Document:

Exhibit
4.5

 

 

GRAPHIC PACKAGING
INTERNATIONAL, INC.

 

 

and

 

 

GRAPHIC PACKAGING
CORPORATION,

 

 

and

 

 

GPI HOLDING, INC.

and the other Note
Guarantors from time to time parties hereto,

as Note Guarantors

 

 

and

 

 

WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION

as Trustee

 

 

 

 

INDENTURE

 

 

DATED AS OF
AUGUST 8, 2003

 

 

 

 

9.50% SENIOR
SUBORDINATED NOTES DUE 2013

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  
	
   

  	
   

  
	
  Section 101.

  	
  Definitions.

  
	
  Section 102.

  	
  Other
  Definitions.

  
	
  Section 103.

  	
  Rules
  of Construction

  
	
  Section 104.

  	
  Incorporation by
  Reference of TIA

  
	
  Section 105.

  	
  Conflict
  with TIA

  
	
  Section 106.

  	
  Compliance
  Certificates and Opinions

  
	
  Section 107.

  	
  Form of
  Documents Delivered to Trustee

  
	
  Section 108.

  	
  Acts of Noteholders;
  Record Dates

  
	
  Section 109.

  	
  Notices, etc., to
  Trustee and Company

  
	
  Section 110.

  	
  Notices to Holders; Waiver

  
	
  Section 111.

  	
  Effect of
  Headings and Table of Contents

  
	
  Section 112.

  	
  Successors
  and Assigns

  
	
  Section 113.

  	
  Separability
  Clause

  
	
  Section 114.

  	
  Benefits
  of Indenture

  
	
  Section 115.

  	
  GOVERNING LAW

  
	
  Section 116.

  	
  Legal Holidays

  
	
  Section 117.

  	
  No
  Personal Liability of Directors, Officers, Employees, Incorporators and
  Stockholders

  
	
  Section 118.

  	
  Exhibits
  and Schedules

  
	
  Section 119.

  	
  Counterparts

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  NOTE FORMS

  
	
   

  	
   

  
	
  Section 201.

  	
  Forms
  Generally

  
	
  Section 202.

  	
  Form of
  Trustee’s Certificate of Authentication

  
	
  Section 203.

  	
  Restrictive and
  Global Note Legends

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  
	
  Section 301.

  	
  Title and Terms

  
	
  Section 302.

  	
  Denominations

  
	
  Section 303.

  	
  Execution,
  Authentication and Delivery and Dating

  
	
  Section 304.

  	
  Temporary
  Notes

  
	
  Section 305.

  	
  Registration,
  Registration of Transfer and Exchange

  
			

 

 

	
  Section 306.

  	
  Mutilated,
  Destroyed, Lost and Stolen Notes

  
	
  Section 307.

  	
  Payment of
  Interest Rights Preserved

  
	
  Section 308.

  	
  Persons
  Deemed Owners

  
	
  Section 309.

  	
  Cancellation

  
	
  Section 310.

  	
  Computation
  of Interest

  
	
  Section 311.

  	
  CUSIP Numbers

  
	
  Section 312.

  	
  Book-Entry Provisions
  for Global Notes

  
	
  Section 313.

  	
  Special Transfer Provisions

  
	
  Section 314.

  	
  Payment of Additional
  Interest

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  
	
  Section 401.

  	
  Payment of
  Principal, Premium and Interest

  
	
  Section 402.

  	
  Maintenance of Office
  or Agency

  
	
  Section 403.

  	
  Money for
  Payments to Be Held in Trust

  
	
  Section 404.

  	
  [Reserved]

  
	
  Section 405.

  	
  SEC Reports

  
	
  Section 406.

  	
  Statement
  as to Default

  
	
  Section 407.

  	
  Limitation on Indebtedness

  
	
  Section 408.

  	
  Limitation
  on Layering

  
	
  Section 409.

  	
  Limitation on
  Restricted Payments

  
	
  Section 410.

  	
  Limitation
  on Restrictions on Distributions from Restricted Subsidiaries

  
	
  Section 411.

  	
  Limitation
  on Sales of Assets and Subsidiary Stock

  
	
  Section 412.

  	
  Limitation
  on Transactions with Affiliates

  
	
  Section 413.

  	
  Limitation
  on Liens

  
	
  Section 414.

  	
  Future
  Note Guarantors

  
	
  Section 415.

  	
  Purchase of
  Notes Upon a Change in Control

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  
	
  Section 501.

  	
  When the Company
  May Merge, etc

  
	
  Section 502.

  	
  Successor Company
  Substituted

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  
	
  Section 601.

  	
  Events of
  Default

  

 

ii

 

	
  Section 602.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  
	
  Section 603.

  	
  Other
  Remedies; Collection Suit by Trustee

  
	
  Section 604.

  	
  Trustee
  May File Proofs of Claim

  
	
  Section 605.

  	
  Trustee
  May Enforce Claims Without Possession of Notes

  
	
  Section 606.

  	
  Application of Money
  Collected

  
	
  Section 607.

  	
  Limitation
  on Suits

  
	
  Section 608.

  	
  Unconditional
  Right of Holders to Receive Principal and Interest

  
	
  Section 609.

  	
  Restoration of
  Rights and Remedies

  
	
  Section 610.

  	
  Rights and Remedies
  Cumulative

  
	
  Section 611.

  	
  Delay or Omission Not
  Waiver

  
	
  Section 612.

  	
  Control
  by Holders

  
	
  Section 613.

  	
  Waiver
  of Past Defaults

  
	
  Section 614.

  	
  Undertaking
  for Costs

  
	
  Section 615.

  	
  Waiver of Stay,
  Extension or Usury Laws

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  
	
  Section 701.

  	
  Certain Duties and
  Responsibilities

  
	
  Section 702.

  	
  Notice of
  Defaults

  
	
  Section 703.

  	
  Certain Rights of Trustee

  
	
  Section 704.

  	
  Not
  Responsible for Recitals or Issuance of Notes

  
	
  Section 705.

  	
  May Hold
  Notes

  
	
  Section 706.

  	
  Money
  Held in Trust

  
	
  Section 707.

  	
  Compensation and
  Reimbursement

  
	
  Section 708.

  	
  Conflicting
  Interests

  
	
  Section 709.

  	
  Corporate
  Trustee Required; Eligibility

  
	
  Section 710.

  	
  Resignation
  and Removal; Appointment of Successor

  
	
  Section 711.

  	
  Acceptance of
  Appointment by Successor

  
	
  Section 712.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  
	
  Section 713.

  	
  Preferential
  Collection of Claims Against the Company

  
	
  Section 714.

  	
  Appointment of
  Authenticating Agent

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  
	
  HOLDERS’ LISTS AND
  REPORTS BY TRUSTEE AND THE COMPANY

  
	
   

  	
   

  
	
  Section 801.

  	
  The
  Company to Furnish Trustee Names and Addresses of Holders

  
	
  Section 802.

  	
  Preservation
  of Information; Communications to Holders

  
	
  Section 803.

  	
  Reports
  by Trustee

  

 

iii

 

	
  ARTICLE IX

  
	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT OR
  WAIVER

  
	
   

  	
   

  
	
  Section 901.

  	
  Without Consent of Holders

  
	
  Section 902.

  	
  With
  Consent of Holders

  
	
  Section 903.

  	
  Execution
  of Amendments, Supplements or Waivers

  
	
  Section 904.

  	
  Revocation and Effect
  of Consents

  
	
  Section 905.

  	
  Conformity
  with TIA

  
	
  Section 906.

  	
  Notation on or
  Exchange of Notes

  
	
   

  	
   

  
	
  ARTICLE X

  
	
   

  	
   

  
	
  REDEMPTION OF NOTES

  
	
   

  	
   

  
	
  Section 1001.

  	
  Right
  of Redemption

  
	
  Section 1002.

  	
  Applicability of Article

  
	
  Section 1003.

  	
  Election to
  Redeem; Notice to Trustee

  
	
  Section 1004.

  	
  Selection
  by Trustee of Notes to Be Redeemed

  
	
  Section 1005.

  	
  Notice
  of Redemption

  
	
  Section 1006.

  	
  Deposit of Redemption Price

  
	
  Section 1007.

  	
  Notes Payable on
  Redemption Date

  
	
  Section 1008.

  	
  Notes
  Redeemed in Part

  
	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  	
   

  
	
  SATISFACTION AND
  DISCHARGE

  
	
   

  	
   

  
	
  Section 1101.

  	
  Satisfaction
  and Discharge of Indenture

  
	
  Section 1102.

  	
  Application of Trust Money

  
	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  	
   

  
	
  DEFEASANCE OR COVENANT
  DEFEASANCE

  
	
   

  	
   

  
	
  Section 1201.

  	
  The
  Company’s Option to Effect Defeasance or Covenant Defeasance

  
	
  Section 1202.

  	
  Defeasance and Discharge

  
	
  Section 1203.

  	
  Covenant
  Defeasance

  
	
  Section 1204.

  	
  Conditions
  to Defeasance or Covenant Defeasance

  
	
  Section 1205.

  	
  Deposited
  Money and U.S. Government Obligations To Be Held in Trust; Other
  Miscellaneous Provisions

  
	
  Section 1206.

  	
  Reinstatement

  
	
  Section 1207.

  	
  Repayment
  to the Company

  

 

iv

 

	
  ARTICLE XIII

  
	
   

  	
   

  
	
  NOTE GUARANTEES

  
	
   

  	
   

  
	
  Section 1301.

  	
  Guarantees
  Generally

  
	
  Section 1302.

  	
  Continuing
  Guarantees

  
	
  Section 1303.

  	
  Release of Note Guarantees

  
	
  Section 1304.

  	
  Agreement
  to Subordinate

  
	
  Section 1305.

  	
  Waiver
  of Subrogation

  
	
  Section 1306.

  	
  Notation
  Not Required

  
	
  Section 1307.

  	
  Successors
  and Assigns of Note Guarantors

  
	
  Section 1308.

  	
  Execution
  and Delivery of Subsidiary Guarantees

  
	
  Section 1309.

  	
  Notices

  
	
   

  	
   

  
	
  ARTICLE XIV

  
	
   

  	
   

  
	
  SUBORDINATION

  
	
   

  	
   

  
	
  Section 1401.

  	
  Agreement to Subordinate

  
	
  Section 1402.

  	
  Liquidation,
  Dissolution or Bankruptcy

  
	
  Section 1403.

  	
  Default on Senior
  Indebtedness

  
	
  Section 1404.

  	
  Acceleration of
  Payment of Notes

  
	
  Section 1405.

  	
  When a
  Distribution Must Be Paid Over

  
	
  Section 1406.

  	
  Subrogation

  
	
  Section 1407.

  	
  Relative
  Rights

  
	
  Section 1408.

  	
  Subordination
  May Not Be Impaired by the Company

  
	
  Section 1409.

  	
  Rights of Trustee
  and Paying Agent

  
	
  Section 1410.

  	
  Distribution
  or Notice to Representative

  
	
  Section 1411.

  	
  Article 14
  Not to Prevent Events of Default or Limit Right to Accelerate

  
	
  Section 1412.

  	
  Trust Moneys Not
  Subordinated

  
	
  Section 1413.

  	
  Trustee
  Entitled to Rely

  
	
  Section 1414.

  	
  Trustee to
  Effectuate Subordination

  
	
  Section 1415.

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness

  
	
  Section 1416.

  	
  Reliance
  by Holders of Senior Indebtedness on Subordination Provisions

  
	
  Section 1417.

  	
  Trustee’s
  Compensation Not Prejudiced

  
	
   

  	
   

  
	
  ARTICLE XV

  
	
   

  	
   

  
	
  SUBORDINATION OF NOTE
  GUARANTEES

  
	
   

  	
   

  
	
  Section 1501.

  	
  Agreement to Subordinate

  
	
  Section 1502.

  	
  Liquidation,
  Dissolution or Bankruptcy

  
	
  Section 1503.

  	
  Default on Senior Indebtedness

  
	
  Section 1504.

  	
  Acceleration of
  Payment of Notes

  

 

v

 

	
  Section 1505.

  	
  When a
  Distribution Must Be Paid Over

  
	
  Section 1506.

  	
  Subrogation

  
	
  Section 1507.

  	
  Relative Rights

  
	
  Section 1508.

  	
  Subordination
  May Not Be Impaired by Note Guarantors

  
	
  Section 1509.

  	
  Rights of Trustee
  and Paying Agent

  
	
  Section 1510.

  	
  Distribution
  or Notice to Representative

  
	
  Section 1511.

  	
  Article 15
  Not to Prevent Events of Default or Limit Right to Accelerate

  
	
  Section 1512.

  	
  Trust Moneys Not
  Subordinated

  
	
  Section 1513.

  	
  Trustee
  Entitled to Rely

  
	
  Section 1514.

  	
  Trustee to
  Effectuate Subordination

  
	
  Section 1515.

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness

  
	
  Section 1516.

  	
  Reliance
  by Holders of Senior Indebtedness on Subordination Provisions

  
	
  Section 1517.

  	
  Trustee’s
  Compensation Not Prejudiced

  
	
   

  
	
  Exhibit A

  	
  Form of Note

  
	
  Exhibit
  B

  	
  Form of
  Certificate of Beneficial Ownership

  
	
  Exhibit
  C

  	
  Form of Regulation S
  Certificate

  
	
  Exhibit
  D

  	
  Form of Supplemental
  Indenture

  
			

 

vi

 

Certain Sections
of this Indenture relating to Sections 310 through 318

inclusive of the Trust Indenture Act of 1939:

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  § 310(a)(1)

  	
   

  	
  709

  	
   

  
	
  (a)(2)

  	
   

  	
  709

  	
   

  
	
  (a)(3)

  	
   

  	
  Not Applicable

  	
   

  
	
  (a)(4)

  	
   

  	
  Not Applicable

  	
   

  
	
  (b)

  	
   

  	
  708

  	
   

  
	
  § 311(a)

  	
   

  	
  713

  	
   

  
	
  (b)

  	
   

  	
  713

  	
   

  
	
  (b)(2)

  	
   

  	
  803

  	
   

  
	
  § 312(a)

  	
   

  	
  801

  	
   

  
	
   

  	
   

  	
  802

  	
   

  
	
  (b)

  	
   

  	
  802

  	
   

  
	
  (c)

  	
   

  	
  802

  	
   

  
	
  § 313(a)

  	
   

  	
  803

  	
   

  
	
  (b)

  	
   

  	
  803

  	
   

  
	
  (c)

  	
   

  	
  803

  	
   

  
	
  (d)

  	
   

  	
  803

  	
   

  
	
  § 314(a)

  	
   

  	
  405

  	
   

  
	
  (a)(4)

  	
   

  	
  106

  	
   

  
	
   

  	
   

  	
  406

  	
   

  
	
  (b)

  	
   

  	
  Not Applicable

  	
   

  
	
  (c)(1)

  	
   

  	
  106

  	
   

  
	
  (c)(2)

  	
   

  	
  106

  	
   

  
	
  (c)(3)

  	
   

  	
  Not Applicable

  	
   

  
	
  (d)

  	
   

  	
  Not Applicable

  	
   

  
	
  (e)

  	
   

  	
  106

  	
   

  

 

vii

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  § 315(a)

  	
   

  	
  701

  	
   

  
	
  (b)

  	
   

  	
  702

  	
   

  
	
   

  	
   

  	
  803

  	
   

  
	
  (c)

  	
   

  	
  701

  	
   

  
	
  (d)

  	
   

  	
  701

  	
   

  
	
  (d)(1)

  	
   

  	
  701

  	
   

  
	
  (d)(2)

  	
   

  	
  701

  	
   

  
	
  (d)(3)

  	
   

  	
  612

  	
   

  
	
  (e)

  	
   

  	
  614

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  § 316(a)

  	
   

  	
  612

  	
   

  
	
   

  	
   

  	
  613

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  602

  	
   

  
	
   

  	
   

  	
  612

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  613

  	
   

  
	
  (a)(2)

  	
   

  	
  Not Applicable

  	
   

  
	
  (b)

  	
   

  	
  608

  	
   

  
	
  (c)

  	
   

  	
  104

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  § 317(a)(1)

  	
   

  	
  603

  	
   

  
	
  (a)(2)

  	
   

  	
  604

  	
   

  
	
  (b)

  	
   

  	
  403

  	
   

  
	
  § 318(a)

  	
   

  	
  107

  	
   

  

 

This cross-reference
table shall not for any purpose be deemed to be part of this Indenture.

 

viii

 

INDENTURE,
dated as of August 8, 2003 (as amended, supplemented or otherwise modified
from time to time, this “Indenture”), among Graphic Packaging
International, Inc., a corporation organized under the laws of the state of
Delaware, as issuer, Graphic Packaging Corporation,  a corporation organized under the laws of Delaware, and GPI
Holding, Inc., a corporation organized under the laws of Colorado, as Note
Guarantors; and Wells Fargo Bank Minnesota, National Association, a national
banking association, as Trustee.

 

RECITALS OF THE COMPANY
AND NOTE GUARANTORS

 

The Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of the Notes.  Each Note
Guarantor party hereto as of the date hereof has duly authorized the execution
and delivery of this Indenture to provide for its guarantee of the Notes, as
provided in this Indenture.  Each Note
Guarantor party hereto as of the date hereof has received good and valuable
consideration for its execution and delivery of this Indenture and its
guarantee of the Notes.

 

All things necessary to
make the Original Notes, when executed and delivered by the Company and
authenticated and delivered by the Trustee hereunder and duly issued by the
Company, the valid several obligations of the Company, and to make this
Indenture a valid agreement of the Company and each Note Guarantor party hereto
as of the date hereof, in accordance with the terms of the Original Notes and
this Indenture, have been done.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

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

 

ARTICLE
I

 

DEFINITIONS AND
OTHER PROVISIONS

OF GENERAL
APPLICATION

 

Section 101.                                Definitions.

 

“Acquired Indebtedness”
means Indebtedness of a Person (i)
existing at the time such Person becomes a Subsidiary or (ii) assumed in connection with the
acquisition of assets from such Person, in each case other than Indebtedness
Incurred in connection with, or in contemplation of, such Person becoming a
Subsidiary or such acquisition. Acquired Indebtedness shall be deemed to be
Incurred on the date of the related acquisition of assets from any Person or
the date the acquired Person becomes a Subsidiary.

 

 

“Additional Assets”
means (i) any property or assets
that replace the property or assets that are the subject of an Asset
Disposition; (ii) any property or
assets (other than Indebtedness and Capital Stock) to be used by the Company or
a Restricted Subsidiary in a Related Business; (iii) the Capital Stock of a Person that is engaged in a
Related Business and becomes a Restricted Subsidiary as a result of the
acquisition of such Capital Stock by the Company or another Restricted
Subsidiary; or (iv) Capital Stock
of any Person that at such time is a Restricted Subsidiary acquired from a
third party.

 

“Additional Notes”
means any notes issued under this Indenture in addition to the Original Notes
(other than any Notes issued pursuant to Section 304, 305, 306,
312(c), 312(d) or 1008).

 

“Affiliate” of any
specified Person means any other Person, directly or indirectly, controlling or
controlled by or under direct or indirect common control with such specified
Person. For the purposes of this definition, “control” when used with
respect to any Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

“Asset Disposition”
means any sale, lease, transfer or other disposition of shares of Capital Stock
of a Restricted Subsidiary (other than directors’ qualifying shares, or (in the
case of a Foreign Subsidiary) to the extent required by applicable law),
property or other assets (each referred to for the purposes of this definition
as a “disposition”) by the Company or any of its Restricted Subsidiaries
(including any disposition by means of a merger, consolidation or similar
transaction), other than (i) a
disposition to the Company or a Restricted Subsidiary, (ii) a disposition in the ordinary course
of business, (iii) the sale or
discount (with or without recourse, and on customary or commercially reasonable
terms) of accounts receivable or notes receivable arising in the ordinary
course of business, or the conversion or exchange of accounts receivable for
notes receivable, (iv) any
Restricted Payment Transaction, (v)
a disposition that is governed by Article V, (vi) any Financing Disposition, (vii) any “fee in lieu” or other
disposition of assets to any governmental authority or agency that continue in
use by the Company or any Restricted Subsidiary, so long as the Company or any
Restricted Subsidiary may obtain title to such assets upon reasonable notice by
paying a nominal fee, (viii) any
exchange of like property pursuant to Section 1031 (or any successor
section) of the Code, or any exchange of equipment to be used in a Related
Business, (ix) any financing
transaction with respect to property built or acquired by the Company or any
Restricted Subsidiary after the Issue Date, including any sale/leaseback
transaction or asset securitization, (x)
any disposition arising from foreclosure, condemnation or similar action with
respect to any property or other assets, (xi)
any disposition of Capital Stock, Indebtedness or other securities of an
Unrestricted Subsidiary, (xii) a
disposition of Capital Stock of a Restricted Subsidiary pursuant to an
agreement or other obligation with or to a Person (other than the Company or a
Restricted Subsidiary) from whom such Restricted Subsidiary was acquired, or
from whom such Restricted Subsidiary acquired its business and assets (having
been newly formed in connection with such acquisition), entered into in
connection with such acquisition, (xiii)
a disposition of not more than 5% of the outstanding Capital Stock of a Foreign

 

2

 

Subsidiary that has been approved by the Board of Directors, (xiv) any Fiskeby Transaction, or (xv) any disposition or series of related
dispositions for aggregate consideration not to exceed $5.0 million.

 

“Authenticating Agent”
means any Person authorized by the Trustee pursuant to Section 714
to act on behalf of the Trustee to authenticate Notes of one or more series.

 

“Bank Indebtedness”
means any and all amounts, whether outstanding on the Issue Date or thereafter
incurred, payable under or in respect of any Credit Facility, including
principal, premium (if any), interest (including interest accruing on or after
the filing of any petition in bankruptcy or for reorganization relating to the
Company or any Restricted Subsidiary whether or not a claim for post-filing
interest is allowed in such proceedings), fees, charges, expenses,
reimbursement obligations, guarantees, other monetary obligations of any nature
and all other amounts payable thereunder or in respect thereof.

 

“Board of Directors”
means the board of directors or other governing body of the Company or, if the
Company is owned or managed by a single entity, the board of directors or other
governing body of such entity, or, in either case, any committee thereof duly
authorized to act on behalf of such board or governing body.

 

“Borrowing Base”
means the sum (determined as of the end of the most recently ended fiscal
quarter for which consolidated financial statements of the Company are
available) of (1) 60% of
Inventory of the Company and its Restricted Subsidiaries and (2) 85% of Receivables of the Company and
its Restricted Subsidiaries.

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial
banking institutions are authorized or required by law to close in New York
City.

 

“Capital Stock” of
any Person means any and all shares of, rights to purchase, warrants or options
for, or other equivalents of or interests in (however designated) equity of
such Person, including any Preferred Stock, but excluding any debt securities
convertible into such equity.

 

“Capitalized Lease
Obligation” means an obligation that is required to be classified and
accounted for as a capitalized lease for financial reporting purposes in
accordance with GAAP. The Stated Maturity of any Capitalized Lease Obligation
shall be the date of the last payment of rent or any other amount due under the
related lease.

 

“Cash Equivalents”
means any of the following:  (a) securities issued or fully guaranteed
or insured by the United States Government or any agency or instrumentality
thereof, (b) time deposits,
certificates of deposit or bankers’ acceptances of (i) any lender under the Senior Credit Agreement or (ii) any commercial bank having capital and
surplus in excess of $500,000,000 and the commercial paper of the holding
company of which is rated at least A-1 or the equivalent thereof by S&P or
at least P-1 or the equivalent thereof by Moody’s (or if at such time neither
is issuing ratings, then a comparable rating of another nationally recognized
rating

 

3

 

agency), (c) commercial
paper rated at least A-1 or the equivalent thereof by S&P or at least P-1
or the equivalent thereof by Moody’s (or if at such time neither is issuing
ratings, then a comparable rating of another nationally recognized rating
agency), (d) investments in money
market funds complying with the risk limiting conditions of Rule 2a-7 or any
successor rule of the SEC under the Investment Company Act of 1940, as amended
and (e) investments similar to
any of the foregoing denominated in foreign currencies approved by the Board of
Directors.

 

“CDR” means
Clayton, Dubilier & Rice, Inc.

 

“CDR Fund V” means
Clayton, Dubilier & Rice Fund V Limited Partnership, a Cayman Islands
exempted limited partnership, and any successor in interest thereto.

 

“Change of Control”
means:

 

(i)                                     any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than one or more Permitted Holders, becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of
the Company, provided that (x) so long as the Company is a Subsidiary
of Holding, no “person” shall be deemed to be or become a “beneficial owner” of
more than 50% of the total voting power of the Voting Stock of the Company
unless such “person” shall be or become a “beneficial owner” of more than 50%
of the total voting power of the Voting Stock of Holding and (y) any Voting Stock of which any Permitted
Holder is the “beneficial owner” shall not in any case be included in any
Voting Stock of which any such “person” is the beneficial owner;

 

(ii)                                  the
Company merges or consolidates with or into, or sells or transfers (in one or a
series of related transactions) all or substantially all of the assets of the
Company and its Restricted Subsidiaries to, another Person (other than one or
more Permitted Holders) and any “person” (as defined in clause (i) above),
other than one or more Permitted Holders, Holding or GPI Holding, is or becomes
the “beneficial owner” (as so defined), directly or indirectly, of more than
50% of the total voting power of the Voting Stock of the surviving Person in
such merger or consolidation, or the transferee Person in such sale or transfer
of assets, as the case may be, provided
that (x) so long as such
surviving or transferee Person is a Subsidiary of a parent Person, no “person”
shall be deemed to be or become a “beneficial owner” of more than 50% of the
total voting power of the Voting Stock of such surviving or transferee Person
unless such “person” shall be or become a “beneficial owner” of more than 50%
of the total voting power of the Voting Stock of such parent Person and (y) any Voting Stock of which any Permitted
Holder is the “beneficial owner” shall not in any case be included in any
Voting Stock of which any such “person” is the beneficial owner; or

 

(iii)                               during
any period of two consecutive years (during which period the Company has been a
party to this Indenture), individuals who at the beginning of such

 

4

 

period were members of
the board of directors of the Company (together with any new members thereof
whose election by such board of directors or whose nomination for election by
holders of Capital Stock of the Company was approved by one or more Permitted
Holders or by a vote of a majority of the members of such board of directors
then still in office who were either members thereof at the beginning of such
period or whose election or nomination for election was previously so approved)
cease for any reason to constitute a majority of such board of directors then
in office.

 

“Clearstream”
means Clearstream Banking, société anonyme, or any successor securities
clearing agency.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Commodities
Agreements” means, in respect of a Person, any commodity futures contract,
forward contract, option or similar agreement or arrangement (including
derivative agreements or arrangements), as to which such Person is a party or
beneficiary.

 

“Company” means
Graphic Packaging International, Inc., a Delaware corporation, and any
successor in interest thereto.

 

“Company Request”,
“Company Order” and “Company Consent” mean, respectively, a
written request, order or consent signed in the name of the Company by an
Officer of the Company.

 

“Consolidated Coverage
Ratio” as of any date of determination means the ratio of (i) the aggregate amount of Consolidated
EBITDA of the Company and its Restricted Subsidiaries for the period of the
most recent four consecutive fiscal quarters ending prior to the date of such
determination for which consolidated financial statements of the Company are
available to (ii) Consolidated
Interest Expense for such four fiscal quarters (in each of the foregoing
clauses (i) and (ii), determined for each fiscal quarter (or portion thereof)
of the four fiscal quarters ending prior to the Issue Date, on a pro forma basis to give effect to the
Transactions as if they had occurred at the beginning of such four-quarter
period); provided, that

 

(1)                                  if
since the beginning of such period the Company or any Restricted Subsidiary has
Incurred any Indebtedness that remains outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is an Incurrence of Indebtedness, Consolidated
EBITDA and Consolidated Interest Expense for such period shall be calculated
after giving effect on a pro forma
basis to such Indebtedness as if such Indebtedness had been Incurred on the
first day of such period (except that in making such computation, the amount of
Indebtedness under any revolving credit facility outstanding on the date of
such calculation shall be computed based on (A)
the average daily balance of such Indebtedness during such four fiscal quarters
or such shorter period for which such facility was outstanding or (B) if such facility was created after the
end of such four fiscal

 

5

 

quarters, the average daily
balance of such Indebtedness during the period from the date of creation of
such facility to the date of such calculation),

 

(2)                                  if
since the beginning of such period the Company or any Restricted Subsidiary has
repaid, repurchased, redeemed, defeased or otherwise acquired, retired or
discharged any Indebtedness that is no longer outstanding on such date of
determination (each, a “Discharge”) or if the transaction giving rise to
the need to calculate the Consolidated Coverage Ratio involves a Discharge of
Indebtedness (in each case other than Indebtedness Incurred under any revolving
credit facility unless such Indebtedness has been permanently repaid),
Consolidated EBITDA and Consolidated Interest Expense for such period shall be
calculated after giving effect on a pro
forma basis to such Discharge of such Indebtedness, including with
the proceeds of such new Indebtedness, as if such Discharge had occurred on the
first day of such period,

 

(3)                                  if
since the beginning of such period the Company or any Restricted Subsidiary
shall have disposed of any company, any business or any group of assets
constituting an operating unit of a business (any such disposition, a “Sale”),
the Consolidated EBITDA for such period shall be reduced by an amount equal to
the Consolidated EBITDA (if positive) attributable to the assets that are the
subject of such Sale for such period or increased by an amount equal to the
Consolidated EBITDA (if negative) attributable thereto for such period and
Consolidated Interest Expense for such period shall be reduced by an amount
equal to (A) the Consolidated
Interest Expense attributable to any Indebtedness of the Company or any
Restricted Subsidiary repaid, repurchased, redeemed, defeased or otherwise
acquired, retired or discharged with respect to the Company and its continuing
Restricted Subsidiaries in connection with such Sale for such period (including
through the assumption of such Indebtedness by another Person) plus (B)
if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period attributable to the Indebtedness of such
Restricted Subsidiary to the extent the Company and its continuing Restricted
Subsidiaries are no longer liable for such Indebtedness after such Sale,

 

(4)                                  if
since the beginning of such period the Company or any Restricted Subsidiary (by
merger, consolidation or otherwise) shall have made an Investment in any Person
that thereby becomes a Restricted Subsidiary, or otherwise acquired any
company, any business or any group of assets constituting an operating unit of
a business, including any such Investment or acquisition occurring in
connection with a transaction causing a calculation to be made hereunder (any
such Investment or acquisition, a “Purchase”), Consolidated EBITDA and
Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto (including the
Incurrence of any related Indebtedness) as if such Purchase occurred on the
first day of such period, and

 

(5)                                  if
since the beginning of such period any Person became a Restricted Subsidiary or
was merged or consolidated with or into the Company or any Restricted
Subsidiary, and since the beginning of such period such Person shall have
Discharged any

 

6

 

Indebtedness or made any
Sale or Purchase that would have required an adjustment pursuant to clause (2),
(3) or (4) above if made by the Company or a Restricted Subsidiary during such
period, Consolidated EBITDA and Consolidated Interest Expense for such period
shall be calculated after giving pro forma
effect thereto as if such Discharge, Sale or Purchase occurred on the first day
of such period.

 

For purposes of this
definition, whenever pro forma
effect is to be given to any Sale, Purchase or other transaction, or the amount
of income or earnings relating thereto and the amount of Consolidated Interest
Expense associated with any Indebtedness Incurred or repaid, repurchased,
redeemed, defeased or otherwise acquired, retired or discharged in connection
therewith, the pro forma
calculations in respect thereof (including in respect of anticipated cost
savings or synergies relating to any such Sale, Purchase or other transaction)
shall be as determined in good faith by a responsible financial or accounting
Officer of the Company.  If any
Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on
such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any Interest Rate Agreement applicable to such Indebtedness).  If any Indebtedness bears, at the option of
the Company or a Restricted Subsidiary, a rate of interest based on a prime or
similar rate, a eurocurrency interbank offered rate or other fixed or floating
rate, and such Indebtedness is being given pro
forma effect, the interest expense on such Indebtedness shall be
calculated by applying such optional rate as the Company or such Restricted
Subsidiary may designate.  If any
Indebtedness that is being given pro forma
effect was Incurred under a revolving credit facility, the interest expense on
such Indebtedness shall be computed based upon the average daily balance of
such Indebtedness during the applicable period. Interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate determined in good
faith by a responsible financial or accounting Officer of the Company to be the
rate of interest implicit in such Capitalized Lease Obligation in accordance
with GAAP.

 

“Consolidated EBITDA”
means, for any period, the Consolidated Net Income for such period, plus the
following to the extent deducted in calculating such Consolidated Net
Income:  (i) provision for all taxes (whether or not paid, estimated
or accrued) based on income, profits or capital, (ii) Consolidated Interest Expense and any Receivables Fees,
(iii) depreciation, amortization
(including amortization of goodwill and intangibles and amortization and
write-off of financing costs) and all other non-cash charges or non-cash
losses, (iv) any expenses or
charges related to any Equity Offering, Investment or Indebtedness permitted by
this Indenture (whether or not consummated or incurred) and (v) the amount of any minority interest
expense.

 

“Consolidated Interest
Expense” means, for any period, (i)
the total interest expense of the Company and its Restricted Subsidiaries to
the extent deducted in calculating Consolidated Net Income, net of any interest
income of the Company and its Restricted Subsidiaries, including any such
interest expense consisting of (a)
interest expense attributable to Capitalized Lease Obligations, (b) amortization of debt discount, (c) interest in respect of Indebtedness of
any other Person that has been Guaranteed by the Company or any Restricted
Subsidiary, but only to the extent that such interest is actually paid by the
Company or any

 

7

 

Restricted Subsidiary, (d)
non-cash interest expense, (e)
the interest portion of any deferred payment obligation and (f) commissions, discounts and other fees
and charges owed with respect to letters of credit and bankers’ acceptance
financing, plus (ii) Preferred
Stock dividends paid in cash in respect of Disqualified Stock of the Company
held by Persons other than the Company or a Restricted Subsidiary and minus (iii) to the extent otherwise included in
such interest expense referred to in clause (i) above, Receivables Fees and
amortization or write-off of financing costs, in each case under clauses (i)
through (iii) as determined on a Consolidated basis in accordance with GAAP; provided, that gross interest expense
shall be determined after giving effect to any net payments made or received by
the Company and its Restricted Subsidiaries with respect to Interest Rate
Agreements.

 

“Consolidated Net
Income” means, for any period, the net income (loss) of the Company and its
Restricted Subsidiaries, determined on a consolidated basis in accordance with
GAAP and before any reduction in respect of Preferred Stock dividends; provided, that there shall not be included
in such Consolidated Net Income:

 

(i)                                     any
net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that (A) subject to the
limitations contained in clause (iii) below, the Company’s equity in the net
income of any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount actually distributed by such
Person during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other
distribution to a Restricted Subsidiary, to the limitations contained in clause
(ii) below) and (B) the Company’s
equity in the net loss of such Person shall be included to the extent of the
aggregate Investment of the Company or any of its Restricted Subsidiaries in
such Person,

 

(ii)                                  any
net income (loss) of any Restricted Subsidiary that is not a Note Guarantor if
such Restricted Subsidiary is subject to restrictions, directly or indirectly,
on the payment of dividends or the making of similar distributions by such
Restricted Subsidiary, directly or indirectly, to the Company by operation of
the terms of such Restricted Subsidiary’s charter or any agreement, instrument,
judgment, decree, order, statute or governmental rule or regulation applicable
to such Restricted Subsidiary or its stockholders (other than (x) restrictions that have been waived or
otherwise released, (y)
restrictions pursuant to the Senior Notes, the Notes, the Senior Indenture or
this Indenture and (z)
restrictions in effect on the Issue Date with respect to a Restricted
Subsidiary and other restrictions with respect to such Restricted Subsidiary
that taken as a whole are not materially less favorable to the Noteholders than
such restrictions in effect on the Issue Date), except that (A) subject to the limitations contained in
clause (iii) below, the Company’s equity in the net income of any such
Restricted Subsidiary for such period shall be included in such Consolidated
Net Income up to the aggregate amount of any dividend or distribution that was
or that could have been made by such Restricted Subsidiary during such period
to the Company or another Restricted Subsidiary (subject, in the case of a
dividend that could have been made to another Restricted Subsidiary, to the
limitation contained in this clause) and (B)
the net loss of such Restricted Subsidiary shall be included

 

8

 

to the extent of the
aggregate Investment of the Company or any of its other Restricted Subsidiaries
in such Restricted Subsidiary,

 

(iii)                               any
gain or loss realized upon the sale or other disposition of any asset of the
Company or any Restricted Subsidiary (including pursuant to any sale/leaseback
transaction) that is not sold or otherwise disposed of in the ordinary course
of business (as determined in good faith by the Board of Directors),

 

(iv)                              any
item classified as an extraordinary, unusual or nonrecurring gain, loss or
charge (including fees, expenses and charges associated with Transactions and
any acquisition, merger or consolidation after the Issue Date),

 

(v)                                 the
cumulative effect of a change in accounting principles,

 

(vi)                              all
deferred financing costs written off and premiums paid in connection with any
early extinguishment of Indebtedness,

 

(vii)                           any
unrealized gains or losses in respect of Currency Agreements,

 

(viii)                        any
unrealized foreign currency transaction gains or losses in respect of
Indebtedness of any Person denominated in a currency other than the functional
currency of such Person,

 

(ix)                                any
non-cash compensation charge arising from any grant of stock, stock options or
other equity based awards, and

 

(x)                                   to
the extent otherwise included in Consolidated Net Income, any unrealized
foreign currency translation or transaction gains or losses in respect of
Indebtedness or other obligations of the Company or any Restricted Subsidiary
owing to the Company or any Restricted Subsidiary.

 

In the case of any
unusual or nonrecurring gain, loss or charge not included in Consolidated Net
Income pursuant to clause (iv) above in any determination thereof, the Company
will deliver an Officer’s Certificate to the Trustee promptly after the date on
which Consolidated Net Income is so determined, setting forth the nature and
amount of such unusual or nonrecurring gain, loss or charge. Notwithstanding
the foregoing, for the purpose of Section 409(a)(3)(A) only, there
shall be excluded from Consolidated Net Income, without duplication, any
dividends, repayments of loans or advances or other transfers of assets from
Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the
extent such dividends, repayments or transfers are applied by the Company to
increase the amount of Restricted Payments permitted under  Section 409(a)(3)(C) or (D).

 

“Consolidated Tangible
Assets” means, as of any date of determination, the total assets less the
total intangible assets (including, without limitation, goodwill), in each case
shown on the consolidated balance sheet of the Company and its Restricted
Subsidiaries as of the most

 

9

 

recent date for which such a balance sheet is available, determined on
a consolidated basis in accordance with GAAP (and, in the case of any
determination relating to any Incurrence of Indebtedness or any Investment, on
a pro forma basis including any
property or assets being acquired in connection therewith); provided that for purposes of Section 407(b),
Section 411 and the definition of “Permitted Investment,”
Consolidated Tangible Assets shall not be less than $2,409.0 million.

 

“Consolidation”
means the consolidation of the accounts of each of the Restricted Subsidiaries
with those of the Company in accordance with GAAP; provided that “Consolidation” will not include consolidation
of the accounts of any Unrestricted Subsidiary, but the interest of the Company
or any Restricted Subsidiary in any Unrestricted Subsidiary will be accounted
for as an investment. The term “Consolidated” has a correlative meaning.

 

“Coors Stockholders”
means (i) Adolph Coors, Jr. Trust
dated September 12, 1969; Augusta Coors Collbran Trust dated July 5,
1946; Bertha Coors Munroe Trust dated July 5, 1946; Grover C. Coors Trust
dated August 7, 1952; Herman F. Coors Trust dated July 5, 1946; Janet
H. Coors Irrevocable Trust FBO Frances M. Baker dated July 27, 1976; Janet
H. Coors Irrevocable Trust FBO Frank E. Ferrin dated July 27, 1976; Janet
H. Coors Irrevocable Trust FBO Joseph J. Ferrin dated July 27, 1976;
Joseph Coors Trust dated December 14, 1988; Louise Coors Porter Trust
dated July 5, 1946; May Kistler Coors Trust dated September 24,
1965; Darden K. Coors; Jeffrey H. Coors; John K. Coors; Joseph Coors, Jr.;
Peter H. Coors; William K. Coors; and Adolph Coors Foundation; (ii) a spouse or lineal descendant (whether
natural or adopted), sibling, parent, heir, executor, administrator,
testamentary trustee, lifetime trustee or legatee of Adolph Coors, Jr. or the
Persons named in clause (i) above; (iii)
any trust, the primary beneficiaries of which are named in clause (i) or (ii)
above; (iv) the trustees or any
Affiliates of any trust named in clause (i) or (iii) above; (v) the beneficiary or beneficiaries authorized
or entitled to receive distributions from any trust named in clause (i) or
(iii) above; or (vi) any
corporation, limited liability company or partnership, the stockholders,
members or general or limited partners of which include only the Persons named
in clause (i) or (ii) above; and any of their respective successors in
interest.

 

“Corporate Trust
Office” means the office of the Trustee in the Borough of Manhattan, the
City of New York, at which at any particular time its corporate trust business shall
be administered, which office on the Issue Date is located at c/o Deutsche
Bank, 14 Wall Street, 4th Floor, Window #44, New York, New York
10005, Attn: John Maloney/Account 092192.

 

“Credit Facilities”
means one or more of (i) the
Senior Credit Facility and (ii)
other facilities or arrangements designated by the Company, in each case with
one or more banks or other institutions providing for revolving credit loans,
term loans, receivables financings (including through the sale of receivables
to such institutions or to special purpose entities formed to borrow from such
institutions against such receivables), letters of credit or other
Indebtedness, in each case, including all agreements, instruments and documents
executed and delivered pursuant to or in connection with any of the foregoing,
including any notes and letters of credit issued pursuant

 

10

 

thereto and any guarantee and collateral agreement, patent and
trademark security agreement, mortgages or letter of credit applications and
other guarantees, pledge agreements, security agreements and collateral
documents, in each case as the same may be amended, supplemented, waived or
otherwise modified from time to time, or refunded, refinanced, restructured,
replaced, renewed, repaid, increased or extended from time to time (whether in
whole or in part, whether with the original banks or other institutions or
other banks or other institutions or otherwise, and whether provided under any
original Credit Facility or one or more other credit agreements, indentures,
financing agreements or other Credit Facilities or otherwise). Without limiting
the generality of the foregoing, the term “Credit Facility” shall include any
agreement (i) changing the
maturity of any Indebtedness Incurred thereunder or contemplated thereby, (ii) adding Subsidiaries as additional
borrowers or guarantors thereunder, (iii)
increasing the amount of Indebtedness Incurred thereunder or available to be
borrowed thereunder or (iv)
otherwise altering the terms and conditions thereof.

 

“Currency Agreement”
means, in respect of a Person, any foreign exchange contract, currency swap
agreement or other similar agreement or arrangements (including derivative
agreements or arrangements), as to which such Person is a party or a
beneficiary.

 

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

 

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

 

“Designated Non-Cash
Consideration” means the Fair Market Value of non-cash consideration
received by the Company or one of its Restricted Subsidiaries in connection
with an Asset Disposition that is so designated as Designated Non-Cash
Consideration pursuant to an Officer’s Certificate, setting forth the basis of
such valuation.

 

“Designated Senior
Indebtedness” means with respect to a Person (i) the Bank Indebtedness and (ii) any other Senior Indebtedness of such Person that, at
the date of determination, has an aggregate principal amount equal to or under
which, at the date of determination, the holders thereof are committed to lend
up to, at least $15.0 million and is specifically designated by such Person in
an agreement or instrument evidencing or governing such Senior Indebtedness as
“Designated Senior Indebtedness” for purposes of this Indenture.

 

“Disinterested
Director” means, with respect to any Affiliate Transaction, a member of the
Board of Directors having no material direct or indirect financial interest in
or with respect to such Affiliate Transaction. A member of the Board of
Directors shall not be deemed to have such a financial interest by reason of
such member’s holding Capital Stock of the Company or Holding or any options,
warrants or other rights in respect of such Capital Stock.

 

“Disqualified Stock”
means, with respect to any Person, any Capital Stock (other than Management
Stock) that by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable or exercisable) or upon the
happening of any event

 

11

 

(other than following the occurrence of a Change of Control or other
similar event described under such terms as a “change of control,” or an Asset
Disposition) (i) matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (ii) is convertible or exchangeable for
Indebtedness or Disqualified Stock or (iii)
is redeemable at the option of the holder thereof (other than following the
occurrence of a Change of Control or other similar event described under such
terms as a “change of control,” or an Asset Disposition), in whole or in part,
in each case on or prior to the final Stated Maturity of the Notes.

 

“Domestic Subsidiary”
means any Restricted Subsidiary of the Company other than a Foreign Subsidiary.

 

“Equity Agreements”
means, collectively, (1) the
Stockholders Agreement, dated as of March 25, 2003, among Holding, certain
Coors Stockholders, CDR Fund V and EXOR Group S.A., (2) the Amended and Restated Registration Rights Agreement,
dated as of March 25, 2003, among Holding, certain Coors Stockholders, CDR
Fund V, EXOR Group S.A. and the other stockholders of Holding party thereto, (3) the Transfer Restrictions and
Observation Rights Agreement, dated as of March 25, 2003, and the other
Riverwood stockholders side letter, dated as of March 25, 2003, in each
case among Holding, The 1818 Fund II, L.P., J.P. Morgan Equity Associates,
L.P., HWH Investment Pte Ltd, First Plaza Group Trust, Wolfensohn-River LLC and
Madison Dearborn Capital Partners, L.P., and (4)
the Indemnification Agreement, dated as of March 27, 1996, among the
Company, GPI Holding, Holding, CDR and CDR Fund V, in each case as may be
amended, supplemented, waived or otherwise modified from time to time in
accordance with the terms thereof and of this Indenture.

 

“Equity Offering”
means a sale of Capital Stock (x)
that is a sale of Capital Stock (other than Disqualified Stock) of the Company,
or (y) proceeds of which in an
amount equal to or exceeding the Redemption Amount are contributed to the
Company or any of its Restricted Subsidiaries.

 

“Euroclear” means
Euroclear Bank S.A./N.V., as operator of the Euroclear System, or any successor
securities clearing agency.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Exchange Notes”
means the Company’s 9.50% Senior Subordinated Notes Due 2013, containing terms
substantially identical to the Initial Notes or any Initial Additional Notes
(except that (i) such Exchange
Notes may omit terms with respect to transfer restrictions and may be
registered under the Securities Act, and (ii)
certain provisions relating to an increase in the stated rate of interest
thereon may be eliminated), that are issued and exchanged for (a) the Initial Notes, as provided for in a
registration rights agreement relating to such Initial Notes and this
Indenture, or (b) such Initial
Additional Notes as may be provided in any registration rights agreement
relating to such Additional Notes and this Indenture (including any amendment
or supplement hereto).

 

12

 

“Excluded Contribution”
means Net Cash Proceeds, or the Fair Market Value of property or assets,
received by the Company as capital contributions to the Company after the Issue
Date or from the issuance or sale (other than to a Restricted Subsidiary) of
Capital Stock (other than Disqualified Stock) of the Company, in each case to
the extent designated as an Excluded Contribution pursuant to an Officer’s
Certificate of the Company and not previously included in the calculation set
forth in Section 409(a)(3)(B)(x) for purposes of determining
whether a Restricted Payment may be made.

 

“Existing Notes”
means the Company’s 105/8% Senior Notes due 2007, 107/8%
Senior Subordinated Notes due 2008, and 85/8% Senior
Subordinated Notes due 2012.

 

“Fair Market Value”
means, with respect to any asset or property, the fair market value of such
asset or property as determined in good faith by the Board of Directors, whose
determination will be conclusive.

 

“Financing Disposition”
means any sale, transfer, conveyance or other disposition of property or assets
by the Company or any Subsidiary thereof to any Receivables Entity, or by any
Receivables Subsidiary, in each case in connection with the Incurrence by a
Receivables Entity of Indebtedness, or obligations to make payments to the
obligor on Indebtedness, which may be secured by a Lien in respect of such
property or assets.

 

“Fiskeby Transaction”
means any sale, lease, transfer, conveyance or other disposition of Capital
Stock, property or assets of Fiskeby Board AB or any of its Swedish
subsidiaries or affiliates (including any disposition by means of a merger,
consolidation or similar transaction or pursuant to a joint venture or similar
agreement or arrangement).

 

“Foreign Subsidiary”
means (a) any Restricted
Subsidiary of the Company that is not organized under the laws of the United
States of America or any state thereof or the District of Columbia and (b) any Restricted Subsidiary of the
Company that has no material assets other than securities of one or more
Foreign Subsidiaries, and other assets relating to an ownership interest in any
such securities or Subsidiaries.

 

“GAAP” means
generally accepted accounting principles in the United States of America as in
effect on the Issue Date (for purposes of the definitions of the terms
“Consolidated Coverage Ratio,” “Consolidated EBITDA,” “Consolidated Interest
Expense,” “Consolidated Net Income” and “Consolidated Tangible Assets,” all
defined terms in this Indenture to the extent used in or relating to any of the
foregoing definitions, and all ratios and computations based on any of the
foregoing definitions) and as in effect from time to time (for all other
purposes of this Indenture), including those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession. All ratios and
computations based on GAAP contained in this Indenture shall be computed in
conformity with GAAP.

 

13

 

“GPI Holding”
means GPI Holding, Inc., a Colorado corporation, and any successor in interest
thereto.

 

“Guarantee” means
any obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness or other obligation of any other Person; provided that the term “Guarantee” shall
not include endorsements for collection or deposit in the ordinary course of
business. The term “Guarantee” used as a verb has a corresponding meaning.

 

“Guarantor
Subordinated Obligations” means, with respect to a Note Guarantor, any
Indebtedness of such Note Guarantor (whether outstanding on the Issue Date or
thereafter Incurred) that is expressly subordinated in right of payment to the
obligations of such Note Guarantor under its Note Guarantee pursuant to a
written agreement.

 

“Hedging Obligations”
of any Person means the obligations of such Person pursuant to any Interest
Rate Agreement, Currency Agreement or Commodities Agreement.

 

“Holder” or “Noteholder”
means the Person in whose name a Note is registered in the Note Register.

 

“Holding” means
Graphic Packaging Corporation, a Delaware corporation, and any successor in
interest thereto.

 

“Holding
Expenses” means (i) costs
(including all professional fees and expenses) incurred by Holding or GPI
Holding in connection with its reporting obligations under, or in connection
with compliance with, applicable laws or applicable rules of any governmental,
regulatory or self-regulatory body or stock exchange, the Senior Indenture,
this Indenture or any other agreement or instrument relating to Indebtedness of
the Company or any Restricted Subsidiary, including in respect of any reports
filed with respect to the Securities Act, Exchange Act or the respective rules
and regulations promulgated thereunder, (ii)
expenses incurred by GPI Holding in connection with the acquisition,
development, maintenance, ownership, prosecution, protection and defense of its
intellectual property and associated rights (including but not limited to
trademarks, service marks, trade names, trade dress, patents, copyrights and
similar rights, including registrations and registration or renewal
applications in respect thereof; inventions, processes, designs, formulae,
trade secrets, know-how, confidential information, computer software, data and
documentation, and any other intellectual property rights; and licenses of any
of the foregoing) to the extent such intellectual property and associated
rights relate to the business of the Company or any of its Subsidiaries, (iii) payments by the Company or any
Restricted Subsidiary to GPI Holding to pay principal of, and premium, if any,
and interest on, GPI Holding’s 63⁄4% Convertible Subordinated Notes due 2003
(whether by way of scheduled payment, or by purchase, repurchase, redemption,
defeasance or other acquisition or retirement), (iv) indemnification obligations of Holding or GPI Holding
owing to directors, officers, employees or other Persons under its charter or
by-laws or pursuant to written agreements with any such Person, or obligations
in respect of director and officer insurance (including premiums therefor), (v) other operational expenses of Holding
or GPI Holding incurred in the ordinary course of business, and (vi) fees and expenses incurred by Holding
or GPI Holding in connection with any offering of

 

14

 

Capital Stock or Indebtedness, (x) where the net proceeds of such offering
are intended to be received by or contributed or loaned to the Company or a
Restricted Subsidiary, or (y) in
a prorated amount of such expenses in proportion to the amount of such net
proceeds intended to be so received, contributed or loaned, or (z) otherwise on an interim basis prior to
completion of such offering so long as Holding or GPI Holding shall cause the
amount of such expenses to be repaid to the Company or the relevant Restricted
Subsidiary out of the proceeds of such offering promptly if completed.

 

“Incur” means
issue, assume, enter into any Guarantee of, incur or otherwise become liable
for; provided, however, that any Indebtedness or Capital
Stock of a Person existing at the time such Person becomes a Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Subsidiary at the time it becomes a Subsidiary. Accrual of
interest, the accretion of accreted value and the payment of interest in the
form of additional Indebtedness will not be deemed to be an Incurrence of
Indebtedness. Any Indebtedness issued at a discount (including Indebtedness on
which interest is payable through the issuance of additional Indebtedness)
shall be deemed Incurred at the time of original issuance of the Indebtedness
at the initial accreted amount thereof.

 

“Indebtedness”
means, with respect to any Person on any date of determination (without
duplication):

 

(i)                                     the
principal of indebtedness of such Person for borrowed money,

 

(ii)                                  the
principal of obligations of such Person evidenced by bonds, debentures, notes
or other similar instruments,

 

(iii)                               all
reimbursement obligations of such Person in respect of letters of credit or
other similar instruments (the amount of such obligations being equal at any
time to the aggregate then undrawn and unexpired amount of such letters of
credit or other instruments plus the aggregate amount of drawings thereunder
that have not then been reimbursed),

 

(iv)                              all
obligations of such Person to pay the deferred and unpaid purchase price of
property (except Trade Payables), which purchase price is due more than one
year after the date of placing such property in final service or taking final
delivery and title thereto,

 

(v)                                 all
Capitalized Lease Obligations of such Person,

 

(vi)                              the
redemption, repayment or other repurchase amount of such Person with respect to
any Disqualified Stock of such Person or (if such Person is a Subsidiary of the
Company other than a Note Guarantor) any Preferred Stock of such Subsidiary,
but excluding, in each case, any accrued dividends (the amount of such
obligation to be equal at any time to the maximum fixed involuntary redemption,
repayment or repurchase price for such Capital Stock, or if less (or if such
Capital Stock has no

 

15

 

such fixed price), to the
involuntary redemption, repayment or repurchase price therefor calculated in
accordance with the terms thereof as if then redeemed, repaid or repurchased,
and if such price is based upon or measured by the fair market value of such
Capital Stock, such fair market value shall be as determined in good faith by
the Board of Directors or the board of directors or other governing body of the
issuer of such Capital Stock),

 

(vii)                           all
Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided that the amount of Indebtedness
of such Person shall be the lesser of (A)
the fair market value of such asset at such date of determination (as
determined in good faith by the Company) and (B)
the amount of such Indebtedness of such other Persons,

 

(viii)                        all
Guarantees by such Person of Indebtedness of other Persons, to the extent so
Guaranteed by such Person, and

 

(ix)                                to
the extent not otherwise included in this definition, net Hedging Obligations
of such Person (the amount of any such obligation to be equal at any time to
the termination value of such agreement or arrangement giving rise to such
Hedging Obligation that would be payable by such Person at such time).

 

The amount of
Indebtedness of any Person at any date shall be determined as set forth above
or otherwise provided in this Indenture, or otherwise shall equal the amount
thereof that would appear on a balance sheet of such Person (excluding any
notes thereto) prepared in accordance with GAAP.

 

“Initial Additional
Notes” means Additional Notes issued in an offering not registered under
the Securities Act (and any Notes issued in respect thereof pursuant to Section 304,
305, 306, 312(c), 312(d) or 1008).

 

“Initial Notes”
means the Company’s 9.50% Senior Subordinated Notes Due 2013, issued on the
Issue Date (and any Notes issued in respect thereof pursuant to Section 304,
305, 306, 312(c), 312(d) or 1008).

 

“interest” with
respect to the Notes, means interest on the Notes and, except for purposes of
Article 9, additional or special interest pursuant to the terms of any
Note.

 

“Interest Payment Date”
means, when used with respect to any Note and any installment of interest
thereon, the date specified in such Note as the fixed date on which such
installment of interest is due and payable, as set forth in such Note.

 

“Interest Rate
Agreement” means, with respect to any Person, any interest rate protection
agreement, future agreement, option agreement, swap agreement, cap agreement,
collar agreement, hedge agreement or other similar agreement or arrangement
(including derivative agreements or arrangements), as to which such Person is
party or a beneficiary.

 

16

 

“Inventory” means
goods held for sale or lease by a Person in the ordinary course of business,
net of any reserve for goods that have been segregated by such Person to be
returned to the applicable vendor for credit, as determined in accordance with
GAAP.

 

“Investment” in
any Person by any other Person means any direct or indirect advance, loan or
other extension of credit (other than to customers, suppliers, directors,
officers or employees of any Person in the ordinary course of business) or
capital contribution (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of
others) to, or any purchase or acquisition of Capital Stock, Indebtedness or
other similar instruments issued by, such Person. For purposes of the
definition of “Unrestricted Subsidiary” and Section 409 only, (i) “Investment” shall include the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of any Subsidiary of the Company at the time
that such Subsidiary is designated an Unrestricted Subsidiary, provided, that upon a redesignation of
such Subsidiary as a Restricted Subsidiary, the Company shall be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an
amount (if positive) equal to (x)
the Company’s “Investment” in such Subsidiary at the time of such redesignation
less (y) the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of such Subsidiary at the time of such
redesignation, (ii) any property
transferred to or from an Unrestricted Subsidiary shall be valued at its fair
market value at the time of such transfer, and (iii) in each case under clause (i) or (ii) above, fair
market value shall be as determined in good faith by the Board of Directors.
Guarantees shall not be deemed to be Investments. The amount of any Investment
outstanding at any time shall be the original cost of such Investment, reduced
(at the Company’s option) by any dividend, distribution, interest payment,
return of capital, repayment or other amount or value received in respect of
such Investment; provided, that
to the extent that the amount of Restricted Payments outstanding at any time is
so reduced by any portion of any such amount or value that would otherwise be
included in the calculation of Consolidated Net Income, such portion of such
amount or value shall not be so included for purposes of calculating the amount
of Restricted Payments that may be made pursuant to Section 409(a).

 

“Investors”  means CDR Fund V, EXOR Group S.A., The 1818
Fund II, L.P., J.P. Morgan Equity Associates, L.P., HWH Investment Pte Ltd,
First Plaza Group Trust and Madison Dearborn Capital Partners, L.P.,
Wolfensohn-River LLC, the Coors Stockholders and any of their respective
successors in interest.

 

“Issue Date” means
the first date on which Initial Notes are issued.

 

“Lien” means any
mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any conditional sale or other title retention agreement or lease in
the nature thereof).

 

“Management Advances”
means (1) loans or advances made
to directors, officers or employees of Holding, the Company or any Restricted
Subsidiary (x) in respect of
travel, entertainment or moving-related expenses incurred in the ordinary
course of business, (y) in
respect of moving-related expenses incurred in connection with any closing or
consolidation of any

 

17

 

facility, or (z) in the
ordinary course of business and (in the case of this clause (z)) not exceeding
$5.0 million in the aggregate outstanding at any time, (2) promissory notes of Management
Investors acquired in connection with the issuance of Management Stock to such
Management Investors, (3) Management
Guarantees, or (4) other
Guarantees of borrowings by Management Investors in connection with the
purchase of Management Stock, which Guarantees are permitted under Section 407.

 

“Management Guarantees”
means guarantees (x) of up to an
aggregate principal amount of $10.0 million of borrowings by Management
Investors in connection with their purchase of Management Stock or (y) made on behalf of, or in respect of
loans or advances made to, directors, officers or employees of Holding, the
Company or any Restricted Subsidiary (1)
in respect of travel, entertainment and moving-related expenses incurred in the
ordinary course of business, or (2)
in the ordinary course of business and (in the case of this clause (2)) not
exceeding $5.0 million in the aggregate outstanding at any time.

 

“Management Investors”
means the officers, directors, employees and other members of the management of
Holding, GPI Holding, the Company or any of their respective Subsidiaries, or
family members or relatives thereof, or trusts or partnerships for the benefit
of any of the foregoing, or any of their heirs, executors, successors and legal
representatives, who at any date beneficially own or have the right to acquire,
directly or indirectly, Capital Stock of the Company or Holding.

 

“Management Stock”
means Capital Stock of the Company or Holding (including any options, warrants
or other rights in respect thereof) held by any of the Management Investors.

 

“Mergers” means (i) the merger of Graphic Packaging
International Corporation, a Colorado corporation, with Riverwood Acquisition
Sub LLC, a Delaware limited liability company, (ii) the merger of RIC Holding, Inc., a Delaware corporation,
with Graphic Packaging Holding, Inc., a Colorado corporation, (iii) the merger of the Delaware
corporation formerly known as Graphic Packaging Corporation, with Riverwood
International Corporation, a Delaware corporation, and (iv) the merger of Riverwood Acquisition
Sub LLC, a Delaware limited liability company, with Riverwood Holding, Inc., a
Delaware corporation.

 

“Moody’s” means
Moody’s Investors Service, Inc., and its successors.

 

“Net Available Cash”
from an Asset Disposition means cash payments received (including any cash
payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received, but
excluding any other consideration received in the form of assumption by the
acquiring person of Indebtedness or other obligations relating to the
properties or assets that are the subject of such Asset Disposition or received
in any other non-cash form) therefrom, in each case net of (i) all legal, title and recording tax
expenses, commissions and other fees and expenses incurred, and all Federal,
state, provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition (including as
a consequence of any transfer of funds in connection with the application
thereof in accordance with Section 411), (ii) all payments made, and all installment

 

18

 

payments required to be made, on any Indebtedness that is secured by
any assets subject to such Asset Disposition, in accordance with the terms of
any Lien upon such assets, or that must by its terms, or in order to obtain a
necessary consent to such Asset Disposition, or by applicable law, be repaid
out of the proceeds from such Asset Disposition, (iii) all distributions and other payments required to be
made to minority interest holders in Subsidiaries or joint ventures as a result
of such Asset Disposition, or to any other Person (other than the Company or a
Restricted Subsidiary) owning a beneficial interest in the assets disposed of
in such Asset Disposition and (iv)
any liabilities or obligations associated with the assets disposed of in such
Asset Disposition and retained by the Company or any Restricted Subsidiary
after such Asset Disposition, including pension and other post-employment
benefit liabilities, liabilities related to environmental matters, and
liabilities relating to any indemnification obligations associated with such
Asset Disposition.

 

“Net Cash Proceeds,”
with respect to any issuance or sale of any securities of the Company or any
Subsidiary by the Company or any Subsidiary, or any capital contribution, means
the cash proceeds of such issuance, sale or contribution net of attorneys’
fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance, sale or contribution and net of taxes paid or
payable as a result thereof.

 

“Non-U.S. Person”
means a Person who is not a U.S. person, as defined in Regulation S.

 

“Note Guarantee”
means a Parent Guarantee or a Subsidiary Guarantee.

 

“Note Guarantor”
means a Parent Guarantor or a Subsidiary Guarantor.

 

“Notes” means the
Initial Notes, any Additional Notes, the Exchange Notes and any notes issued in
respect thereof pursuant to Section 304, 305, 306, 312(c),
312(d) or 1008.

 

“Officer” means,
with respect to the Company or any other obligor upon the Notes, the Chairman
of the Board, the President, the Chief Executive Officer, the Chief Financial
Officer, any Vice President, the Controller, the Treasurer or the Secretary (a) of such Person or (b) if such Person is owned or managed by a
single entity, of such entity (or any other individual designated as an
“Officer” for the purposes of this Indenture by the Board of Directors).

 

“Officer’s Certificate”
means, with respect to the Company or any other obligor upon the Notes, a
certificate signed by one Officer of such Person.

 

“Opinion of Counsel”
means a written opinion from legal counsel who is reasonably acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the
Trustee.

 

“Original Notes”
means the Initial Notes and any Exchange Notes issued in exchange therefor.

 

19

 

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

 

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

 

(ii)                                  Notes for whose payment or redemption money
in the necessary amount has been theretofore deposited with the Trustee or any
Paying Agent in trust for the Holders of such Notes, provided that, if such Notes are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or
provision therefor reasonably satisfactory to the Trustee has been made; and

 

(iii)                               Notes in exchange for or in lieu of which
other Notes have been authenticated and delivered pursuant to this Indenture.

 

A Note does not cease to
be Outstanding because the Company or any Affiliate of the Company holds the
Note, provided that in
determining whether the Holders of the requisite amount of Outstanding Notes
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Notes owned by the Company or any Affiliate of the Company
shall be disregarded and deemed not to be Outstanding, except that, for the
purpose of determining whether the Trustee shall be protected in relying on any
such request, demand, authorization, direction, notice, consent or waiver, only
Notes which the Trustee actually knows are so owned shall be so
disregarded.  Notes so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the reasonable satisfaction of the Trustee the pledgee’s right to act with
respect to such Notes and that the pledgee is not the Company or an Affiliate
of the Company.

 

“Paying Agent”
means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Notes on behalf of the Company; provided that neither the Company nor any
of its Affiliates shall act as Paying Agent for purposes of Section 1102
or Section 1205.  The Trustee will
initially act as Paying Agent for the Notes.

 

“Permitted Holder”
means any of the following:  (i) any of the Investors, Management
Investors, CDR and their respective Affiliates; (ii) any investment fund or vehicle managed, sponsored or
advised by CDR or any Investor or Affiliate thereof, and any Affiliate of or
successor to any such investment fund or vehicle; and (iii) any Person acting in the capacity of
an underwriter in connection with a public or private offering of Capital Stock
of Holding or the Company.

 

“Permitted Investment”
means an Investment by the Company or any Restricted Subsidiary in, or
consisting of, any of the following:

 

(i)                                     a
Restricted Subsidiary, the Company, or a Person that will, upon the making of
such Investment, become a Restricted Subsidiary;

 

20

 

(ii)                                  another
Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its
assets to, or is liquidated into, the Company or a Restricted Subsidiary;

 

(iii)                               Temporary
Cash Investments or Cash Equivalents;

 

(iv)                              receivables
owing to the Company or any Restricted Subsidiary, if created or acquired in
the ordinary course of business;

 

(v)                                 any
securities or other Investments received as consideration in, or retained in connection
with, sales or other dispositions of property or assets, including Asset
Dispositions made in compliance with Section 411;

 

(vi)                              securities
or other Investments received in settlement of debts created in the ordinary
course of business and owing to the Company or any Restricted Subsidiary, or as
a result of foreclosure, perfection or enforcement of any Lien, or in
satisfaction of judgments, including in connection with any bankruptcy
proceeding or other reorganization of another Person;

 

(vii)                           Investments
in existence or made pursuant to legally binding written commitments in
existence on the Issue Date;

 

(viii)                        Currency
Agreements, Interest Rate Agreements, Commodities Agreements and related
Hedging Obligations, which obligations are Incurred in compliance with Section 407;

 

(ix)                                pledges
or deposits (x) with respect to
leases or utilities provided to third parties in the ordinary course of
business or (y) otherwise
described in the definition of “Permitted Liens” or made in connection with
Liens permitted under Section 413;

 

(x)                                   (1) Investments in any Receivables
Subsidiary, or in connection with a Financing Disposition by or to any
Receivables Entity, including Investments of funds held in accounts permitted
or required by the arrangements governing such Financing Disposition or any
related Indebtedness, or (2) any
promissory note issued by the Company, GPI Holding or Holding, provided that if Holding or GPI Holding
receives cash from the relevant Receivables Entity in exchange for such note,
an equal cash amount is contributed by Holding or GPI Holding to the Company;

 

(xi)                                bonds
secured by assets leased to and operated by the Company or any Restricted
Subsidiary that were issued in connection with the financing of such assets so
long as the Company or any Restricted Subsidiary may obtain title to such
assets at any time by paying a nominal fee, canceling such bonds and
terminating the transaction;

 

(xii)                             Notes
or Senior Notes;

 

21

 

(xiii)                          any
Investment to the extent made using Capital Stock of the Company (other than
Disqualified Stock), or Capital Stock of Holding or GPI Holding, as
consideration;

 

(xiv)                         any
Investment under or relating to any joint venture or similar agreement or
arrangement entered into in connection with a Fiskeby Transaction;

 

(xv)                            Management
Advances; and

 

(xvi)                         other
Investments in an aggregate amount outstanding at any time not to exceed 5% of
Consolidated Tangible Assets.

 

“Permitted Liens”
means:

 

(a)                                  Liens
for taxes, assessments or other governmental charges not yet delinquent or the
nonpayment of which in the aggregate would not reasonably be expected to have a
material adverse effect on the Company and its Restricted Subsidiaries or that
are being contested in good faith and by appropriate proceedings if adequate
reserves with respect thereto are maintained on the books of the Company or a
Subsidiary thereof, as the case may be, in accordance with GAAP;

 

(b)                                 carriers’,
warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business in respect of obligations
that are not overdue for a period of more than 60 days or that are bonded or
that are being contested in good faith and by appropriate proceedings;

 

(c)                                  pledges,
deposits or Liens in connection with workers’ compensation, unemployment
insurance and other social security and other similar legislation or other
insurance-related obligations (including pledges or deposits securing liability
to insurance carriers under insurance or self-insurance arrangements);

 

(d)                                 pledges,
deposits or Liens to secure the performance of bids, tenders, trade, government
or other contracts (other than for borrowed money), obligations for utilities,
leases, licenses, statutory obligations, completion guarantees, surety,
judgment, appeal or performance bonds, other similar bonds, instruments or
obligations, and other obligations of a like nature incurred in the ordinary
course of business;

 

(e)                                  easements
(including reciprocal easement agreements), rights-of-way, building, zoning and
similar restrictions, utility agreements, covenants, reservations,
restrictions, encroachments, charges, and other similar encumbrances or title
defects incurred, or leases or subleases granted to others, in the ordinary
course of business, which do not in the aggregate materially interfere with the
ordinary conduct of the business of the Company and its Subsidiaries, taken as
a whole;

 

22

 

(f)                                    Liens
existing on, or provided for under written arrangements existing on, the Issue
Date, or (in the case of any such Liens securing Indebtedness of the Company or
any of its Subsidiaries existing or arising under written arrangements existing
on the Issue Date) securing any Refinancing Indebtedness in respect of such
Indebtedness so long as the Lien securing such Refinancing Indebtedness is
limited to all or part of the same property or assets (plus improvements,
accessions, proceeds or dividends or distributions in respect thereof) that
secured (or under such written arrangements could secure) the original
Indebtedness;

 

(g)                                 (i) mortgages, liens, security interests,
restrictions, encumbrances or any other matters of record that have been placed
by any developer, landlord or other third party on property over which the
Company or any Restricted Subsidiary of the Company has easement rights or on
any leased property and subordination or similar agreements relating thereto
and (ii) any condemnation or
eminent domain proceedings affecting any real property;

 

(h)                                 Liens
securing Hedging Obligations, Purchase Money Obligations or Capitalized Lease
Obligations Incurred in compliance with Section 407;

 

(i)                                     Liens
arising out of judgments, decrees, orders or awards in respect of which the
Company shall in good faith be prosecuting an appeal or proceedings for review,
which appeal or proceedings shall not have been finally terminated, or if the
period within which such appeal or proceedings may be initiated shall not have
expired;

 

(j)                                     leases,
subleases, licenses or sublicenses to third parties;

 

(k)                                  Liens
securing (1) Indebtedness
Incurred in compliance with Section 407(b)(i), Section 407(b)(iv),
Section 407(b)(vii), Section 407(b)(viii)(E), Section 407(b)(x),
Section 407(b)(xi), or Section 407(b)(iii) (other than
Refinancing Indebtedness Incurred in respect of Indebtedness described in Section 407(a)),
(2) Bank Indebtedness, (3) the Notes, (4) Indebtedness of any Restricted Subsidiary that is not a
Note Guarantor, (5) Indebtedness
or other obligations of any Receivables Entity or (6) obligations in respect of Management Advances or
Management Guarantees;

 

(l)                                     Liens
existing on property or assets of a Person at the time such Person becomes a
Subsidiary of the Company (or at the time the Company or a Restricted
Subsidiary acquires such property or assets, including any acquisition by means
of a merger or consolidation with or into the Company or any Restricted
Subsidiary); provided, however, that such Liens are not created
in connection with, or in contemplation of, such other Person becoming such a
Subsidiary (or such acquisition of such property or assets), and that such
Liens are limited to all or part of the same property or assets (plus
improvements, accessions, proceeds or dividends or distributions in respect
thereof) that secured (or, under the written arrangements under which such
Liens arose, could secure) the obligations to which such Liens relate;

 

23

 

(m)                               Liens
on Capital Stock or other securities of an Unrestricted Subsidiary that secure
Indebtedness or other obligations of such Unrestricted Subsidiary;

 

(n)                                 any
encumbrance or restriction (including put and call agreements) with respect to
Capital Stock of any joint venture or similar arrangement pursuant to any joint
venture or similar agreement;

 

(o)                                 Liens
securing Refinancing Indebtedness Incurred in respect of any Indebtedness
secured by, or securing any refinancing, refunding, extension, renewal or
replacement (in whole or in part) of any other obligation secured by, any other
Permitted Liens, provided that
any such new Lien is limited to all or part of the same property or assets
(plus improvements, accessions, proceeds or dividends or distributions in
respect thereof) that secured (or, under the written arrangements under which
the original Lien arose, could secure) the obligations to which such Liens
relate; and

 

(p)                                 Liens
(1) arising by operation of law
(or by agreement to the same effect) in the ordinary course of business, (2) on property or assets under
construction (and related rights) in favor of a contractor or developer or
arising from progress or partial payments by a third party relating to such
property or assets, (3) on
receivables (including related rights), (4)
on cash set aside at the time of the incurrence of any Indebtedness or
government securities purchased with such cash, in either case to the extent
that such cash or government securities prefund the payment of interest on such
Indebtedness and are held in an escrow account or similar arrangement to be
applied for such purpose, (5)
securing or arising by reason of any netting or set-off arrangement entered
into in the ordinary course of banking or other trading activities, (6) in favor of the Company or any Subsidiary
(other than Liens on property or assets of the Company in favor of any
Subsidiary that is not a Note Guarantor) or (7)
arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into in the ordinary course of
business.

 

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

 

“Place of Payment”
means a city or any political subdivision thereof referred to in Article 3
and initially designated under Section 402.

 

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

 

“Preferred Stock”
as applied to the Capital Stock of any corporation means Capital Stock of any
class or classes (however designated) that by its terms is preferred as to the
payment

 

24

 

of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such corporation, over shares of
Capital Stock of any other class of such corporation.

 

“Purchase Money Obligations”
means any Indebtedness Incurred to finance or refinance the acquisition,
leasing, construction or improvement of property (real or personal) or assets,
and whether acquired through the direct acquisition of such property or assets
or the acquisition of the Capital Stock of any Person owning such property or
assets, or otherwise.

 

“QIB” or “Qualified
Institutional Buyer” means a “qualified institutional buyer,” as that term
is defined in Rule 144A under the Securities Act.

 

“Receivable” means
a right to receive payment arising from a sale or lease of goods or services by
a Person pursuant to an arrangement with another Person pursuant to which such
other Person is obligated to pay for goods or services under terms that permit
the purchase of such goods and services on credit, as determined in accordance
with GAAP.

 

“Receivables Entity”
means (x) any Receivables
Subsidiary or (y) any other
Person that is engaged in the business of acquiring, selling, collecting,
financing or refinancing Receivables, accounts (as defined in the Uniform
Commercial Code as in effect in any jurisdiction from time to time), other
accounts and/or other receivables, and/or related assets.

 

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

 

“Receivables Financing”
means any financing of Receivables of the Company or any Restricted Subsidiary
that have been transferred to a Receivables Entity in a Financing Disposition.

 

“Receivables
Subsidiary” means a Subsidiary of the Company that (a) is engaged solely in the business of
acquiring, selling, collecting, financing or refinancing Receivables, accounts
(as defined in the Uniform Commercial Code as in effect in any jurisdiction
from time to time) and other accounts and receivables (including any thereof
constituting or evidenced by chattel paper, instruments or general
intangibles), all proceeds thereof and all rights (contractual and other),
collateral and other assets relating thereto, and any business or activities
incidental or related to such business, and (b)
is designated as a “Receivables Subsidiary” by the Board of Directors.

 

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

 

“refinance” means
refinance, refund, replace, renew, repay, modify, restate, defer, substitute,
supplement, reissue, resell or extend (including pursuant to any defeasance or
discharge

 

25

 

mechanism); and the terms “refinances,” “refinanced” and
“refinancing” as used for any purpose in this Indenture shall have a
correlative meaning.

 

“Refinancing
Indebtedness” means Indebtedness that is Incurred to refinance any
Indebtedness existing on the date of this Indenture or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances
Indebtedness of any Restricted Subsidiary (to the extent permitted in this
Indenture) and Indebtedness of any Restricted Subsidiary that refinances
Indebtedness of another Restricted Subsidiary) including Indebtedness that
refinances Refinancing Indebtedness; provided,
that (1) if the Indebtedness
being refinanced is Subordinated Obligations or Guarantor Subordinated
Obligations, the Refinancing Indebtedness has a final Stated Maturity at the
time such Refinancing Indebtedness is Incurred that is equal to or greater than
the final Stated Maturity of the Indebtedness being refinanced (or if shorter,
the Notes), (2) such Refinancing
Indebtedness is Incurred in an aggregate principal amount (or if issued with
original issue discount, an aggregate issue price) that is equal to or less
than the sum of (x) the aggregate
principal amount (or if issued with original issue discount, the aggregate
accreted value) then outstanding of the Indebtedness being refinanced, plus (y) fees, underwriting discounts, premiums
and other costs and expenses incurred in connection with such Refinancing
Indebtedness and (3) Refinancing
Indebtedness shall not include (x)
Indebtedness of a Restricted Subsidiary that is not a Note Guarantor that
refinances Indebtedness of the Company that could not have been initially
Incurred by such Restricted Subsidiary pursuant to Section 407 or (y) Indebtedness of the Company or a
Restricted Subsidiary that refinances Indebtedness of an Unrestricted
Subsidiary.

 

“Regular Record Date”
for the interest payable on any Interest Payment Date means the date specified
for that purpose in Section 301.

 

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

 

“Regulation S
Certificate” means a certificate substantially in the form attached hereto
as Exhibit C.

 

“Related Business”
means those businesses in which the Company or any of its Subsidiaries is
engaged on the date of this Indenture, or that are related, complementary,
incidental or ancillary thereto or extensions, developments or expansions
thereof.

 

“Related Taxes”
means (x) any taxes, charges or
assessments, including but not limited to sales, use, transfer, rental, ad
valorem, value-added, stamp, property, consumption, franchise, license,
capital, net worth, gross receipts, excise, occupancy, intangibles or similar
taxes, charges or assessments (other than federal, state or local taxes
measured by income and federal, state or local withholding imposed on payments
made by Holding or GPI Holding), required to be paid by Holding or GPI Holding
by virtue of its being incorporated or having Capital Stock outstanding (but
not by virtue of owning stock or other equity interests of any corporation or
other entity other than the Company or any of its Subsidiaries), or being a
holding company parent of the Company or receiving dividends from or other
distributions in respect of the Capital Stock of the Company or any of its
Subsidiaries, or having guaranteed any obligations of the Company or any Subsidiary
thereof, or having made any payment in respect of any of the items for which
the

 

26

 

Company or any of its Subsidiaries is permitted to make payments to
Holding or GPI Holding pursuant to Section 409 or acquiring,
developing, maintaining, owning, prosecuting, protecting or defending its
intellectual property and associated rights (including but not limited to
receiving or paying royalties for the use thereof) relating to the business or
businesses of the Company or any Subsidiary thereof, or (y) any other federal, state, foreign,
provincial or local taxes measured by income for which Holding or GPI Holding
is liable up to an amount not to exceed, with respect to federal taxes, the
amount of any such taxes that the Company and its Subsidiaries would have been
required to pay on a separate company basis, or on a consolidated basis as if
the Company had filed a consolidated return on behalf of an affiliated group
(as defined in Section 1504 of the Code or an analogous provision of
state, local or foreign law) of which it were the common parent, or with
respect to state and local taxes, the amount of any such taxes that the Company
and its Subsidiaries would have been required to pay on a separate company
basis, or on a combined basis as if the Company had filed a combined return on
behalf of an affiliated group consisting only of the Company and its
Subsidiaries.

 

“Representative”
means the trustee, agent or representative (if any) for an issue of Senior Indebtedness.

 

“Resale Restriction
Termination Date” means, with respect to any Note, the date that is two
years (or such other period as may hereafter be provided under Rule 144(k)
under the Securities Act or any successor provision thereto as permitting the
resale by non-affiliates of Restricted Securities without restriction) after
the later of the original issue date in respect of such Note and the last date
on which the Company or any Affiliate of the Company was the owner of such Note
(or any Predecessor Note thereto).

 

“Responsible Officer”
when used with respect to the Trustee means the chairman or vice-chairman of
the board of directors, the chairman or vice-chairman of the executive
committee of the board of directors, the president, any vice president or
assistant vice president, the secretary, any assistant secretary, the
treasurer, any assistant treasurer, the cashier, any assistant cashier, any
trust officer or assistant trust officer, the controller and any assistant
controller or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity
with the particular subject.

 

“Restricted Payment
Transaction” means any Restricted Payment permitted pursuant to Section 409,
any Permitted Payment, any Permitted Investment, or any transaction
specifically excluded from the definition of the term “Restricted Payment.”

 

“Restricted Security”
has the meaning assigned to such term in Rule 144(a)(3) under the Securities
Act; provided, however, that the Trustee shall be
entitled to receive, at its request, and conclusively rely on an Opinion of
Counsel with respect to whether any Note constitutes a Restricted Security.

 

27

 

“Restricted Subsidiary”
means any Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“S&P” means Standard
& Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and
its successors.

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Senior Credit
Agreement” means the Credit Agreement, dated as of the Issue Date, among
the Company, any other borrowers party thereto from time to time, JPMorgan
Chase Bank, as administrative agent, and the lenders party thereto from time to
time, as such agreement may be amended, supplemented, waived or otherwise
modified from time to time or refunded, refinanced, restructured, replaced,
renewed, repaid, increased or extended from time to time (whether in whole or
in part, whether with the original administrative agent and lenders or other agents
and lenders or otherwise, and whether provided under the original Senior Credit
Agreement or other credit agreements or otherwise).

 

“Senior Credit
Facility” means the collective reference to the Senior Credit Agreement,
any Loan Documents (as defined therein), any notes and letters of credit issued
pursuant thereto and any guarantee and collateral agreement, patent and
trademark security agreement, mortgages, letter of credit applications and
other guarantees, pledge agreements, security agreements and collateral
documents, and other instruments and documents, executed and delivered pursuant
to or in connection with any of the foregoing, in each case as the same may be
amended, supplemented, waived or otherwise modified from time to time, or
refunded, refinanced, restructured, replaced, renewed, repaid, increased or
extended from time to time (whether in whole or in part, whether with the
original agent and lenders or other agents and lenders or otherwise, and
whether provided under the original Senior Credit Agreement or one or more
other credit agreements, indentures (including the Senior Indenture or this
Indenture) or financing agreements or otherwise). Without limiting the
generality of the foregoing, the term “Senior Credit Facility” shall include any
agreement (i) changing the
maturity of any Indebtedness Incurred thereunder or contemplated thereby, (ii) adding Subsidiaries of the Company as
additional borrowers or guarantors thereunder, (iii) increasing the amount of Indebtedness Incurred
thereunder or available to be borrowed thereunder or (iv) otherwise altering the terms and
conditions thereof.

 

“Senior Indebtedness”
means, with respect to the Company or any Note Guarantor, (i) all Bank
Indebtedness, (ii) all of its obligations in respect of any Receivables
Financing and (iii) the principal of and premium, if any, and accrued and
unpaid interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to such Person regardless
of whether post-filing interest is allowed in such proceeding) on, and all fees
and other amounts owing in respect of, all other Indebtedness of such Person,
other than, in the case of the Company, Subordinated Obligations and, in the
case of any Note Guarantor, Guarantor Subordinated Obligations; provided,
however, that Senior Indebtedness shall not include (1) any obligation of such Person to any
Restricted Subsidiary of

 

28

 

such Person, (2) any
liability for Federal, state, foreign, local or other taxes owed or owing by
such Person, (3) any accounts
payable or other liability to trade creditors arising in the ordinary course of
business (including Guarantees thereof or instruments evidencing such
liabilities), (4) any obligation
of such Person described in any of clauses (i), (ii) or (iii) above that is
expressly subordinated in right of payment to any other Indebtedness of such
Person, (5) any Capital Stock of
such Person or (6) that portion
of any Indebtedness of such Person that is Incurred by such Person in violation
of Section 407 (but no such violation shall be deemed to exist for
purposes of this clause (6) if any holder of such Indebtedness or such holder’s
representative shall have received an Officer’s Certificate to the effect that
such Incurrence of such Indebtedness does not (or that the Incurrence of the
entire committed amount thereof at the date on which the initial borrowing
thereunder is made would not) violate Section 407).  If any Senior Indebtedness is disallowed,
avoided or subordinated pursuant to the provisions of Section 548 of Title
11 of the United States Code or any applicable state fraudulent conveyance law,
such Senior Indebtedness nevertheless will constitute Senior Indebtedness.

 

“Senior Indenture”
means the Indenture of even date herewith among the Company, Holding, GPI
Holding and the Trustee governing the Company’s 8.50% Senior Notes due 2011, as
the same may be amended, supplemented, waived or otherwise modified from time
to time.

 

“Senior Notes”
means the “Notes” as such term is defined in the Senior Indenture.

 

“Senior Subordinated
Indebtedness” means, with respect to the Company or any Note Guarantor, the
Notes (in the case of the Company) or the Note Guarantee of such Person in
respect of the Notes (in the case of such Note Guarantor) and any other
Indebtedness of such Person that ranks pari
passu with the Notes or such Note Guarantee, as the case may be.

 

“Significant Domestic
Subsidiary” means any Domestic Subsidiary that is a Significant Subsidiary.

 

“Significant
Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X
promulgated by the SEC, as in effect on the Issue Date.

 

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

 

“Stated Maturity”
means, with respect to any security, the date specified in such security as the
fixed date on which the payment of principal of such security is due and
payable, including pursuant to any mandatory redemption provision (but
excluding any provision providing for the repurchase of such security at the
option of the holder thereof upon the happening of any contingency).

 

29

 

“Subordinated
Obligations” means any Indebtedness of the Company (whether outstanding on
the date of this Indenture or thereafter Incurred) that is expressly
subordinated in right of payment to the Notes pursuant to a written agreement.

 

“Subsidiary” of
any Person means any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other equity interests (including partnership interests) entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by (i)
such Person or (ii) one or more
Subsidiaries of such Person.

 

“Subsidiary Guarantee”
means any guarantee that may from time to time be entered into by a Restricted
Subsidiary of the Company pursuant to Section 414.

 

“Subsidiary Guarantor”
means any Restricted Subsidiary of the Company that enters into a Subsidiary Guarantee.

 

“Supplemental
Indenture” means a Supplemental Indenture, to be entered into substantially
in the form attached hereto as Exhibit D.

 

“Tax Sharing Agreement”
means the Tax Sharing Agreement, dated on or prior to the Issue Date, between
the Company and Holding, as the same may be amended, supplemented, waived or
otherwise modified from time to time in accordance with the terms thereof and
of this Indenture.

 

“Temporary Cash
Investments” means any of the following: 
(i) any investment in (x) direct obligations of the United States
of America or any agency or instrumentality thereof or obligations Guaranteed
by the United States of America or any agency or instrumentality thereof or (y) direct obligations of any foreign
country recognized by the United States of America rated at least “A” by
S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating
by such organization or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any nationally recognized rating organization), (ii) overnight bank deposits, and
investments in time deposit accounts, certificates of deposit, bankers’
acceptances and money market deposits (or, with respect to foreign banks,
similar instruments) maturing not more than one year after the date of
acquisition thereof issued by (x)
any lender under the Senior Credit Agreement or (y) a bank or trust company that is organized under the laws
of the United States of America, any state thereof or any foreign country
recognized by the United States of America having capital and surplus
aggregating in excess of $250 million (or the foreign currency equivalent
thereof) and whose long term debt is rated at least “A” by S&P or “A-1” by
Moody’s (or, in either case, the equivalent of such rating by such organization
or, if no rating of S&P or Moody’s then exists, the equivalent of such
rating by any nationally recognized rating organization) at the time such
Investment is made, (iii)
repurchase obligations with a term of not more than 30 days for underlying securities
of the types described in clause (i) or (ii) above entered into with a bank
meeting the qualifications described in clause (ii) above, (iv) Investments in commercial paper,
maturing not more than 270 days after the date of acquisition, issued by a
Person (other than of the Company or any of its

 

30

 

Subsidiaries), with a rating at the time as of which any Investment
therein is made of “P-2” (or higher) according to Moody’s or “A-2” (or higher)
according to S&P (or, in either case, the equivalent of such rating by such
organization or, if no rating of S&P or Moody’s then exists, the equivalent
of such rating by any nationally recognized rating organization), (v) Investments in securities maturing not
more than one year after the date of acquisition issued or fully guaranteed by
any state, commonwealth or territory of the United States of America, or by any
political subdivision or taxing authority thereof, and rated at least “A” by
S&P or “A” by Moody’s (or, in either case, the equivalent of such rating by
such organization or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any nationally recognized rating organization), (vi) Preferred Stock (other than that of
the Company or any of its Subsidiaries) having a rating of “A” or higher by
S&P or “A2” or higher by Moody’s (or, in either case, the equivalent of
such rating by such organization or, if no rating of S&P or Moody’s then
exists, the equivalent of such rating by any nationally recognized rating
organization), (vii) investment
funds investing 95% of their assets in securities of the type described in
clauses (i)-(vi) above (which funds may also hold reasonable amounts of cash
pending investment and/or distribution), (viii)
any money market deposit accounts issued or offered by a domestic commercial
bank or a commercial bank organized and located in a country recognized by the
United States of America, in each case, having capital and surplus in excess of
$250 million (or the foreign currency equivalent thereof), or investments in
money market funds complying with the risk limiting conditions of Rule 2a-7 (or
any successor rule) of the SEC under the Investment Company Act of 1940, as
amended, and (ix) similar
investments approved by the Board of Directors in the ordinary course of
business.

 

“TIA” means the
Trust Indenture Act of 1939 (15 U.S.C. ¶¶ 77aaa-7bbbb) as in effect on the
Issue Date.

 

“Trade Payables”
means, with respect to any Person, any accounts payable or any indebtedness or
monetary obligation to trade creditors created, assumed or guaranteed by such
Person arising in the ordinary course of business in connection with the
acquisition of goods or services.

 

“Transactions”
means, collectively, any or all of the following:

 

(a)                                  the
Mergers;

 

(b)                                 the
entry into the Senior Indenture and this Indenture, the offer and issuance of
the Notes and the Senior Notes, and the provision of the Parent Guarantees and
guarantees of the Senior Notes by the Parent Guarantors;

 

(c)                                  the
entry into the Senior Credit Facility and Incurrence of Indebtedness thereunder
by one or more of the Company and its Subsidiaries;

 

(d)                                 the
consummation of any tender offer for, or redemption and/or other acquisition or
retirement of, any Existing Notes;

 

31

 

(e)                                  the
repayment of amounts outstanding under any existing Credit Facility to which
the Company is party on the Issue Date, the termination of commitments
thereunder, and the collateralization of letters of credit remaining
outstanding (if any);

 

(f)                                    the
payment of up to approximately $22.0 million to one or more Coors Stockholders
in connection with the conversion by such Coors Stockholders of shares of 10%
Series B Convertible Preferred Stock, stated value $100.00 per share, of
Graphic Packaging International Corporation, a Colorado corporation; and

 

(g)                                 all
other transactions relating to any of the foregoing (including payment of fees
and expenses related to any of the foregoing).

 

“Trust Officer”
means the Chairman of the Board, the President or any other officer or
assistant officer of the Trustee assigned by the Trustee to administer its
corporate trust matters.

 

“Trustee” means
the party named as such in the first paragraph of this Indenture until a
successor replaces it and, thereafter, means the successor.

 

“Unrestricted
Subsidiary” means (i) any
Subsidiary of the Company that at the time of determination is an Unrestricted
Subsidiary, as designated by the Board of Directors in the manner provided
below, and (ii) any Subsidiary of
an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary
of the Company (including any newly acquired or newly formed Subsidiary of the
Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of its
Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any
Lien on any property of, the Company or any other Restricted Subsidiary of the
Company that is not a Subsidiary of the Subsidiary to be so designated; provided, that (A) such designation was made at or prior to the Issue Date,
or (B) the Subsidiary to be so
designated has total consolidated assets of $1,000 or less or (C) if such Subsidiary has consolidated
assets greater than $1,000, then such designation would be permitted under Section 409.  The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided, that immediately after giving
effect to such designation either (x)
the Company could Incur at least $1.00 of additional Indebtedness under Section 407(a)
or (y) the Consolidated Coverage
Ratio would be greater than it was immediately prior to giving effect to such
designation. Any such designation by the Board of Directors shall be evidenced
to the Trustee by promptly filing with the Trustee a copy of the resolution of
the Company’s Board of Directors giving effect to such designation and an
Officer’s Certificate of the Company certifying that such designation complied
with the foregoing provisions.

 

“U.S. Government Obligation”
means (x) any security that is (i) a direct obligation of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged or (ii)
an obligation of a Person controlled or supervised by and acting as an agency
or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case under the preceding clause (i) or (ii),
is not callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued by a bank
(as defined in

 

32

 

Section 3(a)(2) of the Securities Act) as custodian with respect
to any U.S. Government Obligation that is specified in clause (x) above and
held by such bank for the account of the holder of such depositary receipt, or
with respect to any specific payment of principal of or interest on any U.S.
Government Obligation that is so specified and held, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

 

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

 

“Voting Stock” of
an entity means all classes of Capital Stock of such entity then outstanding
and normally entitled to vote in the election of directors or all interests in
such entity with the ability to control the management or actions of such
entity.

 

Section 102.                                Other Definitions.  

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Act”

  	
   

  	
  108

  
	
  “Affiliate
  Transaction”

  	
   

  	
  412

  
	
  “Agent
  Members”

  	
   

  	
  312

  
	
  “Amendment”

  	
   

  	
  410

  
	
  “Applicable
  Premium”

  	
   

  	
  1001

  
	
  “Authentication
  Order”

  	
   

  	
  303

  
	
  “Bankruptcy
  Law”

  	
   

  	
  601

  
	
  “Blockage
  Notice”

  	
   

  	
  1403

  
	
  “Certificate
  of Beneficial Ownership”

  	
   

  	
  313

  
	
  “Covenant
  Defeasance”

  	
   

  	
  1203

  
	
  “Custodian”

  	
   

  	
  601

  
	
  “Defaulted
  Interest”

  	
   

  	
  307

  
	
  “Defeasance”

  	
   

  	
  1202

  
	
  “Defeased
  Notes”

  	
   

  	
  1201

  
	
  “Event
  of Default”

  	
   

  	
  601

  
	
  “Excess
  Proceeds”

  	
   

  	
  411

  
	
  “Expiration Date”

  	
   

  	
  108

  
	
  “Global
  Notes”

  	
   

  	
  201

  
	
  “Guaranteed
  Note Obligations”

  	
   

  	
  1301

  
	
  “Guarantor
  Blockage Notice”

  	
   

  	
  1503

  
	
  “Guarantor
  Non-payment Default”

  	
   

  	
  1503

  
	
  “Guarantor
  Payment Blockage Period”

  	
   

  	
  1503

  

 

33

 

	
  “Guarantor
  Payment Default”

  	
   

  	
  1503

  
	
  “Initial
  Agreement”

  	
   

  	
  410

  
	
  “Initial
  Lien”

  	
   

  	
  413

  
	
  “Non-payment
  Default”

  	
   

  	
  1403

  
	
  “Note
  Register” and “Note Registrar”

  	
   

  	
  305

  
	
  “Notice
  of Default”

  	
   

  	
  601

  
	
  “Offer”

  	
   

  	
  411

  
	
  “Offshore
  Global Note”

  	
   

  	
  201

  
	
  “Offshore
  Note Exchange Date”

  	
   

  	
  313

  
	
  “Offshore
  Physical Note”

  	
   

  	
  201

  
	
  “Offshore
  Permanent Global Note”

  	
   

  	
  201

  
	
  “Offshore
  Temporary Global Note”

  	
   

  	
  201

  
	
  “Parent
  Guaranteed Obligations”

  	
   

  	
  1301

  
	
  “Parent
  Guarantee”

  	
   

  	
  1301

  
	
  “Parent
  Guarantor”

  	
   

  	
  1301

  
	
  “pay
  its Note Guarantee”

  	
   

  	
  1503

  
	
  “pay
  the Notes”

  	
   

  	
  1403

  
	
  “Payment
  Blockage Period”

  	
   

  	
  1403

  
	
  “Payment
  Default”

  	
   

  	
  1403

  
	
  “Permitted
  Payment”

  	
   

  	
  409

  
	
  “Physical
  Notes”

  	
   

  	
  201

  
	
  “Private
  Placement Legend”

  	
   

  	
  203

  
	
  “Redemption
  Amount”

  	
   

  	
  1001

  
	
  “Redemption
  Price”

  	
   

  	
  1001

  
	
  “Refinancing
  Agreement”

  	
   

  	
  410

  
	
  “Restricted
  Payment”

  	
   

  	
  409

  
	
  “Subsidiary
  Guaranteed Obligation”

  	
   

  	
  1301

  
	
  “Successor
  Company”

  	
   

  	
  501

  
	
  “Treasury
  Rate”

  	
   

  	
  1001

  
	
  “U.S.
  Global Note”

  	
   

  	
  201

  
	
  “U.S.
  Physical Note”

  	
   

  	
  201

  

 

Section 103.                                Rules of Construction.  For all purposes of this Indenture, except
as otherwise expressly provided or unless the context otherwise requires:

 

(1)          the
terms defined in this Indenture have the meanings assigned to them in this
Indenture;

 

(2)          “or”
is not exclusive;

 

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

 

34

 

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

 

(5)          all
references to “$” or “dollars” shall refer to the lawful currency
of the United States of America;

 

(6)          the
words “include,” “included” and “including,” as used
herein, shall be deemed in each case to be followed by the phrase “without
limitation,” if not expressly followed by such phrase or the phrase “but
not limited to”;

 

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

 

(8)          any
reference to a Section or Article refers to such Section or
Article of this Indenture.

 

Section 104.                                Incorporation by Reference of TIA.  Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a
part of this Indenture.  This Indenture
is subject to the mandatory provisions of the TIA, which are incorporated by
reference in and made a part of this Indenture.  Any terms incorporated by reference in this Indenture that are
defined by the TIA, defined by any TIA reference to another statute or defined
by SEC rule under the TIA, have the meanings so assigned to them therein.  The following TIA terms have the following
meanings:

 

“indenture securities”
means the Notes.

 

“indenture security
holder” means a Noteholder.

 

“indenture to be
qualified” means this Indenture.

 

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

 

“obligor”
on the indenture securities means the Company, any other Note Guarantor, and
any other obligor on the indenture securities.

 

Section 105.                                Conflict with TIA.  If any provision hereof limits, qualifies or conflicts with a
provision of the TIA that is required under the TIA to be a part of and govern
this Indenture, the latter provision shall control.  If any provision of this Indenture modifies or excludes any
provision of the TIA that may be so modified or excluded, the latter provision
shall be deemed (i) to apply to
this Indenture as so modified or (ii)
to be excluded, as the case may be.

 

Section 106.                                Compliance Certificates and
Opinions.  Upon any application
or request by the Company or by any other obligor upon the Notes (including any
Note Guarantor), to the Trustee to take any action under any provision of this
Indenture, the Company or such

 

35

 

other obligor (including any Note Guarantor), as the case may be, shall
furnish to the Trustee such certificates and opinions as may be required under
the TIA.  Each such certificate or
opinion shall be given in the form of one or more Officer’s Certificates, if to
be given by an Officer, or an Opinion of Counsel, if to be given by counsel,
and shall comply with the requirements of the TIA and any other requirements
set forth in this Indenture. 
Notwithstanding the foregoing, in the case of any such request or
application as to which the furnishing of any Officer’s Certificate or Opinion
of Counsel is specifically required by any provision of this Indenture relating
to such particular request or application, no additional certificate or opinion
need be furnished.

 

Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture  (except
for certificates provided for in Section 406) shall include:

 

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

 

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

 

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

 

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

 

Section 107.                                Form of Documents Delivered to
Trustee.  In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

 

Any certificate or
opinion of an Officer may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such
Officer knows that the certificate or opinion or representations with respect
to the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or opinion of counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an Officer or Officers to the effect that
the information with respect to such factual matters is in the possession of
the Company, unless such counsel knows that the certificate or opinion or
representations with respect to such matters are erroneous.

 

36

 

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

 

Section 108.                                Acts of Noteholders; Record Dates.  (a) 
Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee, and, where it is hereby expressly required, to the Company, as the
case may be.  Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 701)
conclusive in favor of the Trustee, the Company and any other obligor upon the
Notes, if made in the manner provided in this Section 108.

 

(b)                                 The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by the certificate of any notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof.  Where such execution is by an
officer of a corporation or a member of a partnership or other entity, on
behalf of such corporation or partnership or other entity, such certificate or
affidavit shall also constitute sufficient proof of such Person’s
authority.  The fact and date of the
execution of any such instrument or writing, or the authority of the person
executing the same, may also be proved in any other manner that the Trustee
deems sufficient.

 

(c)                                  The ownership of Notes shall be proved by the
Note Register.

 

(d)                                 Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any Note
shall bind the Holder of every Note issued upon the transfer thereof or in
exchange therefor or in lieu thereof, in respect of anything done or suffered
to be done by the Trustee, the Company or any other obligor upon the Notes in
reliance thereon, whether or not notation of such action is made upon such
Note.

 

(e)                                  (i) 
The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Notes entitled to give, make or take any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders of Notes, provided that
the Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice, declaration,
request or direction referred to in the next paragraph.  If any record date is set pursuant to this
paragraph, the Holders of Outstanding Notes on such record date (or their duly
designated proxies), and no other Holders, shall be entitled to take the
relevant action, whether or not such Persons remain Holders after such record
date; provided that no such
action shall be effective hereunder unless taken on or prior to the

 

37

 

applicable Expiration Date by Holders of the
requisite principal amount of Outstanding Notes on such record date.  Nothing in this paragraph shall be construed
to prevent the Company from setting a new record date for any action for which
a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Notes on the date such action is taken.  Promptly after any record date is set
pursuant to this paragraph, the Company, at its expense,  shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to
the Trustee in writing and to each Holder of Notes in the manner set forth in Section 110.

 

(ii)                                  The Trustee may set any day as a record date
for the purpose of determining the Holders of Outstanding Notes entitled to
join in the giving or making of (A) any Notice of Default, (B) any declaration of acceleration referred to
in Section 602, (C) any request to institute proceedings
referred to in Section 607(ii) or (D) any direction
referred to in Section 612, in each case with respect to
Notes.  If any record date is set
pursuant to this paragraph, the Holders of Outstanding Notes on such record
date, and no other Holders, shall be entitled to join in such notice, declaration,
request or direction, whether or not such Holders remain Holders after such
record date; provided that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders
of the requisite principal amount of Outstanding Notes on such record date.  Nothing in this paragraph shall be construed
to prevent the Trustee from setting a new record date for any action for which
a record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Notes on the date such action is taken.  Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of
Notes in the manner set forth in Section 110.

 

(iii)                               With respect to any record date set pursuant
to this Section 108, the party hereto that sets such record dates
may designate any day as the “Expiration Date” and from time to time may
change the Expiration Date to any earlier or later day; provided that no such change shall be effective
unless notice of the proposed new Expiration Date is given to the Company or
the Trustee, whichever such party is not setting a record date pursuant to this
Section 108(e) in writing, and to each Holder of Notes in the
manner set forth in Section 110, on or prior to the existing
Expiration Date.  If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto that set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph.  Notwithstanding the

 

38

 

foregoing,
no Expiration Date shall be later than the 180th day after the applicable
record date.

 

(iv)                              Without limiting the foregoing, a Holder
entitled hereunder to take any action hereunder with regard to any particular
Note may do so with regard to all or any part of the principal amount of such
Note or by one or more duly appointed agents each of which may do so pursuant
to such appointment with regard to all or any part of such principal amount.

 

Section 109.                                Notices, etc., to Trustee and
Company.  Any request,
demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with,

 

(1)          the
Trustee by any Holder or by the Company or by any other obligor upon the Notes
shall be sufficient for every purpose hereunder if made, given, furnished or
filed in writing to or with the Trustee at 213 Court Street, Suite 703,
Middletown, CT 06457, Attention: 
Corporate Trust Department (telephone: 
(860) 704-6217; telecopier: 
(860) 704-6219) or at any other address furnished in writing to the
Company by the Trustee, or

 

(2)          the
Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder if in writing and mailed, first-class postage prepaid, to the
Company  addressed, as the case may be,
to at Riverwood International Corporation, 814 Livingston Court, Marietta,
Georgia 30067, Attention:  Chief
Financial Officer (telephone: (770) 644-3000; telecopier:  (770) 644-2935), with copies to Debevoise
& Plimpton, 919 Third Avenue, New York, New York 10022, Attention:  David Brittenham, Esq. (telephone:  (212) 909-6000; telecopier:  (212) 909-6836), or at any other address
previously furnished in writing to the Trustee by the Company.

 

Section 110.                                 Notices to Holders; Waiver.  Where this Indenture provides for notice to
Holders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at such Holder’s address as it
appears in the Note Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice.  In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders.

 

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

 

39

 

In case, by reason of the
suspension of regular mail service, or by reason of any other cause, it shall
be impossible to mail notice of any event as required by any provision of this
Indenture, then such notification as shall be made with the approval of the
Trustee (such approval not to be unreasonably withheld) shall constitute a
sufficient notification for every purpose hereunder.

 

Section 111.                                Effect of Headings and Table of
Contents.  The Article and
Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

 

Section 112.                                Successors and Assigns.  All covenants and agreements in this
Indenture by the Company shall bind its respective successors and assigns,
whether so expressed or not.

 

Section 113.                                Separability Clause.  In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 114.                                Benefits of Indenture.  Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, any Paying Agent and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture, except as
provided in Article 14 and Article 15.

 

Section 115.                                GOVERNING LAW. 
THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE
NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS, AGREE TO SUBMIT TO
THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE
BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.

 

Section 116.                                Legal Holidays.  In any case where any Interest Payment Date, Redemption Date or
Stated Maturity of any Note shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Notes) payment of interest or principal and premium (if any) need not be made
at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made
on the Interest Payment Date or Redemption Date, or at the Stated Maturity.

 

Section 117.                                No Personal Liability of
Directors, Officers, Employees, Incorporators and Stockholders.  No director, officer, employee, incorporator
or stockholder, as such, of the Company, any Note Guarantor or any Subsidiary
of any thereof shall have any liability for any obligation of the Company or
any Note Guarantor under this Indenture, the Notes or any Note Guarantee, or
for any claim based on, in respect of, or by reason of, any such

 

40

 

obligation or its creation. 
Each Noteholder, by accepting the Notes, waives and releases all such
liability.  The waiver and release are
part of the consideration for issuance of the Notes.

 

Section 118.                                Exhibits and Schedules.  All exhibits and schedules attached hereto
are by this reference made a part hereof with the same effect as if herein set
forth in full.

 

Section 119.                                Counterparts. 
This Indenture may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

ARTICLE II

 

NOTE FORMS

 

Section 201.                                Forms Generally.  (a) The Notes and the Trustee’s certificate of authentication
relating thereto shall be in substantially the forms set forth, or referenced,
in this Article 2 and Exhibit A annexed hereto, which
Exhibit is hereby incorporated in and expressly made a part of this
Indenture.  The Notes may have such
appropriate insertions, omissions, substitutions, notations, legends,
endorsements, identifications and other variations as are required or permitted
by law, stock exchange rule or Depository rule or usage, agreements to which
the Company is subject, if any, or other customary usage, or as may consistently
herewith be determined by the Officers of the Company executing such Notes, as
evidenced by such execution (provided always that any such notation, legend,
endorsement, identification or variation is in a form acceptable to the
Company).  Each Note shall be dated the
date of its authentication.  The terms
of the Notes set forth in Exhibit A are part of the terms of this
Indenture.  Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.

 

Initial Notes and any
Initial Additional Notes offered and sold in reliance on Rule 144A under the
Securities Act shall, unless (in the case of Additional Notes) the Company
otherwise notifies the Trustee in writing, be issued in the form of one or more
permanent global Notes in substantially the form set forth in Exhibit A
(each, a “U.S. Global Note”), deposited with the Trustee, as custodian
for the Depositary or its nominee, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of a U.S. Global Note may from
time to time be increased or decreased by adjustments made on the records of
the Trustee, as custodian for the Depositary or its nominee, as hereinafter
provided.

 

Initial Notes and any
Initial Additional Notes offered and sold in offshore transactions in reliance
on Regulation S under the Securities Act shall, unless (in the case of
Additional Notes) the Company otherwise notifies the Trustee in writing, be issued
in the form of one or more temporary global Notes in substantially the form set
forth in Exhibit A (each, an “Offshore Temporary Global Note”),
deposited with the Trustee, as custodian for the Depositary or its nominee,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided.  Following the Offshore Note
Exchange Date with respect to any such Offshore Temporary Global Note,
beneficial interests in the Offshore Temporary Global Note shall be

 

41

 

exchanged as provided in Sections 312 and 313 for
beneficial interests in one or more permanent global Notes in the form of Exhibit
A (each an “Offshore Permanent Global Note” and, together with the
Offshore Temporary Global Notes, the “Offshore Global Notes”), deposited
with the Trustee, as custodian for the Depositary or its nominee, duly executed
by the Company and authenticated by the Trustee as hereinafter provided.  Simultaneously with the authentication of an
Offshore Permanent Global Note, the Trustee shall cancel the related Offshore
Temporary Global Note.  The aggregate
principal amount of an Offshore Global Note may from time to time be increased
or decreased by adjustments made in the records of the Trustee, as custodian
for the Depositary or its nominee, as hereinafter provided.

 

Subject to the
limitations on the issuance of certificated Notes set forth in Sections 312
and 313, Initial Notes and any Initial Additional Notes issued pursuant
to Section 305 in exchange for or upon transfer of beneficial
interests (x) in a U.S. Global
Note shall be in the form of permanent certificated Notes substantially in the
form set forth in Exhibit A (the “U.S. Physical Notes”) or (y) in an Offshore Global Note (if any), on
or after the Offshore Note Exchange Date with respect to such Offshore Global
Note, shall be in the form of permanent certificated Notes substantially in the
form set forth in Exhibit A (the “Offshore Physical Notes”),
respectively, as hereinafter provided.

 

The U.S. Physical Notes
and Offshore Physical Notes shall be construed to include any certificated
Notes issued in respect thereof pursuant to Section 304, 305,
306 or 1008, and the U.S. Global Notes and Offshore Global Notes
shall be construed to include any global Notes issued in respect thereof
pursuant to Section 304, 305, 306 or 1008.  The Offshore Physical Notes and the U.S.
Physical Notes, together with any other certificated Notes issued and
authenticated pursuant to this Indenture, are sometimes collectively herein
referred to as the “Physical Notes”. 
The U.S. Global Notes and the Offshore Global Notes, together with any
other global Notes that are issued and authenticated pursuant to this
Indenture, are sometimes collectively referred to as the “Global Notes.”

 

Exchange Notes shall be
issued substantially in the form set forth in Exhibit A and, subject to Section 312(b),
shall be in the form of one or more Global Notes.

 

Section 202.                                Form of Trustee’s Certificate of
Authentication.  The
Notes will have endorsed thereon  a
Trustee’s certificate of authentication in substantially the following form:

 

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

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
  Dated:

  	
   

  	
   

  

 

42

 

If an appointment of an
Authenticating Agent is made pursuant to Section 714, the Notes may
have endorsed thereon, in lieu of the Trustee’s certificate of authentication,
an alternative certificate of authentication in substantially the following
form:

 

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

 

	
   

  	
  WELLS FARGO BANK
  MINNESOTA,

  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  As Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
  Dated:

  	
   

  	
   

  

 

Section 203.                                Restrictive and Global Note Legends.  Each Global Note and Physical Note shall
bear the following legend set forth below (the “Private Placement Legend”)
on the face thereof until the Private Placement Legend is removed or not
required in accordance with Section 313(4):

 

THE NOTES EVIDENCED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933
(THE “SECURITIES ACT”) OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHO
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS, AND SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE, PLEDGE OR TRANSFER PURSUANT TO
(X) SUBCLAUSES (2) THROUGH (4) OF CLAUSE (A) ABOVE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL,

 

43

 

CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO THE ISSUER AND TO THE TRUSTEE, AND (Y) ANY OF
SUBCLAUSES (1) THROUGH (4) OF CLAUSE (A) ABOVE, TO REQUIRE THAT A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS NOTE IS COMPLETED
AND DELIVERED BY THE TRANSFEROR TO THE ISSUER AND THE TRUSTEE.  THE HOLDER OF THIS NOTE WILL, AND EACH
SUBSEQUENT HOLDER OF THIS NOTE IS REQUIRED TO, NOTIFY ANY TRANSFEREE OF THIS NOTE
FRO IT OF THE RESALE RESTRICTIONS REFERRED TO ABOVE.

 

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

 

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

 

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 312 AND 313
OF THE INDENTURE.

 

Each Offshore Temporary
Global Note shall also bear the following legend on the face thereof:

 

EXCEPT AS SPECIFIED IN
THE INDENTURE (AS DEFINED HEREIN), BENEFICIAL OWNERSHIP INTERESTS IN THIS
OFFSHORE TEMPORARY GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE
OFFSHORE PERMANENT GLOBAL NOTE OR ANY OTHER SECURITY REPRESENTING AN INTEREST
IN THE SECURITIES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING
RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40 DAY DISTRIBUTION
COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER
THE SECURITIES ACT).  DURING SUCH 40 DAY
DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS

 

44

 

IN THIS OFFSHORE
TEMPORARY GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH
EUROCLEAR BANK S.A./N.A., AS OPERATOR OF THE EUROCLEAR SYSTEM OR CLEARSTREAM
BANKING, SOCIÉTÉ ANONYME.  NEITHER THE
HOLDER NOR THE BENEFICIAL OWNERS OF THIS OFFSHORE TEMPORARY GLOBAL NOTE SHALL
BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON.

 

ARTICLE III

 

THE NOTES

 

Section 301.                                Title and Terms.  The aggregate principal amount of Notes that may be authenticated
and delivered and Outstanding under this Indenture is not limited.  The Initial Notes will be issued in an
aggregate principal amount of $425.0 million. 
All the Notes shall vote and consent together on all matters as one
class, and none of the Notes will have the right to vote or consent as a class
separate from one another on any matter. 
Additional Notes (including any Exchange Notes issued in exchange
therefor) will vote (or consent) as a class with the other Notes and otherwise
be treated as Notes for all purposes of this Indenture.

 

The Notes shall be known
and designated as the “9.50% Senior Subordinated Notes Due 2013” of the
Company.  The final Stated Maturity of
the Notes shall be August 15, 2013. 
Interest on the Outstanding principal amount of Notes will accrue at the
rate of 9.50% per annum and will be payable semi-annually in arrears on
February 15 and August 15 in each year, commencing on
February 15, 2004, to holders of record on the immediately preceding
February 1 and August 1, respectively (each such February 1 and
August 1, a “Regular Record Date”).  Interest on the Original Notes will accrue from the most recent
date to which interest has been paid or duly provided for or, if no interest
has been paid, from the Issue Date; and interest on any Additional Notes (and
Exchange Notes issued in exchange therefor) will accrue (or will be deemed to
have accrued) from the most recent date to which interest has been paid or duly
provided for or, if no interest has been paid on such Additional Notes, from
the Interest Payment Date immediately preceding the date of issuance of such
Additional Notes, or if the date of issuance of such Additional Notes is an
Interest Payment Date, from such date of issuance; provided, that if any Note is surrendered for exchange on or
after a record date for an Interest Payment Date that will occur on or after
the date of such exchange, interest on the Note received in exchange thereof
will accrue from the date of such Interest Payment Date.

 

The principal of, and
premium, if any, and interest, on the Notes shall be payable, and the Notes may
be exchanged or transferred, at the office or agency of the Company maintained
for that purpose in the Borough of Manhattan, The City of New York (which
initially shall be the Corporate Trust Office of the Trustee) (the “Place of
Payment”); provided, however, that at the option of the Company
payment of interest on a Note may be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Note Register.

 

45

 

Section 302.                                Denominations. 
The Notes shall be issuable only in fully registered form, without
coupons, and only in denominations of $1,000 and any integral multiple thereof.

 

Section 303.                                Execution, Authentication and
Delivery and Dating.  The
Notes shall be executed on behalf of the Company by one Officer of the
Company.  The signature of any such
Officer on the Notes may be manual or facsimile.

 

Notes bearing the manual
or facsimile signature of an individual who was at any time a proper Officer of
the Company shall bind the Company, notwithstanding that such individual has
ceased to hold such office prior to the authentication and delivery of such Notes
or did not hold such office at the date of such Notes.

 

At any time and from time
to time after the execution and delivery of this Indenture, the Company may
deliver Notes executed by the Company to the Trustee for authentication; and
the Trustee shall authenticate and deliver (i)
Initial Notes for original issue in the aggregate principal amount not to
exceed $425.0 million and (ii)
Additional Notes in one or more series from time to time for original issue in
aggregate principal amounts specified by the Company and (iii) Exchange Notes from time to time for
issue in exchange for a like principal amount of Initial Notes or Initial
Additional Notes, in each case specified in clauses (i) through (iii) above,
upon a written order of the Company in the form of an Officer’s Certificate of
the Company (an “Authentication Order”).  Such Officer’s Certificate shall specify the amount of Notes to
be authenticated and the date on which the Notes are to be authenticated,
whether the Notes are to be Initial Notes, Additional Notes or Exchange Notes
and whether the Notes are to be issued as one or more Global Notes or Physical
Notes and such other information as the Company may include or the Trustee may
reasonably request.

 

All Notes shall be dated
the date of their authentication.

 

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

 

Section 304.                                Temporary Notes.  Until definitive Notes are ready for delivery, the Company may
prepare and upon receipt of an Authentication Order the Trustee shall
authenticate temporary Notes.  Temporary
Notes shall be substantially in the form of definitive Notes but may have
variations that the Company consider appropriate for temporary Notes.  If temporary Notes are issued, the Company
will cause definitive Notes to be prepared without unreasonable delay.  After the preparation of definitive Notes,
the temporary Notes shall be exchangeable for definitive Notes upon surrender of
the temporary Notes at the office or agency of the Company in a Place of
Payment, without charge to the Holder. 
Upon surrender for cancellation of any one or more temporary Notes the
Company shall execute and upon receipt of an Authentication Order the Trustee
shall authenticate and deliver in exchange therefor a like

 

46

 

principal amount of definitive Notes of authorized denominations.  Until so exchanged the temporary Notes shall
in all respects be entitled to the same benefits under this Indenture as
definitive Notes of the same series and tenor.

 

Section 305.                                Registration, Registration of
Transfer and Exchange. 
The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the “Note Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for
the registration of Notes and of transfers of Notes.  The Trustee is hereby appointed “Note Registrar” for the
purpose of registering Notes and transfers of Notes as herein provided.

 

Upon surrender for
transfer of any Note at the office or agency of the Company in a Place of
Payment, in compliance with all applicable requirements of this Indenture and
applicable law, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Notes of the same series, of any authorized denominations and of a
like aggregate principal amount.

 

At the option of the
Holder, Notes may be exchanged for other Notes of the same series, of any
authorized denominations and of a like tenor and aggregate principal amount,
upon surrender of the Notes to be exchanged at such office or agency.  Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Notes that the Holder making the exchange is entitled to receive.

 

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

 

Every Note presented or
surrendered for transfer or exchange shall (if so required by the Company or
the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Note Registrar duly
executed, by the Holder thereof or such Holder’s attorney duly authorized in
writing.

 

No service charge shall
be made for any registration, transfer or exchange of Notes, but the Company
may require payment of a sum sufficient to cover any transfer tax or other
governmental charge that may be imposed in connection therewith.

 

The Company shall not be
required (i) to issue, transfer
or exchange any Note during a period beginning at the opening of business 15
days before the day of the mailing of a notice of redemption (or purchase) of
Notes selected for redemption (or purchase) under Section 1004 and
ending at the close of business on the day of such mailing, or (ii) to transfer or exchange any Note so
selected for redemption (or purchase) in whole or in part).

 

Section 306.                                Mutilated, Destroyed, Lost and
Stolen Notes.  If (i) any mutilated Note is surrendered to
the Trustee, or the Company and the Trustee receive evidence to their

 

47

 

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

 

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

 

Upon the issuance of any
new Note under this Section 306, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

 

Every new Note issued
pursuant to this Section 306 in lieu of any destroyed, lost or
stolen Note shall constitute an original additional contractual obligation of
the Company, whether or not the destroyed, lost or stolen Note shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and ratably with any and all other Notes duly issued
hereunder.

 

The provisions of this Section 306
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

 

Section 307.                                Payment of Interest Rights Preserved.  Interest on any Note that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Note (or one or more Predecessor Notes)
is registered at the close of business on the Regular Record Date for such
interest specified in Section 301.

 

Any interest on any Note
that is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue of having been such Holder; and such Defaulted Interest
may be paid by the Company, at its election, as provided in clause (1) or
clause (2) below:

 

(1)          The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at
the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid

 

48

 

in
respect of such Defaulted Interest or shall make arrangements reasonably
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as provided in this clause
(1).  Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 nor less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment.  The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first class postage prepaid, to each Holder at such Holder’s address as
it appears in the Note Register, not less than 10 days prior to such Special
Record Date.  Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having
been so mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered on such
Special Record Date and shall no longer be payable pursuant to the following
clause (2).

 

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

 

Subject to the foregoing
provisions of this Section 307, each Note delivered under this
Indenture upon transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest accrued and unpaid, and to accrue, that were
carried by such other Note.

 

Section 308.                                Persons Deemed Owners.  The Company, any Note Guarantor, the Trustee
and any agent of any of them may treat the Person in whose name any Note is
registered as the owner of such Note for the purpose of receiving payment of
principal of (and premium, if any), and (subject to Section 307)
interest on, such Note and for all other purposes whatsoever, whether or not
such Note be overdue, and neither the Company, any Note Guarantor, the Trustee
nor any agent of any of them shall be affected by notice to the contrary.

 

Section 309.                                Cancellation. 
All Notes surrendered for payment, redemption, transfer, exchange or
conversion shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and, if not already cancelled, shall be promptly
cancelled by it.  The Company may at any
time deliver to the Trustee for cancellation any Notes previously authenticated
and delivered hereunder that the Company may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the
Trustee.  No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture.  All cancelled Notes held by the Trustee
shall be disposed of as directed by a Company Order of the Company and in
accordance with Section 313.

 

49

 

Section 310.                                Computation of Interest.  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

Section 311.                                CUSIP Numbers. 
The Company in issuing the Notes may use “CUSIP” numbers (if then
generally in use), and if so, the Trustee may use the CUSIP numbers in notices
of redemption or exchange as a convenience to Holders; provided, however,
that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP number printed in the notice or on the
Notes, and that reliance may be placed only on the other identification numbers
printed on the Notes.

 

Section 312.                                Book-Entry Provisions for Global
Notes.  (a) Each Global Note
initially shall (i) be registered
in the name of the Depositary for such Global Note or the nominee of such
Depositary and (ii) be delivered
to the Trustee as custodian for such Depositary.  Neither  the Company nor
any agent of the Company shall have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Note, or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

 

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

 

(b)                                 Transfers of a Global Note shall be limited
to transfers of such Global Note in whole, but, subject to the immediately
succeeding sentence, not in part, to the Depositary, its successors or their
respective nominees.  Interests of
beneficial owners in a Global Note may not be transferred or exchanged for Physical
Notes unless (i) the Company has
consented thereto in writing, or such transfer or exchange is made pursuant to
the next sentence, and (ii) such
transfer or exchange is in accordance with the applicable rules and procedures
of the Depositary and the provisions of Sections 305 and 313.  Subject to the limitation on issuance of
Physical Notes set forth in Section 313(3), Physical Notes shall be
transferred to all beneficial owners in exchange for their beneficial interests
in the relevant Global Note, if (i)
the Depositary notifies the Company that it is unwilling or unable to continue
as Depositary for the Global Note or the Depositary ceases to be a “Clearing
Agency” registered under the Exchange Act and in either case a successor
depositary is not appointed by the Company within 90 days, (ii) the Company, at its option, notifies
the Trustee in writing that it is electing to cause the issuance of

 

50

 

Physical Notes under this Indenture or (iii) an
Event of Default has occurred and is continuing and the Trustee has received a
written request from the Depositary to issue Physical Notes.

 

(c)                                  In connection with any transfer or exchange
of a portion of the beneficial interest in any Global Note to beneficial owners
for Physical Notes pursuant to Section 312(b), the Note Registrar
shall record on its books and records the date and a decrease in the principal
amount of such Global Note in an amount equal to the beneficial interest in the
Global Note being transferred, and the Company shall execute, and the Trustee
shall authenticate and deliver, one or more Physical Notes of like tenor and
principal amount of authorized denominations.

 

(d)                                 In connection with a transfer of an entire
Global Note to beneficial owners pursuant to Section 312(b), the
applicable Global Note shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interest in the applicable Global Note, an equal aggregate
principal amount at maturity of  U.S.
Physical Notes (in the case of any U.S. Global Note), Offshore Physical Notes
(in the case of any Offshore Global Note) or other Physical Notes (in the case
of any other Global Note), as the case may be, of authorized denominations.

 

(e)                                  The transfer and exchange of a Global Note or
beneficial interests therein shall be effected through the Depositary, in
accordance with this Indenture (including applicable restrictions on transfer
set forth in Section 313) and the procedures of the Depositary
therefor.  Any beneficial interest in
one of the Global Notes that is transferred to a Person who takes delivery in
the form of an interest in a different Global Note will, upon transfer, cease
to be an interest in such Global Note and become an interest in the other
Global Note and, accordingly, will thereafter be subject to all transfer
restrictions, if any, and other procedures applicable to beneficial interests
in such other Global Note for as long as it remains such an interest.  A transferor of a beneficial interest in a
Global Note shall deliver to the Registrar a written order given in accordance
with the Depositary’s procedures containing information regarding the participant
account of the Depositary to be credited with a beneficial interest in the
relevant Global Note.  Subject to Section 313,
the Registrar shall, in accordance with such instructions, instruct the
Depositary to credit to the account of the Person specified in such
instructions a beneficial interest in such Global Note and to debit the account
of the Person making the transfer the beneficial interest in the Global Note
being transferred.

 

(f)                                    Any Physical Note delivered in exchange for
an interest in a Global Note pursuant to Section 312(b) shall,
unless such exchange is made on or after the Resale Restriction Termination
Date applicable to such Note and except as otherwise provided in Section 203
and Section 313, bear the Private Placement Legend.

 

(g)                                 The Company, any other obligor upon the Notes
or the Trustee, in the discretion of any of them, may treat as the Act of a
Holder any instrument or writing of any Person that is identified by the
Depositary as the owner of a beneficial interest in the Global Note, provided that the fact and date of the
execution of such instrument or writing is proved in accordance with Section 108(b).

 

51

 

Section 313.                                Special Transfer Provisions.  (1) 
Transfers to Non-U.S. Persons. 
The following provisions shall apply with respect to the registration of
any proposed transfer of a Note that is a Restricted Security to any Non-U.S.
Person:  The Note Registrar shall
register such transfer if it complies with all other applicable requirements of
this Indenture (including Section 305) and,

 

(a)                                  if (x) such transfer is
after the relevant Resale Restriction Termination Date with respect to such
Note or (y) the proposed transferor has delivered to
the Note Registrar a Regulation S Certificate and, unless otherwise agreed by
the Company and the Trustee, an opinion of counsel, certifications and other
information satisfactory to the Company and the Trustee, and

 

(b)                                 if the proposed transferor is or is acting
through an Agent Member holding a beneficial interest in a Global Note, upon
receipt by the Note Registrar of (x) the certificate, opinion, certifications
and other information, if any, required by clause (a) above and (y) written
instructions given in accordance with the Depositary’s and the Note Registrar’s
procedures;

 

whereupon (i) the Note Registrar shall reflect on its
books and records the date and (if the transfer does not involve a transfer of
any Outstanding Physical Note) a decrease in the principal amount of the
relevant Global Note in an amount equal to the principal amount of the
beneficial interest in the relevant Global Note to be transferred, and (ii) either (A) if the proposed transferee is or is acting through an
Agent Member holding a beneficial interest in a relevant Offshore Global Note,
the Trustee shall reflect on its books and records the date and an increase in
the principal amount of such Offshore Global Note in an amount equal to the
principal amount of the beneficial interest being so transferred or (B) otherwise the Company shall execute and
the Trustee shall authenticate and deliver one or more Physical Notes of like
tenor and amount.

 

(2)                                  Transfers to QIBs.  The
following provisions shall apply with respect to the registration of any
proposed transfer of a Note that is a Restricted Security to a QIB (excluding
transfers to Non-U.S. Persons):  The
Note Registrar shall register such transfer if it complies with all other
applicable requirements of this Indenture (including Section 305)
and,

 

(a)                                  if such transfer is being made by a proposed
transferor who has checked the box provided for on the form of such Note
stating, or has otherwise certified to the Company and the Note Registrar in
writing, that the sale has been made in compliance with the provisions of Rule
144A to a transferee who has signed the certification provided for on the form
of such Note stating, or has otherwise certified to the Company and the Note
Registrar in writing, that it is purchasing such Note for its own account or an
account with respect to which it exercises sole investment discretion and that
it and any such account is a QIB within the meaning of Rule 144A, and is aware
that the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as it has requested
pursuant to Rule 144A or has determined not to request such information and
that it is aware that the transferor

 

52

 

is relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A; and

 

(b)                                 if the proposed transferee is an Agent
Member, and the Note to be transferred consists of a Physical Note that after
transfer is to be evidenced by an interest in a Global Note or consists of a
beneficial interest in a Global Note that after the transfer is to be evidenced
by an interest in a different Global Note, upon receipt by the Note Registrar
of written instructions given in accordance with the Depositary’s and the Note Registrar’s
procedures, whereupon the Note Registrar shall reflect on its books and records
the date and an increase in the principal amount of the transferee Global Note
in an amount equal to the principal amount of the Physical Note or such
beneficial interest in such transferor Global Note to be transferred, and the
Trustee shall cancel the Physical Note so transferred or reflect on its books
and records the date and a decrease in the principal amount of such transferor
Global Note, as the case may be.

 

(3)                                  Limitation
on Issuance of Physical Notes.  No
Physical Note shall be exchanged for a beneficial interest in any Global Note,
except in accordance with Section 312 and this Section 313.

 

A beneficial owner of an
interest an Offshore Temporary Global Note (and, in the case of any Additional
Notes for which no Offshore Temporary Global Note is issued, any Offshore
Global Note) shall not be permitted to exchange such interest for a Physical
Note or (in the case of such interest in an Offshore Temporary Global Note) an
interest in an Offshore Permanent Global Note until a date, which must be after
the expiration of the distribution compliance period set forth in Regulation S,
on which the Company receives a certificate of beneficial ownership
substantially in the form of Exhibit B from such beneficial owner (a “Certificate
of Beneficial Ownership”).  Such
date, as it relates to an Offshore Global Note, is herein referred to as the “Offshore
Note Exchange Date.”

 

(4)                                  Private
Placement Legend.  Upon the
transfer, exchange or replacement of Notes not bearing the Private Placement
Legend, the Note Registrar shall deliver Notes that do not bear the Private
Placement Legend.  Upon the transfer,
exchange or replacement of Notes bearing the Private Placement Legend, the Note
Registrar shall deliver only Notes that bear the Private Placement Legend
unless (i) the requested transfer
is after the relevant Resale Restriction Termination Date with respect to such
Notes, (ii) upon written request
of the Company after there is delivered to the Note Registrar an opinion of
counsel (which opinion and counsel are satisfactory to the Company and the
Trustee) to the effect that neither such legend nor the related restrictions on
transfer are required in order to maintain compliance with the provisions of
the Securities Act, (iii) with
respect to an Offshore Global Note (on or after the Offshore Note Exchange Date
with respect to such Offshore Global Note) or Offshore Physical Note, in each
case with the agreement of the Company, or (iv)
such Notes are sold or exchanged pursuant to an effective registration
statement under the Securities Act.

 

53

 

(5)                                  Other
Transfers.  The Note Registrar shall
effect and register, upon receipt of a written request from the Company to do
so, a transfer not otherwise permitted by this Section 313, such
registration to be done in accordance with the otherwise applicable provisions
of this Section 313, upon the furnishing by the proposed transferor
or transferee of a written opinion of counsel (which opinion and counsel are
satisfactory to the Company and the Trustee) to the effect that, and such other
certifications or information as the Company may require to confirm that, the
proposed transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities
Act.

 

A Note that is a
Restricted Security may not be transferred other than as provided in this Section 313.  A beneficial interest in a Global Note that
is a Restricted Security may not be exchanged for a beneficial interest in
another Global Note other than through a transfer in compliance with this Section 313.

 

(6)                                  General.  By its acceptance of any Note bearing the
Private Placement Legend, each Holder of such a Note acknowledges the
restrictions on transfer of such Note set forth in this Indenture and in the
Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture.

 

The Note Registrar shall
retain copies of all letters, notices and other written communications received
pursuant to Section 312 or this Section 313 (including
all Notes received for transfer pursuant to Section 313).  The Company shall have the right to require
the Note Registrar to deliver to the Company, at the Company’s expense, copies
of all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Note Registrar.

 

In connection with any
transfer of any Note, the Trustee, the Note Registrar and the Company shall be
entitled to receive, shall be under no duty to inquire into, may conclusively
presume the correctness of, and shall be fully protected in relying upon the
certificates, opinions and other information referred to herein (or in the
forms provided herein, attached hereto or to the Notes, or otherwise) received
from any Holder and any transferee of any Note regarding the validity, legality
and due authorization of any such transfer, the eligibility of the transferee
to receive such Note and any other facts and circumstances related to such
transfer.

 

Section 314.                                Payment of Additional Interest.  (a) 
Under certain circumstances the Company will be obligated to pay certain
additional amounts of interest to the Holders of certain Initial Notes, as more
particularly set forth in such Initial Notes.

 

(b)                                 Under certain circumstances the Company may
be obligated to pay certain additional amounts of interest to the Holders of
certain Initial Additional Notes, as may be more particularly set forth in such
Initial Additional Notes.

 

54

 

ARTICLE IV

 

COVENANTS

 

Section 401.                                Payment of Principal, Premium and
Interest.  The Company
shall duly and punctually pay the principal of (and premium, if any) and
interest on the Notes in accordance with the terms of the Notes and this
Indenture.

 

Section 402.                                Maintenance of Office or Agency.  The Company shall maintain in the Borough of
Manhattan, The City of New York an office or agency where Notes may be
presented or surrendered for payment, where Notes may be surrendered for
transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location, and of any change in the location, of such
office or agency.  If at any time the
Company shall fail to maintain such office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the
Trustee.  The Company hereby designates
the Corporate Trust Office as the initial Place of Payment and appoints the
Trustee its agent to receive all such presentations, surrenders, notices and
demands so long as such Corporate Trust Office remains the Place of Payment.

 

Section 403.                                Money for Payments to Be Held in
Trust.  If the Company shall at
any time act as its own Paying Agent, it will, on or before each due date of
the principal of (and premium, if any) or interest on, any of the Notes,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal (and premium, if any) or interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided, and will promptly notify the Trustee of its
action or failure so to act.

 

If the Company is not
acting as its own Paying Agent, it will, prior to each due date of the principal
of (and premium, if any) or interest on, any Notes, deposit with a Paying Agent
a sum sufficient to pay the principal (and premium, if any) or interest, so
becoming due, such sum to be held in trust for the benefit of the Persons
entitled to such principal, premium or interest, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

 

If the Company is not
acting as its own Paying Agent, the Company will cause any Paying Agent other
than the Trustee to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of
this Section 403, that such Paying Agent will

 

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

 

55

 

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

 

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

 

(4)          acknowledge,
accept and agree to comply in all respects with the provisions of this
Indenture and TIA relating to the duties, rights and liabilities of such Paying
Agent.

 

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

 

Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of (and premium, if any) or interest on any Note and
remaining unclaimed for two years after such principal (and premium, if any) or
interest has become due and payable shall be paid to the Company on Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease.

 

Section 404.                                [Reserved.]

 

Section 405.                                SEC Reports. 
Notwithstanding that the Company may not be required to be or remain
subject to the reporting requirements of Section 13(a) or 15(d) of the
Exchange Act, the Company will file with the SEC (unless such filing is not
permitted under the Exchange Act or by the SEC), so long as the Notes are
Outstanding, the annual reports, information, documents and other reports that
the Company is required to file with the SEC pursuant to such
Section 13(a) or 15(d) or would be so required to file if the Company were
so subject. The Company will also, within 15 days after the date on which the
Company was so required to file or would be so required to file if the Company
were so subject, transmit by mail to all Holders, as their names and addresses
appear in the Note Register, and to the Trustee copies of any such information,
documents and reports (without exhibits) so required to be filed.  The Company will be deemed to have satisfied
such requirements if Holding files and provides reports, documents and
information of the types otherwise so required, in each case within the
applicable time periods, and the Company is not required to file such reports,
documents and information separately under the applicable rules and regulations
of the SEC (after giving effect to any

 

56

 

exemptive relief) because of the filings by Holding. The Company also
will comply with the other provisions of TIA § 314(a).

 

Section 406.                                Statement as to Default.  The Company shall deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company ending after
the date hereof, an Officer’s Certificate, to the effect that to the best
knowledge of the signer thereof the Company is or is not in default in the
performance and observance of any of the terms, provisions and conditions of
this Indenture (without regard to any period of grace or requirement of notice
provided hereunder) and, if the Company shall be in default, specifying all
such defaults and the nature and status thereof of which such signer may have
knowledge.  To the extent required by
the TIA, each Note Guarantor shall comply with TIA § 314(a)(4).  The individual signing any certificate given
by any Person pursuant to this Section 406 shall be the principal
executive, financial or accounting officer of such Person, in compliance with
TIA § 314(a)(4).

 

Section 407.                                Limitation on Indebtedness.  (a) 
The Company will not, and will not permit any Restricted Subsidiary to, Incur
any Indebtedness; provided, however, that the Company or any
Subsidiary Guarantor may Incur Indebtedness if on the date of the Incurrence of
such Indebtedness, after giving effect to the Incurrence thereof, the
Consolidated Coverage Ratio would be greater than 2.00:1.00.

 

(b)                                 Notwithstanding the foregoing paragraph (a),
the Company and its Restricted Subsidiaries may Incur the following
Indebtedness:

 

(i)                                     Indebtedness Incurred pursuant to any Credit
Facility (including but not limited to in respect of letters of credit or
bankers’ acceptances issued or created thereunder) and Indebtedness of any
Foreign Subsidiary Incurred other than under the Senior Credit Facility, and
(without limiting the foregoing), in each case, any Refinancing Indebtedness in
respect thereof, in a maximum principal amount at any time outstanding not
exceeding in the aggregate the amount equal to (A) $1,800 million,
plus (B) the amount, if any, by which (x) the Borrowing Base minus (y) the aggregate principal amount of
Indebtedness Incurred by a Receivables Subsidiary and then outstanding pursuant
to clause (ix) of this paragraph (b), or by a Foreign Subsidiary and then
outstanding pursuant to clause (xi) of this paragraph (b), exceeds $350
million, plus (C) in the case of any refinancing of any
Credit Facility or any portion thereof, the aggregate amount of fees,
underwriting discounts, premiums and other costs and expenses incurred in
connection with such refinancing;

 

(ii)                                  Indebtedness (A) of any Restricted
Subsidiary to the Company or (B) of the Company or any Restricted Subsidiary
to any Restricted Subsidiary; provided, that any subsequent issuance or transfer of
any Capital Stock of such Restricted Subsidiary to which such Indebtedness is
owed, or other event, that results in such Restricted Subsidiary ceasing to be
a Restricted Subsidiary or any other subsequent transfer of such Indebtedness
(except to the Company or a Restricted Subsidiary) will be deemed, in each
case, an Incurrence of such Indebtedness by the issuer thereof not permitted by
this clause (ii);

 

57

 

(iii)                               Indebtedness represented by the Senior Notes
issued on the Issue Date (or any Senior Notes issued in respect thereof or in
exchange therefor) and the Notes (other than any Additional Notes), any
Indebtedness outstanding on the Issue Date (other than the Indebtedness
described in clauses (i) or (ii) above) and any Refinancing Indebtedness
Incurred in respect of any Indebtedness described in this clause (iii) or paragraph
(a) above;

 

(iv)                              Purchase Money Obligations and Capitalized
Lease Obligations, and any Refinancing Indebtedness with respect thereto, in an
aggregate principal amount at any time outstanding not exceeding an amount
equal to 5% of Consolidated Tangible Assets;

 

(v)                                 Indebtedness consisting of accommodation
guarantees for the benefit of trade creditors of the Company or any of its
Restricted Subsidiaries, or represented by Guarantees consisting of contracts
for the purchase of wood chips in the ordinary course of business;

 

(vi)                              (A) Guarantees by the Company or any Restricted
Subsidiary of Indebtedness or any other obligation or liability of the Company
or any Restricted Subsidiary (other than any Indebtedness Incurred by the
Company or such Restricted Subsidiary, as the case may be, in violation of this
Section 407), or (B) without limiting Section 413,
Indebtedness of the Company or any Restricted Subsidiary arising by reason of
any Lien granted by or applicable to such Person securing Indebtedness of the
Company or any Restricted Subsidiary (other than any Indebtedness Incurred by
the Company or such Restricted Subsidiary, as the case may be, in violation of
this Section 407);

 

(vii)                           Indebtedness of the Company or any Restricted
Subsidiary (A) arising from the honoring of a check, draft
or similar instrument of such Person drawn against insufficient funds, provided that such Indebtedness is extinguished
within five Business Days of its Incurrence, or (B) consisting of
guarantees, indemnities, obligations in respect of earnouts or other purchase
price adjustments, or similar obligations, Incurred in connection with the
acquisition or disposition of any business, assets or Person;

 

(viii)                        Indebtedness of the Company or any Restricted
Subsidiary in respect of (A) letters of credit, bankers’ acceptances or
other similar instruments or obligations issued, or relating to liabilities or
obligations incurred, in the ordinary course of business (including those
issued to governmental entities in connection with self-insurance under
applicable workers’ compensation statutes), or (B) completion
guarantees, surety, judgment, appeal or performance bonds, or other similar
bonds, instruments or obligations, provided, or relating to liabilities or
obligations incurred, in the ordinary course of business, or (C) Hedging Obligations, entered into for bona
fide hedging purposes in the ordinary course of business, or (D) Management Guarantees, or (E) the financing of insurance premiums in the
ordinary course of business;

 

58

 

(ix)                                Indebtedness of a Receivables Subsidiary
secured by a Lien on all or part of the assets disposed of in, or otherwise
Incurred in connection with, a Financing Disposition;

 

(x)                                   Indebtedness of any Person that is assumed by
the Company or any Restricted Subsidiary in connection with its acquisition of
assets from such Person or any Affiliate thereof or is issued and outstanding
on or prior to the date on which such Person was acquired by the Company or any
Restricted Subsidiary or merged or consolidated with or into any Restricted
Subsidiary (other than Indebtedness Incurred to finance, or otherwise Incurred
in connection with, such acquisition), provided that on the
date of such acquisition, merger or consolidation, after giving effect thereto,
the Company could Incur at least $1.00 of additional Indebtedness pursuant to
paragraph (a) above; and any Refinancing Indebtedness with respect to any such
Indebtedness;

 

(xi)                                Indebtedness of any Foreign Subsidiary Incurred
for working capital purposes in an aggregate principal amount at any time
outstanding not exceeding an amount equal to the sum (determined as of the end
of the most recently ended fiscal quarter for which consolidated financial
statements of the Company are available) of (A) 90% of
Receivables of all Foreign Subsidiaries and (B) 75% of Inventory
of all Foreign Subsidiaries; and

 

(xii)                             Indebtedness of the Company or any Restricted
Subsidiary in an aggregate principal amount at any time outstanding not
exceeding an amount equal to 5% of Consolidated Tangible Assets.

 

(c)                                  For purposes of determining compliance with,
and the outstanding principal amount of any particular Indebtedness Incurred
pursuant to and in compliance with, this Section 407, (i) any other obligation of the obligor on
such Indebtedness (or of any other Person who could have Incurred such
Indebtedness under this Section 407) arising under any Guarantee,
Lien or letter of credit, bankers’ acceptance or other similar instrument or
obligation supporting such Indebtedness shall be disregarded to the extent that
such Guarantee, Lien or letter of credit, bankers’ acceptance or other similar
instrument or obligation secures the principal amount of such Indebtedness; (ii) in the event that Indebtedness meets
the criteria of more than one of the types of Indebtedness described in
paragraph (b) above, the Company, in its sole discretion, shall classify such
item of Indebtedness and may include the amount and type of such Indebtedness
in one or more of such clauses; and (iii)
the amount of Indebtedness issued at a price that is less than the principal
amount thereof shall be equal to the amount of the liability in respect thereof
determined in accordance with GAAP.  Any
Indebtedness Incurred by the Company on the Issue Date under the Senior Credit
Facility shall be classified as Incurred under Section 407(b), and
not under Section 407(a).

 

(d)                                 For purposes of determining compliance with
any Dollar-denominated restriction on the Incurrence of Indebtedness
denominated in a foreign currency, the Dollar-equivalent principal amount of
such Indebtedness Incurred pursuant thereto shall be calculated based on the
relevant currency exchange rate in effect on the date that such Indebtedness

 

59

 

was Incurred, in the case of term Indebtedness, or
first committed, in the case of revolving credit Indebtedness, provided that (x) the Dollar-equivalent principal amount of any such
Indebtedness outstanding on the Issue Date shall be calculated based on the
relevant currency exchange rate in effect on the Issue Date, (y) if such Indebtedness is Incurred to
refinance other Indebtedness denominated in a foreign currency, and such
refinancing would cause the applicable Dollar-denominated restriction to be
exceeded if calculated at the relevant currency exchange rate in effect on the
date of such refinancing, such Dollar-denominated restriction shall be deemed
not to have been exceeded so long as the principal amount of such refinancing
Indebtedness does not exceed the principal amount of such Indebtedness being
refinanced and (z) the
Dollar-equivalent principal amount of Indebtedness denominated in a foreign
currency and Incurred pursuant to the Senior Credit Facility shall be calculated
based on the relevant currency exchange rate in effect on, at the Company’s
option, (i) the Issue Date, (ii) any date on which any of the
respective commitments under the Senior Credit Facility shall be reallocated
between or among facilities or subfacilities thereunder, or on which such rate
is otherwise calculated for any purpose thereunder, or (iii) the date of such Incurrence. The
principal amount of any Indebtedness Incurred to refinance other Indebtedness,
if Incurred in a different currency from the Indebtedness being refinanced,
shall be calculated based on the currency exchange rate applicable to the
currencies in which such respective Indebtedness is denominated that is in
effect on the date of such refinancing.

 

Section 408.                                Limitation on Layering.  The Company will not Incur any Indebtedness
that is expressly subordinated in right of payment to any Senior Indebtedness
of the Company, unless such Indebtedness so Incurred ranks pari passu in right of payment with, or is
subordinated in right of payment to, the Company’s Indebtedness with respect to
the Notes. The Company will not permit any Subsidiary Guarantor to Incur any
Indebtedness that is expressly subordinated in right of payment to any Senior
Indebtedness of such Subsidiary Guarantor, unless such Indebtedness so Incurred
ranks pari passu in right of
payment with such Subsidiary Guarantor’s Subsidiary Guarantee, or is
subordinated in right of payment to such Subsidiary Guarantee. Unsecured
Indebtedness is not deemed to be subordinate or junior to secured Indebtedness
merely because it is unsecured, and Indebtedness that is not guaranteed by a
particular Person is not deemed to be subordinate or junior to Indebtedness
that is so guaranteed merely because it is not so guaranteed.

 

Section 409.                                Limitation on Restricted Payments.  (a) 
The Company shall not, and shall not permit any Restricted Subsidiary,
directly or indirectly, to (i)
declare or pay any dividend or make any distribution on or in respect of its
Capital Stock (including any such payment in connection with any merger or
consolidation to which the Company is a party) except (x) dividends or distributions payable
solely in its Capital Stock (other than Disqualified Stock) and (y) dividends or distributions payable to
the Company or any Restricted Subsidiary (and, in the case of any such
Restricted Subsidiary making such dividend or distribution, to other holders of
its Capital Stock on no more than a pro rata
basis, measured by value), (ii)
purchase, redeem, retire or otherwise acquire for value any Capital Stock of
the Company held by Persons other than the Company or a Restricted Subsidiary,
(iii) voluntarily purchase,
repurchase, redeem, defease or otherwise voluntarily acquire or retire for
value, prior to scheduled maturity, scheduled repayment or scheduled sinking
fund payment, any Subordinated Obligations (other than a purchase,

 

60

 

repurchase, redemption, defeasance or other acquisition or retirement
for value (x) of any Existing
Notes or (y) in anticipation of
satisfying a sinking fund obligation, principal installment or final maturity,
in each case due within one year of the date of such acquisition or retirement)
or (iv) make any Investment
(other than a Permitted Investment) in any Person (any such dividend,
distribution, purchase, redemption, repurchase, defeasance, other acquisition
or retirement or Investment being herein referred to as a “Restricted
Payment”), if at the time the Company or such Restricted Subsidiary makes
such Restricted Payment and after giving effect thereto:

 

(1)                                  a
Default shall have occurred and be continuing (or would result therefrom);

 

(2)                                  the
Company could not Incur at least an additional $1.00 of Indebtedness pursuant
to Section 407(a); or

 

(3)                                  the
aggregate amount of such Restricted Payment and all other Restricted Payments
(the amount so expended, if other than in cash, to be as determined in good
faith by the Board of Directors, whose determination shall be conclusive and
evidenced by a resolution of the Board of Directors) declared or made
subsequent to the Issue Date and then outstanding would exceed, without
duplication, the sum of:

 

(A)                              50%
of the Consolidated Net Income accrued during the period (treated as one
accounting period) beginning on July 1, 2003 to the end of the most recent
fiscal quarter ending prior to the date of such Restricted Payment for which
consolidated financial statements of the Company are available (or, in case
such Consolidated Net Income shall be a negative number, 100% of such negative
number);

 

(B)                                the
aggregate Net Cash Proceeds and the fair value (as determined in good faith by
the Board of Directors) of property or assets received (x) by the Company as capital contributions
to the Company after the Issue Date or from the issuance or sale (other than to
a Restricted Subsidiary) of its Capital Stock (other than Disqualified Stock)
after the Issue Date (other than Excluded Contributions) or (y) by the Company or any Restricted
Subsidiary from the issuance and sale by the Company or any Restricted
Subsidiary after the Issue Date of Indebtedness that shall have been converted
into or exchanged for Capital Stock of the Company (other than Disqualified
Stock), plus the amount of any cash and the fair value (as determined in good
faith by the Board of Directors) of any property or assets, received by the
Company or any Restricted Subsidiary upon such conversion or exchange;

 

(C)                                the
aggregate amount equal to the net reduction in Investments in Unrestricted
Subsidiaries resulting from (i)
dividends, distributions, interest payments, return of capital, repayments of
Investments or other transfers of assets to the Company or any Restricted
Subsidiary from any Unrestricted Subsidiary, or (ii) the redesignation of any Unrestricted Subsidiary as a
Restricted Subsidiary (valued in each case as provided in the definition of “Investment”),
not to exceed in the case of any such Unrestricted Subsidiary the aggregate
amount of Investments (other than

 

61

 

Permitted Investments)
made by the Company or any Restricted Subsidiary in such Unrestricted
Subsidiary after the Issue Date; and

 

(D)                               in
the case of any disposition or repayment of any Investment constituting a
Restricted Payment (without duplication of any amount deducted in calculating
the amount of Investments at any time outstanding included in the amount of
Restricted Payments), an amount in the aggregate equal to the lesser of the
return of capital, repayment or other proceeds with respect to all such
Investments received by the Company or a Restricted Subsidiary and the initial
amount of all such Investments constituting Restricted Payments.

 

(b)                                 The provisions of Section 409(a)
will not prohibit any of the following (each, a “Permitted Payment”):

 

(i)                                     any purchase, redemption, repurchase,
defeasance or other acquisition or retirement of Capital Stock of the Company
or Subordinated Obligations made by exchange (including any such exchange
pursuant to the exercise of a conversion right or privilege in connection with
which cash is paid in lieu of the issuance of fractional shares) for, or out of
the proceeds of the substantially concurrent issuance or sale of, Capital Stock
of the Company (other than Disqualified Stock and other than Capital Stock
issued or sold to a Subsidiary) or a substantially concurrent capital
contribution to the Company, in each case other than Excluded Contributions; provided, that the Net Cash Proceeds from such
issuance, sale or capital contribution shall be excluded in subsequent
calculations under Section 409(a)(3)(B);

 

(ii)                                  any purchase, redemption, repurchase,
defeasance or other acquisition or retirement of Subordinated Obligations (w) made by exchange for, or out of the
proceeds of the substantially concurrent issuance or sale of, Indebtedness of
the Company or Refinancing Indebtedness Incurred in compliance with Section 407,
(x) from Net Available Cash to the extent
permitted by Section 411, (y) following the
occurrence of a Change of Control (or other similar event described therein as
a “change of control”), but only if the Company shall have complied with Section 415
and, if required, purchased all Notes tendered pursuant to the offer to
repurchase all the Notes required thereby, prior to purchasing or repaying such
Subordinated Obligations or (z) constituting Acquired Indebtedness;

 

(iii)                               dividends paid within 60 days after the date
of declaration thereof if at such date of declaration such dividend would have
complied with Section 409(a);

 

(iv)                              Investments or other Restricted Payments in
an aggregate amount outstanding at any time not to exceed the amount of
Excluded Contributions;

 

(v)                                 loans, advances, dividends or distributions
by the Company to Holding or GPI Holding to permit Holding to repurchase or
otherwise acquire its Capital Stock (including any options, warrants or other
rights in respect thereof), or payments by the

 

62

 

Company
to repurchase or otherwise acquire Capital Stock of Holding or the Company
(including any options, warrants or other rights in respect thereof), in each
case from Management Investors, such payments, loans, advances, dividends or
distributions not to exceed an amount (net of repayments of any such loans or
advances) equal to (1) $20.0 million, plus (2) $5.0 million multiplied by the number of
calendar years that have commenced since the Issue Date, plus the Net Cash Proceeds received by the
Company since the Issue Date from, or as a capital contribution from, the
issuance or sale to Management Investors of Capital Stock (including any
options, warrants or other rights in respect thereof), to the extent such Net
Cash Proceeds are not included in any calculation under Section 409(a)(3)(B)(x);

 

(vi)                              the payment by the Company of, or loans,
advances, dividends or distributions by the Company to GPI Holding or Holding
to pay, dividends on the common stock or equity of the Company, GPI Holding or
Holding following a public offering of such common stock or equity in an amount
not to exceed in any fiscal year 6% of the aggregate gross proceeds received by
the Company, GPI Holding or Holding in or from such public offering;

 

(vii)                           Restricted Payments (including loans or
advances) in an aggregate amount outstanding at any time not to exceed $50.0
million (net of repayments of any such loans or advances);

 

(viii)                        loans, advances, dividends or distributions
to Holding or GPI Holding or other payments by the Company or any Restricted
Subsidiary (A) to satisfy or permit Holding to satisfy
obligations under the Equity Agreements, (B) pursuant to the
Tax Sharing Agreement, or (C) to pay or permit Holding or GPI Holding to
pay any Holding Expenses or any Related Taxes;

 

(ix)                                payments by the Company, or loans, advances,
dividends or distributions by the Company to Holding to make payments, to
holders of Capital Stock of the Company or Holding in lieu of issuance of
fractional shares of such Capital Stock, not to exceed $100,000 in the
aggregate outstanding at any time;

 

(x)                                   dividends or other distributions of Capital
Stock, Indebtedness or other securities of Unrestricted Subsidiaries; and

 

(xi)                                the Transactions;

 

provided,
that (A) in the case of clauses
(iii), (vi), (vii) and (ix), the net amount of any such Permitted Payment shall
be included in subsequent calculations of the amount of Restricted Payments, (B) in the case of clause (v), at the time
of any calculation of the amount of Restricted Payments, the net amount of
Permitted Payments that have then actually been made under clause (v) that is
in excess of 50% of the total amount of Permitted Payments then permitted under
clause (v) shall be included in such calculation of the amount of Restricted
Payments, (C) in all cases other
than pursuant to clauses (A) and (B) immediately above, the net amount of any
such

 

63

 

Permitted Payment shall be excluded in subsequent calculations of the
amount of Restricted Payments and (D)
solely with respect to clause (vii), no Default or Event of Default shall have
occurred or be continuing at the time of any such Permitted Payment after
giving effect thereto.

 

Section 410.                                Limitation on Restrictions on
Distributions from Restricted Subsidiaries.  The Company will not, and will not permit
any Restricted Subsidiary to, create or otherwise cause to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to (i) pay
dividends or make any other distributions on its Capital Stock or pay any
Indebtedness or other obligations owed to the Company, (ii) make any loans or advances to the
Company or (iii) transfer any of
its property or assets to the Company, except any encumbrance or restriction:

 

(1)          pursuant
to an agreement or instrument in effect at or entered into on the Issue Date,
any Credit Facility, the Senior Indenture, this Indenture, the Senior Notes or
the Notes;

 

(2)          pursuant
to any agreement or instrument of a Person, or relating to Indebtedness or
Capital Stock of a Person, which Person is acquired by or merged or
consolidated with or into the Company or any Restricted Subsidiary, or which
agreement or instrument is assumed by the Company or any Restricted Subsidiary
in connection with an acquisition of assets from such Person, as in effect at
the time of such acquisition, merger or consolidation (except to the extent
that such Indebtedness was Incurred to finance, or otherwise in connection
with, such acquisition, merger or consolidation); provided that for purposes of this clause (2), if another
Person is the Successor Company, any Subsidiary thereof or agreement or
instrument of such Person or any such Subsidiary shall be deemed acquired or
assumed, as the case may be, by the Company or a Restricted Subsidiary, as the
case may be, when such Person becomes the Successor Company;

 

(3)          pursuant
to an agreement or instrument (a “Refinancing Agreement”) effecting a
refinancing of Indebtedness Incurred pursuant to, or that otherwise extends,
renews, refunds, refinances or replaces, an agreement or instrument referred to
in clause (1) or (2) of this Section 410 or this clause (3) (an “Initial
Agreement”) or contained in any amendment, supplement or other modification
to an Initial Agreement (an “Amendment”); provided, however,
that the encumbrances and restrictions contained in any such Refinancing
Agreement or Amendment are not materially less favorable to the Holders of the
Notes taken as a whole than encumbrances and restrictions contained in the
Initial Agreement or Initial Agreements to which such Refinancing Agreement or
Amendment relates (as determined in good faith by the Company);

 

(4)          (A) that restricts in a customary manner
the subletting, assignment or transfer of any property or asset that is subject
to a lease, license or similar contract, or the assignment or transfer of any
lease, license or other contract, (B)
by virtue of any transfer of, agreement to transfer, option or right with
respect to, or Lien on, any property or assets of the Company or any Restricted
Subsidiary not otherwise prohibited by this

 

64

 

Indenture,
(C) contained in mortgages,
pledges or other security agreements securing Indebtedness of a Restricted
Subsidiary to the extent restricting the transfer of the property or assets
subject thereto, (D) pursuant to
customary provisions restricting dispositions of real property interests set
forth in any reciprocal easement agreements of the Company or any Restricted
Subsidiary, (E) pursuant to
Purchase Money Obligations that impose encumbrances or restrictions on the
property or assets so acquired, (F)
on cash or other deposits or net worth imposed by customers under agreements
entered into in the ordinary course of business, (G) pursuant to customary provisions contained in agreements
and instruments entered into in the ordinary course of business (including  leases and joint venture and other similar
agreements entered into in the ordinary course of business), (H) that arises or is agreed to in the
ordinary course of business and does not detract from the value of property or
assets of the Company or any Restricted Subsidiary in any manner material to
the Company or such Restricted Subsidiary, (I)
pursuant to Hedging Obligations or (J)
pursuant to any joint venture or similar agreement or arrangement entered into
in connection with a Fiskeby Transaction;

 

(5)          with
respect to a Restricted Subsidiary (or any of its property or assets) imposed
pursuant to an agreement entered into for the direct or indirect sale or
disposition of all or substantially all the Capital Stock or assets of such
Restricted Subsidiary (or the property or assets that are subject to such
restriction) pending the closing of such sale or disposition;

 

(6)          by
reason of any applicable law, rule, regulation or order, or required by any
regulatory authority having jurisdiction over the Company or any Restricted
Subsidiary or any of their businesses; or

 

(7)          pursuant
to an agreement or instrument (A)
relating to any Indebtedness permitted to be Incurred subsequent to the Issue Date
pursuant to the provisions of Section 407 (i) if the encumbrances and restrictions
contained in any such agreement or instrument taken as a whole are not
materially less favorable to the Holders of the Notes than the encumbrances and
restrictions contained in the Initial Agreements (as determined in good faith
by the Company), or (ii) if such
encumbrance or restriction is not materially more disadvantageous to the
Holders of the Notes than is customary in comparable financings (as determined
in good faith by the Company) and either (x)
the Company determines that such encumbrance or restriction will not materially
affect the Company’s ability to make principal or interest payments on the
Notes or (y) such encumbrance or
restriction applies only if a default occurs in respect of a payment or
financial covenant relating to such Indebtedness, (B) relating to any sale of receivables by a Foreign
Subsidiary or (C) relating to
Indebtedness of or a Financing Disposition to or by any Receivables Entity.

 

Section 411.                                Limitation on Sales of Assets and
Subsidiary Stock. 
(a)  The Company will not, and
will not permit any Restricted Subsidiary to, make any Asset Disposition unless

 

65

 

(i)                                     the Company or such Restricted Subsidiary
receives consideration (including by way of relief from, or by any other Person
assuming responsibility for, any liabilities, contingent or otherwise) at the
time of such Asset Disposition at least equal to the fair market value of the
shares and assets subject to such Asset Disposition, as such fair market value
may be determined (and shall be determined, to the extent such Asset
Disposition or any series of related Asset Dispositions involves aggregate
consideration in excess of $20.0 million) in good faith by the Board of
Directors, whose determination shall be conclusive (including as to the value
of all noncash consideration),

 

(ii)                                  in the case of any Asset Disposition (or
series of related Asset Dispositions) having a fair market value of $20.0
million or more, at least 75% of the consideration therefor (excluding, in the
case of an Asset Disposition (or series of related Asset Dispositions), any
consideration by way of relief from, or by any other Person assuming
responsibility for, any liabilities, contingent or otherwise, that are not
Indebtedness) received by the Company or such Restricted Subsidiary is in the
form of cash, and

 

(iii)                               an amount equal to 100% of the Net Available
Cash from such Asset Disposition is applied by the Company (or any Restricted
Subsidiary, as the case may be) as follows:

 

(A)                              first, either (x)
to the extent the Company elects (or is required by the terms of any Bank
Indebtedness, any Senior Indebtedness of the Company or any Note Guarantor or
any Indebtedness of a Restricted Subsidiary that is not a Note Guarantor), to
prepay, repay or purchase any such Indebtedness (in each case other than
Indebtedness owed to the Company or a Restricted Subsidiary) within 365 days
after the later of the date of such Asset Disposition and the date of receipt
of such Net Available Cash, or (y)
to the extent the Company or such Restricted Subsidiary elects, to reinvest in
Additional Assets (including by means of an investment in Additional Assets by
a Restricted Subsidiary with Net Available Cash received by the Company or
another Restricted Subsidiary) within 365 days from the later of the date of
such Asset Disposition and the date of receipt of such Net Available Cash, or,
if such reinvestment in Additional Assets is a project authorized by the Board
of Directors that will take longer than such 365 days to complete, the period
of time necessary to complete such project;

 

(B)                                second, to the extent of the balance of such Net
Available Cash after application in accordance with clause (A) above (such
balance, the “Excess Proceeds”), to make an offer to purchase Notes and
(to the extent the Company or such Restricted Subsidiary elects, or is required
by the terms thereof) to purchase, redeem or repay any other Senior
Subordinated Indebtedness of the Company or a Restricted Subsidiary, pursuant
and subject to Section 411(b) and Section 411(c) and
the agreements governing such other Indebtedness; and

 

(C)                                third, to the extent of the balance of such Net
Available Cash after application in accordance with clauses (A) and (B) above,
to fund (to the extent

 

66

 

consistent
with any other applicable provision of this Indenture) any general corporate
purpose (including the repurchase, repayment or other acquisition or retirement
of any Subordinated Obligations);

 

provided,
however, that in connection with
any prepayment, repayment or purchase of Indebtedness pursuant to clause (A)(x)
or (B) above, the Company or such Restricted Subsidiary will retire such
Indebtedness and will cause the related loan commitment (if any) to be
permanently reduced in an amount equal to the principal amount so prepaid,
repaid or purchased.

 

Notwithstanding the
foregoing provisions of this Section 411, the Company and the
Restricted Subsidiaries shall not be required to apply any Net Available Cash
in accordance with this Section 411 except to the extent that the
aggregate Net Available Cash from all Asset Dispositions that is not applied in
accordance with this Section 411 exceeds $25.0 million. If the
aggregate principal amount of Notes or other Indebtedness of the Company or a
Restricted Subsidiary validly tendered and not withdrawn (or otherwise subject
to purchase, redemption or repayment) in connection with an offer pursuant to
clause (B) above exceeds the Excess Proceeds, the Excess Proceeds will be
apportioned between such Notes and such other Indebtedness of the Company or a
Restricted Subsidiary, with the portion of the Excess Proceeds payable in
respect of such Notes to equal the lesser of (x)
the Excess Proceeds amount multiplied by a fraction, the numerator of which is
the outstanding principal amount of such Notes and the denominator of which is
the sum of the outstanding principal amount of the Notes and the outstanding
principal amount of the relevant other Indebtedness of the Company or a
Restricted Subsidiary, and (y)
the aggregate principal amount of Notes validly tendered and not withdrawn.

 

For the purposes of
clause (ii) of paragraph (a) above, the following are deemed to be cash:  (1)
Temporary Cash Investments and Cash Equivalents, (2) the assumption of Indebtedness of the Company (other than
Disqualified Stock of the Company) or any Restricted Subsidiary and the release
of the Company or such Restricted Subsidiary from all liability on payment of
the principal amount of such Indebtedness in connection with such Asset
Disposition, (3) Indebtedness of
any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result
of such Asset Disposition, to the extent that the Company and each other
Restricted Subsidiary are released from any Guarantee of payment of the
principal amount of such Indebtedness in connection with such Asset
Disposition, (4) securities
received by the Company or any Restricted Subsidiary from the transferee that
are converted by the Company or such Restricted Subsidiary into cash within 180
days, (5) consideration
consisting of Indebtedness of the Company or any Restricted Subsidiary and (6) any Designated Noncash Consideration
received by the Company or any of its Restricted Subsidiaries in an Asset
Disposition having an aggregate Fair Market Value, taken together with all
other Designated Noncash Consideration received pursuant to this clause, not to
exceed an aggregate amount at any time outstanding equal to 3% of Consolidated
Tangible Assets (with the Fair Market Value of each item of Designated Noncash
Consideration being measured at the time received and without giving effect to
subsequent changes in value).

 

(b)                                 In the event of an Asset Disposition that
requires the purchase of Notes pursuant to Section 411(a)(iii)(B),
the Company will be required to purchase Notes tendered

 

67

 

pursuant to an offer by the Company for the Notes
(the “Offer”) at a purchase price of 100% of their principal amount plus
accrued and unpaid interest to the purchase date in accordance with the
procedures (including prorating in the event of oversubscription) set forth in
Section 411(c). If the aggregate purchase price of the Notes tendered
pursuant to the Offer is less than the Net Available Cash allotted to the
purchase of Notes, the remaining Net Available Cash will be available to the
Company for use in accordance with Section 411(a)(iii)(B) (to repay
other Indebtedness of the Company or a Restricted Subsidiary) or Section 411(a)(iii)(C).  The Company shall not be required to make an
Offer for Notes pursuant to this Section 411 if the Net Available
Cash available therefor (after application of the proceeds as provided in  Section 411(a)(iii)(A)) is less
than $25.0 million for any particular Asset Disposition (which lesser amounts
shall be carried forward for purposes of determining whether an Offer is
required with respect to the Net Available Cash from any subsequent Asset
Disposition).

 

(c)                                  The Company shall, not later than 45 days
after the Company becomes obligated to make an Offer pursuant to this Section 411,
mail a notice to each Holder with a copy to the Trustee stating:  (1) that an Asset Disposition that requires
the purchase of a portion of the Notes has occurred and that such Holder has
the right (subject to the prorating described below) to require the Company to
purchase a portion of such Holder’s Notes at a purchase price in cash equal to
100% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the date of purchase (subject to Section 307); (2) the
circumstances and relevant facts and financial information regarding such Asset
Disposition; (3) the repurchase date (which shall be no earlier than 30 days
nor later than 60 days from the date such notice is mailed); (4) the
instructions determined by the Company, consistent with this Section 411,
that a Holder must follow in order to have its Notes purchased; and (5) the
amount of the Offer.  If, upon the
expiration of the period for which the Offer remains open, the aggregate
principal amount of Notes surrendered by Holders exceeds the amount of the
Offer, the Company shall select the Notes to be purchased on a pro rata basis (with such adjustments as
may be deemed appropriate by the Company so that only Notes in denominations of
$1,000 or integral multiples thereof, shall be purchased).

 

(d)                                 The Company will comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act and
any other securities laws or regulations in connection with the repurchase of
Notes pursuant to this Section 411. To the extent that the
provisions of any securities laws or regulations conflict with provisions of
this Section 411, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 411 by virtue thereof.

 

Section 412.                                Limitation on Transactions with
Affiliates.  (a)  The Company will not, and will not permit
any Restricted Subsidiary to, directly or indirectly, enter into or conduct any
transaction or series of related transactions (including the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
Affiliate of the Company (an “Affiliate Transaction”) unless (i) the terms of such Affiliate Transaction
are not materially less favorable to the Company or such Restricted Subsidiary,
as the case may be, than those that could be obtained at the time in a
transaction with a Person who is not such an Affiliate and (ii) if such Affiliate Transaction involves
aggregate consideration in excess of $15.0 million, the terms of such Affiliate

 

68

 

Transaction have been approved by a majority of the Disinterested
Directors. For purposes of this Section 412(a), any Affiliate
Transaction shall be deemed to have satisfied the requirements set forth in
this Section 412(a) if (x)
such Affiliate Transaction is approved by a majority of the Disinterested
Directors or (y) in the event
there are no Disinterested Directors, a fairness opinion is provided by a
nationally recognized appraisal or investment banking firm with respect to such
Affiliate Transaction.

 

(b)                                 The provisions of Section 412(a)
will not apply to:

 

(i)                                     any Restricted Payment Transaction,

 

(ii)                                  (1) the entering into, maintaining or
performance of any employment contract, collective bargaining agreement,
benefit plan, program or arrangement, related trust agreement or any other
similar arrangement for or with any employee, officer or director heretofore or
hereafter entered into in the ordinary course of business, including vacation,
health, insurance, deferred compensation, severance, retirement, savings or
other similar plans, programs or arrangements, (2) the payment of
compensation, performance of indemnification or contribution obligations, or
any issuance, grant or award of stock, options, other equity-related interests
or other securities, to employees, officers or directors in the ordinary course
of business, (3) the payment of reasonable fees to directors
of the Company or any of its Subsidiaries (as determined in good faith by the
Company or such Subsidiary), (4) any transaction with an officer or director
in the ordinary course of business not involving more than $100,000 in any one
case, or (5) Management Advances and payments in respect
thereof,

 

(iii)                               any transaction with the Company, any
Restricted Subsidiary, or any Receivables Entity,

 

(iv)                              any transaction arising out of agreements or
instruments in existence on the Issue Date, and any payments made pursuant
thereto,

 

(v)                                 any transaction in the ordinary course of
business on terms not materially less favorable to the Company or the relevant
Restricted Subsidiary than those that could be obtained at the time in a
transaction with a Person who is not an Affiliate of the Company,

 

(vi)                              any transaction in the ordinary course of
business, or approved by a majority of the Board of Directors, between the
Company or any Restricted Subsidiary and any Affiliate of the Company
controlled by the Company that is a joint venture or similar entity, and

 

(vii)                           the Transactions, all transactions in
connection therewith (including but not limited to the financing thereof), and
all fees and expenses paid or payable in connection with the Transactions.

 

69

 

Section 413.                                Limitation
on Liens.  The
Company shall not, and shall not permit any Restricted Subsidiary to, directly
or indirectly, create or permit to exist any Lien (other than Permitted Liens)
on any of its property or assets (including Capital Stock of any other Person),
whether owned on the date of this Indenture or thereafter acquired, securing
any Indebtedness of the Company or any Subsidiary Guarantor that by its terms
is expressly subordinated in right of payment to or ranks pari passu in right of payment with the
Notes or such Subsidiary Guarantor’s Note Guarantee thereof (the “Initial
Lien”), unless contemporaneously therewith effective provision is made to
secure the Indebtedness due under this Indenture and the Notes or, in respect
of Liens on any Restricted Subsidiary’s property or assets, any Note Guarantee
of such Restricted Subsidiary, equally and ratably with (or on a senior basis
to, in the case of Subordinated Obligations or Guarantor Subordinated
Obligations) such obligation for so long as such obligation is so secured by
such Initial Lien.  Any such Lien
thereby created in favor of the Notes or any such Note Guarantee will be
automatically and unconditionally released and discharged upon (i) the release and discharge of the
Initial Lien to which it relates or (ii)
any sale, exchange or transfer (other than upon foreclosure of the Initial Lien)
to any Person not an Affiliate of the Company of the property or assets secured
by such Initial Lien, or of all of the Capital Stock held by the Company or any
Restricted Subsidiary in, or all or substantially all the assets of, any
Restricted Subsidiary creating such Initial Lien.

 

Section 414.                                Future Note Guarantors.  After the Issue Date, the Company will cause
each Significant Domestic Subsidiary that guarantees payment by the Company of
any Bank Indebtedness of the Company to execute and deliver to the Trustee a
Supplemental Indenture or other instrument pursuant to which such Subsidiary
will guarantee payment of the Notes, whereupon such Subsidiary will become a
Note Guarantor for all purposes under this Indenture. In addition, the Company
may cause any Subsidiary that is not a Subsidiary Guarantor so to guarantee
payment of the Notes and become a Subsidiary Guarantor.

 

Section 415.                                Purchase of Notes Upon a Change in
Control.  (a)  Upon the occurrence after the Issue Date of
a Change of Control, each Holder will have the right to require the Company to
repurchase all or any part of such Holder’s Notes at a purchase price in cash
equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the date of repurchase (subject to Section 307);
provided, however, that the Company shall not be
obligated to repurchase Notes pursuant to this Section 415 in the
event that it has exercised its right to redeem all of the Notes as provided in
Article 10.

 

(b)                                 In the event that, at the time of such Change
of Control, the terms of the Bank Indebtedness restrict or prohibit the
repurchase of the Notes pursuant to this Section 415, then prior to
the mailing of the notice to Holders provided for in Section 415(c)
but in any event not later than 30 days following the date the Company obtains
actual knowledge of any Change of Control (unless the Company has exercised its
right to redeem all the Notes as provided in Article 10), the
Company shall (i) repay in full
all Bank Indebtedness subject to such terms or offer to repay in full all such
Bank Indebtedness and repay the Bank Indebtedness of each lender who has
accepted such offer or (ii)
obtain the requisite consent under the agreements governing the Bank
Indebtedness to permit the repurchase of the Notes as provided for in Section 415(c).  The

 

70

 

Company shall first comply with the provisions of
the immediately preceding sentence before it shall be required to repurchase
Notes pursuant to the provisions set forth in this Section 415.  The Company’s failure to comply with the
provisions of this Section 415(b) or Section 415(c)
shall constitute an Event of Default described in under Section 601(iv)
and not Section 601(ii).

 

(c)                                  Unless the Company has exercised its right to
redeem all the Notes as described under Article 10, the Company
shall, not later than 30 days following the date the Company obtains actual
knowledge of any Change of Control having occurred, mail a notice to each
Holder with a copy to the Trustee stating: 
(1) that a Change of
Control has occurred or may occur and that such Holder has, or upon such
occurrence will have, the right to require the Company to purchase such
Holder’s Notes at a purchase price in cash equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date); (2) the circumstances and relevant facts and financial
information regarding such Change of Control; (3)
the repurchase date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed); (4)
the instructions determined by the Company, consistent with this Section 415,
that a Holder must follow in order to have its Notes purchased; and (5) if such notice is mailed prior to the
occurrence of a Change of Control, that such offer is conditioned on the
occurrence of such Change of Control.

 

(d)                                 The Company will comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act and
any other securities laws or regulations in connection with the repurchase of
Notes pursuant to this Section 415.  To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 415, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Section 415
by virtue thereof.

 

ARTICLE V

 

SUCCESSORS

 

Section 501.                                When the Company May Merge, etc.  (a) 
The Company will not consolidate with or merge with or into, or convey,
transfer or lease all or substantially all its assets to, any Person, unless:

 

(i)                                     the resulting, surviving or transferee Person
(the “Successor Company”) will be a Person organized and existing under
the laws of the United States of America,

 

71

 

any
State thereof or the District of Columbia and the Successor Company (if not the
Company) will expressly assume all the obligations of the Company under the
Notes and this Indenture by executing and delivering to the Trustee a
supplemental indenture or one or more other documents or instruments in form
reasonably satisfactory to the Trustee;

 

(ii)                                  immediately after giving effect to such
transaction (and treating any Indebtedness that becomes an obligation of the
Successor Company or any Restricted Subsidiary as a result of such transaction
as having been Incurred by the Successor Company or such Restricted Subsidiary
at the time of such transaction), no Default will have occurred and be
continuing;

 

(iii)                               immediately after giving effect to such
transaction, either (A) the Successor Company could Incur at least
$1.00 of additional Indebtedness pursuant to Section 407(a) or (B) the Consolidated Coverage Ratio of the
Successor Company would equal or exceed the Consolidated Coverage Ratio of the
Company immediately prior to giving effect to such transaction;

 

(iv)                              each Note Guarantor (other than any party to
any such consolidation or merger) shall have delivered a supplemental indenture
or other document or instrument in form reasonably satisfactory to the Trustee,
confirming its Note Guarantee; and

 

(v)                                 the Company will have delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each to the effect
that such consolidation, merger or transfer complies with the provisions
described in this paragraph, provided that (x) in giving such
opinion such counsel may rely on an Officer’s Certificate as to compliance with
the foregoing clauses (ii) and (iii) and as to any matters of fact, and (y) no Opinion of Counsel will be required for
a consolidation, merger or transfer described in Section 501(b).

 

Any Indebtedness that
becomes an obligation of the Company or any Restricted Subsidiary (or that is
deemed to be Incurred by any Restricted Subsidiary that becomes a Restricted
Subsidiary) as a result of any such transaction undertaken in compliance with
this Section 501, and any Refinancing Indebtedness with respect
thereto, shall be deemed to have been Incurred in compliance with Section 407.

 

(b)                                 Clauses
(ii) and (iii) of Section 501(a) will not apply to any transaction
in which (1) any Restricted
Subsidiary consolidates with, merges into or transfers all or part of its
assets to the Company or (2) the
Company consolidates or merges with or into or transfers all or substantially
all its properties and assets to (x)
an Affiliate incorporated or organized for the purpose of reincorporating or
reorganizing the Company in another jurisdiction or changing its legal
structure to a corporation or other entity or (y)
a Restricted Subsidiary of the Company so long as all assets of the Company and
the Restricted Subsidiaries immediately prior to such transaction (other than
Capital Stock of such Restricted Subsidiary) are owned by such Restricted
Subsidiary and its Restricted Subsidiaries immediately after the consummation
thereof. Section 501(a) will not apply to any Merger.

 

72

 

Section 502.                                Successor Company Substituted.  Upon any transaction involving the Company
in accordance with Section 501, in which the Company is not the
Successor Company, the Successor Company will succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, and thereafter the predecessor Company shall be relieved of all
obligations and covenants under this Indenture, except that the predecessor
Company in the case of a lease of all or substantially all its assets will not
be released from the obligation to pay the principal of and interest on the
Notes.

 

ARTICLE VI

 

REMEDIES

 

Section 601.                                Events of Default.  An “Event of Default” means the occurrence of the
following:

 

(i)                                     a default in any payment of interest on any
Note when due, whether or not such payment shall be prohibited by Article 14,
continued for a period of 30 days;

 

(ii)                                  a default in the payment of principal of any
Note when due, whether at its Stated Maturity, upon optional redemption, upon
required repurchase, upon declaration of acceleration or otherwise, whether or
not such payment shall be prohibited by Article 14;

 

(iii)                               the failure by the Company to comply with its
obligations under Section 501(a);

 

(iv)                              the failure by the Company to comply for 30
days after the notice specified in the penultimate paragraph of this
Section 601 with any of its obligations under Section 415
(other than a failure to purchase the Notes);

 

(v)                                 the failure by the Company to comply for 60
days after the notice specified in the penultimate paragraph of this
Section 601 with its other agreements contained in the Notes or this
Indenture;

 

(vi)                              the failure by any Subsidiary Guarantor to
comply for 45 days after the notice specified in the penultimate paragraph of
this Section 601 with its obligations under its Note Guarantee;

 

(vii)                           the failure by the Company or any Restricted
Subsidiary to pay any Indebtedness within any applicable grace period after
final maturity or the acceleration of any such Indebtedness by the holders
thereof because of a default, if the total amount of such Indebtedness so
unpaid or accelerated exceeds $40.0 million or its foreign currency equivalent;
provided, that no Default or Event of Default will be
deemed to occur with respect to any such accelerated Indebtedness that is paid
or otherwise acquired or retired within 20 Business Days after such
acceleration;

 

73

 

(viii)                        the taking of any of the following actions by
the Company or any Significant Subsidiary, or by each of such other Restricted
Subsidiaries that are not Significant Subsidiaries but would in the aggregate
constitute a Significant Subsidiary if considered as a single Person, pursuant
to or within the meaning of any Bankruptcy Law:

 

(A)
the commencement of a voluntary case;

 

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

 

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

 

(D)  the making of a general assignment for the
benefit of its creditors;

 

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

 

(A)  is for relief against the Company or any
Significant Subsidiary, or against each of such other Restricted Subsidiaries
that are not Significant Subsidiaries but would in the aggregate constitute a
Significant Subsidiary if considered as a single Person, in an involuntary
case;

 

(B)  appoints (x) a Custodian of the Company or
any Significant Subsidiary or for any substantial part of its property, or (y)
a Custodian of each of such other Restricted Subsidiaries that are not
Significant Subsidiaries but would in the aggregate constitute a Significant
Subsidiary if considered as a single Person, or for any substantial part of
their property in the aggregate; or

 

(C)  orders the winding up or liquidation of the
Company or any Significant Subsidiary, or of each of such other Restricted
Subsidiaries that are not Significant Subsidiaries but would in the aggregate
constitute a Significant Subsidiary if considered as a single Person;

 

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

 

(x)                                   the rendering of any judgment or decree for
the payment of money in an amount (net of any insurance or indemnity payments
actually received in respect thereof prior to or within 90 days from the entry
thereof, or to be received in respect thereof in the event any appeal thereof
shall be unsuccessful) in excess of $30.0 million or its foreign currency
equivalent against the Company or a Significant Subsidiary, or jointly and
severally against other Restricted Subsidiaries that are not Significant
Subsidiaries but would in the aggregate constitute a Significant Subsidiary if
considered as a single Person, that is not discharged, or bonded or insured by
a third Person, if such judgment

 

74

 

or
decree remains outstanding for a period of 90 days following such judgment or
decree and is not discharged, waived or stayed; or

 

(xi)                                the failure of any Note Guarantee by a Note
Guarantor that is a Significant Subsidiary to be in full force and effect
(except as contemplated by the terms thereof or of this Indenture) or the
denial or disaffirmation in writing by any Note Guarantor that is a Significant
Subsidiary of its obligations under this Indenture or its Note Guarantee (other
than by reason of the termination of this Indenture or such Note Guarantee or
the release of such Note Guarantee in accordance with such Note Guarantee and
this Indenture), if such Default continues for 10 days.

 

The foregoing will
constitute Events of Default whatever the reason for any such Event of Default
and whether it is voluntary or involuntary or is effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body.

 

The term “Bankruptcy
Law” means Title 11, United States Code, or any similar Federal, state or
foreign law for the relief of debtors. 
The term “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law.

 

However, a Default under
clause (iv), (v) or (vi) will not constitute an Event of Default until the
Trustee or the Holders of at least 25% in principal amount of the Outstanding
Notes notify the Company of the Default and the Company does not cure such
Default within the time specified in such clause after receipt of such notice.  Such notice must specify the Default, demand
that it be remedied and state that such notice is a “Notice of Default.”  When a Default or an Event of Default is
cured, it ceases.

 

The Company shall deliver
to the Trustee, within 30 days after the occurrence thereof, written notice in
the form of an Officer’s Certificate of any Event of Default under clause (vii)
or (x) and any event that with the giving of notice or the lapse of time would
become an Event of Default under clause (iv), (v) or (vi), its status and what
action the Company is taking or proposes to take with respect thereto.

 

Section 602.                                Acceleration of Maturity;
Rescission and Annulment. 
If an Event of Default (other than an Event of Default specified in Section 601(viii)
or Section 601 (ix)) occurs and is continuing, the Trustee by
notice to the Company, or the Holders of at least a majority in principal
amount of the Outstanding Notes by notice to the Company and the Trustee, in
either case specifying in such notice the respective Event of Default and that
such notice is a “notice of acceleration,” may declare the principal of and
accrued but unpaid interest on all the Notes to be due and payable; provided that so long as any Designated
Senior Indebtedness of the Company shall be outstanding, such acceleration shall
not be effective until the earlier to occur of (x) five Business Days following delivery of a written notice
of such acceleration of the Notes to the Company and the holders of all such
Designated Senior Indebtedness or each Representative thereof and (y) the acceleration of any such Designated
Senior Indebtedness. Upon the effectiveness of such a declaration, such
principal and interest will be due and payable

 

75

 

immediately.  Notwithstanding
the foregoing, in the event of a declaration of acceleration in respect of the
Notes because an Event of Default specified in Section 601(vii)
shall have occurred and be continuing, such declaration of acceleration of the
Notes and such Event of Default and all consequences thereof (including any
acceleration or resulting payment default) shall be annulled, waived and
rescinded, automatically and without any action by the Trustee or the Holders,
and be of no further effect, if within 60 days after such Event of Default
arose (x) the Indebtedness that
is the basis for such Event of Default has been discharged, or (y) the holders thereof have rescinded or
waived the acceleration or other event or condition (as the case may be) giving
rise to such Event of Default, or (z) the default in respect of such
Indebtedness that is the basis for such Event of Default has been cured.

 

Notwithstanding the
foregoing, if an Event of Default specified in Section 601(viii) or
Section 601(ix) occurs and is continuing, the principal of and
accrued interest on all the Outstanding Notes will ipso facto become
immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.  The Holders
of a majority in principal amount of the Outstanding Notes by notice to the
Company and the Trustee may rescind an acceleration and its consequences if the
rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except non-payment of principal or
interest that has become due solely because of such acceleration.  No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

Section 603.                                Other Remedies; Collection Suit by
Trustee.  If an Event of
Default occurs and is continuing, the Trustee may, but is not obligated under Section 603
to pursue any available remedy to collect the payment of principal of or
interest on the Notes or to enforce the performance of any provision of the
Notes or this Indenture.  If an Event of
Default specified in Section 601(i) or 601(ii) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Company for the whole amount then due and owing
(together with interest on any unpaid interest to the extent lawful) and the
amounts provided for in Section 707.

 

Section 604.                                Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee and the Holders allowed in any judicial proceedings
relative to the Company or any other obligor upon the Notes, its creditors or
its property and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section 707.

 

No provision of this
Indenture shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization,

 

76

 

arrangement, adjustment or composition affecting the Notes or the
rights of any Holder thereof or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

 

Section 605.                                Trustee May Enforce Claims
Without Possession of Notes. 
All rights of action and claims under this Indenture or the Notes may be
prosecuted and enforced by the Trustee without the possession of any of the
Notes or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Notes in respect of which such judgment
has been recovered.

 

Section 606.                                Application of Money Collected.  Any money collected by the Trustee pursuant
to this Article 6 shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (or premium, if any) or interest, upon
presentation of the Notes and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

 

First:  To the payment of all amounts due the
Trustee under Section 707;

 

Second:  To holders of Senior Indebtedness of the
Company to the extent required by Article 14;

 

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

 

Fourth:  to the Company.

 

Section 607.                                Limitation
on Suits.  No
Holder may pursue any remedy with respect to this Indenture or the Notes
unless:

 

(i)                                     such Holder has previously given the Trustee
written notice that an Event of Default is continuing;

 

(ii)                                  Holders of at least 25% in principal amount
of the Outstanding Notes have requested the Trustee in writing to pursue the
remedy;

 

(iii)                               such Holder or Holders have offered to the
Trustee reasonable security or indemnity against any loss, liability or
expense;

 

(iv)                              the Trustee has not complied with the request
within 60 days after receipt of the request and the offer of security or
indemnity; and

 

77

 

(v)                                 the Holders of a majority in principal amount
of the Outstanding Notes have not given the Trustee a direction inconsistent
with the request within such 60-day period.

 

A Holder may not use this
Indenture to affect, disturb or prejudice the rights of another Holder, to
obtain a preference or priority over another Holder or to enforce any right
under this Indenture except in the manner herein provided and for the equal and
ratable benefit of all Holders.

 

Section 608.                                Unconditional Right of Holders to
Receive Principal and Interest. 
Notwithstanding any other provision in this Indenture, the Holder of any
Note shall have the absolute and unconditional right to receive payment of the
principal of and all (subject to Section 307) interest on such Note
on the respective Stated Maturity or Interest Payment Dates expressed in such
Note and to institute suit for the enforcement of any such payment on or after
such respective Stated Maturity or Interest Payment Dates, and such right shall
not be impaired without the consent of such Holder.

 

Section 609.                                Restoration of Rights and Remedies.  If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture or any Note
and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every
such case the Company, any other obligor upon the Notes, the Trustee and the
Holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.

 

Section 610.                                Rights and Remedies Cumulative.  No right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

Section 611.                                Delay or Omission Not Waiver.  No delay or omission of the Trustee or of
any Holder of any Note to exercise any right or remedy accruing upon any Event
of Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein.  Every right and remedy given by this Article 6 or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

 

Section 612.                                Control by Holders.  The Holders of not less than a majority in
aggregate principal amount of the Outstanding Notes shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee, provided that

 

78

 

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

 

(2)          the
Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 701, that the Trustee determines is unduly
prejudicial to the rights of any other Holder or that would involve the Trustee
in personal liability; provided, however, that the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction.  Prior to taking any action
under this Indenture, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action. 
This Section 612 shall be in lieu of § 316(a)(1)(A) of the
TIA, and such § 316(a)(1)(A) of the TIA is hereby expressly excluded from this
Indenture and the Notes, as permitted by the TIA.

 

Section 613.                                Waiver of Past Defaults.  The Holders of not less than a majority in
aggregate principal amount of the Outstanding Notes may on behalf of the
Holders of all the Notes waive any past Default hereunder and its consequences,
except a Default

 

(1)          in
the payment of the principal of or interest on any Note (which may only be
waived with the consent of each Holder of Notes affected), or

 

(2)          in
respect of a covenant or provision hereof that pursuant to the second paragraph
of Section 902 cannot be modified or amended without the consent of
the Holder of each Outstanding Note affected.

 

Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. 
In case of any such waiver, the Company, any other obligor upon the
Notes, the Trustee and the Holders shall be restored to their former positions
and rights hereunder and under the Notes, respectively.  This paragraph of this Section 613
shall be in lieu of § 316(a)(1)(B) of the TIA and such § 316(a)(1)(B) of the
TIA is hereby expressly excluded from this Indenture and the Notes, as
permitted by the TIA.

 

Section 614.                                Undertaking for Costs.  All parties to this Indenture agree, and
each Holder of any Note by such Holder’s acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture or the Notes, or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant.  This Section 614 shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group

 

79

 

of Holders, holding in the aggregate more than 10% in principal amount
of the Outstanding Notes, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of (or premium, if any) or interest
on any Note on or after the respective Stated Maturity or Interest Payment
Dates expressed in such Note.

 

Section 615.                                Waiver of Stay, Extension or Usury
Laws.  The Company (to the
extent that it may lawfully do so) shall not at any time insist upon, or plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law or any usury or other similar law wherever enacted, now or at
any time hereafter in force, that would prohibit or forgive the Company from
paying all or any portion of the principal of (or premium, if any) or interest
on the Notes contemplated herein or in the Notes or that may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

 

ARTICLE VII

 

THE TRUSTEE

 

Section 701.                                Certain Duties and Responsibilities.  (a) 
Except during the continuance of an Event of Default,

 

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

 

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

 

(b)                                 In case an Event of Default has occurred and
is continuing, the Trustee shall exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

 

(c)                                  No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act, or its own willful misconduct, except that (i) this paragraph does not limit the
effect of Section 701(a); (ii)
the Trustee shall not be liable for any error of judgment made in good faith by
a Trust Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and (iii)
the Trustee

 

80

 

shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction received by
it pursuant to Section 612.

 

(d)                                 No provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur financial
liability in the performance of any of its duties hereunder or in the exercise
of any of its rights or powers, if it shall have reasonable grounds to believe
that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

 

(e)                                  Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of Sections 701 and 703 hereof.

 

Section 702.                                Notice of Defaults.  If a Default occurs and is continuing and is
known to the Trustee, the Trustee must mail within 90 days after it occurs, to
all Holders as their names and addresses appear in the Note Register, notice of
such Default hereunder known to the Trustee unless such Default shall have been
cured or waived; provided, however, that, except in the case of a
Default in the payment of the principal of, premium, if any, or interest on any
Note, the Trustee shall be protected in withholding such notice if and so long
as the board of directors, the executive committee or a trust committee of
Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders.

 

Section 703.                                Certain Rights of Trustee.  Subject to the provisions of Section 701:

 

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

 

(2)          any
request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order thereof, and any resolution of
any Person’s board of directors shall be sufficiently evidenced if certified by
an Officer of such Person as having been duly adopted and being in full force
and effect on the date of such certificate;

 

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

 

(4)          the
Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in

 

81

 

respect
of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

 

(5)          the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders pursuant to this Indenture, unless such Holders shall have offered to
the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;

 

(6)          the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, note, other evidence of
indebtedness or other paper or document; and

 

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

 

Section 704.                                Not Responsible for Recitals or
Issuance of Notes.  The
recitals contained herein and in the Notes, except the Trustee’s certificates
of authentication, shall be taken as the statements of the Company, and neither
the Trustee nor any Authenticating Agent assumes any responsibility for their
correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Notes, except that the Trustee represents that it is duly authorized to execute
and deliver this Indenture, authenticate the Notes and perform its obligations
hereunder and that the statements made by it in a Statement of Eligibility and
Qualification on Form T-1 supplied to the Company and any other obligor upon
the Notes in connection with the registration of any Notes and any Note
Guarantees issued hereunder are and will be true and accurate subject to the
qualifications set forth therein. 
Neither the Trustee nor any Authenticating Agent shall be accountable
for the use or application by the Company of the Notes or the proceeds thereof.

 

Section 705.                                May Hold Notes.  The Trustee, any Authenticating Agent, any Paying Agent, any Note
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Notes and, subject to Section 708
and Section 713, may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Note Registrar or such other agent.

 

Section 706.                                Money Held in Trust.  Money held by the Trustee in trust hereunder
need not be segregated from other funds except to the extent required by
law.  The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed in writing with the Company.

 

Section 707.                                Compensation and Reimbursement.  The Company agrees,

 

82

 

(1)          to
pay to the Trustee from time to time reasonable compensation for all services
rendered by the Trustee hereunder (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust);

 

(2)          except
as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable out-of-pocket expenses incurred by the Trustee in
accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its negligence
or bad faith; and

 

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

 

The Company need not pay
for any settlement made without its consent.

 

Section 708.                                Conflicting Interests.  If the Trustee has or shall acquire a
conflicting interest within the meaning of the TIA, the Trustee shall eliminate
such interest, apply to the SEC for permission to continue as Trustee with such
conflict or resign, to the extent and in the manner provided by, and subject to
the provisions of, the TIA and this Indenture. 
To the extent permitted by the TIA, the Trustee shall not be deemed to
have a conflicting interest by virtue of being a trustee under this Indenture
with respect to Original Notes and Additional Notes, or a trustee under any
other indenture between the Company and the Trustee.

 

Section 709.                                Corporate Trustee Required;
Eligibility.  There shall at all
times be one (and only one) Trustee hereunder. 
The Trustee shall be a Person that is eligible pursuant to the TIA to
act as such and has a combined capital and surplus of at least
$50,000,000.  If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this
Section and to the extent permitted by the TIA, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 709, it
shall resign immediately in the manner and with the effect hereinafter
specified in this Article.

 

Section 710.                                Resignation and Removal;
Appointment of Successor. 
No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 711.

 

The Trustee may resign at
any time by giving written notice thereof to the Company.  If the instrument of acceptance by a
successor Trustee required by Section 711 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of

 

83

 

resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

The Trustee may be
removed at any time by Act of the Holders of a majority in principal amount of
the Outstanding Notes, delivered to the Trustee and to the Company.

 

If at any time:

 

(1)          the
Trustee shall fail to comply with Section 708 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a
Note for at least six months, or

 

(2)          the
Trustee shall cease to be eligible under Section 709 and shall fail
to resign after written request therefor by the Company or by any such Holder,
or

 

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

 

then, in any such case, (A) the Company may remove the Trustee, or
(B) subject to Section 614,
any Holder who has been a bona fide Holder of a Note for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of
a successor Trustee or Trustees.

 

If the Trustee shall
resign, be removed or become incapable of acting, or if a vacancy shall occur
in the office of Trustee for any cause, the Company shall promptly appoint a
successor Trustee and shall comply with the applicable requirements of Section 711.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 711,
become the successor Trustee and to that extent supersede the successor Trustee
appointed by the Company.  If no
successor Trustee shall have been so appointed by the Company or the Holders
and accepted appointment in the manner required by Section 711,
then, subject to Section 614, any Holder who has been a bona fide
Holder of a Note for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

The Company shall give
notice of each resignation and each removal of the Trustee and each appointment
of a successor Trustee to all Holders in the manner provided in Section 110.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

84

 

Section 711.                                Acceptance of Appointment by
Successor.  In case of the
appointment hereunder of a successor Trustee, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

 

Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to above.

 

No successor Trustee
shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article 7.

 

Section 712.                                Merger, Conversion, Consolidation
or Succession to Business. 
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to all or substantially all the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article 7, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Notes shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Notes so authenticated with the same effect as if such
successor Trustee had itself authenticated such Notes.

 

Section 713.                                Preferential Collection of
Claims Against the Company. 
If and when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Notes), the Trustee shall be subject to the
provisions of the TIA regarding the collection of claims against the Company
(or any such other obligor) or realizing on certain property received by it in
respect of such claims.

 

Section 714.                                Appointment of Authenticating Agent.  The Trustee may appoint an Authenticating
Agent acceptable to the Company to authenticate the Notes.  Any such appointment shall be evidenced by
an instrument in writing signed by a Trust Officer, a copy of which instrument
shall be promptly furnished to the Company. 
Unless limited by the terms of such appointment, an Authenticating Agent
may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication (or execution of a certificate of authentication) by the Trustee
includes authentication (or execution of a certificate of authentication) by
such Authenticating Agent.  An
Authenticating Agent has the same rights as any Registrar, Paying Agent or
agent for service of notices and demands.

 

85

 

ARTICLE VIII

 

HOLDERS’ LISTS AND
REPORTS BY

TRUSTEE AND THE
COMPANY

 

Section 801.                                The Company to Furnish Trustee
Names and Addresses of Holders. 
The Company will furnish or cause to be furnished to the Trustee

 

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

 

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

 

provided,
however, that if and so long as
the Trustee shall be the Note Registrar, no such list need be furnished
pursuant to this Section 801.

 

Section 802.                                Preservation of Information;
Communications to Holders. 
The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list, if any, furnished to the Trustee as provided in Section 801
and the names and addresses of Holders received by the Trustee in its capacity
as Note Registrar; provided, however, that if and so long as the
Trustee shall be the Note Registrar, the Note Register shall satisfy the
requirements relating to such list. 
None of the Company, any Note Guarantor or the Trustee or any other
Person shall be under any responsibility with regard to the accuracy of such
list.  The Trustee may destroy any list
furnished to it as provided in Section 801 upon receipt of a new
list so furnished.

 

The rights of Holders to
communicate with other Holders with respect to their rights under this
Indenture or under the Notes, and the corresponding rights and privileges of
the Trustee, shall be as provided by the TIA.

 

Every Holder of Notes, by
receiving and holding the same, agrees with the Company and the Trustee that
neither the Company nor the Trustee, nor any agent of either of them, shall be
held accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the TIA.

 

Section 803.                                Reports by Trustee.  The Trustee shall transmit to Holders such
reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the TIA at the times and in the manner provided pursuant
thereto.  A copy of each such report shall,
at the time of such transmission to Holders, be filed by the Trustee with each
stock exchange upon which any Notes are listed, with the SEC and with the
Company.  The Company will notify the
Trustee when any Notes are listed on any stock exchange.

 

86

 

ARTICLE IX

 

AMENDMENT,
SUPPLEMENT OR WAIVER

 

Section 901.                                Without Consent of Holders.  Without the consent of the Holders of any
Notes, the Company, the Trustee and (as applicable) any Note Guarantor may amend
or supplement this Indenture or the Notes, for any of the following purposes:

 

(1)          to
cure any ambiguity, omission, defect or inconsistency,

 

(2)          to
provide for the assumption by a Successor Company of the obligations of the
Company or a Note Guarantor under this Indenture,

 

(3)          to
provide for uncertificated Notes in addition to or in place of certificated
Notes,

 

(4)          to
add Guarantees with respect to the Notes, to secure the Notes, to confirm and
evidence the release, termination or discharge of any Guarantee or Lien with
respect to or securing the Notes when such release, termination or discharge is
provided for under this Indenture,

 

(5)          to
add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power conferred upon the Company,

 

(6)          to
provide for or confirm the issuance of Additional Notes,

 

(7)          to
provide that any Indebtedness that becomes or will become an obligation of a
Successor Company or a Note Guarantor pursuant to a transaction governed by Article 5
(and that is not a Subordinated Obligation) is Senior Subordinated Indebtedness
for purposes of this Indenture,

 

(8)          to
make any change that does not materially adversely affect the rights of any
Holder under the Notes or this Indenture, or

 

(9)          to
comply with any requirement of the SEC in connection with the qualification of
this Indenture under the TIA or otherwise.

 

Section 902.                                With Consent of Holders.  Subject to Section 608, the
Company,  the Trustee and (if
applicable) each Note Guarantor may amend or supplement this Indenture or the
Notes with the written consent of the Holders of a majority in aggregate
principal amount of the Outstanding Notes (including consents obtained in
connection with a tender offer or exchange offer for Notes), and the Holders of
not less than a majority in aggregate principal amount of the Outstanding Notes
by written notice to the Trustee (including consents obtained in connection
with a tender offer or exchange offer for Notes) may waive any existing Default
or

 

87

 

Event of Default or compliance by the Company or any Note Guarantor
with any provision of this Indenture, the Notes or any Note Guarantee.

 

Notwithstanding the
provisions of this Section 902, without the consent of each Holder
affected, an amendment or waiver, including a waiver pursuant to Section 613,
may not:

 

(i)                                     reduce the principal amount of the Notes
whose Holders must consent to an amendment or waiver;

 

(ii)                                  reduce the rate of or extend the time for
payment of interest on any Note;

 

(iii)                               reduce the principal or extend the Stated
Maturity of any Note;

 

(iv)                              reduce the premium payable upon the
redemption of any Note or change the date on which any Note may be redeemed as
described in Section 1001;

 

(v)                                 make any Note payable in money other than
that stated in such Note;

 

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

 

(vii)                           make any change in Article 14 or Article 15
that adversely affects the rights of any Holder in any material respect; or

 

(viii)                        make any change in the amendment or waiver
provisions described in this paragraph.

 

Notwithstanding Section 901
and the foregoing provisions of this Section 902, no amendment to Article 14
or Article 15 of this Indenture or the definitions relating thereto
that adversely affects the rights of any Holder of Senior Indebtedness at the
time outstanding (which Senior Indebtedness has been previously designated in
writing by the Company to the Trustee for this purpose) may be made unless the
holders of such Senior Indebtedness (or any group or representative thereof
authorized to give a consent) consent in writing to such amendment.

 

It shall not be necessary
for the consent of the Holders under this Section 902 to approve
the particular form of any proposed amendment, supplement or waiver, but it
shall be sufficient if such consent approves the substance thereof.

 

After an amendment,
supplement or waiver under this Section 902 becomes effective, the
Company shall mail to the Holders, with a copy to the Trustee, a notice briefly
describing the amendment, supplement or waiver.  Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
supplemental indenture or the effectiveness of any such amendment, supplement
or waiver.

 

88

 

Section 903.                                Execution of Amendments,
Supplements or Waivers. 
The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article 9 if the amendment, supplement or waiver
does not adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign it.  In signing or
refusing to sign such amendment, supplement or waiver, the Trustee shall be
entitled to receive, and shall be fully protected in relying upon, an Officer’s
Certificate and an Opinion of Counsel to the effect that the execution of such
amendment, supplement or waiver has been duly authorized, executed and
delivered by the Company and that, subject to applicable bankruptcy,
insolvency, fraudulent transfer, fraudulent conveyance, reorganization,
moratorium and other laws now or hereinafter in effect affecting creditors’
rights or remedies generally and the general principles of equity (including
standards of materiality, good faith, fair dealing and reasonableness), whether
considered in a proceeding at law or at equity, such amendment, supplement or
waiver is a valid and binding agreement of the Company, enforceable against the
Company in accordance with its terms.

 

Section 904.                                Revocation and Effect of Consents.  Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder is a continuing consent by the
Holder and every subsequent Holder of that Note or any Note that evidences all
or any part of the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. 
Subject to the following paragraph of this Section 904, any
such Holder or subsequent Holder may revoke the consent as to such Holder’s
Note by written notice to the Trustee or the Company, received by the Trustee
or the Company, as the case may be, before the date on which the Trustee
receives an Officer’s Certificate certifying that the Holders of the requisite
principal amount of Notes have consented (and not theretofore revoked such
consent) to the amendment, supplement or waiver.  The Company may, but shall not be obligated to, fix a record date
for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver as set forth in Section 108.

 

After an amendment,
supplement or waiver becomes effective, it shall bind every Holder of Notes,
unless it makes a change described in any of clauses (i) through (viii) of the
second paragraph of Section 902. 
In that case, the amendment, supplement or waiver shall bind each Holder
of a Note who has consented to it and every subsequent Holder of such Note or
any Note that evidences all or any part of the same debt as the consenting
Holder’s Note.

 

Section 905.                                Conformity with TIA.  Every amendment or supplemental indenture
executed pursuant to this Article shall conform to the requirements of the
TIA as then in effect.

 

Section 906.                                Notation on or Exchange of Notes.  If an amendment, supplement or waiver
changes the terms of a Note, the Trustee shall (if required by the Company and
in accordance with the specific direction of the Company) request the Holder of
the Note to deliver it to the Trustee. 
The Trustee shall (if required by the Company and in accordance with the
specific direction of the Company) place an appropriate notation on the Note
about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee so determines, the

 

89

 

Company in exchange for the Note shall issue and the Trustee shall
authenticate a new Note that reflects the changed terms.  Failure to make the appropriate notation or
issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver.

 

ARTICLE X

 

REDEMPTION OF NOTES

 

Section 1001.                          Right of Redemption.  (a) 
The Notes will be redeemable, at the Company’s option, in whole or in
part, and from time to time on and after August 15, 2008 and prior to
maturity at the applicable redemption price set forth below.  Such redemption may be made upon notice
mailed by first-class mail to each Holder’s registered address in accordance
with Section 1005.  The
Company may provide in such notice that payment of the redemption price and the
performance of the Company’s obligations with respect to such redemption may be
performed by another Person.  Any such
redemption and notice may, in the Company’s discretion, be subject to the
satisfaction of one or more conditions precedent, including the occurrence of a
Change of Control.  The Notes will be so
redeemable at the following redemption prices (expressed as a percentage of
principal amount), plus accrued and unpaid interest, if any, to the relevant
Redemption Date (subject to Section 307), if redeemed during the
12-month period commencing on August 15 of the years set forth below:

 

	
  Period

  	
   

  	
  Redemption Price

  	
   

  
	
  2008

  	
   

  	
  104.750

  	
  %

  
	
  2009

  	
   

  	
  103.167

  	
  %

  
	
  2010

  	
   

  	
  101.583

  	
  %

  
	
  2011
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 In addition, at any time and from time to
time prior to August 15, 2006, the Company, at its option, may redeem the
Notes in an aggregate principal amount equal to up to 35% of the original
aggregate principal amount of the Notes (including the principal amount of any
Additional Notes), with funds in an aggregate amount (the “Redemption Amount”)
not exceeding the aggregate cash proceeds of one or more Equity Offerings, at a
Redemption Price (expressed as a percentage of principal amount thereof) of
109.500% plus accrued and unpaid interest, if any, to the Redemption Date
(subject to Section 307); provided,
however, that an aggregate
principal amount of the Notes equal to at least 65% of the original aggregate
principal amount of the Notes (including the principal amount of any Additional
Notes) must remain Outstanding after each such redemption.  The Company may make such redemption upon
notice mailed by first-class mail to each Holder’s registered address in
accordance with Section 1005 (but in no event more than 180 days
after the completion of the related Equity Offering).  The Company may provide in such notice that payment of the
redemption price and performance of the Company’s obligations with respect to
such redemption may be performed by another Person.  Any such notice may be given prior to the completion of the
related Equity Offering, and any such redemption or notice may, at the
Company’s discretion, be subject to the

 

90

 

satisfaction of one or more conditions precedent,
including the completion of the related Equity Offering.

 

(c)                                  At any time prior to August 15, 2008,
the Notes may also be redeemed or purchased (by the Company or any other
Person) in whole or in part, at the Company’s option, at a price (the “Redemption
Price”) equal to 100% of the principal amount thereof plus the Applicable
Premium as of, and accrued but unpaid interest, if any, to, the date of
redemption or purchase (the “Redemption Date”) (subject to Section 307).  Such redemption or purchase may be made upon
notice mailed by first-class mail to each Holder’s registered address, not less
than 30 nor more than 60 days prior to the Redemption Date.  The Company may provide in such notice that
payment of the Redemption Price and performance of the Company’s obligations
with respect to such redemption or purchase may be performed by another
Person.  Any such redemption, purchase
or notice may, at the Company’s discretion, be subject to the satisfaction of
one or more conditions precedent, including but not limited to the occurrence
of a Change of Control.

 

“Applicable Premium”
means, with respect to a Note at any Redemption Date, the greater of (i) 1.0% of the principal amount of such
Note and (ii) the excess of (A) the present value at such Redemption
Date of (1) the redemption price
of such Note on August 15, 2008, (such redemption price being that
described in Section 1001(a)) plus (2) all required remaining scheduled interest payments due on
such Note through such date, computed using a discount rate equal to the
Treasury Rate plus 50 basis points, over (B)
the principal amount of such Note on such Redemption Date.  Calculation of the Applicable Premium will
be made by the Company or on behalf of the Company by such Person as the
Company shall designate; provided
that such calculation shall not be a duty or obligation of the applicable
Trustee.

 

“Treasury Rate”
means, with respect to a Redemption Date, the yield to maturity at the time of
computation of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H.15(519) that has become publicly available at least two Business Days prior
to such Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly
equal to the period from such Redemption Date to August 15, 2008; provided, however,
that if the period from the Redemption Date to such date is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the period from the Redemption Date to such date is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year shall be used.

 

Section 1002.                          Applicability of Article.  Redemption or purchase of Notes as permitted
by Section 1001 shall be made in accordance with this Article 10.

 

Section 1003.                          Election to Redeem; Notice to Trustee.  In case of any redemption at the election of
the Company of less than all of the Notes, the Company shall, at least 30 days

 

91

 

prior to the Redemption Date initially fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of
such Redemption Date and of the principal amount of Notes to be redeemed.

 

Section 1004.                          Selection by Trustee of Notes to Be
Redeemed.  In the case of
any partial redemption, selection of the Notes for redemption will be made by
the Trustee not more than 60 days prior to the Redemption Date on a pro rata basis, by lot or by such other
method as the Trustee in its sole discretion shall deem to be fair and
appropriate, although no Note of $1,000 in original principal amount or less
will be redeemed in part.

 

The Trustee shall
promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Note selected for partial redemption, the principal
amount thereof to be redeemed.  On and
after the Redemption Date, interest will cease to accrue on Notes or portions
thereof called for redemption.

 

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Notes shall relate, in the case of any Note redeemed or to be
redeemed only in part, to the portion of the principal of such Note that has been
or is to be redeemed.

 

Section 1005.                          Notice of Redemption.  Notice of redemption or purchase as provided
in Section 1001 shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Notes to be redeemed, at such Holder’s address
appearing in the Note Register.

 

Any
such notice shall state:

 

(1)          the
expected Redemption Date,

 

(2)          the
redemption price,

 

(3)          if
less than all Outstanding Notes are to be redeemed, the identification (and, in
the case of partial redemption, the respective principal amounts) of the Notes
to be redeemed,

 

(4)          that,
on the Redemption Date, the redemption price will become due and payable upon
each such Note, and that, unless the Company defaults in making such redemption
payment or the Paying Agent is prohibited from making such payment pursuant to
the terms of this Indenture, interest thereon shall cease to accrue from and
after said date, and

 

(5)          the
place where such Notes are to be surrendered for payment of the redemption
price.

 

92

 

In addition, if such
redemption, purchase or notice is subject to satisfaction of one or more
conditions precedent, as permitted by Section 1001, such notice
shall describe each such condition, and if applicable, shall state that, in the
Company’s discretion, the Redemption Date may be delayed until such time as any
or all such conditions shall be satisfied, or such redemption or purchase may
not occur and such notice may be rescinded in the event that any or all such
conditions shall not have been satisfied by the Redemption Date, or by the
Redemption Date as so delayed.

 

The Company may provide
in such notice that payment of the redemption price and the performance of the
Company’s obligations with respect to such redemption may be performed by
another Person.

 

Notice of such redemption
or purchase of Notes to be so redeemed or purchased at the election of the
Company shall be given by the Company or, at the Company’s request (made to the
Trustee at least 40 days (or such shorter period as shall be satisfactory to
the Trustee) prior to the Redemption Date), by the Trustee in the name and at
the several expense of the Company.

 

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

 

Section 1006.                          Deposit of Redemption Price.  On or prior to any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the Company
is acting as its own Paying Agent, the Company shall segregate and hold in
trust as provided in Section 403) an amount of money sufficient to
pay the redemption price of, and any accrued and unpaid interest on, all the
Notes or portions thereof which are to be redeemed on that date.

 

Section 1007.                          Notes Payable on Redemption Date.  Notice of redemption having been given as
provided in this Article 10, the Notes so to be redeemed shall, on
the Redemption Date, become due and payable at the redemption price herein
specified and from and after such date (unless the Company shall default in the
payment of the redemption price or the Paying Agent is prohibited from paying
the redemption price pursuant to the terms of this Indenture) such Notes shall
cease to bear interest.  Upon surrender
of such Notes for redemption in accordance with such notice, such Notes shall
be paid by the Company at the redemption price.  Installments of interest whose Interest Payment Date is on or
prior to the Redemption Date shall be payable to the Holders of such Notes
registered as such on the relevant Regular Record Dates according to their
terms and the provisions of Section 307.

 

On and after any
Redemption Date, if money sufficient to pay the redemption price of and any
accrued and unpaid interest on Notes called for redemption shall have been made
available in accordance with Section 1006, the Notes (or the
portions thereof) called for redemption will cease to accrue interest and the
only right of the Holders of such Notes (or

 

93

 

portions thereof) will be to receive payment of the redemption price of
and subject to the last sentence of the preceding paragraph, any accrued and
unpaid interest on such Notes (or portions thereof) to the Redemption
Date.  If any Note (or portion thereof)
called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear
interest from the Redemption Date at the rate borne by the Note (or portion
thereof).

 

Section 1008.                          Notes Redeemed in Part.  Any Note that is to be redeemed only in part
shall be surrendered at the Place of Payment (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Note without service charge, a new Note or Notes, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Note so
surrendered.

 

ARTICLE XI

 

SATISFACTION AND
DISCHARGE

 

Section 1101.                          Satisfaction and Discharge of
Indenture.  This Indenture shall
cease to be of further effect (except as to any surviving rights of
registration of or transfer or exchange of Notes herein expressly provided
for), and the Trustee, on demand of and at the 
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

 

(i)                                     either

 

(a)                                  all Notes theretofore authenticated and
delivered (other than (i) Notes that have been destroyed, lost or
stolen and that have been replaced or paid as provided in Section 306,
and (ii) Notes for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 403) have been delivered to the Trustee
cancelled or for cancellation; or

 

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

 

(1)                                  have
become due and payable, or

 

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

 

94

 

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

 

(ii)                                  the Company has irrevocably deposited or
caused to be deposited with the Trustee an amount in United States dollars,
U.S. Government Obligations, or a combination thereof, sufficient (without
reinvestment) to pay and discharge the entire Indebtedness on such Notes not
theretofore delivered to the Trustee cancelled or for cancellation, for
principal (and premium, if any) and interest to the date of such deposit (in the
case of Notes that have become due and payable), or to the Stated Maturity or
Redemption Date, as the case may be;

 

(iii)                               the Company has paid or caused to be paid all
other sums then payable hereunder by the Company; and

 

(iv)                              the Company has delivered to the Trustee an
Officer’s Certificate of the Company and an Opinion of Counsel each to the
effect that all conditions precedent provided for in this Section 1101
relating to the satisfaction and discharge of this Indenture have been complied
with, provided that any such counsel may rely on any
Officer’s Certificate as to matters of fact (including as to compliance with
the foregoing clauses (i), (ii) and (iii)).

 

Notwithstanding the
satisfaction and discharge of this Indenture, the obligations of the Company to
the Trustee under Section 707 and, if money shall have been
deposited with the Trustee pursuant to Section 1101(ii), the
obligations of the Trustee under Section 1102, shall survive.

 

Section 1102.                          Application of Trust Money.  Subject to the provisions of the last
paragraph of Section 403, all money deposited with the Trustee
pursuant to Section 1101 shall be held in trust and applied by it,
in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest on the Notes; but such money need not be segregated from
other funds except to the extent required by law.

 

ARTICLE XII

 

DEFEASANCE OR
COVENANT DEFEASANCE

 

Section 1201.                          The Company’s Option to Effect
Defeasance or Covenant Defeasance.  The Company may, concurrently (and not separately) at its option,
at any time, elect to have terminated the obligations of the Company with respect
to Outstanding Notes and to have terminated all of the obligations of the Note
Guarantors, with respect to the Note Guarantees, in each case, as set forth in
this Article 12, and elect to have either Section 1202
or Section 1203 be applied to all of the Outstanding Notes (the “Defeased
Notes”), upon compliance with the conditions set forth below in Section 1204.  Either Section 1202 or Section 1203

 

95

 

may be applied to the Defeased Notes to any Redemption Date or the
Stated Maturity of the Notes.

 

Section 1202.                          Defeasance and Discharge.  Upon the Company’s exercise under Section 1201
of the option applicable to this Section 1202, the Company shall be
deemed to have been released and discharged from its obligations with respect
to the Defeased Notes on the date the relevant conditions set forth in Section 1204
below are satisfied (hereinafter, “Defeasance”).  For this purpose, such Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Defeased Notes, which shall thereafter be deemed to be
“Outstanding” only for the purposes of Section 1205 and the other
Sections of this Indenture referred to in clauses (a) and (b) below, and the
Company and each of the Note Guarantors shall be deemed to have satisfied all
other obligations under such Notes and this Indenture insofar as such Notes are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following, which shall
survive until otherwise terminated or discharged hereunder:  (a)
the rights of Holders of Defeased Notes to receive, solely from the trust fund
described in Section 1204 and as more fully set forth in such Section,
payments in respect of the principal of and premium, if any, and interest on
such Notes when such payments are due, (b)
the Company’s obligations with respect to such Defeased Notes under Sections
304, 305, 306, 402, and 403 (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder, including the Trustee’s rights under Section 707,
and (d) this Article 12.  If the Company exercises its option under
this Section 1202, payment of the Notes may not be accelerated
because of an Event of Default with respect thereto.  Subject to compliance with this Article 12, the
Company may, at its option and at any time, exercise its option under this Section 1202
notwithstanding the prior exercise of its option under Section 1203
with respect to the Notes.

 

Section 1203.                          Covenant Defeasance.  Upon the Company’s exercise under Section 1201
of the option applicable to this Section 1203, (a) the Company and the Note Guarantors
shall be released from their respective obligations under any covenant or provision
contained in Section 405 and Sections 407 through 415
and the provisions of clauses (iii), (iv) and (v) of Section 501(a)
shall not apply, and (b) the
occurrence of any event specified in clause (iv), (v) (with respect to Section 405
and Sections 407 through 415, inclusive), (vi), (vii), (viii)
(with respect to Subsidiaries), (ix) (with respect to Subsidiaries), (x) or
(xi) of Section 601 shall be deemed not to be or result in an Event
of Default, in each case with respect to the Defeased Notes on and after the
date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed not to be
“Outstanding” for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with such
covenants or provisions, but shall continue to be deemed “Outstanding” for all
other purposes hereunder.  For this
purpose, such Covenant Defeasance means that, with respect to the Outstanding
Notes, the Company and the Subsidiary Guarantors may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant or provision, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or provision or
by reason of any reference in any such covenant or provision to any other
provision herein or in any other document and

 

96

 

such omission to comply shall not constitute a Default or an Event of
Default under Section 601, but, except as specified above, the
remainder of this Indenture and such Outstanding Notes shall be unaffected
thereby.

 

Section 1204.                          Conditions to Defeasance or
Covenant Defeasance.  The
following shall be the conditions to application of either Section 1202
or Section 1203 to the Outstanding Notes:

 

(1)          The
Company shall have irrevocably deposited or caused to be deposited with the
Trustee in trust cash, in United States dollars, or U.S. Government Obligations
or a combination thereof, in amounts as will be sufficient (without
reinvestment), to pay and discharge the principal of, and premium, if any, and
interest on the Defeased Notes on the Stated Maturity or relevant Redemption
Date in accordance with the terms of this Indenture and the Notes;

 

(2)          No
Default or Event of Default shall have occurred and be continuing on the date
of such deposit;

 

(3)          Such
deposit shall not result in a breach or violation of, or constitute a Default
or Event of Default under, this Indenture or any other material agreement or
instrument to which the Company is a party or by which it is bound;

 

(4)          In
the case of an election under Section 1202, the Company shall have
delivered to the Trustee an Opinion of Counsel from Debevoise & Plimpton or
other counsel in the United States to the effect that (x) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling or (y) since the Issue Date, there has been a
change in the applicable Federal income tax law, in either case to the effect
that, and based thereon such opinion shall confirm to the effect that, the
Holders of the Outstanding Notes will not recognize income, gain or loss for
Federal income tax purposes as a result of such Defeasance and will be subject
to Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Defeasance had not occurred;

 

(5)          In
the case of an election under Section 1203, the Company shall have
delivered to the Trustee an Opinion of Counsel from Debevoise & Plimpton or
other counsel in the United States to the effect that the Holders of the
Outstanding Notes will not recognize income, gain or loss for Federal income
tax purposes as a result of such Covenant Defeasance and will be subject to
Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;
and

 

(6)          The
Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each to the effect that all conditions precedent provided
for in this Section 1204 relating to either the Defeasance under Section 1202
or the Covenant Defeasance under Section 1203, as the case may be,
have been complied with.  In

 

97

 

rendering
such Opinion of Counsel, counsel may rely on any Officer’s Certificate as to
compliance with the foregoing clauses (1), (2) and (3) of this Section 1204
or as to any matters of fact.

 

From and after the time
of any deposit pursuant to clause (1) of the first paragraph of this Section 1204,
the money or U.S. Government Obligations so deposited shall not be subject to
the rights of the holders of Senior Indebtedness of the Company pursuant to the
subordination provisions of Article 14 or Article 15.

 

Section 1205.                          Deposited Money and U.S. Government
Obligations To Be Held in Trust; Other Miscellaneous Provisions.  Subject to the provisions of the last
paragraph of Section 403, all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee (or such other
Person that would qualify to act as successor trustee under Article 7,
collectively and solely for purposes of this Section 1205, Section 1412
and Section 1512, the “Trustee”) pursuant to Section 1204
in respect of the Defeased Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee and its agents and hold them harmless against any tax,
fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 1204, or the principal,
premium, if any, and interest received in respect thereof, other than any such
tax, fee or other charge that by law is for the account of the Holders of the
Defeased Notes.

 

Anything in this Article 12
to the contrary notwithstanding, the Trustee shall deliver to the Company from
time to time, upon Company Request, any money or U.S. Government Obligations
held by it as provided in Section 1204 that, in the opinion of a
nationally recognized accounting or investment banking firm expressed in a
written certification thereof to the Trustee, are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
Defeasance or Covenant Defeasance. 
Subject to Article 7, the Trustee shall not incur any
liability to any Person by relying on such opinion.

 

Section 1206.                          Reinstatement. 
If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Section 1202 or 1203,
as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of the Company and each of the Note
Guarantors under this Indenture, the Notes and the Note Guarantees shall be
revived and reinstated as though no deposit had occurred pursuant to Section 1202
or 1203, as the case may be, until such time as the Trustee or Paying
Agent is permitted to apply all such money and U.S. Government Obligations in
accordance with Section 1202 or 1203, as the case may be; provided, however,
that if the Company or any Note Guarantor makes any payment of principal,
premium, if any, or interest on any Note following the reinstatement of

 

98

 

its obligations, the Company or Note Guarantor, as the case may be,
shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money and U.S. Government Obligations held by the Trustee or
Paying Agent.

 

Section 1207.                          Repayment to the Company.  The Trustee shall pay to the Company upon
Company Request any money held by it for the payment of principal or interest
that remains unclaimed for two years. 
After payment to the Company, Holders entitled to money must look to the
Company for payment as general creditors unless an applicable abandoned
property law designates another Person and all liability of the Trustee or
Paying Agent with respect to such money shall thereupon cease.

 

ARTICLE XIII

 

NOTE GUARANTEES

 

Section 1301.                          Guarantees Generally.  (a)  Parent
Guarantees.  Each of Holding and GPI
Holding, as primary obligor and not merely as surety, hereby irrevocably and
fully and unconditionally, jointly and severally Guarantees (each, a “Parent
Guarantee,” and each of Holding and GPI Holding in such capacity, a “Parent
Guarantor”), on an unsecured senior subordinated basis, the punctual
payment when due, whether at Stated Maturity, by acceleration or otherwise, of
all monetary obligations of the Company under this Indenture and the Notes,
whether for principal of or interest on the Notes, expenses, indemnification or
otherwise (all such obligations guaranteed by each Parent Guarantor being
herein called the “Parent Guaranteed Obligations”).

 

(b)                                 Guarantee of Each Subsidiary Guarantor. 
Each Subsidiary Guarantor, as primary obligor and not merely as surety,
will jointly and severally, irrevocably and fully and unconditionally
Guarantee, on an unsecured senior subordinated basis, the punctual payment when
due, whether at Stated Maturity, by acceleration or otherwise, of all monetary
obligations of the Company under this 
Indenture and the Notes, whether for principal of or interest on the
Notes, expenses, indemnification or otherwise (all such obligations guaranteed
by such Subsidiary Guarantors being herein called the “Subsidiary Guaranteed
Obligations”).

 

The obligations of each
Subsidiary Guarantor will be limited to the maximum amount, as will, after
giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor and after giving effect to any collections from or payments made by
or on behalf of any other Subsidiary Guarantor in respect of the obligations of
such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to
its contribution obligations under this Indenture, result in the obligations of
such Subsidiary Guarantor under the Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under applicable law, or being
void or unenforceable under any law relating to insolvency of debtors.

 

(c)                                  Further Agreements of Each Note Guarantor. 
(i)  Each Note Guarantor hereby
agrees that (to the fullest extent permitted by law) its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of this Indenture, the Notes

 

99

 

or the obligations of the Company or any other Note
Guarantor to the Holders or the Trustee hereunder or thereunder, the absence of
any action to enforce the same, any waiver or consent by any Holder with
respect to any provisions hereof or thereof, any release of any other Note
Guarantor, the recovery of any judgment against the Company, any action to
enforce the same, whether or not a notation concerning its Note Guarantee is
made on any particular Note, or any other circumstance that might otherwise
constitute a legal or equitable discharge or defense of a guarantor.

 

(ii)                                  Each Note Guarantor hereby waives (to the
fullest extent permitted by law) the benefit of diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenants that (except
as otherwise provided in Section 1303) its Note Guarantee will not
be discharged except by complete performance of the obligations contained in
the Notes, this Indenture and this Note Guarantee.  Such Note Guarantee is a guarantee of payment and not of
collection.  Each Note Guarantor further
agrees (to the fullest extent permitted by law) that, as between it, on the one
hand, and the Holders of Notes and the Trustee, on the other hand, subject to
this Article 13 and Article 15, (1) the maturity of the obligations guaranteed
by its Note Guarantee may be accelerated as and to the extent provided in Article 6
for the purposes of such Note Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations
guaranteed by such Note Guarantee, and (2) in the event of
any acceleration of such obligations as provided in Article 6, such
obligations (whether or not due and payable) shall forthwith become due and
payable by such Note Guarantor in accordance with the terms of this Section 1301
for the purpose of such Note Guarantee. 
Neither the Trustee nor any other Person shall have any obligation to
enforce or exhaust any rights or remedies or to take any other steps under any
security for the Guaranteed Note Obligations or against the Company or any
other Person or any property of the Company or any other Person before the
Trustee is entitled to demand payment and performance by any or all Note
Guarantors of their obligations under their respective Note Guarantees or under
this Indenture.

 

(iii)                               Until terminated in accordance with Section 1303,
each Note Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Company for
liquidation or reorganization, should the Company become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any significant part of the Company’s assets, and shall,
to the fullest extent permitted by law, continue to be effective or be reinstated,
as the case may be, if at any time payment and performance of the Notes are,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by any obligee on such Notes, whether as a “voidable
preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made.  In the
event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Notes shall, to the fullest extent permitted by law, be reinstated
and deemed reduced only by such amount paid and not so rescinded, reduced,
restored or returned.

 

100

 

(d)                                 Each Note Guarantor that makes a payment or
distribution under its Note Guarantee shall have the right to seek contribution
from the Company or any non-paying Note Guarantor that has also Guaranteed the
relevant Guaranteed Note Obligations in respect of which such payment or
distribution is made, so long as the exercise of such right does not impair the
rights of the Holders under the Note Guarantees.

 

(e)                                  Each Note Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that its Note Guarantee, and the waiver set
forth in Section 1305, are knowingly made in contemplation of such
benefits.

 

(f)                                    Each Note Guarantor, pursuant to its Note
Guarantee, also hereby agrees to pay any and all reasonable out-of-pocket
expenses (including reasonable counsel fees and expenses) incurred by the
Trustee or the Holders in enforcing any rights under its Note Guarantee.

 

Section 1302.                          Continuing Guarantees.  (a) 
Each Note Guarantee shall be a continuing Guarantee and shall (i) subject to Section 1303,
remain in full force and effect until payment in full of the principal amount
of all Outstanding Notes (whether by payment at maturity, purchase, redemption,
defeasance, retirement or other acquisition) and all other Parent Guaranteed
Obligations of the Parent Guarantor and Subsidiary Guaranteed Obligations of
the Subsidiary Guarantor then due and owing, (ii)
be binding upon such Note Guarantor and (iii)
inure to the benefit of and be enforceable by the Trustee, the Holders and
their permitted successors, transferees and assigns.

 

(b)           The obligations of each Note
Guarantor hereunder shall continue to be effective or shall be reinstated, as
the case may be, if at any time any payment which would otherwise have reduced
or terminated the obligations of any Note Guarantor hereunder and under its
Note Guarantee (whether such payment shall have been made by or on behalf of
the Company or by or on behalf of a Note Guarantor) is rescinded or reclaimed
from any of the Holders upon the insolvency, bankruptcy, liquidation or
reorganization of the Company or any Note Guarantor or otherwise, all as though
such payment had not been made.

 

Section 1303.                          Release of Note Guarantees.  Notwithstanding the provisions of Section 1302,
Note Guarantees will be subject to termination and discharge under the circumstances
described in this Section 1303:

 

(1)          Each
Parent Guarantor will automatically and unconditionally be released from all
obligations under its Parent Guarantee, and its Parent Guarantee shall
thereupon terminate and be discharged and of no further force of effect, (i) upon any merger or consolidation of
such Parent Guarantor with and into the Company or the other Parent Guarantor,
(ii) upon legal or covenant
defeasance of the Company’s obligations under, or satisfaction and discharge
of, this Indenture, or (iii)
subject to Section 1302(b), upon payment in full of the aggregate
principal amount of all Notes then Outstanding and all other Parent Guaranteed
Obligations of such Parent Guarantor then due and owing.

 

101

 

(2)          At
the Company’s option, each Parent Guarantor will automatically and
unconditionally be released from all obligations under its Parent Guarantee,
and its Parent Guarantee shall thereupon terminate and be discharged and of no
further force and effect, upon the payment in full (by redemption, repurchase,
satisfaction and discharge or otherwise), in connection with the Transactions
or otherwise, of all Outstanding Existing Notes.

 

(3)          Any
Subsidiary Guarantor will automatically and unconditionally be released from
all obligations under its Subsidiary Guarantee, and such Subsidiary Guarantee
shall thereupon terminate and be discharged and of no further force or effect,
(i) concurrently with any sale or
disposition (by merger or otherwise) of any Subsidiary Guarantor or any
interest therein in accordance with the terms of this Indenture (including Section 411
and Section 501) by the Company or a Restricted Subsidiary,
following which such Subsidiary Guarantor is no longer a Restricted Subsidiary
of the Company, (ii) at any time
that such Subsidiary Guarantor is released from all of its obligations under
all of its Guarantees of payment by the Company of any Bank Indebtedness of the
Company (other than by reason of payment under such Guarantees of Bank
Indebtedness), (iii) upon the
merger or consolidation of any Subsidiary Guarantor with and into the Company
or another Subsidiary Guarantor that is the surviving Person in such merger or
consolidation, (iv) concurrently
with any Subsidiary Guarantor becoming an Unrestricted Subsidiary, (v) upon legal or covenant defeasance of
the Company’s obligations, or satisfaction and discharge of this Indenture, or
(vi) subject to Section 1302(b),
upon payment in full of the aggregate principal amount of all Notes then
Outstanding and all other Subsidiary Guaranteed Obligations then due and
owing.  In addition, the Company will
have the right, upon 30 days’ notice to the Trustee, to cause any Subsidiary
Guarantor that has not guaranteed payment by the Company of any Bank
Indebtedness of the Company to be unconditionally released from all obligations
under its Subsidiary Guarantee, and such Subsidiary Guarantee shall thereupon
terminate and be discharged and of no further force or effect.  Upon any such occurrence specified in this
paragraph, the Trustee shall execute any documents reasonably required in order
to evidence such release, discharge and termination in respect of such
Subsidiary Guarantee.

 

Upon any such occurrence
specified in this Section 1303, the Trustee shall execute any
documents reasonably required in order to evidence such release, discharge and
termination in respect of the applicable Note Guarantee.

 

Section 1304.                          Agreement to Subordinate.  Each Note Guarantee is, to the extent and in
the manner set forth in Article 15, subordinated and subject in
right of payment to the prior payment in full of all Senior Indebtedness of the
Note Guarantor giving such Note Guarantee and each Note Guarantee is made
subject to such provisions of this Indenture.

 

Section 1305.                          Waiver of Subrogation.  Each Note Guarantor hereby irrevocably
waives any claim or other rights that it may now or hereafter acquire against
the Company that arise from the existence, payment, performance or enforcement
of the Company’s obligations

 

102

 

under the Notes and this Indenture or such Note Guarantor’s obligations
under its Note Guarantee and this Indenture, including any right of
subrogation, reimbursement, exoneration, indemnification, and any right to
participate in any claim or remedy of any Holder of Notes against the Company,
whether or not such claim, remedy or right arises in equity, or under contract,
statute or common law, until this Indenture is discharged and all of the Notes are
discharged and paid in full.  If any
amount shall be paid to any Note Guarantor in violation of the preceding
sentence and the Notes shall not have been paid in full, such amount shall have
been deemed to have been paid to such Note Guarantor for the benefit of, and
held in trust for the benefit of, the Holders of the Notes, and shall forthwith
be paid to the Trustee for the benefit of such Holders to be credited and
applied upon the Notes, whether matured or unmatured, in accordance with the
terms of this Indenture.

 

Section 1306.                          Notation Not Required.  Neither the Company nor any Note Guarantor
shall be required to make a notation on the Notes to reflect any Note Guarantee
or any such release, termination or discharge thereof.

 

Section 1307.                          Successors and Assigns of Note
Guarantors.  All
covenants and agreements in this Indenture by each Note Guarantor shall bind
its respective successors and assigns, whether so expressed or not.

 

Section 1308.                          Execution and Delivery of
Subsidiary Guarantees. 
The Company shall cause each Restricted Subsidiary that is required to
become a Subsidiary Guarantor pursuant to Section 414, and each
Subsidiary of the Company that the Company causes to become a Subsidiary
Guarantor pursuant to Section 414, to promptly execute and deliver
to the Trustee a Supplemental Indenture substantially in the form set forth in Exhibit
D to this Indenture, or otherwise in form and substance reasonably
satisfactory to the Trustee, evidencing its Subsidiary Guarantee on
substantially the terms set forth in this Article 13.  Concurrently therewith, the Company shall
deliver to the Trustee an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee to the effect that such Supplemental Indenture has
been duly authorized, executed and delivered by such Restricted Subsidiary and
that, subject to the applicable bankruptcy, insolvency, fraudulent transfer,
fraudulent conveyance, reorganization, moratorium and other laws now or
hereafter in effect affecting creditors’ rights or remedies generally and the
general principles of equity (including standards of materiality, good faith,
fair dealing and reasonableness), whether considered in a proceeding at law or
at equity, such Supplemental Indenture is a valid and binding agreement of such
Restricted Subsidiary, enforceable against such Restricted Subsidiary in
accordance with its terms.

 

Section 1309.                          Notices.  Notice to any Note Guarantor shall be
sufficient if addressed to such Note Guarantor care of the Company at the
address, place and manner provided in Section 109.

 

103

 

ARTICLE XIV

 

SUBORDINATION

 

Section 1401.                          Agreement to Subordinate.  The Company agrees, and each Noteholder by
accepting a Note agrees, that the Indebtedness evidenced by the Notes is
unsecured Senior Subordinated Indebtedness of the Company, subordinated in
right of payment, to the extent and in the manner provided in this Article 14,
to the prior payment in full (when due) of all existing and future Senior
Indebtedness of the Company, and that the subordination is for the benefit of
and enforceable by the holders of Senior Indebtedness of the Company.  The Notes shall in all respects rank pari passu with all existing and future
Senior Subordinated Indebtedness of the Company and only Indebtedness of the
Company that is Senior Indebtedness shall rank senior to the Notes in
accordance with the provisions set forth herein.  All provisions of this Article 14 shall be subject to
Section 1412.

 

Section 1402.                          Liquidation, Dissolution or
Bankruptcy.  Upon any payment or
distribution of the assets of the Company upon a total or partial liquidation
or dissolution or reorganization of or similar proceeding relating to the
Company or its property, or in a bankruptcy, insolvency, receivership or
similar proceeding relating to the Company or its property,

 

(i)               the holders of Senior Indebtedness of the
Company will be entitled to receive payment in full of such Senior Indebtedness
before the Noteholders are entitled to receive any payment from such Company,
and

 

(ii)            until the Senior Indebtedness of the Company
is paid in full, any payment or distribution from the Company to which
Noteholders would be entitled but for this Article 14 will be made
to holders of such Senior Indebtedness as their interests may appear except
that Noteholders may receive shares of stock and any debt securities that are
subordinated to such Senior Indebtedness to at least the same extent as the
Notes.

 

Section 1403.                          Default on Senior Indebtedness.  The Company may not pay principal of, or
premium (if any) or interest on, the Notes or make any deposit pursuant to the
provisions of Article 12 and may not otherwise purchase, redeem or
otherwise retire any Notes (collectively, “pay the Notes”) if (i) any Senior Indebtedness of the Company
is not paid in full when due or (ii)
any other default on Senior Indebtedness of the Company occurs and the maturity
of such Senior Indebtedness is accelerated in accordance with its terms (either
such event, a “Payment Default”), unless, in either case, (x) the Payment Default has been cured or
waived and any such acceleration has been rescinded in writing or (y) such Senior Indebtedness has been paid
in full.  However, the Company may pay
the Notes without regard to the foregoing if the Company and the Trustee
receive written notice approving such payment from the Representative for the
Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.

 

104

 

In addition, during the
continuance of any default (other than a Payment Default) with respect to any
Designated Senior Indebtedness of the Company pursuant to which the maturity
thereof may be accelerated immediately without further notice (except such
notice as may be required to effect such acceleration) or the expiration of any
applicable grace period (a “Non-payment Default”), the Company may not
pay the Notes for the period specified as follows (a “Payment Blockage
Period”).  The Payment Blockage
Period shall commence upon the receipt by the Trustee (with a copy to the
Company) of written notice (a “Blockage Notice”) of such Non-payment
Default from the Representative for such Designated Senior Indebtedness
specifying an election to effect a Payment Blockage Period and shall end on the
earliest to occur of the following events:

 

(1)                        179 days
shall have elapsed since such receipt of such Blockage Notice,

 

(2)                        the
Non-payment Default giving rise to such Blockage Notice is no longer continuing
(and no other Payment Default or Non-payment Default is then continuing),

 

(3)                        such
Designated Senior Indebtedness shall have been discharged or repaid in full in
cash or Cash Equivalents, or

 

(4)                        such
Payment Blockage Period shall have been terminated by written notice to the
Trustee and the Company from the Person or Persons who gave such Blockage
Notice.

 

The Company shall
promptly resume payments on the Notes, including any missed payments, after
such Payment Blockage Period ends, unless the holders of such Designated Senior
Indebtedness or the Representative of such holders have accelerated the
maturity of such Designated Senior Indebtedness, or any Payment Default
otherwise exists.  Not more than one
Blockage Notice to the Company may be given in any 360 consecutive day period,
irrespective of the number of defaults with respect to Designated Senior
Indebtedness during such period, except that if any Blockage Notice within such
360-day period is given by or on behalf of any holders of Designated Senior
Indebtedness other than Bank Indebtedness, a Representative of holders of Bank
Indebtedness may give another Blockage Notice within such period.  In no event may the total number of days
during which any Payment Blockage Period is in effect extend beyond 179 days
from the date of receipt by the Trustee of the relevant Blockage Notice, and
there must be a 181 consecutive day period during any 360 consecutive day
period during which no Payment Blockage Period is in effect.

 

Section 1404.                          Acceleration of Payment of Notes.  If payment of the Notes is accelerated
because of an Event of Default, the Company or the Trustee shall promptly
notify the holders of the Designated Senior Indebtedness of the Company (or the
Representative of such holders) of the acceleration.  If any Designated Senior Indebtedness of the Company is
outstanding, such acceleration will not be effective with respect to the
Company until the time specified in Section 602, and the Company
may not pay the Notes until five Business Days after such holders or the
Representative of each Designated Senior Indebtedness of the Company receive
notice of such acceleration and, thereafter, the Company may pay the Notes only
if this Article 14 otherwise permits payment at that time.

 

105

 

Section 1405.                          When a Distribution Must Be Paid Over.  If a distribution from the Company is made
to Holders that because of the provisions of this Article 14 should
not have been made to them, the Holders who receive the distribution shall hold
it in trust for holders of Senior Indebtedness of the Company and pay it over
to them as their interests may appear.

 

Section 1406.                          Subrogation. 
After all Senior Indebtedness of the Company  is paid in full and until the Notes are paid in full, Holders
shall be subrogated to the rights of holders of Senior Indebtedness of the
Company to receive distributions applicable to such Senior Indebtedness.  For purposes of such subrogation, a distribution
made under this Article 14 to holders of Senior Indebtedness of the
Company that otherwise would have been made to Holders is not, as between the
Company, its creditors other than the holders of such Senior Indebtedness and
Holders, a payment by the Company on such Senior Indebtedness, it being
understood that the provisions of this Article 14 are and are
intended solely for the purpose of defining the relative rights of the Holders,
on the one hand, and the holders of Senior Indebtedness of the Company, on the
other hand.

 

Section 1407.                          Relative Rights.  This Article 14 defines the relative rights of
Holders and holders of Senior Indebtedness. 
Nothing in this Indenture shall:

 

(i)                                     impair,
as between the Company and Holders, the obligation of the Company which is
absolute and unconditional, to pay principal of and interest on the Notes in
accordance with their terms; or

 

(ii)                                  prevent
the Trustee or any Holder from exercising its available remedies upon a
Default, subject to the rights of holders of Senior Indebtedness to receive
distributions otherwise payable to Holders.

 

Section 1408.                          Subordination May Not Be
Impaired by the Company. 
No right of any holder of Senior Indebtedness of the Company to enforce
the subordination of the Indebtedness evidenced by the Notes shall be impaired
by any act or failure to act by the Company or by its failure to comply with
this Indenture.

 

Section 1409.                          Rights of Trustee and Paying Agent.  The Company shall give prompt written notice
to the Trustee of any fact known to the Company that would prohibit the making
of any payment to or by the Trustee in respect of the Notes.  Failure to give such notice shall not affect
the subordination of the Notes to Senior Indebtedness of the Company.  Notwithstanding Section 1403,
the Trustee or Paying Agent may continue to make payments on the Notes and
shall not be charged with knowledge of the existence of facts that would
prohibit the making of any such payments unless, not less than two Business
Days prior to the date of such payment, a Trust Officer of the Trustee receives
notice satisfactory to it that such payments may not be made under this Article 14.  The Company, the Note Registrar or
co-registrar, the Paying Agent, a Representative or a holder of Senior
Indebtedness may give the notice; provided,
however, that, if an issue of
Senior Indebtedness has a Representative, only the Representative may give the
notice.  The Trustee shall be entitled
to rely on the delivery to it of a written notice by a Person representing
himself or itself to be a holder of any Senior

 

106

 

Indebtedness (or a Representative of such holder) to establish that
such notice has been given by a holder of such Senior Indebtedness or
Representative thereof.

 

The Trustee in its
individual or any other capacity may hold Senior Indebtedness with the same
rights it would have if it were not the Trustee.  The Note Registrar and co-registrar and the Paying Agent may do
the same with like rights.  The Trustee
shall be entitled to all the rights set forth in this Article 14
with respect to any Senior Indebtedness that may at any time be held by it, to
the same extent as any other holder of Senior Indebtedness; and nothing in Article 7
shall deprive the Trustee of any of its rights as such holder.  Nothing in this Article 14 shall
apply to claims of, or payments to, the Trustee under or pursuant to Section 707.

 

Section 1410.                          Distribution or Notice to
Representative.  Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness,
the distribution may be made and the notice given to their Representative (if
any).

 

Section 1411.                          Article 14 Not to Prevent
Events of Default or Limit Right to Accelerate.  The failure to make a payment pursuant to
the Notes by reason of any provision in this Article 14 shall not
be construed as preventing the occurrence of a Default.  Subject to Section 1404, nothing
in this Article 14 shall have any effect on the right of the
Holders or the Trustee to accelerate the maturity of the Notes.

 

Section 1412.                          Trust Moneys Not Subordinated.  Notwithstanding anything contained herein to
the contrary, payments from money or the proceeds of U.S. Government
Obligations held in trust under Article 12 by the Trustee for the
payment of principal of and premium, if any, and interest on the Notes shall
not be subordinated to the prior payment of any Senior Indebtedness of the
Company or subject to the restrictions set forth in this Article 14,
and none of the Holders shall be obligated to pay over any such amount to the
Company or any holder of Senior Indebtedness of the Company or any other
creditor of the Company.

 

Section 1413.                          Trustee Entitled to Rely.  Upon any payment or distribution pursuant to
this Article 14, the Trustee and the Holders shall be entitled to
rely (i) upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 1402 are pending, (ii) upon a certificate of the liquidating
trustee or agent or other Person making such payment or distribution to the
Trustee or to the Holders or (iii)
upon the Representatives for the holders of Senior Indebtedness for the purpose
of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article 14.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article 14, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Indebtedness held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and other facts pertinent to the rights of such Person under this Article 14,
and, if such evidence is not furnished, the Trustee may defer any payment to
such

 

107

 

Person pending judicial determination as to the right of such Person to
receive such payment.  The provisions of
Sections 701 and 703 shall be applicable to all actions or
omissions of actions by the Trustee pursuant to this Article 14.

 

Section 1414.                          Trustee to Effectuate Subordination.  Each Holder, by accepting a Note, authorizes
and directs the Trustee on such Holder’s behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination between
the Holders and the holders of Senior Indebtedness of the Company as provided
in this Article 14 and appoints the Trustee as attorney-in-fact for
any and all such purposes.

 

Section 1415.                          Trustee Not Fiduciary for Holders
of Senior Indebtedness. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness of the Company and shall not be liable to any such
holders if it shall mistakenly pay over or distribute to Holders or the Company
or any other Person, money or assets to which any holders of Senior
Indebtedness shall be entitled by virtue of this Article 14 or
otherwise.  With respect to the holders
of Senior Indebtedness of the Company, the Trustee undertakes to perform or to
observe only such of its covenants or obligations as are specifically set forth
in this Article 14 or Article 15 and no implied
covenants or obligations with respect to holders of Senior Indebtedness of the Company
shall be read into this Indenture against the Trustee.

 

Section 1416.                          Reliance by Holders of Senior
Indebtedness on Subordination Provisions.  Each Holder, by accepting a Note,
acknowledges and agrees that the foregoing subordination provisions are, and
are intended to be, an inducement and a consideration to each holder of any
Senior Indebtedness of the Company, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Notes, to acquire and
continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of Senior Indebtedness shall be deemed conclusively to have relied on
such subordination provisions in acquiring and continuing to hold, or in
continuing to hold, such Senior Indebtedness.

 

Section 1417.                          Trustee’s Compensation Not
Prejudiced.  Nothing in this Article 14
shall apply to amounts due to the Trustee pursuant to other Sections of this
Indenture.

 

ARTICLE XV

 

SUBORDINATION OF
NOTE GUARANTEES

 

Section 1501.                          Agreement to Subordinate.  Each Note Guarantor agrees, and each
Noteholder, by accepting a Note, agrees, that each Note Guarantee will be
unsecured Senior Subordinated Indebtedness of the applicable Note Guarantor,
and all payments pursuant to such Note Guarantor’s Note Guarantee made by or on
behalf of such Note Guarantor are subordinated in right of payment, to the
extent and in the manner provided in this Article 15, to the prior
payment in full (when due) of all existing and future Senior Indebtedness of
such Note Guarantor, and that the subordination is for the benefit of and
enforceable by the holders of Senior Indebtedness of such Note Guarantor.  Such Note Guarantee shall in all respects
rank pari passu with all existing
and future Senior Subordinated Indebtedness of such Note Guarantor and

 

108

 

only Indebtedness of such Note Guarantor that is Senior Indebtedness
shall rank senior to such Note Guarantee in accordance with the provisions set
forth herein.  All provisions of this Article 15
shall be subject to Section 1512.

 

Section 1502.                          Liquidation, Dissolution or
Bankruptcy.  Upon any payment or
distribution of the assets of a Note Guarantor upon a total or partial
liquidation or dissolution or reorganization of or similar proceeding relating
to such Note Guarantor or its property, or in a bankruptcy, insolvency,
receivership or similar proceeding relating to such Note Guarantor or its
property,

 

(i)                                     the holders of Senior Indebtedness of such
Note Guarantor will be entitled to receive payment in full of such Senior
Indebtedness before the Noteholders are entitled to receive any payment from
such Note Guarantor; and

 

(ii)                                  until the Senior Indebtedness of such Note
Guarantor is paid in full, any payment or distribution from such Note Guarantor
to which Noteholders would be entitled but for this Article 15 will
be made to holders of such Senior Indebtedness as their interests may appear
except that Noteholders may receive shares of stock and any debt securities
that are subordinated to such Senior Indebtedness to at least the same extent
as the Note Guarantee of such Note Guarantor.

 

Section 1503.                          Default on Senior Indebtedness.  No Note Guarantor may make any payment
pursuant to its Note Guarantee and may not otherwise purchase, redeem or otherwise
retire or defease any Notes (collectively, “pay its Note Guarantee”) if
(i) any Senior Indebtedness of
such Note Guarantor is not paid in full when and to the extent due or (ii) any other default on Senior
Indebtedness of such Note Guarantor occurs and the maturity of such Senior
Indebtedness is accelerated in accordance with its terms (either such event, a
“Guarantor Payment Default”) unless, in either case, (x) the Guarantor Payment Default has been
cured or waived and any such acceleration has been rescinded in writing or (y) such Senior Indebtedness has been paid
in full; provided, however, a Note Guarantor may pay its Note
Guarantee without regard to the foregoing if such Guarantor Payment Default
relates to Designated Senior Indebtedness and such Note Guarantor and the
Trustee receive written notice approving such payment from the Representative
for the Designated Senior Indebtedness with respect to which the Guarantor
Payment Default has occurred and is continuing.

 

In addition, no Note
Guarantor may pay its Note Guarantee during the continuance of a Payment
Blockage Period after receipt by the Company and the Trustee of a Blockage
Notice under Section 1403. 
Notwithstanding the provisions described in the immediately preceding
sentence (but subject to the provisions of the first paragraph of this Section 1503),
a Note Guarantor shall promptly resume payments, if any are required, pursuant
to its Note Guarantee, including any missed payments, after such Payment
Blockage Period ends, unless the holders of such Designated Senior Indebtedness
or the Representative of such holders have accelerated the maturity of such
Designated Senior Indebtedness, or any Payment Default otherwise exists.

 

109

 

In addition, during the
continuance of any default (other than a Guarantor Payment Default) with
respect to any Designated Senior Indebtedness of a Note Guarantor pursuant to
which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace period (a “Guarantor Non-payment
Default”), such Note Guarantor may not pay its Note Guarantee for the
period specified as follows (a “Guarantor Payment Blockage Period”).  The Guarantor Payment Blockage Period shall
commence upon the receipt by the Trustee (with a copy to such Note Guarantor)
of written notice (a “Guarantor Blockage Notice”) of such Guarantor
Non-payment Default from the Representative for such Designated Senior
Indebtedness specifying an election to effect a Guarantor Payment Blockage
Period and shall end on the earliest to occur of the following events:  (i)
179 days shall have elapsed since such receipt of such Guarantor Blockage Notice,
(ii) the Guarantor Non-payment
Default giving rise to such Blockage Notice is no longer continuing (and no
other Guarantor Payment Default or Guarantor Non-payment Default is then
continuing), (iii) such
Designated Senior Indebtedness shall have been discharged or repaid in full in
cash or Cash Equivalents or (iv)
such Guarantor Payment Blockage Period shall have been terminated by written
notice to the Trustee and such Note Guarantor from the Person or Persons who
gave such Guarantor Blockage Notice.  A
Note Guarantor may pay its Note Guarantee, after such Guarantor Payment
Blockage Period ends, unless the holders of such Designated Senior Indebtedness
or the Representative of such holders have accelerated the maturity of such
Designated Senior Indebtedness, or any Guarantor Payment Default otherwise
exists.  Not more than one Guarantor
Blockage Notice to a Note Guarantor in the aggregate may be given in any 360
consecutive day period, irrespective of the number of defaults with respect to
Designated Senior Indebtedness of such Note Guarantor during such period,
except that if any Guarantor Blockage Notice within such 360-day period is
given by or on behalf of any holders of Designated Senior Indebtedness of such
Note Guarantor other than Bank Indebtedness, a Representative of holders of
Bank Indebtedness that is Guaranteed by such Note Guarantor may give another
Guarantor Blockage Notice within such period. 
In no event may the total number of days during which any Guarantor
Payment Blockage Period is in effect extend beyond 179 days from the date of
receipt by the Trustee of the relevant Guarantor Blockage Notice, and there
must be a 181 consecutive day period during any 360 consecutive day period
during which no Guarantor Payment Blockage Period is in effect.

 

Section 1504.                          Acceleration of Payment of Notes.  If payment of the Notes is accelerated
because of an Event of Default, the relevant Note Guarantor or the Trustee
shall promptly notify the holders of the Designated Senior Indebtedness of such
Note Guarantor (or the Representative of such holders) of the
acceleration.  If any Designated Senior
Indebtedness of a Note Guarantor is outstanding, any demand for payment under
such Note Guarantee will not be effective with respect to such Note Guarantor,
and such Note Guarantor may not pay its Note Guarantee, until five Business
Days after such holders or the Representative of each Designated Senior
Indebtedness of such Note Guarantor receives notice of such demand and,
thereafter, such Note Guarantor may pay its Note Guarantee only if this Article 15
otherwise permits payment at that time. 
If a demand for payment is made on a Note Guarantor pursuant to Article 13,
the

 

110

 

Trustee shall promptly notify the holders of the Designated Senior
Indebtedness of such Note Guarantor (or their Representatives) of such demand.

 

Section 1505.                          When a Distribution Must Be Paid Over.  If a distribution from a Note Guarantor is
made to Holders that because of the provisions of this Article 15
should not have been made to them, the Holders who receive the distribution
shall hold it in trust for holders of Senior Indebtedness and pay it over to
them as their interests may appear.

 

Section 1506.                          Subrogation. 
After all Senior Indebtedness of a Note Guarantor is paid in full and
until the Notes are paid in full, Holders shall be subrogated to the rights of
holders of Senior Indebtedness of such Note Guarantor to receive distributions
applicable to such Senior Indebtedness. 
For purposes of such subrogation, a distribution made under this Article 15
to holders of Senior Indebtedness of a Note Guarantor that otherwise would have
been made to Holders is not, as between such Note Guarantor, its creditors
other than the holders of such Senior Indebtedness, and Holders, a payment by
such Note Guarantor on such Senior Indebtedness, it being understood that the
provisions of this Article 15 are and are intended solely for the
purpose of defining the relative rights of the Holders, on the one hand, and
the holders of Senior Indebtedness of Note Guarantors, on the other hand.

 

Section 1507.                          Relative Rights.  This Article 15 defines the relative rights of
Holders and holders of Senior Indebtedness of each Note Guarantor.  Nothing in this Indenture shall:

 

(i)                                     impair, as between a Note Guarantor and
Holders, the obligation of such Note Guarantor, which is absolute and
unconditional, to pay principal of and interest on the Notes in accordance with
their terms; or

 

(ii)                                  prevent the Trustee or any Holder from
exercising its available remedies upon a Default, subject to the rights of
holders of Senior Indebtedness of a Note Guarantor to receive distributions
otherwise payable to Holders.

 

Section 1508.                          Subordination May Not Be
Impaired by Note Guarantors. 
No right of any holder of Senior Indebtedness of a Note Guarantor to
enforce the subordination of the payments pursuant to its Note Guarantee shall
be impaired by any act or failure to act by such Note Guarantor or by its
failure to comply with this Indenture.

 

Section 1509.                          Rights of Trustee and Paying Agent.  A Note Guarantor shall give prompt written
notice to the Trustee of any fact known to it that would prohibit the making of
any payment to or by the Trustee in respect of its Note Guarantee.  Failure to give such notice shall not affect
the subordination of the payments pursuant to its Note Guarantee to Senior
Indebtedness of such Note Guarantor. 
Notwithstanding Section 1503, the Trustee or Paying Agent
may continue to make payments pursuant to such Note Guarantee and shall not be
charged with knowledge of the existence of facts that would prohibit the making
of any such payments unless, not less than two Business Days prior to the date
of such payment, a Trust Officer of the Trustee receives notice satisfactory to
it that such payments may not be made under this Article 15.

 

111

 

The Company, a Note Guarantor, the Note Registrar or co-registrar, the
Paying Agent, a Representative or a holder of Senior Indebtedness of a Note
Guarantor may give the notice; provided,
however, that, if an issue of
Senior Indebtedness of a Note Guarantor has a Representative, only the
Representative may give the notice.  The
Trustee shall be entitled to rely on the delivery to it of a written notice by
a Person representing himself or itself to be a holder of any Senior
Indebtedness of a Note Guarantor (or a Representative of such holder) to
establish that such notice has been given by a holder of such Senior
Indebtedness or Representative thereof.

 

The Trustee, in its
individual or any other capacity, may hold Senior Indebtedness of a Note
Guarantor with the same rights it would have if it were not Trustee.  The Note Registrar and co-registrar and the
Paying Agent may do the same with like rights. 
The Trustee shall be entitled to all the rights set forth in this Article 15
with respect to any Senior Indebtedness of a Note Guarantor which may at any
time be held by it, to the same extent as any other holder of Senior Indebtedness
of such Note Guarantor; and nothing in Article 7 shall deprive the
Trustee of any of its rights as such holder. 
Nothing in this Article 15 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 707.

 

Section 1510.                          Distribution or Notice to
Representative.  Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness
of a Note Guarantor, the distribution may be made and the notice given to their
Representative (if any).

 

Section 1511.                          Article 15 Not to Prevent
Events of Default or Limit Right to Accelerate.  The failure to make a payment pursuant to a
Note Guarantee by reason of any provision in this Article 15 shall
not be construed as preventing the occurrence of a Default.  Nothing in this Article 15 shall
have any effect on the right of the Holders or the Trustee to accelerate the
maturity of the Notes or make a demand for payment on any Note Guarantor
pursuant to Article 13 or the relevant Note Guarantee.

 

Section 1512.                          Trust Moneys Not Subordinated.  Notwithstanding anything contained herein to
the contrary, payments from money or the proceeds of U.S. Government
Obligations held in trust under Article 12 by the Trustee for the
payment of principal, premium, if any, or interest on the Notes shall not be
subordinated to the prior payment of any Senior Indebtedness of any Note
Guarantor or subject to the restrictions set forth in this Article 15,
and none of the Holders shall be obligated to pay over any such amount to any
Note Guarantor or any holder of Senior Indebtedness of any Note Guarantor or
any other creditor of any Note Guarantor.

 

Section 1513.                          Trustee Entitled to Rely.  Upon any payment or distribution pursuant to
this Article 15, the Trustee and the Holders shall be entitled to
rely (i) upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 1502 are pending, (ii) upon a certificate of the liquidating
trustee or agent or other Person making such payment or distribution to the
Trustee or to the Holders or (iii)
upon the Representatives for the holders of Senior Indebtedness of any Note
Guarantor for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the holders of the

 

112

 

Senior Indebtedness and other Indebtedness of such Note Guarantor, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 15.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of such Senior Indebtedness to participate in any payment or
distribution pursuant to this Article 15, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of such Senior Indebtedness held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and other facts pertinent to the rights of such Person under this Article 15,
and, if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to
receive such payment.  The provisions of
Sections 701 and 703 shall be applicable to all actions or
omissions of actions by the Trustee pursuant to this Article 15.

 

Section 1514.                          Trustee to Effectuate Subordination.  Each Holder, by accepting a Note, authorizes
and directs the Trustee on such Holder’s behalf to take such action as may be
necessary or appropriate to acknowledge or effectuate the subordination between
the Holders and the holders of Senior Indebtedness of any Note Guarantor as
provided in this Article 15 and appoints the Trustee as
attorney-in-fact for any and all such purposes.

 

Section 1515.                          Trustee Not Fiduciary for Holders
of Senior Indebtedness. 
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Indebtedness of any Note Guarantor and shall not be liable to any
such holders if it shall mistakenly pay over or distribute to Holders or the
Company or any other Person, money or assets to which any holders of Senior
Indebtedness shall be entitled by virtue of this Article 15 or
otherwise.  With respect to the holders
of Senior Indebtedness, the Trustee undertakes to perform or to observe only
such of its covenants or obligations as are specifically set forth in this Article 15
and no implied covenants or obligations with respect to holders of Senior
Indebtedness of any Note Guarantor shall be read into this Indenture against
the Trustee.

 

Section 1516.                          Reliance by Holders of Senior
Indebtedness on Subordination Provisions.  Each Holder, by accepting a Note,
acknowledges and agrees that the foregoing subordination provisions are, and
are intended to be, an inducement and a consideration to each holder of any
Senior Indebtedness of any Note Guarantor, whether such Senior Indebtedness was
created or acquired before or after the issuance of the Notes, to acquire and
continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of such Senior Indebtedness shall be deemed conclusively to have relied
on such subordination provisions in acquiring and continuing to hold, or in
continuing to hold, such Senior Indebtedness.

 

Section 1517.                          Trustee’s Compensation Not
Prejudiced.  Nothing in this Article 15
shall apply to amounts due to the Trustee pursuant to other Sections of this
Indenture.

 

113

 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed, all as of the
date first written above.

 

 

	
   

  	
  GRAPHIC PACKAGING
  INTERNATIONAL,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz,
  Jr.

  
	
   

  	
  Name: Edward W.
  Stroetz, Jr.

  
	
   

  	
  Title: Acting General
  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAPHIC PACKAGING
  CORPORATION, as

  Note Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz,
  Jr.

  
	
   

  	
  Name: Edward W.
  Stroetz, Jr.

  
	
   

  	
  Title: Acting General
  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GPI HOLDING, INC., as
  Note Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz,
  Jr.

  
	
   

  	
  Name: Edward W.
  Stroetz, Jr.

  
	
   

  	
  Title: Acting General
  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK
  MINNESOTA,

  NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph P. O’Donnell

  
	
   

  	
  Name:  Joseph P. O’Donnell

  
	
   

  	
  Title:  Corporate Trust Officer

  

 

114

 

EXHIBIT
A

 

Form of Note(1)

(FACE OF NOTE)

 

GRAPHIC PACKAGING
INTERNATIONAL, INC.

 

9.50% Senior
Subordinated Notes Due 2013

 

CUSIP No. [•](2)[•](3)

No.
                                 $
                

 

Graphic Packaging
International Inc., a corporation duly organized and existing under the laws of
the State of Delaware (and its successors and assigns) (the “Company”),
promises to pay to                                                 ,
or registered assigns, the principal sum of
$                                
([                             ]
United States Dollars) [(or such lesser or greater amount as shall be
outstanding hereunder from time to time in accordance with Sections 312 and 313
of the Indenture referred to on the reverse hereof)](4) (the “Principal
Amount”) on August 15, 2013.   The
Company promises to pay interest semi-annually on February 15 and
August 15 in each year, commencing February 15, 2004, at the rate of
9.50% per annum [(subject to adjustment as provided below)](5) [, except that
interest accrued on this Note for periods prior to the date on which the
Initial Note was surrendered in exchange for this Note will accrue at the rate
or rates borne by such Initial Note from time to time during such periods](6),
until the Principal Amount is paid or made available for payment. [Interest on
this Note will accrue from the most recent date to which interest on this Note
or any of its Predecessor Notes has been paid or duly provided for or, if no
interest has been paid, from the Issue Date.](7)  [Interest on this Note will accrue (or will be deemed to have
accrued) from the most recent date to which interest on this Note or any of its
Predecessor Notes has been paid or duly provided for or, if no such interest
has been paid, from
[                  ,
        ](8).](9)  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.  The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in such Indenture, be paid
to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the February 1 or August 1 (whether or not a
Business Day), as the case may be, next preceding such Interest

 

(1)                                  Insert
any applicable legends from Article 2.

(2)                                  Include
only for Initial Note.

(3)                                  Include
only for Exchange Note.

(4)                                  Include
only if the Note is issued in global form.

(5)                                  Include
only for Initial Note.

(6)                                  Include
only for Exchange Note.

(7)                                  Include
only for Original Notes.

(8)                                  Insert
the Interest Payment Date immediately preceding the date of issuance of the
applicable Additional Notes, or if the date of issuance of such Additional
Notes is an Interest Payment Date, such date of issuance.

(9)                                  Include
only for Additional Notes (and Exchange Notes issued in the exchange therefor).

 

 

Payment Date.  Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders
of Notes not more than 15 days nor less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.

 

[The Holder of this Note
is entitled to the benefits of the Exchange and Registration Rights Agreement,
dated August 8, 2003, among the Company, the initial purchasers named
therein and the Note Guarantors named therein (the “Registration Rights
Agreement”).  Until (i) this Note has
been exchanged for an Exchange Security (as defined in the Registration Rights
Agreement) in an Exchange Offer (as defined in the Registration Rights
Agreement), (ii) a Shelf Registration Statement (as defined in the Registration
Rights Agreement) registering this Note under the Securities Act has been
declared or becomes effective and this Note has been sold or otherwise
transferred by the holder thereof pursuant to and in a manner contemplated by
such effective Shelf Registration Statement; (iii) this Note is sold pursuant
to Rule 144 under circumstances in which any legend borne by this Note relating
to restrictions on transferability thereof, under the Securities Act or
otherwise, is removed by the Company or pursuant to the Indenture referred to
on the reverse hereof; or (iv) this Note is eligible to be sold pursuant to
paragraph (k) of Rule 144:  From and
including the date on which a Registration Default  (as defined below) shall occur to but excluding the date on which
such Registration Default has been cured, additional interest will accrue on
this Note until such time as all Registration Defaults have been cured at the
rate of (a) prior to the 91st day of such period (for so long as such period is
continuing), 0.25% per annum and (b) thereafter (so long as such period is
continuing), 0.50% per annum.  Any such
additional interest shall not exceed such respective rates for such respective
periods, and shall not in any event exceed 0.50% per annum in the aggregate,
regardless of the number of Registration Defaults that shall have occurred and
be continuing.  Any such additional
interest shall be paid in the same manner and on the same dates as interest
payments in respect of this Note. 
Following the cure of all Registration Defaults, the accrual of such
additional interest will cease.  A
Registration Default under clause (iv) or (v) below will be deemed cured upon
consummation of the Exchange Offer in the case of a Shelf Registration
Statement required to be filed due to a failure to consummate the Exchange
Offer within the required time period. 
For purposes of the foregoing, each of the following events, as more
particularly defined in the Registration Rights Agreement, is a “Registration
Default”:  (i) neither the Exchange
Registration Statement (as defined in the Registration Rights Agreement) nor a
Shelf Registration Statement (applicable to all of the Registrable Securities
(as defined in the Registration Rights Agreement)) has been filed with the SEC
on or before 120 days after the Issue Date; (ii) the Exchange Registration
Statement has not become effective or been declared effective on or before 150
days after the Issue Date; (iii) the Exchange Offer has not been consummated
within 180 days after the Issue Date; (iv) if a Shelf Registration Statement
required by the Registration Rights Agreement is not declared  effective by the SEC

 

2

 

on or before 120 days after the date on which the obligation to file
the Shelf Registration Statement arises or (v) if any Shelf Registration Statement
required by the Registration Rights Agreement is filed and declared effective,
and during the time the Company is required to use its reasonable best efforts
to cause the Shelf Registration Statement to remain effective, (1) the Company
shall have suspended the Shelf Registration Statement for more than 30 days in
the aggregate in any consecutive twelve-month period and be continuing to
suspend the availability of the Shelf Registration Statement, or (2) the Shelf
Registration Statement ceases to be effective (other than by action of the
Issuers) without being succeeded within 60 days by a Shelf Registration
Statement that is filed and declared effective.](10)(11)

 

Payment of the principal
of (and premium, if any) and interest on this Note will be made at the office
or agency of the Company maintained for that purpose in The Borough of
Manhattan, The City of New York; provided,
however, that at the option of
the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address shall appear in the Note Register.

 

Reference is hereby made
to the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth
at this place.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

(10)                            Include
only for Initial Note when required by the Registration Rights Agreement.

(11)                            For
an Initial Additional Note, add any similar provision, if any, as may be agreed
by the Issuers with respect to additional interest on such Initial Additional
Note.

 

3

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

 

	
   

  	
  GRAPHIC PACKAGING
  INTERNATIONAL, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

4

 

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

 

	
   

  	
  WELLS FARGO BANK
  MINNESOTA, NATIONAL

  ASSOCIATION

  As Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  

 

5

 

(REVERSE OF NOTE)

 

This Note is one of the
duly authorized issue of 9.50% Senior Subordinated Notes Due 2013 of the
Company (herein called the “Notes”), issued under an Indenture, dated as of
August 8, 2003 (herein called the “Indenture,” which term shall have the
meanings assigned to it in such instrument), among the Company, Graphic
Packaging Corporation, GPI Holding Inc., and the other Note Guarantors from
time to time parties thereto, as Note Guarantors, and Wells Fargo Bank
Minnesota, National Association, as Trustee (herein called the “Trustee,” which
term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, any
other obligor upon this Note, the Trustee and the Holders of the Notes and of
the terms upon which the Notes are, and are to be, authenticated and
delivered.  The terms of the Notes
include those stated in the Indenture and those made a part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended, as in effect from
time to time (the “TIA”).  The Notes are
subject to all such terms, and Holders are referred to the Indenture and the
TIA for a statement of such terms. 
Additional Notes may be issued under the Indenture which will vote as a
class with the Notes and otherwise be treated as Notes for purposes of the
Indenture.

 

All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in the Indenture.

 

This Note is entitled to
the benefits of the certain senior subordinated Note Guarantees of the Note
Guarantors and may hereafter be entitled to certain other senior subordinated
Note Guarantees made for the benefit of the Holders.  Reference is made to Article Thirteen of the Indenture and
to the Note Guarantees for terms relating to such Note Guarantees, including
the release, termination and discharge thereof.  Neither the Company nor any Note Guarantor shall be required to
make any notation on this Note to reflect any Note Guarantee or any such
release, termination or discharge.

 

The Notes are
subordinated to Senior Indebtedness of the Company, as defined in the
Indenture, and the Note Guarantees are subordinated to Senior Indebtedness of
the relevant Note Guarantor, as defined in the Indenture.  To the extent provided in the Indenture,
Senior Indebtedness must be paid before the Notes or the relevant Note
Guarantee may be paid.  The Company and
the Note Guarantors agree, and each Noteholder by accepting a Note agrees, to
the subordination provisions contained in the Indenture and authorizes the
Trustee to give it effect and appoints the Trustee as attorney-in-fact for such
purposes.

 

The Notes will be
redeemable, at the Company’s option, in whole or in part, and from time to time
on and after August 15, 2008 and prior to maturity at the applicable
redemption prices set forth below.  Such
redemption may be made upon notice mailed by first-class mail to each Holder’s
registered address in accordance with the Indenture.  The Company may provide in such notice that payment of the
redemption price and the performance of the Company’s obligations with respect
to such redemption may be performed by another Person.  Any such redemption and notice may, in the
Company’s discretion, be subject to the satisfaction

 

6

 

of one or more conditions precedent, including but not limited to the
occurrence of a Change of Control.  The
Notes will be so redeemable at the following Redemption Prices (expressed as a
percentage of principal amount), plus accrued and unpaid interest, if any, to
the relevant Redemption Date (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on the relevant Interest
Payment Date), if redeemed during the 12-month period commencing on
August 15 of the years set forth below:

 

	
  Period

  	
   

  	
  Redemption Price

  	
   

  
	
  2008

  	
   

  	
  104.750

  	
  %

  
	
  2009

  	
   

  	
  103.167

  	
  %

  
	
  2010

  	
   

  	
  101.583

  	
  %

  
	
  2011
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition, at any time
and from time to time prior to August 15, 2006, the Company at its option
may redeem the Notes, in an aggregate principal amount equal to up to 35% of
the original aggregate principal amount of the Notes (including the principal
amount of any Additional Notes), with funds in an aggregate amount not
exceeding the aggregate cash proceeds of one or more Equity Offerings, at a
Redemption Price (expressed as a percentage of principal amount thereof) of
109.500% plus accrued and unpaid interest, if any, to the Redemption Date
(subject to the right of Holders of record on the relevant Record Date to
receive interest due on the relevant Interest Payment Date); provided, however,
that an aggregate principal amount of the Notes equal to at least 65% of the
original aggregate principal amount of the Notes (including the principal
amount of any Additional Notes) must remain outstanding after each such
redemption.  The Company may make such
redemption upon notice mailed by first-class mail to each Holder’s registered
address in accordance with the Indenture (but in no event more than 180 days
after the completion of the related Equity Offering).  The Company may provide in such notice that payment of the
redemption price and the performance of the Company’s obligations with respect
to such redemption may be performed by another Person.  Any such notice may be given prior to the
completion of the related Equity Offering, and any such redemption or notice
may, at the Company’s discretion, be subject to the satisfaction of one or more
conditions precedent, including the completion of the related Equity Offering.

 

At any time prior to
August 15, 2008, such Notes may also be redeemed or purchased (by the
Company or any other Person) in whole or in part, at the Company’s option, at a
price equal to 100% of the principal amount thereof plus the Applicable Premium
as of, and accrued but unpaid interest, if any, to, the date of redemption or
purchase (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date). Such redemption
or purchase may be made upon notice mailed by first-class mail to each Holder’s
registered address in accordance with the Indenture.  The Company may provide in such notice that payment of the
Redemption Price and performance of the Company’s obligations with respect to
such redemption or purchase may be performed by another Person. Any such
redemption, purchase or notice may, at the Company’s discretion, be subject to
the satisfaction of one or more conditions precedent, including but not limited
to the occurrence of a Change of Control.

 

7

 

The Indenture provides
that, upon the occurrence of a Change of Control, each Holder will have the
right to require that the Company repurchase all or any part of such Holder’s
Notes at a purchase price in cash equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest, if any, to the date of such
repurchase; provided, however, that the Company shall not be
obligated to repurchase Notes in the event it has exercised its right to redeem
all the Notes as described above.

 

The Notes will not be
entitled to the benefit of a sinking fund.

 

The Indenture contains
provisions for defeasance at any time of the entire indebtedness of this Note
or certain restrictive covenants and certain Events of Default with respect to
this Note, in each case upon compliance with certain conditions set forth in
the Indenture.

 

If an Event of Default
with respect to the Notes shall occur and be continuing, the principal of the
Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Notes to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of at least a majority
in principal amount of the Notes at the time Outstanding to be affected.  The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Note.

 

As provided in and
subject to the provisions of the Indenture, the Holder of this Note shall not
have the right to institute any proceeding with respect to the Indenture or for
the appointment of a receiver or trustee or for any other remedy thereunder,
unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Notes, the Holders of not less
than 25% in principal amount of the Notes at the time Outstanding shall have
made written request to the Trustee to pursue such remedy in respect of such
Event of Default as Trustee and offered the Trustee reasonable security or
indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Notes at the time Outstanding a direction inconsistent
with such request, and shall have failed to institute any such proceeding, for
60 days after receipt of such notice, request and offer of security or
indemnity.  The foregoing shall not
apply to any suit instituted by the Holder of this Note for the enforcement of
any payment of principal hereof or any premium or interest hereon on or after
the respective due dates expressed herein.

 

8

 

No reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Note is registrable in the Note Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in a Place of Payment,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Note Registrar duly executed by, the Holder
hereof or such Holder’s attorney duly authorized in writing, and thereupon one
or more new Notes of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

The Notes are issuable
only in registered form without coupons in denominations of $1,000.00 and any integral
multiple thereof.  As provided in the
Indenture and subject to certain limitations therein set forth, the Notes are
exchangeable for a like aggregate principal amount of Notes of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

 

No service charge shall
be made for any such registration, transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

Prior to due presentment
of this Note for registration or transfer, the Company,  any other obligor in respect of this Note,
the Trustee and any agent of the Company, such other obligor or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Note be overdue, and none of the Company, any
other obligor upon this Note, the Trustee nor any such agent shall be affected
by notice to the contrary.

 

No director, officer,
employee, incorporator or stockholder, as such, of the Company, any Note
Guarantor or any Subsidiary of any thereof shall have any liability for any
obligation of the Company, or any Note Guarantor under the Indenture, the Notes
or any Note Guarantee, or for any claim based on, in respect of, or by reason
of, any such obligation or its creation. 
Each Holder, by accepting this Note, hereby waives and releases all such
liability.  The waiver and release are
part of the consideration for issuance of the Notes.

 

THE INDENTURE AND THE
NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.  THE TRUSTEE, THE
COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF
THE NOTES) THE HOLDERS, AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED
STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY
OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE
INDENTURE, THE NOTES OR THE NOTE GUARANTEES.

 

9

 

[FORM OF
CERTIFICATE OF TRANSFER]

 

FOR VALUE RECEIVED the
undersigned holder hereby sell(s), assign(s) and transfer(s) unto

 

 

Insert Taxpayer
Identification No.

 

 

(Please print or
typewrite name and address including zip code of assignee)

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

the within Note and all
rights thereunder, hereby irrevocably constituting and appointing

 

	
   

  	
   

  	
   

  

 

attorney to transfer such
Note on the books of the Company with full power of substitution in the
premises.

 

[Check One]

 

o (a)                   this Note is
being transferred in compliance with the exemption from registration under the
Securities Act of 1933, as amended, provided by Rule 144A thereunder.

 

or

 

o (b)                  this Note is
being transferred other than in accordance with (a) above and documents are
being furnished which comply with the conditions of transfer set forth in this
Note and the Indenture.

 

If neither of the
foregoing boxes is checked, the Trustee or other Note Registrar shall not be
obligated to register this Note in the name of any Person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 313 of the Indenture shall have been
satisfied.](12)

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

(12)                            Include
only for an Initial Note or an Initial Additional Note, in accordance with the
Indenture.

 

10

 

NOTICE:  The signature to this assignment must
correspond with the name as written upon the face of the within-mentioned
instrument in every particular, without alteration or any change whatsoever.

 

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

11

 

[TO BE COMPLETED BY
PURCHASER IF (a) ABOVE IS CHECKED.

 

The undersigned
represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and
that it and any such account is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act of 1933, as amended, and is aware
that the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NOTICE:                                                To
  be executed by an executive

  officer](13)

  

 

(13)                            Include
only for an Initial Note or an Initial Additional Note, in accordance with the
Indenture.

 

12

 

OPTION OF HOLDER
TO ELECT PURCHASE

 

If you wish to have this
Note purchased by the Company pursuant to Section 411 or 415 of the
Indenture, check the box:  o.

 

If you wish to have a
portion of this Note purchased by the Company pursuant to Section 411 or
415 of the Indenture, state the amount (in principal amount) below:

 

	
  $

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Your Signature:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  (Sign exactly as your
  name appears on the other side of this Note)

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
								

 

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

13

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL NOTE

 

The
following increases or decreases in this Global Note have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of
  decreases in

  Principal

  Amount of this

  Global Note

  	
   

  	
  Amount of
  increases in

  Principal

  Amount of this Global

  Note

  	
   

  	
  Principal
  amount

  of this Global Note

  following such decreases or

  increases

  	
   

  	
  Signature

  of authorized officer of

  Trustee or Notes

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

14

 

EXHIBIT
B

 

Form of Certificate of
Beneficial Ownership

 

On or after
[                    ],
20[  ]

 

WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION

213 Court Street

Suite 703

Middletown, Connecticut
06457

Attention: Corporate
Trust Department

 

Re:                                Graphic
Packaging International, Inc. (the “Company”)

 

9.50%
Senior Subordinated Notes due 2013 (the “Notes”)

 

Ladies and Gentlemen:

 

This letter
relates to
$                      
principal amount of Notes represented by the offshore [temporary] global note
certificate (the “Offshore [Temporary] Global Note”).  Pursuant to Section 313(3) of the
Indenture dated as of August 8, 2003 relating to the Notes (the “Indenture”),
we hereby certify that (1) we are the beneficial owner of such principal amount
of Notes represented by the Offshore [Temporary] Global Note and (2) we are
either (i) a Non-U.S. Person to whom the Notes could be transferred in
accordance with Rule 904 of Regulation S (“Regulation S”) promulgated
under the Securities Act of 1933, as amended (the “Act”) or (ii) a U.S.
Person who purchased securities in a transaction that did not require
registration under the Act.

 

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

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of Holder]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  	
   

  
				

 

 

EXHIBIT
C

 

Form of Regulation S Certificate

 

Regulation S
Certificate

 

WELLS FARGO BANK
MINNESOTA, NATIONAL ASSOCIATION

213 Court Street

Suite 703

Middletown, Connecticut
06457

Attention: Corporate
Trust Department

 

Re:                                Graphic
Packaging International, Inc. (the “Company”)

 

9.50%
Senior Subordinated Notes due 2013 (the “Notes”)

 

Ladies and Gentlemen:

 

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

 

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

 

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

 

3.  No directed selling efforts have been made
in the United States in contravention of the requirements of Rule 903(a)(2) or
Rule 904(a)(2) of Regulation S, as applicable.

 

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

 

5.  If we are a dealer or a person receiving a
selling concession or other fee or remuneration in respect of the Notes, and
the proposed transfer takes place before end of the distribution compliance
period under Regulation S, or we are an officer or

 

 

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

 

6.  If the proposed transfer takes place before
the end of the distribution compliance period under Regulation S, the
beneficial interest in the Notes so transferred will be held immediately
thereafter through Euroclear (as defined in such Indenture) or Clearstream (as
defined in such Indenture).

 

7.  We have advised the transferee of the
transfer restrictions applicable to the Notes.

 

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

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF SELLER]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of this
  Certificate:                                
      , 200  

  	
   

  	
   

  
				

 

2

 

EXHIBIT
D

 

Form of Supplemental Indenture
in Respect of Note Guarantee

 

SUPPLEMENTAL INDENTURE,
dated as of
[                  ]
(this “Supplemental Indenture”), among [name of Guarantor] (the “Subsidiary
Guarantor”), Graphic Packaging International, Inc., a corporation duly
organized and existing under the laws of the State of Delaware (together with
its respective successors and assigns, the “Company”), and each other
then existing Note Guarantor under the Indenture referred to below (the “Existing
Guarantors”), and Wells Fargo Bank Minnesota, National Association, as
Trustee under the Indenture referred to below.

 

W I T N E S S E T
H:

 

WHEREAS, the Company, any
Existing Guarantors and the Trustee have heretofore become parties to an
Indenture, dated as of August 8, 2003 (as amended, supplemented, waived or
otherwise modified, the “Indenture”), providing for the issuance of
9.50% Senior Subordinated Notes due 2013 of the Company (the “Notes”);

 

WHEREAS,
Section 1308 of the Indenture provides that the Company is required to
cause the Subsidiary Guarantors to execute and deliver to the Trustee a
supplemental indenture pursuant to which the Subsidiary Guarantors shall
guarantee the Company’s Guaranteed Note Obligations under the Notes pursuant to
a Note Guarantee on the terms and conditions set forth herein and in
Article Thirteen of the Indenture;

 

WHEREAS, each Subsidiary
Guarantor desires to enter into such supplemental indenture for good and
valuable consideration, including substantial economic benefit in that the
financial performance and condition of such Note Guarantor is dependent on the
financial performance and condition of the Company, the obligations hereunder
of which such Note Guarantor has guaranteed, and on such Note Guarantor’s
access to working capital through the Company’s access to revolving credit
borrowings under the Senior Credit Agreement; and

 

WHEREAS, pursuant to
Section 901 of the Indenture, the parties hereto are authorized to execute
and deliver this Supplemental Indenture to amend the Indenture, without the
consent of any Holder;

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the Subsidiary Guarantors, the
Company, the Existing Guarantors and the Trustee mutually covenant and agree
for the benefit of the Holders of the Notes as follows:

 

1.  Defined Terms.  As used in this Supplemental Indenture,
terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined.  The words
“herein,” “hereof” and “hereby” and other words of similar import used in this
Supplemental Indenture refer to this Supplemental Indenture as a whole and not
to any particular section hereof.

 

 

2.  Agreement to Guarantee.  [The] [Each] Subsidiary Guarantor hereby
agrees, jointly and severally with [all] [any] other Subsidiary Guarantors and
fully and unconditionally, to guarantee the Guaranteed Note Obligations under
the Indenture and the Notes on the terms and subject to the conditions set
forth in Article Thirteen of the Indenture and to be bound by (and shall
be entitled to the benefits of) all other applicable provisions of the
Indenture as a Note Guarantor.  The Note
Guarantee of each Subsidiary Guarantor is subject to the subordination
provisions of the Indenture.

 

3.  Termination, Release and Discharge.  [The] [Each] Subsidiary Guarantor’s Note
Guarantee shall terminate and be of no further force or effect, and [the]
[each] Subsidiary Guarantor shall be released and discharged from all
obligations in respect of such Note Guarantee, as and when provided in
Section 1303 of the Indenture.

 

4.  Parties.  Nothing in this Supplemental Indenture is intended or shall be
construed to give any Person, other than the Holders and the Trustee, any legal
or equitable right, remedy or claim under or in respect of [the] [each]
Subsidiary Guarantor’s Note Guarantee or any provision contained herein or in
Article Thirteen of the Indenture.

 

5.  Governing Law. THIS SUPPLEMENTAL
INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.  THE TRUSTEE, THE
COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF
THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES
FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW
YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SUPPLEMENTAL INDENTURE.

 

6.  Ratification of Indenture; Supplemental
Indentures Part of Indenture. 
Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. 
This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be bound hereby.  The Trustee
makes no representation or warranty as to the validity or sufficiency of this
Supplemental Indenture or as to the accuracy of the recitals to this
Supplemental Indenture.

 

7.  Counterparts.  The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

 

8.  Headings.  The section headings herein are for convenience of reference only
and shall not be deemed to alter or affect the meaning or interpretation of any
provisions hereof.

 

2

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed as
of the date first above written.

 

	
   

  	
  [NAME OF NOTE
  GUARANTOR], as

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAPHIC PACKAGING
  INTERNATIONAL,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAPHIC PACKAGING
  CORPORATION, as

  Existing Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GPI HOLDING, INC., as
  Existing Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK
  MINNESOTA,

  NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

3Exhibit 4.6

 

Execution Copy

 

Graphic Packaging International, Inc.

 

8.50% Senior Notes due 2011

 

unconditionally guaranteed as to the

payment of principal, premium,

if any, and interest by

 

the Guarantors listed on the signature pages hereof

 

 

Exchange and Registration Rights Agreement

 

 

August 8, 2003

 

Goldman,
Sachs & Co.

Deutsche
Bank Securities Inc.

J.P.
Morgan Securities Inc.

Morgan
Stanley & Co. Incorporated

Citigroup
Global Markets Inc.

Credit
Suisse First Boston LLC

ABN
AMRO Incorporated

Banc of America Securities LLC,

As representatives of the several Purchasers

named in Schedule I to the Purchase Agreement

c/o
Goldman, Sachs & Co.

85
Broad Street

New
York, New York 10004

 

Ladies
and Gentlemen:

 

Graphic
Packaging International, Inc., a Delaware corporation (the “Company”), proposes
to issue and sell to the Purchasers (as defined herein) upon the terms set
forth in the Purchase Agreement (as defined herein) its 8.50% Senior Notes due
2011, which will be unconditionally guaranteed by Graphic Packaging Corporation
and GPI Holding, Inc.  As an inducement
to the Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company agrees
with the Purchasers for the benefit of holders (as defined herein) from time to
time of the Registrable Securities (as defined herein) as follows:

 

1.                                       Certain Definitions.  For
purposes of this Exchange and Registration Rights Agreement, the following
terms shall have the following respective meanings:

 

“Base Interest”
shall mean the interest that would otherwise accrue on the Securities under the
terms thereof and the Indenture, without giving effect to the provisions of
this Agreement.

 

 

The term “broker-dealer”
shall mean any broker or dealer registered with the Commission under the
Exchange Act.

 

“Closing Date”
shall mean the date on which the Securities are initially issued.

 

“Commission”
shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“Effective Time,”
in the case of (i) an Exchange Registration, shall mean the time and date as of
which the Commission declares the Exchange Registration Statement effective or
as of which the Exchange Registration Statement otherwise becomes effective and
(ii) a Shelf Registration, shall mean the time and date as of which the
Commission declares the Shelf Registration Statement effective or as of which
the Shelf Registration Statement otherwise becomes effective.

 

“Electing Holder”
shall mean any holder of Registrable Securities that has returned a completed
and signed Notice and Questionnaire to the Company in accordance with Section
3(d)(ii) or 3(d)(iii) hereof.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, or any successor thereto, as
the same shall be amended from time to time.

 

“Exchange Offer”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange Registration”
shall have the meaning assigned thereto in Section 3(c) hereof.

 

“Exchange
Registration Statement” shall have the meaning assigned thereto in
Section 2(a) hereof.

 

“Exchange
Securities” shall have the meaning assigned thereto in Section 2(a)
hereof.

 

“Guarantors”
shall have the meaning assigned to the term Note Guarantors in the Indenture.

 

The term “holder”
shall mean each of the Purchasers and other persons who acquire Registrable
Securities from time to time (including any successors or assigns), in each
case for so long as such person owns any Registrable Securities.

 

“Indenture”
shall mean the Indenture, dated as of August 8, 2003, between the Company,
the Guarantors and Wells Fargo Bank Minnesota, National Association, as Trustee
governing the Company’s 8.50% Senior Notes due 2011, as the same shall be
amended from time to time.

 

“Issuers”
shall mean the Company and the Guarantors.

 

2

 

“Notice and
Questionnaire” means a Notice of Registration Statement and Selling
Securityholder Questionnaire substantially in the form of Exhibit A hereto,
with such changes thereto as the Company may reasonably determine.

 

The term “person”
shall mean a corporation, association, partnership, organization, business,
individual, government or political subdivision thereof or governmental agency.

 

“Purchase
Agreement” shall mean the Purchase Agreement, dated as of
August 1, 2003, between the Purchasers, the Guarantors and the Company
relating to the Securities.

 

“Purchasers”
shall mean the Purchasers named in Schedule I to the Purchase Agreement.

 

“Registrable
Securities” shall mean the Securities; provided, however, that a
Security shall cease to be a Registrable Security when (i) the Security has
been exchanged for an Exchange Security in an Exchange Offer as contemplated in
Section 2(a) hereof (provided that any Exchange Security that, pursuant to the
last two sentences of Section 2(a), is included in a prospectus for use in
connection with resales by broker-dealers shall be deemed to be a Registrable
Security with respect to Sections 6 and 9 until resale of such Registrable
Security has been effected within the 90-day period referred to in Section
2(a)); (ii) a Shelf Registration Statement registering such Security under the
Securities Act has been declared or becomes effective and such Security has
been sold or otherwise transferred by the holder thereof pursuant to and in a
manner contemplated by such effective Shelf Registration Statement; (iii) such
Security is sold pursuant to Rule 144 under circumstances in which any legend
borne by such Security relating to restrictions on transferability thereof,
under the Securities Act or otherwise, is removed by the Company or pursuant to
the Indenture; (iv) such Security is eligible to be sold pursuant to paragraph
(k) of Rule 144; or (v) such Security shall cease to be outstanding.

 

“Registration
Default” shall have the meaning assigned thereto in Section 2(c)
hereof.

 

“Registration
Expenses” shall have the meaning assigned thereto in Section 4
hereof.

 

“Resale Period”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Restricted
Holder” shall mean (i) a holder that is an affiliate of the Company
within the meaning of Rule 405, (ii) a holder who acquires Exchange Securities
outside the ordinary course of such holder’s business, (iii) a holder who has arrangements
or understandings with any person to participate in the Exchange Offer for the
purpose of distributing Exchange Securities and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Securities received by such broker-dealer
pursuant to an Exchange Offer in exchange for Registrable Securities acquired
by the broker-dealer directly from the Company.

 

3

 

“Rule 144,”
“Rule 405” and “Rule 415” shall mean, in each case, such
rule promulgated under the Securities Act (or any successor provision), as the
same shall be amended from time to time.

 

“Securities”
shall mean, collectively, the 8.50% Senior Notes due 2011 of the Company to be
issued and sold to the Purchasers, and securities issued in exchange therefor
or in lieu thereof pursuant to the Indenture. 
Each Security is entitled to the benefit of the guarantees provided for
in the Indenture (the “Guarantee”) and, unless the context otherwise requires,
any reference herein to a “Security,” an “Exchange Security” or a “Registrable
Security” shall include a reference to the related Guarantees.

 

“Securities Act”
shall mean the Securities Act of 1933, or any successor thereto, as the same
shall be amended from time to time.

 

“Shelf
Registration” shall have the meaning assigned thereto in Section
2(b) hereof.

 

“Shelf
Registration Statement” shall have the meaning assigned thereto in
Section 2(b) hereof.

 

“Special Interest”
shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Trust Indenture
Act” shall mean the Trust Indenture Act of 1939, or any successor
thereto, and the rules, regulations and forms promulgated thereunder, all as
the same shall be amended from time to time.

 

Unless
the context otherwise requires, any reference herein to a “Section” or “clause”
refers to a Section or clause, as the case may be, of this Exchange and
Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Exchange and Registration
Rights Agreement as a whole and not to any particular Section or other
subdivision.

 

2.                                       Registration Under the
Securities Act.

 

(a)                                  Except as set forth in Section 2(b) below,
the Issuers agree to use their reasonable best efforts to file under the
Securities Act, within 120 days after the Closing Date, a registration
statement relating to an offer to exchange (such registration statement, the
“Exchange Registration Statement”, and such offer, the “Exchange Offer”) any
and all of the Securities for a like aggregate principal amount of debt
securities issued by the Company and guaranteed by the Guarantors, which debt
securities and guarantees are substantially identical to the Securities and the
related Guarantees, respectively (and are entitled to the benefits of a trust
indenture which is substantially identical to the Indenture or is the Indenture
and which has been qualified under the Trust Indenture Act), except that they
have been registered pursuant to an effective registration statement under the
Securities Act and do not contain restrictions on transfer or provisions for
the additional interest contemplated in Section 2(c) below or the liquidated damages
provided in Section 2 (d) below (such new debt securities hereinafter called
“Exchange Securities”). The Issuers agree to use their reasonable best efforts
to cause the Exchange Registration Statement to become effective under the
Securities Act within 150 days after the Closing Date. The Exchange Offer will
be registered under the Securities Act on the

 

4

 

appropriate form and will comply with all applicable tender offer rules
and regulations under the Exchange Act. The Issuers further agree to use their
reasonable best efforts to commence the Exchange Offer promptly, hold the
Exchange Offer open for the period required by applicable law (including
pursuant to any applicable interpretation by the staff of the Commission), but
in any event for at least 10 business days and exchange Exchange Securities for
all Registrable Securities that have been validly tendered and not withdrawn on
or prior to the expiration of the Exchange Offer.  If the Issuers commence the Exchange Offer, the Company will be
entitled to close the Exchange Offer 30 days after the commencement thereof (or
at the end of such shorter period permitted by applicable law), provided that
the Company has accepted all the Registrable Securities validly tendered in
accordance with the terms of the Exchange Offer.  The Issuers agree (x) to include in the Exchange Registration
Statement a prospectus for use in any resales by any holder of Exchange
Securities that is a broker-dealer and (y) to keep such Exchange Registration
Statement effective for a period (the “Resale Period”) beginning when Exchange
Securities are first issued in the Exchange Offer and ending upon the earlier
of the expiration of the 90th day after the Exchange Offer has been completed
and such time as such broker-dealers no longer own any Registrable Securities.

 

Each
holder participating in the Exchange Offer shall be required to represent to
the Company that (i) any Exchange Securities received by such holder will be
acquired in the ordinary course of business, (ii) at the time of the
commencement of the Exchange Offer such holder has no arrangements or
understanding with any person to participate in the distribution of the
Securities or the Exchange Securities within the meaning of the Securities Act,
(iii) such holder is not an “affiliate,” as defined in Rule 405 of the
Securities Act, of the Company, (iv) if such holder is not a broker-dealer,
that it is not engaged in, and does not intend to engage in, the distribution
of the Exchange Securities, (v) if such holder is a broker-dealer, that it will
receive Exchange Securities for its own account in exchange for Securities that
were acquired as a result of market-making activities or other trading
activities and that it will deliver a prospectus in connection with any resale
of such Exchange Securities and (vi) such holder is not acting on behalf of any
person who could not truthfully make the foregoing representations.

 

(b)                                 If (i) on or prior to the time the Exchange
Offer is consummated existing Commission interpretations are changed such that
the Exchange Securities received by holders other than Restricted Holders in
the Exchange Offer for Registrable Securities are not or would not be, upon
receipt, transferable by each such holder without restriction under the
Securities Act, (ii) the Exchange Offer has not been completed within 180 days
following the Closing Date, (iii) any Purchaser so requests with respect to
Registrable Securities not eligible to be exchanged for Exchange Securities in
the Exchange Offer and held by it following consummation of the Exchange Offer
or (iv) any holder (other than a Purchaser) shall be, and shall notify the
Company that such holder is, prohibited by law or Commission policy from
participating in the Exchange Offer or such holder may not resell the Exchange
Securities acquired in the Exchange Offer to the public without delivering a
prospectus and the prospectus contained in the Exchange Registration Statement
is not available for such resales by such holder (other than in either case (x)
due solely to the status of such holder as an affiliate of the Company within
the meaning of the Securities Act or (y) due to such holder’s inability to make
the representations set forth in the second paragraph of Section 2(a) hereof)
and any such holder so requests, the Issuers shall, in lieu of (or, in the case
of clauses (iii) and (iv), in addition to) conducting the Exchange Offer
contemplated by Section 2(a), use their reasonable best efforts to file under
the Securities Act as promptly as reasonably practicable, a “shelf”
registration statement providing

 

5

 

for
the registration of, and the sale on a continuous or delayed basis by the
holders of, all of the Registrable Securities (or in the case of clause (iii),
the Registrable Securities held by the Purchasers), pursuant to Rule 415 or any
similar rule that may be adopted by the Commission (such filing, the “Shelf
Registration” and such registration statement, the “Shelf Registration
Statement”). The Issuers agree to use their reasonable best efforts (x) to
cause the Shelf Registration Statement to become effective within 120 days
after the date on which the obligation to file such Shelf Registration
Statement arises and to use their reasonable best efforts to cause such Shelf
Registration Statement to remain effective for a period ending on the earlier
of the second anniversary of the Effective Time or such shorter period that
will terminate when all the Registrable Securities covered by the Shelf
Registration Statement have been sold pursuant to the Shelf Registration
Statement or are distributed to the public pursuant to Rule 144 or become
eligible for resale pursuant to Rule 144 without volume restriction, if any; provided,
however, that no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement or to use the prospectus
forming a part thereof for resales of Registrable Securities unless such holder
is an Electing Holder, and (y) after the Effective Time of the Shelf
Registration Statement, promptly upon the request of any holder of Registrable
Securities that is not then an Electing Holder, to take any action reasonably
necessary to enable such holder to use the prospectus forming a part thereof
for resales of Registrable Securities, including, without limitation, any
action necessary to identify such holder as a selling securityholder in the
Shelf Registration Statement; provided, however, that nothing in this clause
(y) shall relieve any such holder of the obligation to return a completed and
signed Notice and Questionnaire to the Company in accordance with Section
3(d)(iii) hereof. The Issuers further agree to supplement or make amendments to
the Shelf Registration Statement, as and when required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the Securities Act or rules
and regulations thereunder for shelf registration, and the Issuers agree to furnish
to each Electing Holder copies of any such supplement or amendment promptly
following its filing with the Commission.

 

Notwithstanding
the foregoing, the Company may suspend the availability of any Shelf
Registration Statement for up to an aggregate of 30 days in any consecutive
twelve-month period if (i) such action is required by applicable law, (ii) such
action is taken by the Company in good faith and for valid business reasons
(not including avoidance of the Company’s obligations hereunder), including the
acquisition or divestiture of assets, or (iii) with respect to a Shelf
Registration Statement required to be filed due to a failure to consummate the
Exchange Offer within the required time period, such action occurs following
the consummation of the Exchange Offer.

 

(c)                                  In the event that (i) the Issuers have not
filed the Exchange Registration Statement nor a Shelf Registration Statement
(applicable to all of the Registrable Securities) on or before 120 days after
the Closing Date, or (ii) the Exchange Registration Statement has not become
effective or been declared effective by the Commission on or before 150 days
after the Closing Date, or (iii) the Exchange Offer has not been consummated
within 180 days after the Closing Date, or (iv) if a Shelf Registration
Statement required to be filed under Section 2(b) hereof is not declared
effective on or before 120 days after the date on which the obligation to file
the Shelf Registration Statement arises, or (v) if any Shelf Registration
Statement required by Section 2(b) hereof is filed and declared effective, and
during the period the Issuers are required to use their reasonable best efforts
to cause the Shelf Registration Statement to remain effective, (x) the Company
shall have suspended the Shelf Registration Statement pursuant to 

 

6

 

Section
2(b) hereof for more than 30 days in the aggregate in any consecutive
twelve-month period and be continuing to suspend the availability of the Shelf
Registration Statement or (y) the Shelf Registration Statement shall cease to
be effective (other than by action of the Issuers pursuant to the second
paragraph of Section 2(b) hereof) without being replaced within 60 days by a
shelf registration statement that is filed and declared effective (each such
event referred to in clauses (i) through (v), a “Registration Default” and each
period during which a Registration Default has occurred and is continuing, a
“Registration Default Period”), then, as liquidated damages for such
Registration Default, subject to the provisions of Section 9(b), special interest
(“Special Interest”), in addition to the Base Interest, shall accrue on
Registrable Securities for the Registration Default Period (but only with respect
to one Registration Default at any particular time) until such time as all
Registration Defaults have been cured at a per annum rate of 0.25% for the
first 90 days of the Registration Default Period, which rate shall increase by
an additional 0.25% during each subsequent 90-day period, up to a maximum of
0.50% regardless of the number of Registration Defaults that shall have
occurred and be continuing.  Following
the cure of all Registration Defaults, the accrual of Special Interest will
cease.  A Registration Default under
clause (iv) or (v) will be deemed cured upon consummation of the Exchange Offer
in the case of a Shelf Registration Statement required to be filed due to a
failure to consummate the Exchange Offer within the required time period.

 

(d)                                 If during the 90 day period referenced in the
penultimate sentence of the first paragraph of Section 2(a) hereof the Exchange
Offer Registration Statement is suspended by the Company or ceases to be
effective such that any broker-dealer that (i) receives Exchange Securities in
the Exchange Offer and (ii) is subject to prospectus delivery requirements
cannot fulfill such requirements, the Company shall pay liquidated damages to
such broker-dealers in an amount calculated in a manner consistent with that specified
above with respect to Registration Defaults.

 

(e)                                  The Company and the Guarantors shall take all
actions reasonably necessary or advisable to be taken by them to ensure that
the transactions contemplated herein are effected as so contemplated, including
all actions necessary or desirable to register the Guarantees under the
registration statement contemplated in Section 2(a) or 2(b) hereof, as
applicable.

 

(f)                                    Any reference herein to a registration
statement as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time and any
reference herein to any post-effective amendment to a registration statement as
of any time shall be deemed to include any document incorporated, or deemed to
be incorporated, therein by reference as of such time.

 

3.                                       Registration Procedures.

 

If
the Issuers file a registration statement pursuant to Section 2(a) or Section
2(b), the following provisions shall apply:

 

(a)                                  At or before the Effective Time of the
Exchange Offer or the Shelf Registration, as the case may be, the Issuers shall
qualify the Indenture under the Trust Indenture Act of 1939.

 

7

 

(b)                                 In the event that such qualification would
require the appointment of a new trustee under the Indenture, the Issuers shall
appoint a new trustee thereunder pursuant to the applicable provisions of the
Indenture.

 

(c)                                  In connection with the Issuers’ obligations
with respect to the registration of Exchange Securities as contemplated by
Section 2(a) (the “Exchange Registration”), if applicable, the Issuers shall:

 

(i)                                     use their reasonable best efforts to prepare
and file with the Commission within 120 days after the Closing Date, an
Exchange Registration Statement on any form which may be utilized by the
Company and which shall permit the Exchange Offer and resales of Exchange Securities
by broker-dealers during the Resale Period to be effected as contemplated by
Section 2(a), and use their reasonable best efforts to cause such Exchange
Registration Statement to become effective within 150 days after the Closing
Date;

 

(ii)                                  prepare and file with the Commission such
amendments and supplements to such Exchange Registration Statement and the
prospectus included therein as may be necessary to effect and maintain the
effectiveness of such Exchange Registration Statement for the periods and
purposes contemplated in Section 2(a) hereof and as may be required by the applicable
rules and regulations of the Commission and the instructions applicable to the
form of such Exchange Registration Statement, and promptly provide each
broker-dealer holding Exchange Securities with such number of copies of the
prospectus included therein (as then amended or supplemented), in conformity in
all material respects with the requirements of the Securities Act and the rules
and regulations of the Commission thereunder, as such broker-dealer reasonably
may request prior to the expiration of the Resale Period, for use in connection
with resales of Exchange Securities;

 

(iii)                               promptly notify each broker-dealer that has
requested or received copies of the prospectus included in such registration
statement, and confirm such advice in writing, (A) when such Exchange
Registration Statement or the prospectus included therein or any prospectus
amendment or supplement or post-effective amendment has been filed, and, with
respect to such Exchange Registration Statement or any post-effective
amendment, when the same has become effective, (B) of any request by the
Commission for amendments or supplements to such Exchange Registration
Statement or prospectus or for additional information, (C) of the issuance by
the Commission of any stop order suspending the effectiveness of such Exchange
Registration Statement or the initiation of any proceedings for that purpose,
(D) of the receipt by the Issuers of any notification with respect to the
suspension of the qualification of the Exchange Securities for sale in any
jurisdiction or the initiation of any proceeding for such purpose, or (E) at
any time during the Resale Period when a prospectus is required to be delivered
under the Securities Act, that such Exchange Registration Statement,
prospectus, prospectus amendment or supplement or post-effective amendment does
not conform in all material respects to the applicable requirements of the
Securities Act and the rules and regulations of the Commission thereunder or
contains an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing;

 

8

 

(iv)                              in the event that the Issuers would be
required, pursuant to Section 3(c)(iii)(E) above, to notify any broker-dealers
holding Exchange Securities, use their reasonable best efforts to prepare and
furnish as soon as practicable to each such broker-dealer a reasonable number
of copies of a prospectus supplemented or amended so that, as thereafter
delivered to purchasers of such Exchange Securities during the Resale Period,
such prospectus shall conform in all material respects to the applicable
requirements of the Securities Act and the rules and regulations of the
Commission thereunder and shall not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing;

 

(v)                                 use their reasonable best efforts to obtain
the withdrawal of any order suspending the effectiveness of such Exchange
Registration Statement or any post-effective amendment thereto at the earliest
practicable date;

 

(vi)                              use their reasonable best efforts to (A)
register or qualify the Exchange Securities under the securities laws or blue
sky laws of such jurisdictions as any participating Holder of the Registrable
Securities reasonably requests in writing no later than the commencement of the
Exchange Offer, (B) keep such registrations or qualifications in effect and
comply with such laws so as to permit the continuance of offers, sales and
dealings therein in such jurisdictions until the expiration of the Resale
Period and (C) take any and all other actions as may be reasonably necessary to
enable each broker-dealer holding Exchange Securities to consummate the
disposition thereof in such jurisdictions; provided, however, that neither the
Company nor the Guarantors shall be required for any such purpose to (1)
qualify as a foreign corporation in any jurisdiction wherein it would not
otherwise be required to qualify but for the requirements of this Section
3(c)(vi), (2) consent to general service of process in any such jurisdiction or
(3) make any changes to its certificate of incorporation or by-laws or any
agreement between it and its stockholders;

 

(vii)                           provide a CUSIP number for all Exchange
Securities, not later than the consummation of the Exchange Offer; and

 

(viii)                        comply in all material respects with all
applicable rules and regulations of the Commission, and make generally
available to its securityholders as soon as practicable but no later than
eighteen months after the effective date of such Exchange Registration
Statement, an earning statement of the Company and its subsidiaries complying
with Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder).

 

(d)                                 In connection with the Issuers’ obligations
with respect to the Shelf Registration, if applicable, the Issuers shall:

 

(i)                                     use their reasonable best efforts to prepare
and file with the Commission within the time periods specified in Section 2(b),
a Shelf Registration Statement on any form which may be utilized by the Company
and which shall register all of the Registrable Securities (or in the case of a
Shelf Registration Statement filed pursuant to Section 2(b)(iii), the Registrable
Securities held by the Purchasers) for resale by the holders thereof in
accordance with such method or methods of disposition as may be specified in

 

9

 

the applicable Notice and Questionnaire by such of the holders as, from
time to time, may be Electing Holders and use their reasonable best efforts to
cause such Shelf Registration Statement to become effective within the time
periods specified in Section 2(b);

 

(ii)                                  not less than 15 calendar days prior to the
Effective Time of the Shelf Registration Statement, mail the Notice and
Questionnaire to the holders of Registrable Securities; no holder shall be
entitled to be named as a selling securityholder in the Shelf Registration
Statement as of the Effective Time, and no holder shall be entitled to use the
prospectus forming a part thereof for resales of Registrable Securities at any
time, unless such holder has returned a completed and signed Notice and
Questionnaire to the Company by the deadline for response set forth therein;
provided, however, holders of Registrable Securities shall have at least 13
calendar days from the date on which the Notice and Questionnaire is first
mailed to such holders to return a completed and signed Notice and
Questionnaire to the Company;

 

(iii)                               after the Effective Time of the Shelf
Registration Statement, upon the request of any holder of Registrable
Securities that is not then an Electing Holder, promptly send a Notice and
Questionnaire to such holder; provided that the Issuers shall not be required
to take any action to name such holder as a selling securityholder in the Shelf
Registration Statement or to enable such holder to use the prospectus forming a
part thereof for resales of Registrable Securities until such holder has
returned a completed and signed Notice and Questionnaire to the Company;

 

(iv)                              as soon as practicable prepare and file with
the Commission such amendments and supplements to such Shelf Registration
Statement and the prospectus included therein as may be necessary to effect and
maintain the effectiveness of such Shelf Registration Statement for the period
specified in Section 2(b) hereof and as may be required by the applicable rules
and regulations of the Commission and the instructions applicable to the form
of such Shelf Registration Statement, and furnish to the Electing Holders
copies of any such supplement or amendment as soon as practicticable following its
filing with the Commission. 
Notwithstanding the foregoing, the Company may suspend the availability
of any Shelf Registration Statement for up to an aggregate of 30 days in any
consecutive twelve-month period if (i) such action is required by applicable
law, (ii) such action is taken by the Company in good faith and for valid
business reasons (not including avoidance of the Company’s obligations
hereunder), including the acquisition or divestiture of assets, or (iii) with
respect to a Shelf Registration Statement required to be filed due to a failure
to consummate the Exchange Offer within the required time period, such action
occurs following the consummation of the Exchange Offer;

 

(v)                                 comply in all material respects with the
provisions of the Securities Act with respect to the disposition of all of the
Registrable Securities covered by such Shelf Registration Statement in
accordance with the intended methods of disposition by the Electing Holders provided
for in such Shelf Registration Statement;

 

(vi)                              for a reasonable period prior to the filing
of such Shelf Registration Statement, and throughout the period specified in
Section 2(b), make reasonably available at reasonable times at the Company’s
principal place of business or such other reasonable place for inspection by a
representative of, and not more than one counsel

 

10

 

acting for, Electing Holders holding at least a majority in aggregate
principal amount of the Registrable Securities at the time outstanding (the
“Majority Electing Holders”) and any underwriter participating in the
distribution of the Registrable Securities being sold (including any person who
may be deemed an underwriter within the meaning of Section 2(a)(ii) of the Securities
Act) such relevant financial and other pertinent information and books and
records of the Company, and use their reasonable best efforts to cause the
officers, employees, counsel and independent certified public accountants of
the Company to respond to such inquiries, as shall be reasonably necessary to
conduct a reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that the foregoing investigation and
information gathering shall be coordinated on behalf of all such parties by one
counsel designated by and on behalf of all such parties and provided, further,
that each such party shall be required to maintain in confidence and not to
disclose to any other person any information or records reasonably designated
by the Company as being confidential, until such time as (A) such information
becomes a matter of public record (whether by virtue of its inclusion in such
registration statement or otherwise except as a result of a breach of this or
any other obligation of confidentiality to the Issuers known to such party), or
(B) such person shall be required so to disclose such information pursuant to a
subpoena or order of any court or other governmental agency or body having
jurisdiction over the matter (subject to the requirements of such order, and
only after such person shall have given the Company prompt prior written notice
of such requirement so that the Company, at its expense, may undertake
appropriate action to prevent disclosure of such information or records), or (C)
such information is required to be set forth in such Shelf Registration
Statement or the prospectus included therein or in an amendment to such Shelf
Registration Statement or an amendment or supplement to such prospectus in
order that such Shelf Registration Statement, prospectus, amendment or
supplement, as the case may be, complies with applicable requirements of the
federal securities laws and the rules and regulations of the Commission and
does not contain an untrue statement of a material fact or omit to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;

 

(vii)                           promptly notify each of the Electing Holders
and any managing underwriter thereof and confirm such advice in writing, (A)
when such Shelf Registration Statement or the prospectus included therein or
any prospectus amendment or supplement or post-effective amendment has been
filed, and, with respect to such Shelf Registration Statement or any
post-effective amendment, when the same has become effective, (B) of any
request by the Commission for amendments or supplements to such Shelf
Registration Statement or prospectus or for additional information, (C) of the
issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation of any proceedings for that
purpose, (D) of the receipt by the Issuers of any notification with respect to
the suspension of the qualification of the Registrable Securities for sale in
any jurisdiction or the initiation of any proceeding for such purpose or (E) if
at any time when a prospectus is required to be delivered under the Securities
Act, that such Shelf Registration Statement, prospectus, prospectus amendment
or supplement or post-effective amendment does not conform in all material
respects to the applicable requirements of the Securities Act and the rules and
regulations of the Commission thereunder or contains an untrue statement of a
material

 

11

 

fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing;

 

(viii)                        use their reasonable best efforts to obtain
the withdrawal of any order suspending the effectiveness of such registration
statement or any post-effective amendment thereto at the earliest practicable
date;

 

(ix)                                if requested by any managing underwriter or
the Majority Electing Holders, promptly incorporate in a prospectus supplement
or post-effective amendment such information as is required by the applicable
rules and regulations of the Commission and as such managing underwriter or
such Majority Electing Holders shall specify should be included therein
relating to the terms of the sale of such Registrable Securities, including
information with respect to the principal amount of Registrable Securities
being sold by such Majority Electing Holders or to any underwriters, the names
and descriptions of such Majority Electing Holders or underwriters, the
offering price of such Registrable Securities and any discount, commission or
other compensation payable in respect thereof, the purchase price being paid
therefor by such underwriters and with respect to any other terms of the
offering of the Registrable Securities to be sold by such Majority Electing
Holders or to such underwriters; and make all required filings of such
prospectus supplement or post-effective amendment as soon as practicable after
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment;

 

(x)                                   furnish to each Electing Holder, and each
underwriter, if any, thereof such number of copies of such Shelf Registration
Statement (excluding exhibits thereto and documents incorporated by reference
therein) and of the prospectus included in such Shelf Registration Statement
(including each preliminary prospectus), in conformity in all material respects
with the applicable requirements of the Securities Act and the rules and
regulations of the Commission thereunder, as such Electing Holder and
underwriter, if any, may reasonably request in order to facilitate the offering
and disposition of the Registrable Securities owned by such Electing Holder or
underwritten by such underwriter and to permit such Electing Holder and
underwriter, if any, to satisfy the prospectus delivery requirements of the
Securities Act; and the Issuers hereby consent to the use of such prospectus
(including such preliminary prospectus) and any amendment or supplement thereto
by each such Electing Holder and by any such underwriter, in each case in the
form most recently provided to such person by the Company, in connection with
the offering and sale of the Registrable Securities covered by the prospectus
(including such preliminary prospectus) or any supplement or amendment thereto;

 

(xi)                                use their reasonable best efforts to (A)
register or qualify the Registrable Securities to be included in such Shelf
Registration Statement under such securities laws or blue sky laws of such
jurisdictions as any Electing Holder and managing underwriter, if any, thereof
shall reasonably request, (B) keep such registrations or qualifications in
effect and comply with such laws so as to permit the continuance of offers,
sales and dealings therein in such jurisdictions during the period the Shelf
Registration is required to remain effective under Section 2(b) above and for
so long as may be necessary to enable any such Electing Holder or underwriter
to complete its distribution of Securities pursuant to such Shelf Registration
Statement and (C) take any and all other actions as may be reasonably necessary
to enable each such Electing Holder and underwriter, if any, to consummate the
disposition in such jurisdictions of such Registrable Securities;

 

12

 

provided, however, that neither the Company nor the Guarantors shall be
required for any such purpose to (1) qualify as a foreign corporation in any
jurisdiction wherein it would not otherwise be required to qualify but for the
requirements of this Section 3(d)(xi), (2) consent to general service of
process in any such jurisdiction or (3) make any changes to its certificate of
incorporation or by-laws or any agreement between it and its stockholders;

 

(xii)                             unless any Registrable Securities shall be in
book-entry only form, cooperate with the Electing Holders and the managing
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which certificates
shall not bear any restrictive legends; and, in the case of an underwritten
offering, enable such Registrable Securities to be in such denominations and
registered in such names as the managing underwriter may request a reasonable
amount of time prior to any sale of the Registrable Securities;

 

(xiii)                          provide a CUSIP number for all Registrable
Securities, not later than the applicable Effective Time;

 

(xiv)                         enter into one or more underwriting
agreements in customary form, including customary provisions relating to
indemnification and contribution, and use its reasonable best efforts to take
such other actions, if any, in connection therewith as any Electing Holders aggregating
at least 20% in aggregate principal amount of the Registrable Securities at the
time outstanding shall reasonably request in order to expedite or facilitate
the disposition of such Registrable Securities;

 

(xv)                            if requested by the Majority Electing Holders
or if the offering contemplated by the Shelf Registration is an underwritten
offering, shall use their reasonable best efforts to, (A) make such
representations and warranties to the Electing Holders and the underwriters, if
any, thereof in form, substance and scope as are customarily made in connection
with an offering of debt securities pursuant to any underwriting agreement; (B)
obtain an opinion of counsel to the Issuers in customary form subject to
customary limitations, assumptions and exclusions and covering such matters, of
the type customarily covered by such an opinion, as the managing underwriters,
if any, or as any Electing Holders of at least 20% in aggregate principal
amount of the Registrable Securities at the time outstanding may reasonably
request, addressed to the Electing Holders and the underwriters, if any,
thereof and dated the effective date of such Shelf Registration Statement (and
if such Shelf Registration Statement contemplates an underwritten offering of a
part or all of the Registrable Securities, dated the date of the closing under
the underwriting agreement relating thereto); (C) obtain a “cold comfort”
letter or letters from the independent certified public accountants of the
Company addressed to the selling Electing Holders or the underwriters, if any,
thereof, dated (i) the effective date of such Shelf Registration Statement and
(ii) if such Shelf Registration Statement contemplates an underwritten
offering, dated the date of the closing under the underwriting agreement
relating thereto, such letter or letters to be in customary form and covering
such matters of the type customarily covered by letters of such type, subject
to receipt of appropriate documentation as contemplated, and only if permitted,
by Statement of Auditing Standards No. 72; (D) deliver such customary documents
and certificates, including officers’ certificates, as may be reasonably
requested by the Majority Electing Holders and the managing underwriters, if
any, thereof;

 

13

 

(xvi)                         notify in writing each holder of Registrable
Securities of any proposal by the Issuers to amend or waive any provision of
this Exchange and Registration Rights Agreement pursuant to Section 9(h) hereof
and of any amendment or waiver effected pursuant thereto, each of which notices
shall contain the text of the amendment or waiver proposed or effected, as the
case may be;

 

(xvii)                      in the event that any broker-dealer
registered under the Exchange Act shall underwrite any Registrable Securities
or participate as a member of an underwriting syndicate (within the meaning of
the Conduct Rules (the “Conduct Rules”) of the National Association of
Securities Dealers, Inc. (“NASD”) or any successor thereto, as amended from
time to time) thereof as an underwriter, use reasonable best efforts to provide
information to assist such broker-dealer in complying with the requirements of
such Conduct Rules; and

 

(xviii)                   comply in all material respects with all
applicable rules and regulations of the Commission, and make generally
available to its securityholders as soon as practicable but in any event not
later than eighteen months after the effective date of such Shelf Registration
Statement, an earning statement of the Company and its subsidiaries complying
with Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder).

 

(e)                                  In the event that the Issuers would be
required, pursuant to Section 3(d)(vii)(E) above, to notify the Electing
Holders and the managing underwriters, if any, thereof, the Company shall as
soon as practicable prepare and furnish to each of the Electing Holders and to
each such underwriter, if any, a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of
Registrable Securities, such prospectus shall conform in all material respects
to the applicable requirements of the Securities Act and the rules and
regulations of the Commission thereunder and shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances then existing. Each broker-dealer and Electing Holder agrees
that upon receipt of any notice from the Issuers pursuant to Section
3(c)(iii)(E) or Section 3(d)(vii)(E) hereof, such broker-dealer or Electing
Holder shall forthwith discontinue the disposition of Registrable Securities
pursuant to the Exchange Registration Statement or Shelf Registration Statement
applicable to such Registrable Securities until such broker-dealer or Electing
Holder shall have received copies of such amended or supplemented prospectus,
and if so directed by the Issuers, such broker-dealer or Electing Holder shall
deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies, then in such broker-dealer’s or Electing Holder’s
possession of the prospectus covering such Registrable Securities at the time
of receipt of such notice.

 

(f)                                    In the event of a Shelf Registration, in
addition to the information required to be provided by each Electing Holder in
its Notice Questionnaire, the Company may require such Electing Holder to
furnish to the Company such additional information regarding such Electing
Holder and such Electing Holder’s intended method of distribution of
Registrable Securities as may be required in order to comply with the
Securities Act. Each such Electing Holder agrees to notify the Company as
promptly as practicable of any inaccuracy or change in information previously
furnished by such Electing Holder to the Company or of the occurrence of any
event in either case as a result of which any prospectus relating to such Shelf
Registration contains or would contain an untrue statement of a material fact
regarding such Electing Holder or

 

14

 

such
Electing Holder’s intended method of disposition of such Registrable Securities
or omits to state any material fact regarding such Electing Holder or such
Electing Holder’s intended method of disposition of such Registrable Securities
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, and promptly to furnish
to the Company any additional information required to correct and update any
previously furnished information or required so that such prospectus shall not
contain, with respect to such Electing Holder or the disposition of such
Registrable Securities, an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing.

 

4.                                       Registration Expenses.

 

The
Issuers agree to bear and to pay or cause to be paid promptly all expenses
incident to the Issuers’ performance of or compliance with this Exchange and
Registration Rights Agreement, including (a) all Commission and any NASD
registration, filing and review fees and expenses including the reasonable fees
and disbursements of counsel for the underwriters, if any, in connection with
such registration, filing and review, (b) all fees and expenses in connection
with the qualification of the Securities for offering and sale under the State
securities and blue sky laws referred to in Section 3(d)(xi) hereof and determination
of their eligibility for investment under the laws of such jurisdictions as any
managing underwriters or the Electing Holders may designate, including the reasonable
fees and disbursements of counsel for the Electing Holders or underwriters in
connection with such qualification and determination, (c) all expenses relating
to the preparation, printing, production, distribution and reproduction of each
registration statement required to be filed hereunder, each prospectus included
therein or prepared for distribution pursuant hereto, each amendment or
supplement to the foregoing, the expenses of preparing the Securities for delivery
and the expenses of printing or producing any underwriting agreements,
agreements among underwriters, selling agreements and blue sky or legal
investment memoranda and all other documents in connection with the offering,
sale or delivery of Securities to be disposed of (including certificates
representing the Securities), (d) messenger, telephone and delivery expenses
relating to the offering, sale or delivery of Securities and the preparation of
documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, any agent of the Trustee and any counsel for the Trustee
and of any collateral agent or custodian, (f) internal expenses (including all
salaries and expenses of the Company’s officers and employees performing legal
or accounting duties), (g) fees, disbursements and expenses of counsel of the
Company and independent certified public accountants of the Company (including
the expenses of any opinions or “cold comfort” letters required by or incident
to such performance and compliance), (h) fees, disbursements and expenses of
any “qualified independent underwriter” engaged pursuant to Section 3(d)(xvii)
hereof, (i) the reasonable fees, disbursements and expenses of one counsel for
the Electing Holders retained in connection with a Shelf Registration, as
selected by the Electing Holders of at least a majority in aggregate principal
amount of the Registrable Securities held by Electing Holders (which counsel
shall be reasonably satisfactory to the Company), (j) any fees charged by
securities rating services for rating the Securities, and (k) fees, expenses
and disbursements of any other persons, including special experts, retained by
the Company in connection with such registration (collectively, the
“Registration Expenses”). To the extent that any Registration Expenses are
incurred, assumed or paid by any holder of Registrable Securities or any
placement or sales agent therefor or underwriter thereof, the Issuers shall
reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt

 

15

 

of a request therefor. Notwithstanding the
foregoing, the holders of the Registrable Securities being registered shall pay
all agency fees and commissions and underwriting discounts and commissions
attributable to the sale of such Registrable Securities and the fees and
disbursements of any counsel or other advisors or experts retained by such
holders (severally or jointly), other than the counsel and experts specifically
referred to above.

 

5.                                       [Intentionally Omitted.]

 

6.                                       Indemnification.

 

(a)                                  Indemnification by the
Company and the Guarantors.  The Company and the Guarantors, jointly and
severally, will indemnify and hold harmless each of the broker-dealers whose Registrable
Securities are included in an Exchange Registration Statement and each of the
Electing Holders of Registrable Securities included in a Shelf Registration
Statement against any losses, claims, damages or liabilities, joint or several,
to which such broker-dealer or Electing Holder may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
any Exchange Registration Statement or Shelf Registration Statement, as the
case may be, under which such Registrable Securities were registered under the
Securities Act, or any preliminary, final or summary prospectus contained
therein or furnished by the Company to any such broker-dealer or Electing
Holder, or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading, and will reimburse such broker-dealer or Electing Holder for any
legal or other expenses reasonably incurred by them in connection with
investigating or defending any such action or claim as such expenses are
incurred; provided, however, that (i) neither the Company nor the Guarantors
shall be liable to any such person in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by such person expressly for use
therein and (ii) with respect to any untrue statement or alleged untrue
statement or omission or alleged omission made in a Shelf Registration
Statement or prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration Statement, the indemnity agreement
contained in this Section 5(a) will not inure to the benefit of any
broker-dealer or Electing Holder from whom the person asserting any such loss,
claim, damage or liability purchased the Registrable Securities purchased
concerned, to the extent that at the time of such purchase such broker-dealer
or Electing Holder had received timely written advice from the Company prior to
such purchase that the use of such prospectus, amendment, supplement or
preliminary prospectus was suspended as provided in Section 3(e).

 

(b)                                 Indemnification by the
Holders.  The Company may require, as a condition to
including any Registrable Securities in any registration statement filed pursuant
to Section 2(b) hereof, that the Company shall have received an undertaking
reasonably satisfactory to it from the Electing Holder of such Registrable
Securities, severally and not jointly, to (i) indemnify and hold harmless the
Company, the Guarantors, and all other holders of Registrable Securities,
against any losses, claims, damages or liabilities to which the Company, the
Guarantors or such other holders of Registrable Securities may become subject,
under the Securities

 

16

 

Act
or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in such registration
statement, or any preliminary, final or summary prospectus contained therein or
furnished by the Company to any such Electing Holder, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, 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 reliance upon and in
conformity with written information furnished to the Company by such Electing
Holder expressly for use therein, and (ii) reimburse the Company and the
Guarantors for any legal or other expenses reasonably incurred by the Company and
the Guarantors in connection with investigating or defending any such action or
claim as such expenses are incurred; provided, however, that no such Electing
Holder shall be required to undertake liability to any person under this
Section 6(b) for any amounts in excess of the dollar amount of the proceeds to
be received by such Electing Holder from the sale of such Electing Holder’s
Registrable Securities pursuant to such registration.

 

(c)                                  Notices of Claims, Etc. 
Promptly after receipt by an indemnified party under subsection (a) or
(b) above of written notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against an
indemnifying party pursuant to the indemnification provisions of or contemplated
by this Section 6, notify such indemnifying party in writing of the commencement
of such action; but the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any indemnified party
otherwise than under the indemnification provisions of or contemplated by
Section 6(a) or 6(b) hereof. In case any such action shall be brought against
any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party (who shall not, except with
the consent of the indemnified party, be counsel to the indemnifying party),
and, after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, such indemnifying party shall not be
liable to such indemnified party for any legal expenses of other counsel or any
other expenses, in each case subsequently incurred by such indemnified party,
in connection with the defense thereof other than reasonable costs of
investigation.  No indemnifying party
shall, without the written consent of the indemnified party, effect the
settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which
indemnification or contribution may be sought hereunder (whether or not the indemnified
party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim and
(ii) does not include a statement as to or an admission of fault, culpability
or a failure to act by or on behalf of any indemnified party.

 

(d)                                 Contribution.  If
for any reason the indemnification provisions contemplated by Section 6(a) or
Section 6(b) are unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, claims, damages or liabilities (or actions in
respect thereof) referred to therein, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative fault of the

 

17

 

indemnifying
party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
fault of such indemnifying party and indemnified party 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 such indemnifying party or by
such indemnified party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 6(d) were determined by pro rata
allocation (even if the holders or any agents or underwriters or all of them
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 6(d). The amount paid or payable by an indemnified party as
a result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees
or expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 6(d), no holder shall be required to contribute any
amount in excess of the amount by which the dollar amount of the proceeds
received by such holder from the sale of any Registrable Securities (after
deducting any fees, discounts and commissions applicable thereto) exceeds the
amount of any damages which such holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The holders’ and any underwriters’
obligations in this Section 6(d) to contribute shall be several in proportion
to the principal amount of Registrable Securities registered or underwritten,
as the case may be, by them and not joint.

 

(e)                                  The obligations of the Company and the
Guarantors under this Section 6 shall be in addition to any liability which the
Company or the Guarantors may otherwise have and shall extend, upon the same
terms and conditions, to each officer, director and partner of each holder and
each person, if any, who controls any holder within the meaning of the
Securities Act; and the obligations of the holders contemplated by this Section
6 shall be in addition to any liability which the respective holder may otherwise
have and shall extend, upon the same terms and conditions, to each officer and
director of the Company or the Guarantors (including any person who, with his
consent, is named in any registration statement as about to become a director
of the Company or the Guarantors) and to each person, if any, who controls the
Company within the meaning of the Securities Act.

 

7.                                       Underwritten Offerings.

 

(a)                                  Selection of Underwriters.  If
any of the Registrable Securities covered by the Shelf Registration are to be
sold pursuant to an underwritten offering, the managing underwriter or underwriters
thereof shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Registrable Securities to be included in such
offering, subject to the consent of the Company (which shall not be
unreasonably withheld or delayed) and such Electing Holders shall be
responsible for all underwriting discounts and commissions in connection
therewith.

 

(b)                                 Participation by Holders. 
Each holder of Registrable Securities hereby agrees with each other such
holder that no such holder may participate in any underwritten offering

 

18

 

hereunder
unless such holder (i) agrees to sell such holder’s Registrable Securities on
the basis provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements.

 

8.                                       Rule 144.

 

The
Company covenants to the holders of Registrable Securities that to the extent
it shall be required to do so under the Exchange Act, the Company shall timely
file the reports required to be filed by it under the Exchange Act or the
Securities Act (including the reports under Section 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by
the Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder’s sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.  The Company will be
deemed to have satisfied the foregoing requirements if the Company’s parent
Graphic Packaging Corporation files such reports and takes such actions of the
types otherwise so required, in each case within the applicable time periods.

 

9.                                       Miscellaneous.

 

(a)                                  No Inconsistent Agreements.  The
Issuers represent, warrant, covenant and agree that they have not granted, and
shall not grant, registration rights with respect to Registrable Securities or
any other securities which would be inconsistent with the terms contained in
this Exchange and Registration Rights Agreement.

 

(b)                                 Specific Performance.  The
parties hereto acknowledge that there would be no adequate remedy at law if the
Issuers fail to perform any of their obligations hereunder and that the Purchasers
and the holders from time to time of the Registrable Securities may be
irreparably harmed by any such failure, and accordingly agree that the Purchasers
and such holders, in addition to any other remedy to which they may be entitled
at law or in equity, shall be entitled to compel specific performance of the
obligations of the Issuers under this Exchange and Registration Rights
Agreement in accordance with the terms and conditions of this Exchange and
Registration Rights Agreement, in any court of the United States or any State
thereof having jurisdiction.

 

(c)                                  Notices.  All
notices, requests, claims, demands, waivers and other communications hereunder
shall be in writing and shall be deemed to have been duly given when delivered
by hand, if delivered personally or by courier, or three days after being
deposited in the mail (registered or certified mail, postage prepaid, return
receipt requested) as follows:   If to
the Company, to it at 814 Livingston Court, Marietta, Georgia 30067,
Attention:  Secretary, with a copy to
David A. Brittenham, Esq., Debevoise & Plimpton, 919 Third Avenue, New
York, New York 10022, and if to a holder, to the address of such holder set
forth in the security register or

 

19

 

other
records of the Company, or to such other address as the Company or any such
holder may have furnished to the other in writing in accordance herewith, except
that notices of change of address shall be effective only upon receipt.

 

(d)                                 Parties in Interest.  All
the terms and provisions of this Exchange and Registration Rights Agreement
shall be binding upon, shall inure to the benefit of and shall be enforceable
by the parties hereto and the holders from time to time of the Registrable
Securities and the respective successors and assigns of the parties hereto and
such holders. In the event that any transferee of any holder of Registrable
Securities shall acquire Registrable Securities, in any manner, whether by
gift, bequest, purchase, operation of law or otherwise, such transferee shall,
without any further writing or action of any kind, be deemed a beneficiary
hereof for all purposes and such Registrable Securities shall be held subject
to all of the terms of this Exchange and Registration Rights Agreement, and by
taking and holding such Registrable Securities such transferee shall be
entitled to receive the benefits of, and be conclusively deemed to have agreed
to be bound by all of the applicable terms and provisions of this Exchange and
Registration Rights Agreement. If the Company shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.

 

(e)                                  Survival.  The
respective indemnities, agreements, representations, warranties and each other
provision set forth in this Exchange and Registration Rights Agreement or made
pursuant hereto shall remain in full force and effect regardless of any
investigation (or statement as to the results thereof) made by or on behalf of
any holder of Registrable Securities, any director, officer or partner of such
holder, any agent or underwriter or any director, officer or partner thereof,
or any controlling person of any of the foregoing, and shall survive delivery
of and payment for the Registrable Securities pursuant to the Purchase
Agreement and the transfer and registration of Registrable Securities by such holder
and the consummation of an Exchange Offer.

 

(f)                                    Governing Law. 
This Exchange and Registration Rights Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

(g)                                 Headings.  The
descriptive headings of the several Sections and paragraphs of this Exchange
and Registration Rights Agreement are inserted for convenience only, do not
constitute a part of this Exchange and Registration Rights Agreement and shall
not affect in any way the meaning or interpretation of this Exchange and
Registration Rights Agreement.

 

(h)                                 Entire Agreement;
Amendments.  This Exchange and Registration Rights
Agreement and the other writings referred to herein (including the Indenture
and the form of Securities) or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter. This Exchange and Registration Rights Agreement supersedes all
prior agreements and understandings between the parties with respect to its
subject matter. This Exchange and Registration Rights Agreement may be amended
and the observance of any term of this Exchange and Registration Rights
Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively) only by a written instrument duly
executed by the Issuers and the holders of at least a majority in aggregate
principal amount of the Registrable Securities at the time outstanding. Each
holder of any Registrable Securities at the time or thereafter outstanding
shall be bound by any amendment or waiver effected pursuant to this Section
9(h), whether or not any notice, writing or marking

 

20

 

indicating
such amendment or waiver appears on such Registrable Securities or is delivered
to such holder.

 

(i)                                     Counterparts. 
This agreement may be executed by the parties in counterparts, each of
which shall be deemed to be an original, but all such respective counterparts
shall together constitute one and the same instrument.

 

[Signature Pages Follow]

 

21

 

If
the foregoing is in accordance with your understanding, please sign and return
to us six counterparts hereof, and upon the acceptance hereof by you, on behalf
of each of the Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement between each of the Purchasers, the Guarantors
and the Company.  It is understood that
your acceptance of this letter on behalf of each of the Purchasers is pursuant
to the authority set forth in a form of Agreement among Purchasers, the form of
which shall be submitted to the Company for examination upon request, but
without warranty on your part as to the authority of the signers thereof.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Graphic
  Packaging International, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Name:
  Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title:
  Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Guarantors:

  
	
   

  	
   

  	
   

  
	
   

  	
  Graphic
  Packaging Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Name:
  Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title:
  Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GPI
  Holding, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Name:
  Edward W. Stroetz, Jr

  
	
   

  	
   

  	
  Title:
  Acting General Counsel and Secretary

  

 

S-1

 

Accepted as of the date hereof:

 

GOLDMAN, SACHS & CO.

DEUTSCHE BANK SECURITIES INC.

J.P. MORGAN SECURITIES INC.

MORGAN STANLEY & CO. INCORPORATED

CREDIT SUISSE FIRST BOSTON LLC

CITIGROUP
GLOBAL MARKETS INC.

ABN
AMRO INCORPORATED

BANC
OF AMERICA SECURITIES LLC

 

 

	
  By:

  	
  /s/
  Goldman, Sachs & Co.

  	
   

  
	
   

  	
  (Goldman, Sachs & Co.)

  

 

On behalf of each of the
Purchasers

 

S-2

 

 

Exhibit A

 

Graphic Packaging International, Inc.

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE](a)

 

The
Depository Trust Company (“DTC”) has identified you as a DTC Participant
through which beneficial interests in the Graphic Packaging International, Inc.
(the “Company”) 8.50% Senior Notes due 2011 (the “Securities”) are held.

 

The
Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof.  In order to have their Securities included
in the registration statement, beneficial owners must complete and return the enclosed
Notice of Registration Statement and Selling Securityholder Questionnaire.

 

It
is important that beneficial owners of the Securities receive a copy of the enclosed
materials as soon as possible as their rights to have the Securities included in the registration
statement depend upon their returning the Notice and Questionnaire by [Deadline
For Response].  Please forward a copy of
the enclosed documents to each beneficial owner that holds interests in the
Securities through you.  If you require
more copies of the enclosed materials or have any questions pertaining to this
matter, please contact Graphic Packaging International, Inc., 814 Livingston
Court, Marietta, Georgia 30067, Attention: 
Secretary, (770) 644-3000.

 

(a)                                  Not
less than 28 calendar days from date of mailing.

 

A-1

 

Graphic Packaging International, Inc.

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference
is hereby made to the Exchange and Registration Rights Agreement (the “Exchange
and Registration Rights Agreement”) between Graphic Packaging International,
Inc. (the “Company”) and the Purchasers named therein.  Pursuant to the Exchange and Registration
Rights Agreement, the Company has filed with the United States Securities and
Exchange Commission (the “Commission”) a registration statement on Form
[    ] (the “Shelf Registration Statement”) for the registration
and resale under Rule 415 of the Securities Act of 1933, as amended (the
“Securities Act”), of the Company’s 8.50% Senior Notes due 2011 (the
“Securities”).  A copy of the Exchange
and Registration Rights Agreement is attached hereto.  All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Exchange and Registration Rights Agreement.

 

Each
beneficial owner of Registrable Securities (as defined below) is entitled to
have the Registrable Securities beneficially owned by it included in the Shelf
Registration Statement.  In order to
have Registrable Securities included in the Shelf Registration Statement, this
Notice of Registration Statement and Selling Securityholder Questionnaire
(“Notice and Questionnaire”) must be completed, executed and delivered to the
Company’s counsel at the address set forth herein for receipt ON OR BEFORE
[Deadline for Response].  Beneficial
owners of Registrable Securities who do not complete, execute and return this
Notice and Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use the
Prospectus forming a part thereof for resales of Registrable Securities.

 

Certain
legal consequences arise from being named as a selling securityholder in the
Shelf Registration Statement and related Prospectus.  Accordingly, holders and beneficial owners of Registrable
Securities are advised to consult their own securities law counsel regarding
the consequences of being named or not being named as a selling securityholder
in the Shelf Registration Statement and related Prospectus.

 

The
term “Registrable Securities” is defined in the Exchange and
Registration Rights Agreement.

 

A-2

 

ELECTION

 

The
undersigned holder (the “Selling Securityholder”) of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The undersigned, by signing and returning
this Notice and Questionnaire, agrees to be bound with respect to such
Registrable Securities by the terms and conditions of this Notice and
Questionnaire and the Exchange and Registration Rights Agreement, including,
without limitation, Section 6 of the Exchange and Registration Rights
Agreement, as if the undersigned Selling Securityholder were an original party
thereto.

 

Upon
any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the
Company and Trustee the Notice of Transfer set forth in Appendix A to the
Prospectus and as Exhibit B to the Exchange and Registration Rights Agreement.

 

The
Selling Securityholder hereby provides the following information to the Company
and represents and warrants that such information is accurate and complete:

 

A-3

 

QUESTIONNAIRE

 

(1)               (a)                                                     Full Legal Name of Selling Securityholder:

 

(b)                                                    Full Legal Name of Registered Holder (if not
the same as in (a) above) of Registrable Securities Listed in Item (3) below:

 

(c)                                                     Full Legal Name of DTC Participant (if
applicable and if not the same as (b) above) Through Which Registrable Securities
Listed in Item (3) below are Held:

 

	
  (2)

  	
   

  	
  Address
  for Notices to Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Contact
  Person:

  	
   

  
						

 

(3)                                  Beneficial Ownership of Securities:

 

Except
as set forth below in this Item (3), the undersigned does not beneficially own
any Securities.

 

	
  (a)

  	
   

  	
  Principal
  amount of Registrable Securities beneficially owned:

  	
   

  
	
   

  	
   

  	
  CUSIP No(s). of such
  Registrable Securities:

  	
   

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Principal
  amount of Securities other than Registrable Securities beneficially owned:

  	
   

  
	
   

  	
   

  	
  CUSIP No(s). of such other
  Securities:

  	
   

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Principal
  amount of Registrable Securities which the undersigned wishes to be included
  in the Shelf Registration

  
	
   

  	
   

  	
  Statement:

  	
   

  
	
   

  	
   

  	
  CUSIP No(s). of such
  Registrable Securities to be included in the Shelf Registration Statement:

  	
   

  
									

 

(4)                                  Beneficial Ownership of Other Securities of
the Company:

 

Except
as set forth below in this Item (4), the undersigned Selling Securityholder is
not the beneficial or registered owner of any other securities of the Company,
other than the Securities listed above in Item (3).

 

A-4

 

State
any exceptions here:

 

(5)                                  Relationships with the Company:

 

Except
as set forth below, neither the Selling Securityholder nor any of its
affiliates, officers, directors or principal equity holders (5% or more) has
held any position or office or has had any other material relationship with the
Company (or its predecessors or affiliates) during the past three years.

 

State
any exceptions here:

 

(6)                                  Plan of Distribution:

 

Except
as set forth below, the undersigned Selling Securityholder intends to
distribute the Registrable Securities listed above in Item (3) only as follows
(if at all):  Such Registrable
Securities may be sold from time to time directly by the undersigned Selling
Securityholder or, alternatively, through underwriters, broker-dealers or
agents.  Such Registrable Securities may
be sold in one or more transactions at fixed prices, at prevailing market
prices at the time of sale, at varying prices determined at the time of sale,
or at negotiated prices.  Such sales may
be effected in transactions (which may involve crosses or block transactions)
(i) on any national securities exchange or quotation service on which the
Registered Securities may be listed or quoted at the time of sale, (ii) in the
over-the-counter market, (iii) in transactions otherwise than on such exchanges
or services or in the over-the-counter market, or (iv) through the writing of
options.  In connection with sales of
the Registrable Securities or otherwise, the Selling Securityholder may enter
into hedging transactions with broker-dealers, which may in turn engage in
short sales of the Registrable Securities in the course of hedging the
positions they assume.  The Selling
Securityholder may also sell Registrable Securities short and deliver
Registrable Securities to close out such short positions, or loan or pledge
Registrable Securities to broker-dealers that in turn may sell such securities.

 

State
any exceptions here:

 

By
signing below, the Selling Securityholder acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

 

In
the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

 

By
signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus.  The Selling Securityholder
understands that such information will be relied upon by the Company in
connection with the preparation of the Shelf Registration Statement and related
Prospectus.

 

A-5

 

In
accordance with the Selling Securityholder’s obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect.  All notices hereunder and
pursuant to the Exchange and Registration Rights Agreement shall be made in
writing, by hand-delivery, first-class mail, or air courier guaranteeing
overnight delivery as follows:

 

(i)                                     To the Company:

 

Graphic
Packaging International, Inc.

814
Livingston Court

Marietta,
Georgia  30067

Attention:  Secretary

 

(ii)                                  With a copy to:

 

David
A. Brittenham, Esq.

Debevoise
& Plimpton

919
Third Avenue

New
York, New York  10022

 

Once
this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company’s counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above).  This Agreement shall be governed in all
respects by the laws of the State of New York.

 

IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by
its duly authorized agent.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Selling
  Securityholder

  
	
   

  	
  (Print/type
  full legal name of beneficial owner of Registrable Securities)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-6

 

PLEASE
RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR
BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT:

 

David
A. Brittenham, Esq.

Debevoise
& Plimpton

919
Third Avenue

New
York, New York  10022

 

A-7

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

 

Wells
Fargo Bank Minnesota, National Association

Graphic
Packaging International, Inc.

c/o  Wells Fargo Bank Minnesota, National
Association

213
Court Street, Suite 703

Middletown,
Connecticut  06457

 

Attention:  Trust Officer

 

Re:                               Graphic Packaging International, Inc. (the
“Company”)
8.50% Senior Notes due 2011

 

Dear
Sirs:

 

Please
be advised that
                            
has transferred $                       
aggregate principal amount of the above-referenced Notes pursuant to an
effective Registration Statement on Form
[        ] (File No. 333-) filed by the
Company.

 

We
hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the
above-named beneficial owner of the Notes is named as a “Selling Holder” in the
Prospectus dated [date] or in supplements thereto, and that the aggregate
principal amount of the Notes transferred are the Notes listed in such
Prospectus opposite such owner’s name.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)

  

 

B-1

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