however, no such extension shall be
taken into account in determining whether Liquidated Damages are due pursuant
to Section 5 hereof or the amount of such Liquidated Damages, it being agreed
that the Company’s and the Guarantor’s option to suspend use of a Registration
Statement pursuant to this paragraph shall be treated as a Registration Default
for purposes of Section 5.

 

7.             Registration
Expenses.

 

(a)           All
expenses incident to the Company’s or the Guarantors’ performance of or
compliance with this Agreement will be borne by the Company or the Guarantors,
regardless of whether a Registration Statement becomes effective, including
without limitation: (i) all registration and filing fees and expenses
(including filings made by any Initial Purchaser or Holder with the NASD (and,
if applicable, the fees and expenses of any “qualified independent underwriter”
and its counsel that may be required by the rules and regulations of the
NASD)); (ii) all fees and expenses of compliance with federal securities and
state Blue Sky or securities

 

15

 

laws; (iii) all expenses of printing (including
printing certificates for the New Securities to be issued in the Exchange Offer
and printing of Prospectuses), messenger and delivery services and telephone;
(iv) all fees and disbursements of counsel for the Company, the Guarantors and,
subject to Section 7(b) below, the Holders of Transfer Restricted Securities;
(v) all application and filing fees in connection with listing the New
Securities
on a national securities exchange or automated quotation system pursuant to the
requirements thereof; and (vi) all fees and disbursements of independent
certified public accountants of the Company and the Guarantors (including the
expenses of any special audit and comfort letters required by or incident to
such performance).

 

The Company
and the Guarantors will, in any event, bear their internal expenses (including,
without limitation, all salaries and expenses of their officers and employees
performing legal or accounting duties), the expenses of any annual audit and
the fees and expenses of any Person, including special experts, retained by the
Company or the Guarantors.

 

(b)           In
connection with any Registration Statement required by this Agreement
(including, without limitation, the Exchange Offer Registration Statement and
the Shelf Registration Statement), the Company and the Guarantors will
reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities being tendered in the Exchange Offer and/or resold pursuant to the
“Plan of Distribution” contained in the Exchange Offer Registration Statement
or registered pursuant to the Shelf Registration Statement, as applicable, for
the reasonable fees and disbursements of not more than one counsel, who shall
be Simpson Thacher & Bartlett or such other counsel as may be chosen by the
Holders of a majority in principal amount of the Transfer Restricted Securities
for whose benefit such Registration Statement is being prepared.

 

8.             Indemnification.

 

(a)           Indemnification of the Holders.  The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Holder, its directors,
officers and employees, and each person, if any, who controls any Holder within
the meaning of the Act and the Exchange Act against any loss, claim, damage,
liability or expense, as incurred, to which such Holder or such controlling
person may become subject, under the Act, the Exchange Act or other federal or
state statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of the Company or Owens-Illinois Group, Inc.), insofar as such loss,
claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement or Prospectus, or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided,
however, that the foregoing indemnity agreement shall not apply to any
loss, claim, damage, liability or expense to the extent, but only to the
extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by the Holders
expressly for use in any Registration Statement or Prospectus; provided,
further, that the foregoing indemnity agreement shall not inure to the
benefit of any Holder, its directors, officers and employees, and each person,
if any, who controls such Holder

 

16

 

within the meaning of the
Act and the Exchange Act, who, in contravention of a requirement of applicable
law, failed to deliver, or otherwise convey the information contained in, any
Prospectus (as then amended or supplemented) to the person asserting any
losses, claims, damages, liabilities or expenses, caused by any untrue
statement or alleged untrue statement of a material fact contained in any
preliminary Prospectus, or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, if such material misstatement or omission or
alleged material misstatement or omission was cured in the Prospectus (as then
amended or supplemented) and such Prospectus was required by law to be
delivered at or prior to the written confirmation of sale to such person and
the Prospectus and any amendment or supplement thereto was provided by the
Company to the Holder in the requisite quantity and on a timely basis to permit
proper delivery on or prior to the closing of such sale by such Holder.  The indemnity agreement set forth in this
Section 8 shall be in addition to any liabilities that the Company or any of
the Guarantors may otherwise have.

 

(b)           Indemnification of the Company,
the Guarantors and their Directors and Officers.  Each Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company and the Guarantors and each of their respective
directors, and each person, if any, who controls the Company or the Guarantors,
as the case may be, within the meaning of the Act or the Exchange Act, against
any loss, claim, damage, liability or expense, as incurred, to which the
Company or such Guarantor or any such director, or controlling person may become
subject, under the Act, the Exchange Act, or other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of
any litigation, if such settlement is effected with the written consent of such
Holder), insofar as such loss, claim, damage, liability or expense (or actions
in respect thereof as contemplated below) arises out of or is based upon any
untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or Prospectus, or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading,
in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in any
Registration Statement or Prospectus, in reliance upon and in conformity with
written information furnished to the Company by the Holders expressly for use
therein; and to reimburse the Company and the Guarantors, or any such director
or controlling person for any legal and other expenses reasonably incurred by
the Company and the Guarantors, or any such director or controlling person in
connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action.  The indemnity agreement set forth in this
Section 8 shall be in addition to any liabilities that each Holder may
otherwise have.  In no event shall the
liability of any selling Holder hereunder be greater in amount than the dollar
amount of proceeds received by such Holder upon the sale of the Securities
giving rise to such indemnification obligation.

 

(c)           Notifications and Other
Indemnification Procedures. 
Promptly after receipt by any person in respect of which indemnity may
be sought pursuant to Section 8(a) or 8(b) (the “indemnified party”) of
notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against any person against whom
indemnity may be sought pursuant to Section 8(a) or 8(b) (the “indemnifying
party”), notify the indemnifying party in writing of the commencement
thereof, but the omission so to notify the

 

17

 

indemnifying party will
not relieve it from any liability which it may have to any indemnified party
for contribution or otherwise than under the indemnity agreement contained in
this Section 8 or to the extent it is not prejudiced as a proximate result of
such failure.  In case any such action
is brought against any indemnified party and such indemnified party seeks or
intends to seek indemnity from an indemnifying party, the indemnifying party
shall be entitled to participate in and, to the extent that it shall elect,
jointly with all other indemnifying parties similarly notified, by written
notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense thereof
with counsel reasonably satisfactory to such indemnified party; provided,
however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded, based on the advice of legal counsel, that a
conflict may arise between the positions of the indemnifying party and the
indemnified party in conducting the defense of any such action or that there
may be legal defenses available to it and/or other indemnified parties which
are different from or additional to those available to the indemnifying party,
the indemnified party or parties shall have the right to select separate
counsel to assume such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying
party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party shall not be liable to such indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof unless the
indemnified party shall have employed separate counsel in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (together with local counsel), approved by the indemnifying
party, representing the indemnified parties who are parties to such action) or
(ii) the indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time after
notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

 

(d)           Settlements.  The indemnifying party under this Section 8
shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by this Section 8, the
indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such
settlement.  No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or
could have been a party and indemnity was or could have been sought hereunder
by such

 

18

 

indemnified party, unless
such settlement, compromise or consent includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such action, suit or proceeding.

 

(e)           Contribution.  If the indemnification provided for in this
Section 8 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party under Section 8(a) or Section 8(b) hereof
(other than by reason of exceptions provided in those Sections) in respect of
any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or
payable by such indemnified party, as incurred, as a result of any losses,
claims, damages, liabilities or expenses referred to therein (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Holders, on the other hand,
from the Initial Placement (which, in the case of the Company and the
Guarantors shall be deemed to be equal to the total gross proceeds from the
Initial Placement as set forth on the cover page to the Final Memorandum), the
amount of Liquidated Damages which did not become payable as a result of the
filing of the Registration Statement resulting in such losses, claims, damages,
liabilities, judgments actions or expenses, and such Registration Statement, or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantors, on the one hand, and the Holders, on the other
hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
benefits received by the Company and the Guarantors, on the one hand, and the
Holders, on the other, with respect to such offering shall be deemed to be in
the same proportion as the total net proceeds from Initial Placement (before
deducting expenses) received by the Company and the Guarantors, on the one hand,
and the total net proceeds received by such Holder upon its resale of Notes
less the amount paid by such Holder for such Notes, on the other hand, bear to
the total sum of such amounts.  The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
the Company and the Guarantors or such Holder, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or
prevent such statement or omission.  For
the purposes of the preceding two sentences, the net proceeds deemed to be
received by the Company shall be deemed to be also for the benefit of the
Guarantors and the information supplied by the Company shall also be deemed to
have been supplied by the Guarantors.

 

The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in
Section 8(a), any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.  The provisions set forth in this Section 8
with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 8(e); provided, however,
that no additional notice shall be required with respect to any action for
which notice has been given under this Section 8 for purposes of
indemnification.

 

The Company, the Guarantors and the Holders
agree that it would not be just and equitable if contribution pursuant to this
Section 8(e) were determined by pro rata allocation (even if the Holders were
treated as one entity for such purpose) or by any other method of

 

19

 

allocation which does not take account of the
equitable considerations referred to in this Section 8(e).  Notwithstanding the provisions of this
Section 8(e), no Holder shall be required to contribute any amount in excess of
the amount by which the total net proceeds received by such Holder upon its
resale of Notes exceeds the sum of the amount paid by such Holder for such
Notes (or, if such Notes have not been sold by such Holder, the total discount
received by such Holder with respect to such Notes) and the amount of any
damages which such Holder has otherwise paid or become liable to pay by reason
of any untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11 of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.  The Holders’
obligations to contribute pursuant to this Section 8(e) are several, and not
joint, in proportion to the respective principal amount of Notes held by each
of the Holders hereunder.  For purposes
of this Section 8(e), each director, officer and employee of an Holder and each
person, if any, who controls an Holder within the meaning of the Act and the
Exchange Act shall have the same rights to contribution as such Holder, and
each director of the Company and the Guarantors, and each person, if any, who
controls the Company with the meaning of the Act and the Exchange Act shall
have the same rights to contribution as the Company and the Guarantors.

 

(f)            The remedies provided for in this
Section 8 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.

 

9.             Rule 144A.

 

The Company and the Guarantors each hereby
agree with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, to make available to any Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities from such Holder
or beneficial owner, the information required by Rule 144A(d)(4) under the Act
in order to permit resales of such Transfer Restricted Securities pursuant to
Rule 144A.

 

10.           Participation In Underwritten
Registrations.

 

No Holder may participate in any Underwritten
Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer
Restricted Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b)
completes and executes all reasonable questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents
required under the terms of such underwriting arrangements.

 

11.           Selection
Of Underwriters.

 

The Holders of Transfer Restricted Securities
covered by the Shelf Registration Statement who desire to do so may sell such
Transfer Restricted Securities in an Underwritten Offering.  In any such Underwritten Offering, the
investment banker or investment bankers and manager or managers that will
administer the offering shall be selected by the Holders of a majority in
aggregate principal amount of the Transfer Restricted Securities included in
such

 

20

 

offering; provided, that such
investment bankers and managers must be reasonably satisfactory to the Company.

 

12.           Miscellaneous.

 

(a)           Remedies.  The Company and the Guarantors each hereby
agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Agreement and
hereby agree to waive the defense in any action for specific performance that a
remedy at law would be adequate.

 

(b)           No Inconsistent Agreements.  The Company shall not, and shall cause the
Guarantors not to, on or after the date of this Agreement enter into any
agreement with respect to the Company’s securities that would prevent the
Company or any Guarantor from satisfying its obligations hereunder or that
would otherwise conflict with the provisions hereof.  Other than the Registration Rights Agreement dated as of January
24, 2002 with respect to the Company’s 8 7/2% Senior Secured Notes due 2009,
the Registration Rights Agreement dated as of November 13, 2002 with respect to
the Company’s outstanding 8 3/4% Senior Secured Notes due 2012, the
Registration Rights Agreement dated December 18, 2002 with respect to the
Company’s outstanding 8 3/4% Senior Notes due 2012 and the Registration Rights
Agreement dated the date hereof with respect to the Company’s 7 3/4% Senior
Secured Notes due 2011 issued concurrently with the Notes, neither the Company
nor any of the Guarantors has entered into any agreement granting any
registration rights with respect to the Company’s securities to any Person. The
rights granted to the Holders 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)           Adjustments Affecting the
Securities.  Neither the Company nor
the Guarantors shall take any action, or permit any change to occur, with
respect to the Securities that would materially and adversely affect the
ability of the Holders to Consummate any Exchange Offer.

 

(d)           Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities. 
Notwithstanding the foregoing, a waiver or consent to departure from the
provisions hereof that relates exclusively to the rights of Holders whose
securities are being tendered pursuant to the Exchange Offer and that does not
affect directly or indirectly the rights of other Holders whose securities are
not being tendered pursuant to such Exchange Offer may be given by the Holders
of a majority of the outstanding principal amount of Transfer Restricted
Securities being tendered or registered; provided  that, with
respect to any matter that directly or indirectly affects the rights of any
Initial Purchaser hereunder, the Company shall obtain the written consent of
each such Initial Purchaser with respect to which such amendment,
qualification, supplement, waiver, consent or departure is to be effective.

 

21

 

(e)           Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail (registered or certified, return receipt requested), telex,
telecopier, or air courier guaranteeing overnight delivery:

 

(i)            if
to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture; and

 

(ii)           if
to the Company:

 

Owens-Brockway
Glass Container Inc. 

One SeaGate

Toledo, OH 43666

Telecopier No.: 419-247-1218

Attention:  Treasurer

 

With a copy to:

 

Latham &
Watkins

505 Montgomery Street, Suite 1900

San Francisco, CA 94111

Telecopier No.: 415-395-8095

Attention:  Tracy K. Edmonson, Esq.

 

All such notices and communications shall be
deemed to have been duly given:  at the
time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if
telexed; when receipt acknowledged, if telecopied; and on the next Business
Day, if timely delivered to an air courier guaranteeing overnight delivery.

 

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

 

(f)            Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders of Transfer Restricted Securities; provided, however,
that this Agreement shall not inure to the benefit of or be binding upon a
successor or assign of a Holder unless and to the extent such successor or
assign acquired Transfer Restricted Securities from such Holder.

 

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

 

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

 

22

 

(i)            Severability.  In the event that 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.

 

(j)            Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein.  There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein with respect to the
registration rights granted by the Company and the Guarantors with respect to
the Transfer Restricted Securities. 
This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter.

 

(k)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(l)            Securities
Held by the Company, etc.  Whenever
the consent or approval of Holders of a specified percentage of principal
amount of Securities or New Securities is required hereunder, Securities or New
Securities, as applicable, held by the Company or its Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

23

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
building agreement among the Company, each of the Guarantors and the several
Initial Purchasers.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  OWENS-BROCKWAY GLASS
  CONTAINER

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ James W.
  Baehren

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James W. Baehren

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  On behalf of each entity named on the attached Exhibit
  A, in the capacity set forth for such entity on such Exhibit A

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ James W. Baehren

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James W. Baehren

  
	
   

  	
   

  
	
   

  	
   

  
	
  The foregoing Agreement is hereby confirmed
  and

  	
   

  
	
  accepted
  as of the date first above written.

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK SECURITIES INC.

  	
   

  
	
  BANC OF AMERICA SECURITIES LLC

  	
   

  
	
  CITIGROUP GLOBAL MARKETS INC.

  	
   

  
	
  BANC ONE CAPITAL MARKETS, INC.

  	
   

  
	
  BNP PARIBAS SECURITIES CORP.

  	
   

  
	
  CREDIT LYONNAIS SECURITIES (USA) INC.

  	
   

  
	
  FLEET SECURITIES, INC.

  	
   

  
	
  GOLDMAN, SACHS & CO.

  	
   

  
	
  SCOTIA CAPITAL (USA) INC.

  	
   

  
	
   

  	
   

  
	
  By:  DEUTSCHE BANK
  SECURITIES INC.

  	
   

  
	
   

  	
   

  
	
  By:  

  	
  /s/ Thomas
  V. Cole

  	
   

  	
   

  
	
   

  	
  Name:  Thomas V. Cole

  	
   

  
	
   

  	
  Title:   Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
  By:  

  	
  /s/ James J.
  Paris

  	
   

  	
   

  
	
   

  	
  Name:  James J. Paris

  	
   

  
	
   

  	
  Title:   Vice President

  	
   

  
									

 

24

 

 

Exhibit
A

 

	
  Name of Entity

  	
   

  	
  Title of
  Officer Executing

  on Behalf of Such Entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACI America Holdings
  Inc.

  	
   

  	
  Vice President and Secretary

  	
   

  
	
  Brockway Realty
  Corporation

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Brockway Research, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Continental PET
  Technologies, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  NHW Auburn, LLC

  	
   

  	
  Vice President
  and Secretary of its sole member

  	
   

  
	
  OB Cal South Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI AID STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Auburn Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Australia Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Brazil Closure Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI California
  Containers Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Castalia STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Consol STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Ecuador STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Europe & Asia
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI General Finance Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI General FTS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  O-I Health Care Holding
  Corp.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  O-I Holding Company,
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Hungary Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI International
  Holdings Inc.

  	
   

  	
  Vice President and
  Secretary

  	
   

  
	
  OI Levis Park STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Medical Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  

 

 

	
  Name of Entity

  	
   

  	
  Title of
  Officer Executing

  on Behalf of Such Entity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OI Peru STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Plastic Products FTS
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Poland Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Puerto Rico STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Regioplast STS Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OI Venezuela Plastic
  Products Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  OIB Produvisa Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Overseas Finance
  Company

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Brockway Glass
  Container Trading Company

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Brockway
  Packaging, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Brockway Plastic
  Products Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Illinois Closure
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Illinois General
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Illinois Group,
  Inc.

  	
   

  	
  Vice President,
  Director of Finance and Secretary

  	
   

  
	
  Owens-Illinois
  Prescription Products Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Owens-Illinois
  Specialty Products Puerto Rico, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Product Design &
  Engineering, Inc.

  	
   

  	
  Vice President and
  Secretary

  	
   

  
	
  SeaGate II, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  SeaGate III, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  SeaGate, Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Specialty Packaging
  Licensing Company

  	
   

  	
  Vice President
  and Secretary

  	
   

  
	
  Universal Materials,
  Inc.

  	
   

  	
  Vice President
  and Secretary

  	
   

  

 

2

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