Document:

Exhibit
4.3

 

Execution Copy

 

 

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

made by

 

GRAPHIC PACKAGING
CORPORATION

 

RIVERWOOD
ACQUISITION SUB LLC

 

GPI HOLDING, INC.

 

GRAPHIC PACKAGING
INTERNATIONAL, INC.

 

and certain of its
Subsidiaries

 

in favor of

 

JPMORGAN CHASE
BANK

as Administrative
Agent

 

Dated as of
August 8, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINED TERMS

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Other Definitional
  Provisions

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GUARANTEE

  
	
   

  	
  2.1

  	
  Guarantee

  
	
   

  	
  2.2

  	
  Right
  of Contribution

  
	
   

  	
  2.3

  	
  No Subrogation

  
	
   

  	
  2.4

  	
  Amendments,
  etc. with respect to the Obligations

  
	
   

  	
  2.5

  	
  Guarantee Absolute
  and Unconditional

  
	
   

  	
  2.6

  	
  Reinstatement

  
	
   

  	
  2.7

  	
  Payments

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  GRANT OF SECURITY INTEREST

  
	
   

  	
  3.1

  	
  Grant

  
	
   

  	
  3.2

  	
  Pledged
  Collateral

  
	
   

  	
  3.3

  	
  Certain
  Exceptions

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
  REPRESENTATIONS AND
  WARRANTIES

  
	
   

  	
  4.1

  	
  Representations
  and Warranties of Each Guarantor

  
	
   

  	
  4.2

  	
  Representations
  and Warranties of Each Grantor

  
	
   

  	
  4.3

  	
  Representations
  and Warranties of Each Pledgor

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  COVENANTS

  
	
   

  	
  5.1

  	
  Covenants of Each Guarantor

  
	
   

  	
  5.2

  	
  Covenants of Each Grantor

  
	
   

  	
  5.3

  	
  Covenants of Each Pledgor

  
	
   

  	
  5.4

  	
  Covenants
  of Holding, Merger Sub and GPI Holding

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REMEDIAL
  PROVISIONS

  
	
   

  	
  6.1

  	
  Certain Matters
  Relating to Accounts

  
	
   

  	
  6.2

  	
  Communications
  with Obligors; Grantors Remain Liable

  
	
   

  	
  6.3

  	
  Pledged Stock

  
	
   

  	
  6.4

  	
  Proceeds
  to be Turned Over To Administrative Agent

  
	
   

  	
  6.5

  	
  Application
  of Proceeds

  
	
   

  	
  6.6

  	
  Code
  and Other Remedies

  
	
   

  	
  6.7

  	
  Registration
  Rights

  
	
   

  	
  6.8

  	
  Waiver; Deficiency

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  THE ADMINISTRATIVE AGENT

  
	
   

  	
  7.1

  	
  Administrative
  Agent’s Appointment as Attorney-in-Fact, etc.

  
	
   

  	
  7.2

  	
  Duty of Administrative
  Agent

  
	
   

  	
  7.3

  	
  Execution of
  Financing Statements

  

 

i

 

	
   

  	
  7.4

  	
  Authority of
  Administrative Agent

  
	
   

  	
  7.5

  	
  Right of
  Inspection

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  NON-LENDER SECURED PARTIES

  
	
   

  	
  8.1

  	
  Rights
  to Collateral

  
	
   

  	
  8.2

  	
  Appointment
  of Agent

  
	
   

  	
  8.3

  	
  Waiver of
  Claims

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  MISCELLANEOUS

  
	
   

  	
  9.1

  	
  Amendments
  in Writing

  
	
   

  	
  9.2

  	
  Notices

  
	
   

  	
  9.3

  	
  No
  Waiver by Course of Conduct; Cumulative Remedies

  
	
   

  	
  9.4

  	
  Enforcement
  Expenses; Indemnification

  
	
   

  	
  9.5

  	
  Successors
  and Assigns

  
	
   

  	
  9.6

  	
  Set-Off

  
	
   

  	
  9.7

  	
  Counterparts

  
	
   

  	
  9.8

  	
  Severability

  
	
   

  	
  9.9

  	
  Section
  Headings

  
	
   

  	
  9.10

  	
  Integration

  
	
   

  	
  9.11

  	
  GOVERNING LAW

  
	
   

  	
  9.12

  	
  Submission To
  Jurisdiction; Waivers

  
	
   

  	
  9.13

  	
  Acknowledgments

  
	
   

  	
  9.14

  	
  WAIVER
  OF JURY TRIAL

  
	
   

  	
  9.15

  	
  Additional Granting Parties

  
	
   

  	
  9.16

  	
  Releases

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
  Notice Addresses of
  Guarantors

  
	
  2

  	
  Pledged Securities

  
	
  3

  	
  Perfection Matters

  
	
  4

  	
  Location of
  Jurisdiction of Organization

  
	
  5

  	
  Intellectual Property

  
	
  6

  	
  Contracts

  
	
   

  	
   

  	
   

  
	
  ANNEXES

  
	
   

  	
   

  	
   

  
	
  1A

  	
  Acknowledgement and Consent of Issuers who are
  not Granting Parties

  
	
  1B

  	
  Acknowledgement and Consent of PBGC

  
	
  2

  	
  Assumption Agreement

  
					

 

ii

 

GUARANTEE AND
COLLATERAL AGREEMENT

 

GUARANTEE AND COLLATERAL
AGREEMENT, dated as of August 8, 2003, made by GRAPHIC PACKAGING
CORPORATION, a Delaware corporation (“Holding”), RIVERWOOD ACQUISITION
SUB LLC, a Delaware limited liability company and a wholly owned subsidiary of
Holding (“Merger Sub”), GPI HOLDING, INC., a Colorado corporation (“GPI
Holding”), GRAPHIC PACKAGING INTERNATIONAL, INC., a Delaware Corporation
and a wholly owned subsidiary of GPI Holding (the “Borrower”), and
certain other Subsidiaries of the Borrower that are signatories hereto, in
favor of JPMORGAN CHASE BANK, as administrative agent (in such capacity, the “Administrative
Agent”) for the banks and other financial institutions (collectively, the “Lenders”;
individually, a “Lender”) from time to time parties to the Credit
Agreement, dated as of August 8, 2003 (as amended, waived, supplemented or
otherwise modified from time to time, together with any agreement extending the
maturity of, or restructuring, refunding, refinancing or increasing all or any
portion of the Indebtedness under such agreement or successor agreements, the “Credit
Agreement”), among the Borrower, the Administrative Agent, Deutsche Bank
Securities Inc., as syndication agent, and the Lenders.

 

W I T N E S S E T
H:

 

WHEREAS, the Borrower is
a member of an affiliated group of companies that includes Holding, Merger Sub,
GPI Holding, the Borrower’s Domestic Subsidiaries that are party hereto and any
other Domestic Subsidiary of the Borrower (other than any Receivables
Subsidiary or any Subsidiary of a Foreign Subsidiary) that becomes a party
hereto from time to time after the date hereof (the Borrower, Holding, Merger
Sub, GPI Holding, and such Domestic Subsidiaries, collectively, the “Granting
Parties”);

 

WHEREAS, pursuant to the
Credit Agreement, the Lenders have severally agreed to make extensions of
credit to the Borrower upon the terms and subject to the conditions set forth
therein;

 

WHEREAS, the proceeds of
extensions of credit under the Credit Agreement will be used in part to make
valuable transfers to one or more of the Granting Parties in connection with
the operation of their respective businesses;

 

WHEREAS, the Borrower and
the other Granting Parties are engaged in related businesses, and each such
Granting Party will derive substantial direct and indirect benefit from the
making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a
condition to the obligation of the Lenders to make their respective extensions
of credit under the Credit Agreement that the Granting Parties shall execute
and deliver this Agreement to the Administrative Agent for the benefit of the
Secured Parties.

 

 

NOW, THEREFORE, in
consideration of the premises and to induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to make
their respective extensions of credit thereunder, each Granting Party hereby
agrees with the Administrative Agent, for the ratable benefit of the Secured
Parties, as follows:

 

SECTION 1.  DEFINED TERMS

 

1.1                                 Definitions. 
(a)  Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings
given to them in the Credit Agreement, and the following terms that are defined
in the Code (as defined below) are used herein as so defined: Chattel Paper,
Documents, Electronic Chattel Paper, Equipment, Farm Products and Fixtures.

 

(b)                                 The following terms shall have the following
meanings:

 

“Accounts”:  all accounts (as defined in the Code) of
each Grantor, including, without limitation, all Accounts (as defined in the
Credit Agreement) and Accounts Receivable of such Grantor, but in any event excluding
all Accounts that have been sold or otherwise transferred in connection with a
Permitted Receivables Transaction.

 

“Accounts
Receivable”:  any right to payment
for goods sold or leased or for services rendered which is not evidenced by an
instrument (as defined in the Code) or Chattel Paper.

 

“Agreement”:  this Guarantee and Collateral Agreement, as
the same may be amended, supplemented, waived or otherwise modified from time
to time.

 

“Bankruptcy
Case”:  (i) Holding or any of its
Subsidiaries commencing any case, proceeding or other action (A) under any
existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, conservatorship or relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets, or Holding or any of its Subsidiaries
making a general assignment for the benefit of its creditors; or (ii) there
being commenced against Holding or any of its Subsidiaries any case, proceeding
or other action of a nature referred to in clause (i) above which (A) results
in the entry of an order for relief or any such adjudication or appointment or
(B) remains undismissed, undischarged or unbonded for a period of 60 days.

 

“Borrower
Obligations”:  the collective
reference to all obligations and liabilities of the Borrower in respect of the
unpaid principal of and interest on (including, without limitation, interest
accruing after the maturity of the Loans and Reimbursement Obligations and
interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) the Loans, the Reimbursement Obligations and all
other obligations and liabilities of the Borrower to the Secured Parties,
whether direct or indirect, absolute or

 

2

 

contingent, due or
to become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, the Credit Agreement, the Loans, the Letters of
Credit, the other Loan Documents, any Interest Rate Protection Agreement or
Permitted Hedging Arrangement entered into with any Person who was at the time
of entry into such agreement a Lender or a banking affiliate of any Lender, any
Guarantee Obligations of Holding or any of its Subsidiaries referred to in subsection
8.4(b) of the Credit Agreement as to which any Lender is a beneficiary, the
provision of cash management services by any Lender or an Affiliate thereof to
the Borrower or any Subsidiary thereof, or any other document made, delivered
or given in connection therewith, in each case whether on account of principal,
interest, reimbursement obligations, amounts payable in connection with the
provision of such cash management services or a termination of any transaction
entered into pursuant to an Interest Rate Protection Agreement or Permitted
Hedging Arrangement entered into with any person who was at the time of entry
into such agreement a Lender or a banking affiliate of any Lender, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
reasonable fees and disbursements of counsel to the Administrative Agent or any
other Secured Party that are required to be paid by the Borrower pursuant to
the terms of the Credit Agreement or any other Loan Document).

 

“Code”:  the Uniform Commercial Code as from time to
time in effect in the State of New York.

 

“Collateral”:  as defined in Section 3; provided
that, for purposes of subsection 6.5, Section 8 and subsection 9.16(d),
“Collateral” shall have the meaning assigned to such term in the Credit
Agreement.

 

“Collateral
Account Bank”:  (i) JPMorgan Chase
Bank, (ii) Mellon Financial Services Corporation or an Affiliate thereof or
another bank which at all times is a Lender as selected by the relevant Grantor
and notified to the Administrative Agent in writing promptly following such
selection.

 

“Collateral
Proceeds Account”:  the cash
collateral account established by the relevant Grantor at an office of the
Collateral Account Bank in the name of the Administrative Agent.

 

“Commitments”:  the collective reference to the Revolving
Credit Commitments and the Swing Line Commitment.

 

“Contracts”:  with respect to any Grantor, all contracts,
agreements, instruments and indentures in any form, and portions thereof
(except for contracts listed on Schedule 6 hereto), to which such
Grantor is a party or under which such Grantor or any property of such Grantor
is subject, as the same may from time to time be amended, supplemented, waived
or otherwise modified, including, without limitation, (i) all rights of such
Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (ii) all rights of such Grantor to damages arising
thereunder and (iii) all rights of such Grantor to perform and to exercise all
remedies thereunder.

 

3

 

“Copyright
Licenses”:  with respect to any
Grantor, all United States written license agreements of such Grantor providing
for the grant by or to such Grantor of any right to use any Copyright of such
Grantor, other than agreements with any Person who is an Affiliate or a
Subsidiary of the Borrower, including, without limitation, any license
agreements listed on Schedule 5 hereto, subject, in each case, to the
terms of such license agreements, and the right to prepare for sale, sell and
advertise for sale, all Inventory now or hereafter covered by such licenses.

 

“Copyrights”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States copyrights,
whether or not the underlying works of authorship have been published or
registered, United States copyright registrations and copyright applications,
including, without limitation, any copyright registrations and copyright
applications listed on Schedule 5 hereto, and (i) all renewals thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including, without limitation, payments under all
licenses entered into in connection therewith, and damages and payments for
past or future infringements thereof and (iii) the right to sue or otherwise
recover for past, present and future infringements and misappropriations
thereof.

 

“Deposit
Accounts”:  with respect to any
Grantor, all deposit accounts (as defined by the Code) of such Grantor that are
maintained pursuant to a Lockbox System.

 

“Excluded
Agreements”: as defined in subsection 3.3(a).

 

 “General Fund Account”:  with respect to any Grantor, the general
fund account of such Grantor established at the same office of the Collateral
Account Bank as the Collateral Proceeds Account.

 

“General
Intangibles”:  all “general
intangibles”, as that term is defined in Section 9-102(a)(42) of the Uniform
Commercial Code in effect in the State of New York on the date hereof.

 

“Granting
Parties”:  as defined in the
recitals hereto.

 

“Grantor”:  the Borrower and each Domestic Subsidiary of
the Borrower that from time to time is a party hereto (it being understood that
no Receivables Subsidiary or Subsidiary of a Foreign Subsidiary shall be
required to be or become a party hereto).

 

“Graphic
Retirement Plan”:  the Graphic
Packaging Corporation Retirement Plan (the obligations under which have been
assumed by the Borrower).

 

“Guarantor”:  each Granting Party other than the Borrower.

 

“Guarantor
Obligations”:  with respect to any
Guarantor, the collective reference to (i) the Obligations guaranteed by such
Guarantor pursuant to Section 2 and (ii) all obligations and liabilities of
such Guarantor that may arise under or in connection with this Agreement or any
other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees,

 

4

 

indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Administrative Agent or to the Lenders that are
required to be paid by such Guarantor pursuant to the terms of this Agreement
or any other Loan Document).

 

“Instruments”:  has the meaning specified in the Code, but
excluding the Pledged Securities.

 

“Intellectual
Property”:  with respect to any
Grantor, the collective reference to such Grantor’s Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trade Secrets, Trademarks and Trademark
Licenses.

 

“Intercompany
Note”:  with respect to any Grantor,
any promissory note in a principal amount in excess of $5,000,000 evidencing
loans made by such Grantor to Holding or any of its Subsidiaries.

 

“Inventory”:  with respect to any Grantor, all inventory
(as defined in the Code) of such Grantor, including, without limitation, all
Inventory (as defined in the Credit Agreement) of such Grantor.

 

“Investment
Property”:  the collective reference
to (i) all “investment property” as such term is defined in Section
9-102(a)(49) of the Uniform Commercial Code in effect in the State of New York
on the date hereof (other than any Capital Stock of any Foreign Subsidiary
excluded from the definition of “Pledged Stock”) and (ii) whether or not
constituting “investment property” as so defined, all Pledged Securities.

 

“Issuers”:  the collective reference to the Persons
identified on Schedule 2 as the issuers of Pledged Stock, together with
any successors to such companies (including, without limitation, any successor
contemplated by subsection 8.5 of the Credit Agreement) .

 

“Lockbox
System”:  the system, if any, of
lockboxes and related deposit accounts established and maintained pursuant to
subsection 6.1(c) of this Agreement.

 

“Non-Lender
Secured Parties”:  the collective
reference to (i) the PBGC and (ii) any person who, at the time of entering into
any Interest Rate Protection Agreement or Permitted Hedging Arrangement secured
hereby, was a Lender or a banking affiliate of any Lender and their respective
successors and assigns.

 

“Obligations”: 
(i) in the case of the Borrower, its Borrower Obligations and the PBGC
Amount owing to the PBGC and (ii) in the case of each Guarantor, the Guarantor
Obligations of such Guarantor.

 

“Patent
Licenses”:  with respect to any
Grantor, all United States written license 
agreements of such Grantor with any other Person that is not an
Affiliate or a Subsidiary of the Borrower or such Grantor, in connection with
any of the Patents of such Grantor or such other Person’s patents, whether such
Grantor is a licensor or a licensee under any such agreement, including,
without limitation, the license agreements listed on Schedule 5

 

5

 

hereto, subject,
in each case, to the terms of such license agreements, and the right to prepare
for sale, sell and advertise for sale, all Inventory now or hereafter covered
by such licenses.

 

“Patents”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States patents, patent
applications and patentable inventions and all reissues and extensions thereof,
including, without limitation, all patents and patent applications identified
in Schedule 5 hereto, and including, without limitation, (i) all
inventions and improvements described and claimed therein, (ii) the right to
sue or otherwise recover for any and all past, present and future infringements
and misappropriations thereof, (iii) all income, royalties, damages and other
payments now and hereafter due and/or payable with respect thereto (including,
without limitation, payments under all licenses entered into in connection
therewith, and damages and payments for past or future infringements thereof),
and (iv) all other rights corresponding thereto in the United States and all
reissues, divisions, continuations, continuations-in-part, substitutes,
renewals, and extensions thereof, all improvements thereon, and all other
rights of any kind whatsoever of such Grantor accruing thereunder or pertaining
thereto.

 

 “PBGC Amount”:  at any date, the lesser of (i) $34,000,000
and (ii) the unfunded benefit liabilities (as defined in 29 U.S.C. §
1301(a)(18)) of the Graphic Retirement Plan as of such date.

 

“Pledged
Collateral”:  as to any Pledgor, the
Pledged Securities now owned or at any time hereafter acquired by such Pledgor,
and any Proceeds thereof.

 

“Pledged
Notes”: with respect to any Pledgor, all Intercompany Notes at any time
issued to such Pledgor.

 

“Pledged
Securities”:  the collective
reference to the Pledged Notes and the Pledged Stock.

 

“Pledged
Stock”:  with respect to any
Pledgor, the shares of Capital Stock listed on Schedule 2 as held by
such Pledgor, together with any other shares, stock certificates, options or
rights of any nature whatsoever in respect of the Capital Stock of any Person
that may be issued or granted to, or held by, such Pledgor while this Agreement
is in effect (provided that in no event shall there be pledged, nor
shall any Pledgor be required to pledge, directly or indirectly, (i) more than
65% of any series of the outstanding Capital Stock of any Foreign Subsidiary or
(ii) any of the Capital Stock of a Subsidiary of a Foreign Subsidiary, pursuant
to this Agreement).

 

“Pledgor”: 
Holding (with respect to the Pledged Stock of Merger Sub), Merger Sub
(with respect to the Pledged Stock of GPI Holding), GPI Holding (with respect
to the Pledged Stock of the Borrower), the Borrower (with respect to Pledged
Stock of the entities listed on Schedule 2 hereto under the name of the
Borrower and any other Pledged Securities held by the Borrower) and any other
Granting Party (with respect to Pledged Securities held by such Granting
Party); provided  that, in the event of a merger

 

6

 

of
Holding and Merger Sub, Holding will be the Pledgor with respect to the Pledged
Stock of GPI Holding.

 

“Proceeds”:  all “proceeds” as such term is defined in
Section 9-102(a)(64) of the Uniform Commercial Code in effect in the State of
New York on the date hereof and, in any event, Proceeds of Pledged Securities
shall include, without limitation, all dividends or other income from the
Pledged Securities, collections thereon or distributions or payments with
respect thereto.

 

“Relevant
Secured Parties”:  the collective
reference to (i) the Administrative Agent, (ii) the Lenders (including, without
limitation, the Issuing Lender and the Swing Line Lender), (iii) with respect
to any Interest Rate Protection Agreement or Permitted Hedging Arrangement with
Holding or any of its Subsidiaries, any counterparty thereto that, at the time
such agreement or arrangement was entered into, was a Lender or a banking
affiliate of any Lender, (iv) any Lender or Affiliate thereof which provides
cash management services to the Borrower or any of its Subsidiaries, and (v)
their respective successors and assigns.

 

“Secured
Parties”:  the collective reference
to (i) the Administrative Agent, (ii) the Lenders (including, without
limitation, the Issuing Lender and the Swing Line Lender), (iii) with respect
to any Interest Rate Protection Agreement or Permitted Hedging Arrangement with
Holding or any of its Subsidiaries, any counterparty thereto that, at the time
such agreement or arrangement was entered into, was a Lender or a banking
affiliate of any Lender, (iv) any Lender or Affiliate thereof which provides
cash management services to the Borrower or any of its Subsidiaries, (v) with
respect to the PBGC Amount only, the PBGC, and (vi) their respective successors
and assigns.

 

“Security
Collateral”:  with respect to any
Granting Party, means, collectively, the Collateral (if any) and the Pledged
Collateral (if any) of such Granting Party.

 

“Trade
Secrets”:  with respect to any
Grantor, all of such Grantor’s right, title and interest in and to all United
States trade secrets, including, without limitation, know-how, processes,
formulae, compositions, designs, and confidential business and technical
information, and all rights of any kind whatsoever accruing thereunder or
pertaining thereto, including, without limitation, (i) all income, royalties,
damages and payments now and hereafter due and/or payable with respect thereto,
including, without limitation, payments under all licenses, non-disclosure
agreements and memoranda of understanding entered into in connection therewith,
and damages and payments for past or future misappropriations thereof, and (ii)
the right to sue or otherwise recover for past, present or future
misappropriations thereof.

 

“Trademark
Licenses”:  with respect to any
Grantor, all United States written license agreements of such Grantor with any
other Person who is not an Affiliate or a Subsidiary of the Borrower or such
Grantor in connection with any of the Trademarks of such Grantor or such other
Person’s names or trademarks, whether such Grantor is a licensor or a licensee
under any such agreement, including, without limitation, the license agreements
listed on Schedule 5 hereto, subject, in each case, to the terms of such
license

 

7

 

agreements, and
the right to prepare for sale, sell and advertise for sale, all Inventory now
or hereafter covered by such licenses.

 

“Trademarks”:  with respect to any Grantor, all of such
Grantor’s right, title and interest in and to all United States trademarks,
service marks, trade names, trade dress or other indicia of trade origin or
business identifiers, trademark and service mark registrations, and
applications for trademark or service mark registrations (except for “intent to
use” applications for trademark or service mark registrations filed pursuant to
Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until an Amendment
to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of said Act
has been filed), and any renewals thereof, including, without limitation, each
registration and application identified in Schedule 5 hereto, and
including, without limitation, (i) the right to sue or otherwise recover for
any and all past, present and future infringements or dilutions thereof, (ii)
all income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all
licenses entered into in connection therewith, and damages and payments for
past or future infringements thereof), and (iii) all other rights corresponding
thereto in the United States and all other rights of any kind whatsoever of
such Grantor accruing thereunder or pertaining thereto in the United States,
together in each case with the goodwill of the business connected with the use
of, and symbolized by, each such trademark, service mark, trade name, trade
dress or other indicia of trade origin or business identifiers.

 

“Vehicles”:  all cars, trucks, trailers, construction and
earth moving equipment and other vehicles covered by a certificate of title law
of any state and all tires and other appurtenances to any of the foregoing.

 

1.2                                 Other Definitional Provisions.  (a) 
The words “hereof”, “herein”, “hereto” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
Schedule and Annex references are to this Agreement unless otherwise specified.

 

(b)                                 The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

 

(c)                                  Where the context requires, terms relating to
the Collateral, Pledged Collateral or Security Collateral, or any part thereof,
when used in relation to a Granting Party shall refer to such Granting Party’s
Collateral, Pledged Collateral or Security Collateral or the relevant part
thereof.

 

(d)                                 All references in this Agreement to any of
the property described in the definition of the term “Collateral” or “Pledged
Collateral”, or to any Proceeds thereof, shall be deemed to be references
thereto only to the extent the same constitute Collateral or Pledged
Collateral, respectively.

 

SECTION 2.  GUARANTEE

 

2.1                                 Guarantee. 
(a)                   Each of the
Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Administrative Agent, for the ratable benefit

 

8

 

of the Relevant Secured Parties, the prompt and complete payment and performance
by the Borrower when due and payable (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

 

(b)                                 Anything herein or in any other Loan Document
to the contrary notwithstanding, the maximum liability of each Guarantor
hereunder and under the other Loan Documents shall in no event exceed the
amount that can be guaranteed by such Guarantor under applicable law, including
applicable federal and state laws relating to the insolvency of debtors.

 

(c)                                  Each Guarantor agrees that the Borrower
Obligations guaranteed by it hereunder may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without
impairing the guarantee contained in this Section 2 or affecting the rights and
remedies of the Administrative Agent or any other Secured Party hereunder.

 

(d)                                 The guarantee contained in this Section 2
shall remain in full force and effect until the earlier to occur of (i) the
first date on which all the Loans, any Reimbursement Obligations, all other
Borrower Obligations then due and owing, and the obligations of each Guarantor
under the guarantee contained in this Section 2 then due and owing shall have
been satisfied by payment in full, no Letter of Credit shall be outstanding and
the Commitments shall be terminated, notwithstanding that from time to time
during the term of the Credit Agreement the Borrower may be free from any
Borrower Obligations, or (ii) as to any Guarantor, the sale or other
disposition of all of the Capital Stock of such Guarantor as permitted under
the Credit Agreement.

 

(e)                                  No payment made by the Borrower, any of the
Guarantors, any other guarantor or any other Person or received or collected by
the Administrative Agent or any other Relevant Secured Party from the Borrower,
any of the Guarantors, any other guarantor or any other Person by virtue of any
action or proceeding or any set-off or appropriation or application at any time
or from time to time in reduction of or in payment of any of the Borrower
Obligations shall be deemed to modify, reduce, release or otherwise affect the
liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the
Borrower Obligations or any payment received or collected from such Guarantor
in respect of the Borrower Obligations), remain liable for the Borrower
Obligations guaranteed by it hereunder up to the maximum liability of such
Guarantor hereunder until the earlier to occur of (i) the first date on which
the Loans, any Reimbursement Obligations, and all other Borrower Obligations
then due and owing, are paid in full, no Letter of Credit shall be outstanding
and the Commitments are terminated or (ii) the sale or other disposition of all
of the Capital Stock of such Guarantor as permitted under the Credit Agreement.

 

2.2                                 Right of Contribution.  Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of
any payment made hereunder, such Guarantor shall be entitled to seek and
receive contribution from and against any other Guarantor hereunder that has
not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall be subject to the
terms and conditions of subsection 2.3. 
The provisions of this subsection 2.2 shall in no respect limit the
obligations and liabilities of any Guarantor to the Administrative Agent and
the other Relevant Secured Parties, and each

 

9

 

Guarantor shall remain liable to the Administrative Agent and the other
Relevant Secured Parties for the full amount guaranteed by such Guarantor
hereunder.

 

2.3                                 No Subrogation. 
Notwithstanding any payment made by any Guarantor hereunder or any
set-off or application of funds of any Guarantor by the Administrative Agent or
any other Relevant Secured Party, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any other
Relevant Secured Party against the Borrower or any other Guarantor or any
collateral security or guarantee or right of offset held by the Administrative
Agent or any other Relevant Secured Party for the payment of the Borrower
Obligations, nor shall any Guarantor seek or be entitled to seek any contribution
or reimbursement from the Borrower or any other Guarantor in respect of
payments made by such Guarantor hereunder, until all amounts owing to the
Administrative Agent and the other Relevant Secured Parties by the Borrower on
account of the Borrower Obligations are paid in full, no Letter of Credit shall
be outstanding and the Commitments are terminated.  If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Borrower Obligations shall not
have been paid in full or any Letter of Credit shall remain outstanding or any
of the Commitments shall remain in effect, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the other Relevant Secured
Parties, segregated from other funds of such Guarantor, and shall, forthwith
upon receipt by such Guarantor, be turned over to the Administrative Agent in
the exact form received by such Guarantor (duly indorsed by such Guarantor to
the Administrative Agent, if required), to be applied against the Borrower
Obligations, whether matured or unmatured, in such order as the Administrative
Agent may determine.

 

2.4                                 Amendments, etc. with respect to the
Obligations.  To the
maximum extent permitted by law, each Guarantor shall remain obligated hereunder
notwithstanding that, without any reservation of rights against any Guarantor
and without notice to or further assent by any Guarantor, any demand for
payment of any of the Borrower Obligations made by the Administrative Agent or
any other Relevant Secured Party may be rescinded by the Administrative Agent
or such other Relevant Secured Party and any of the Borrower Obligations
continued, and the Borrower Obligations, or the liability of any other Person
upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
subordinated, waived, surrendered or released by the Administrative Agent or
any other Relevant Secured Party, and the Credit Agreement and the other Loan
Documents and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in
part, as the Administrative Agent (or the Required Lenders or the Required
Collateral Release Lenders under the Credit Agreement, or the applicable
Lenders(s), as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the
Administrative Agent or any other Relevant Secured Party for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or
released.  Neither the Administrative
Agent nor any other Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the Borrower
Obligations or for the guarantee contained in this Section 2 or any property
subject thereto, except to the extent required by applicable law.

 

10

 

2.5                                 Guarantee Absolute and
Unconditional.  Each Guarantor
waives, to the maximum extent permitted by applicable law, any and all notice
of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by the Administrative Agent or
any other Relevant Secured Party upon the guarantee contained in this Section 2
or acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Administrative Agent and the other Relevant Secured Parties, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon the guarantee contained in this Section 2.  Each Guarantor waives, to the maximum extent
permitted by applicable law, diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower or any of
the other Guarantors with respect to the Borrower Obligations.  Each Guarantor understands and agrees, to
the extent permitted by law, that the guarantee contained in this Section 2
shall be construed as a continuing, absolute and unconditional guarantee of
payment.  Each Guarantor hereby waives, to
the maximum extent permitted by applicable law, any and all defenses (other
than any suit for breach of a contractual provision of any of the Loan
Documents) that it may have arising out of or in connection with any and all of
the following:  (a) the validity or
enforceability of the Credit Agreement or any other Loan Document, any of the
Borrower Obligations or any other collateral security therefor or guarantee or
right of offset with respect thereto at any time or from time to time held by
the Administrative Agent or any other Relevant Secured Party, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) that
may at any time be available to or be asserted by the Borrower against the
Administrative Agent or any other Relevant Secured Party, (c) any change in the
time, place, manner or place of payment, amendment, or waiver or increase in
the Obligations, (d) any exchange, taking, or release of Security Collateral,
(e) any change in the structure or existence of the Borrower, (f) any
application of Security Collateral to any of the Obligations or (g) any other
circumstance whatsoever (other than payment in full of the Borrower Obligations
guaranteed by it hereunder) (with or without notice to or knowledge of the
Borrower or such Guarantor) that constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for the Borrower
Obligations, or of such Guarantor under the guarantee contained in this Section
2, in bankruptcy or in any other instance. 
When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against any Guarantor, the Administrative Agent or any other
Relevant Secured Party may, but shall be under no obligation to, make a similar
demand on or otherwise pursue such rights and remedies as it may have against
the Borrower, any other Guarantor or any other Person or against any collateral
security or guarantee for the Borrower Obligations guaranteed by such Guarantor
hereunder or any right of offset with respect thereto, and any failure by the Administrative
Agent or any other Relevant Secured Party to make any such demand, to pursue
such other rights or remedies or to collect any payments from the Borrower, any
other Guarantor or any other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release
of the Borrower, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of the
Administrative Agent or any other

 

11

 

Relevant Secured Party against any Guarantor.  For the purposes hereof “demand” shall include the commencement
and continuance of any legal proceedings.

 

2.6                                 Reinstatement. 
The guarantee of any Guarantor contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations guaranteed by
such Guarantor hereunder is rescinded or must otherwise be restored or returned
by the Administrative Agent or any other Relevant Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or any
Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, the Borrower or any
Guarantor or any substantial part of its property, or otherwise, all as though
such payments had not been made.

 

2.7                                 Payments.  Each
Guarantor hereby guarantees that payments hereunder will be paid to the
Administrative Agent without set-off or counterclaim, in Dollars, at the
Administrative Agent’s office specified in subsection 11.2 of the Credit
Agreement or such other address as may be designated in writing by the
Administrative Agent to such Guarantor from time to time in accordance with
subsection 11.2 of the Credit Agreement.

 

SECTION 3.  GRANT OF
SECURITY INTEREST

 

3.1                                 Grant.  Each Granting Party that
is a Grantor hereby grants, subject to existing licenses to use the Copyrights,
Patents, Trademarks and Trade Secrets granted by such Grantor in the ordinary
course of its business, to the Administrative Agent, for the ratable benefit of
the Secured Parties, a security interest in all of the Collateral of such
Grantor, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations of such Grantor, except as provided in subsection
3.3.  The term “Collateral”, as to any
Grantor, means the following property (wherever located) now owned or at any
time hereafter acquired by such Grantor or in which such Grantor now has or at
any time in the future may acquire any right, title or interest, except as
provided in subsection 3.3:

 

(a)                                  all Accounts;

 

(b)                                 all Chattel Paper;

 

(c)                                  all Contracts;

 

(d)                                 all Deposit Accounts;

 

(e)                                  all Documents;

 

(f)                                    all Equipment (other than Vehicles);

 

(g)                                 all General Intangibles;

 

(h)                                 all Instruments;

 

(i)                                     all Intellectual Property;

 

12

 

(j)                                     all Inventory;

 

(k)                                  all books and records pertaining to any of
the foregoing;

 

(l)                                     the Collateral Proceeds Account; and

 

(m)                               to the extent not otherwise included, all Proceeds and products of any
and all of the foregoing and all collateral security and guarantees given by
any Person with respect to any of the foregoing;

 

provided
that Collateral shall not include any Pledged Collateral, or any property or
assets specifically excluded from Pledged Collateral (including any Capital
Stock of any Foreign Subsidiary in excess of 65% of any series of such stock).

 

3.2                                 Pledged Collateral.  Each Granting Party that is a Pledgor hereby
grants to the Administrative Agent, for the ratable benefit of the Secured
Parties, a security interest in all of the Pledged Collateral and other
Investment Property of such Pledgor now owned or at any time hereafter acquired
by such Pledgor, and any Proceeds thereof, as collateral security for the
prompt and complete performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations of such Pledgor, except as
provided in subsection 3.3.

 

3.3                                 Certain Exceptions.  No security interest is or will be granted
pursuant hereto in any right, title or interest of any Granting Party under or
in:

 

(a)                                  any Instruments, Contracts, Chattel Paper,
General Intangibles, Copyright Licenses, Patent Licenses, Trademark Licenses or
other contracts or agreements with or issued by Persons other than a Subsidiary
of the Borrower (collectively, “Excluded Agreements”) that would
otherwise be included in the Security Collateral (and such Excluded Agreements
shall not be deemed to constitute a part of the Security Collateral) for so
long as, and to the extent that, the granting of such a security interest
pursuant hereto would result in a breach, default or termination of such
Excluded Agreements;

 

(b)                                 any Equipment that would otherwise be
included in the Security Collateral (and such Equipment shall not be deemed to
constitute a part of the Security Collateral) if such Equipment is subject to a
Lien permitted by subsection 8.3(h) of the Credit Agreement;

 

(c)                                  any property that would otherwise be included
in the Security Collateral (and such property shall not be deemed to constitute
a part of the Security Collateral) if such property has been sold or otherwise
transferred in connection with a Permitted Receivables Transaction or a Sale
and Leaseback Transaction permitted under subsection 8.12 of the Credit
Agreement, or is subject to any Liens permitted under subsection 8.3(m), 8.3(p)
and 8.3(t) of the Credit Agreement, or constitutes the Proceeds or products of
any property that has been so sold or otherwise transferred; or

 

(d)                                 the Capital Stock or assets of Golden
Properties or Kalamazoo Valley Partnership.

 

13

 

SECTION 4.  REPRESENTATIONS
AND WARRANTIES

 

4.1                                 Representations and Warranties of
Each Guarantor.  To
induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder, each Guarantor hereby represents and
warrants to the Administrative Agent and each other Secured Party that the
representations and warranties set forth in Section 5 of the Credit Agreement
as they relate to such Guarantor or to the Loan Documents to which such
Guarantor is a party, each of which representations and warranties is hereby
incorporated herein by reference, are true and correct in all material
respects, and the Administrative Agent and each other Secured Party shall be
entitled to rely on each of such representations and warranties as if fully set
forth herein; provided that each reference in each such representation
and warranty to the Borrower’s knowledge shall, for the purposes of this
subsection 4.1, be deemed to be a reference to such Guarantor’s knowledge.

 

4.2                                 Representations and Warranties of
Each Grantor.  To induce
the Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make their respective extensions of credit to the
Borrower thereunder, each Grantor hereby represents and warrants to the
Administrative Agent and each other Secured Party that:

 

4.2.1                        Title; No Other Liens.  Except for the security interest granted to
the Administrative Agent, for the ratable benefit of the Secured Parties,
pursuant to this Agreement and the other Liens permitted to exist on such
Grantor’s Collateral by the Credit Agreement (including, without limitation,
subsection 8.3 thereof), such Grantor owns each item of such Grantor’s
Collateral free and clear of any and all Liens.  Except as set forth on Schedule 3, no currently effective
financing statement or other similar public notice with respect to all or any
part of such Grantor’s Collateral is on file or of record in any public office,
except such as have been filed in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, pursuant to this Agreement or as are
permitted by the Credit Agreement (including without limitation subsection 8.3
thereof) or any other Loan Document or for which termination statements will be
delivered on the Closing Date.

 

4.2.2                        Perfected First Priority Liens.  (a) 
This Agreement is effective to create, as collateral security for the
Obligations of such Grantor, valid and enforceable Liens on such Grantor’s Collateral
in favor of the Administrative Agent, for the benefit of the Secured Parties,
except as enforceability may be affected by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditor’s rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

 

(b)  Except with regard to (i) Liens (if any) on
Specified Assets and (ii) any rights reserved in favor of the United States
government as required by law (if any), upon the completion of the Filings, and
the delivery to and continuing possession by the Administrative Agent of all
Instruments, Chattel Paper and Documents a security interest in which is
perfected by possession, and the obtaining and maintenance of “control” (as
described in the Code) by the Administrative Agent of all Deposit Accounts, the
Collateral Proceeds Account and Electronic Chattel Paper a security interest in
which is perfected by “control”, the Liens created pursuant to this Agreement
will constitute valid Liens on and (to the extent provided herein) perfected

 

14

 

security interests in such Grantor’s Collateral in favor of the
Administrative Agent for the benefit of the Secured Parties, and will be prior
to all other Liens of all other Persons other than Permitted Liens, and
enforceable as such as against all other Persons other than Ordinary Course
Transferees, except to the extent that the recording of an assignment or other
transfer of title to the Administrative Agent or the recording of other
applicable documents in the United States Patent and Trademark Office or United
States Copyright Office may be necessary for perfection or enforceability, and
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law) or by an implied
covenant of good faith and fair dealing. As used in this subsection 4.2.2(b),
the following terms shall have the following meanings:

 

“Filings”:  the filing or recording of (i) the Financing
Statements as set forth in Schedule 3, (ii) this Agreement or a notice
thereof with respect to Intellectual Property as set forth in Schedule 3,
and (iii) any filings after the Closing Date in any other jurisdiction as may
be necessary under any Requirement of Law.

 

“Financing
Statements”:  the financing
statements delivered to the Administrative Agent by such Grantor on the Closing
Date for filing in the jurisdictions listed in Schedule 3.

 

“Ordinary
Course Transferees”:  (i) with
respect to goods only, buyers in the ordinary course of business and lessees in
the ordinary course of business to the extent provided in Section 9-320(a) and
9-321 of the Uniform Commercial Code as in effect from time to time in the
relevant jurisdiction, (ii) with respect to general intangibles only, licensees
in the ordinary course of business to the extent provided in Section 9-321 of
the Uniform Commercial Code as in effect from time to time in the relevant
jurisdiction and (iii) any other Person who is entitled to take free of the
Lien pursuant to the Uniform Commercial Code as in effect from time to time in
the relevant jurisdiction.

 

“Permitted
Liens”:  Liens permitted pursuant to
the Credit Documents, including without limitation those permitted to exist
pursuant to subsection 8.3 of the Credit Agreement.

 

“Specified
Assets”:  the following property and
assets of such Grantor:

 

(1)  Equipment
constituting Fixtures;

 

(2)  Patents,
Patent Licenses, Trademarks and Trademark Licenses to the extent that (a) Liens
thereon cannot be perfected by the filing of financing statements under the
Uniform Commercial Code or by the filing and acceptance thereof in the United
States Patent and Trademark Office or (b) such Patents, Patent Licenses,
Trademarks and Trademark Licenses are not, individually or in the aggregate,
material to the business of the Borrower and its Subsidiaries taken as a whole;

 

(3)  Copyrights
and Copyright Licenses and Accounts or receivables arising therefrom to the
extent that the Uniform Commercial Code as in effect

 

15

 

from
time to time in the relevant jurisdiction is not applicable to the creation or
perfection of Liens thereon;

 

(4) 
uncertificated securities;

 

(5)  Collateral
for which the perfection of Liens thereon requires filings in or other actions
under the laws of jurisdictions outside the United States of America, any
State, territory or dependency thereof or the District of Columbia;

 

(6)  contracts,
Accounts or receivables subject to the Assignment of Claims Act;

 

(7)  goods
included in Collateral received by any Person for “sale or return” within the
meaning of Section 2-326 of the Uniform Commercial Code of the applicable
jurisdiction, to the extent of claims of creditors of such Person; and

 

(8)  Proceeds
of Accounts, receivables or Inventory which do not themselves constitute
Collateral or which have not been transferred to or deposited in the Collateral
Proceeds Account (if any).

 

4.2.3                        Jurisdiction of Organization.  On the date hereof, such Grantor’s
jurisdiction of organization is specified on Schedule 4.

 

4.2.4                        Farm Products.  None of such Grantor’s Collateral
constitutes, or is the Proceeds of, Farm Products.

 

4.2.5                        Accounts Receivable.  The amount represented by such Grantor to
the Administrative Agent or the other Secured Parties from time to time as
owing by each account debtor or by all account debtors in respect of such
Grantor’s Accounts Receivable will at such time be the correct amount, in all
material respects, actually owing by such account debtor or debtors thereunder,
except to the extent that appropriate reserves therefor have been established
on the books of such Grantor in accordance with GAAP.  Unless otherwise indicated in writing to the Administrative
Agent, each Account Receivable of such Grantor arises out of a bona fide sale
and delivery of goods or rendition of services by such Grantor.  Such Grantor has not given any account
debtor any deduction in respect of the amount due under any such Account,
except in the ordinary course of business or as such Grantor may otherwise
advise the Administrative Agent in writing.

 

4.2.6                        Patents and Trademarks.  Schedule 5 lists all material
Trademarks and material Patents, in each case, registered in the United States
Patent and Trademark Office and owned by such Grantor in its own name as of the
date hereof, and all material Trademark Licenses and all material Patent
Licenses (including, without limitation, material Trademark Licenses for
registered Trademarks and material Patent Licenses for registered Patents)
owned by such Grantor in its own name as of the date hereof.

 

4.2.7                        Copyrights.  As of the date hereof, such Grantor does not
own any Copyrights registered in the United States Copyright Office or
exclusive Copyright Licenses for

 

16

 

registered copyrights which are material to
the business of such Grantor and its Subsidiaries, taken as a whole.

 

4.3                                 Representations and Warranties of
Each Pledgor.  To induce
the Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make their respective extensions of credit thereunder,
each Pledgor hereby represents and warrants to the Administrative Agent and
each other Secured Party that:

 

4.3.1                        Except as provided in subsection 3.3, the
shares of Pledged Stock pledged by such Pledgor hereunder constitute (i) in the
case of shares of a Domestic Subsidiary, all the issued and outstanding shares
of all classes of the Capital Stock of such Domestic Subsidiary owned by such
Pledgor and (ii) in the case of shares of a Foreign Subsidiary such percentage
(not more than 65%) as is specified on Schedule 2 of the issued and
outstanding shares of each class of the Capital Stock of such Foreign
Subsidiary owned by such Pledgor.

 

4.3.2                        All the shares of the Pledged Stock pledged
by such Pledgor hereunder have been duly and validly issued and are fully paid
and nonassessable.

 

4.3.3                        Such Pledgor is the record and beneficial
owner of, and has good title to, the Pledged Securities pledged by it
hereunder, free of any and all Liens or options in favor of, or claims of, any
other Person, except the security interest created by this Agreement and Liens
arising by operation of law or permitted by the Credit Agreement.

 

4.3.4                        Upon delivery to the Administrative Agent of
the certificates evidencing the Pledged Securities held by such Pledgor
together with executed undated stock powers or other instruments of transfer,
the security interest created in such Pledged Securities constituting
certificated securities by this Agreement, assuming the continuing possession
of such Pledged Securities by the Administrative Agent, will constitute a
valid, perfected first priority security interest in such Pledged Securities to
the extent provided in and governed by the Code, enforceable in accordance with
its terms against all creditors of such Pledgor and any Persons purporting to
purchase such Pledged Securities from such Pledgor, except as enforceability
may be affected by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and
fair dealing.

 

4.3.5                        Upon the filing of financing statements in
the appropriate jurisdictions under the Code, the security interest created by
this Agreement in such Pledged Securities that constitute uncertificated
securities, will constitute a valid, perfected first priority security interest
in such Pledged Securities constituting uncertificated securities, enforceable
in accordance with its terms against all creditors of such Pledgor and any
persons purporting to purchase such Pledged Securities from such Pledgor, to
the extent provided in and governed by the Code, except as enforceability may
be affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally,
general equitable principles (whether considered in a proceeding in equity or
at law) and an implied covenant of good faith and fair dealing.

 

17

 

SECTION 5.  COVENANTS

 

5.1                                 Covenants of Each Guarantor.  Each Guarantor covenants and agrees with the
Administrative Agent and the other Relevant Secured Parties that, from and
after the date of this Agreement until the earlier to occur of (i) the date
upon which the Loans, any Reimbursement Obligations, and all other Obligations
then due and owing, shall have been paid in full, no Letter of Credit shall be
outstanding and the Commitments shall have terminated or (ii) as to any
Guarantor, the date upon which all the Capital Stock of such Guarantor shall have
been sold or otherwise disposed of in accordance with the terms of the Credit
Agreement, such Guarantor shall take, or shall refrain from taking, as the case
may be, each action that is necessary to be taken or not taken, as the case may
be, so that no Default or Event of Default is caused by the failure to take
such action or to refrain from taking such action by such Guarantor or any of
its Subsidiaries.

 

5.2                                 Covenants of Each Grantor.  Each Grantor covenants and agrees with the
Administrative Agent and the other Secured Parties that, from and after the
date of this Agreement until the earlier to occur of (i) the date upon which
the Loans, any Reimbursement Obligations and all other Obligations then due and
owing shall have been paid in full, no Letter of Credit shall be outstanding
and the Commitments shall have terminated or (ii) as to any Grantor, the date
upon which all the Capital Stock of such Grantor shall have been sold or
otherwise disposed of in accordance with the terms of the Credit Agreement:

 

5.2.1                        Delivery of Instruments and Chattel Paper.  If any amount payable under or in connection
with any of such Grantor’s Collateral shall be or become evidenced by any
Instrument or Chattel Paper, such Grantor shall (except as provided in the
following sentence) be entitled to retain possession of all Collateral of such
Grantor evidenced by any Instrument or Chattel Paper, and shall hold all such
Collateral in trust for the Administrative Agent, for the ratable benefit of
the Secured Parties.  In the event that
an Event of Default shall have occurred and be continuing, upon the request of
the Administrative Agent, such Instrument or Chattel Paper shall be promptly
delivered to the Administrative Agent, duly indorsed in a manner satisfactory
to the Administrative Agent, to be held as Collateral pursuant to this
Agreement.  Such Grantor shall not
permit any other Person to possess any such Collateral at any time other than
in connection with any sale or other disposition of such Collateral in a
transaction permitted by the Credit Agreement.

 

5.2.2                        Maintenance
of Insurance.  (a)                             Such Grantor will
maintain, with financially sound and reputable companies, insurance policies
(i) insuring such Grantor’s Inventory and Equipment against loss by fire,
explosion, theft and such other casualties as may be reasonably satisfactory to
the Administrative Agent and (ii) insuring such Grantor, the Administrative
Agent and the other Secured Parties against liability for personal injury and
property damage relating to such Inventory and Equipment, such policies to be
in such form and amounts and having such coverage as may be reasonably
satisfactory to the Administrative Agent.

 

(b)                                 All such insurance shall (i) provide that no
cancellation, material reduction in amount or material change in coverage
thereof shall be effective until at least 15 days after receipt by the
Administrative Agent of written notice thereof, (ii) name the Administrative
Agent as an additional insured party or loss payee, (iii) include deductibles
consistent with past practice

 

18

 

or consistent with industry
practice or otherwise reasonably satisfactory to the Administrative Agent.

 

5.2.3                        Payment of Obligations.  Such Grantor will pay and discharge or otherwise
satisfy at or before maturity or before they become delinquent, as the case may
be, all material taxes, assessments and governmental charges or levies imposed
upon such Grantor’s Collateral or in respect of income or profits therefrom, as
well as all material claims of any kind (including, without limitation,
material claims for labor, materials and supplies) against or with respect to
such Grantor’s Collateral, except that no such tax, assessment, charge or levy
need be paid or satisfied if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of such Grantor.

 

5.2.4                        Maintenance of Perfected Security Interest;
Further Documentation. 
(a)  Such Grantor shall maintain
the security interest created by this Agreement in such Grantor’s Collateral as
a perfected security interest having at least the priority described in
subsection 4.2.2 and shall defend such security interest against the claims and
demands of all Persons whomsoever.

 

(b)  Such Grantor will furnish to the
Administrative Agent from time to time statements and schedules further
identifying and describing such Grantor’s Collateral and such other reports in
connection with such Grantor’s Collateral as the Administrative Agent may
reasonably request in writing, all in reasonable detail.

 

(c)  At any time and from time to time, upon the
written request of the Administrative Agent, and at the sole expense of such Grantor,
such Grantor will promptly and duly execute and deliver such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted by
such Grantor, including, without limitation, the filing of any financing or
continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby.

 

5.2.5                        Changes in Name, etc. 
Such Grantor will not, except upon not less than 30 days’ prior written
notice to the Administrative Agent, change its name, identity or corporate
structure to such an extent that any financing statement filed by the
Administrative Agent in connection with this Agreement would become seriously
misleading; provided that, promptly after receiving a written request
therefor from the Administrative Agent, such Grantor shall deliver to the Administrative
Agent all additional financing statements and other documents reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests as and to the extent provided for herein.

 

5.2.6                        Notices.  Such Grantor will advise the Administrative Agent promptly, in
reasonable detail, of:

 

(a)                                  any Lien (other than security interests
created hereby or Liens permitted under the Credit Agreement) on any of such
Grantor’s Collateral which would materially

 

19

 

adversely affect the ability
of the Administrative Agent to exercise any of its remedies hereunder; and

 

(b)                                 the occurrence of any other event which would
reasonably be expected to have a material adverse effect on the security
interests created hereby.

 

5.2.7                        Pledged Stock.  In the case of each Grantor that is an
Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Pledged Stock issued by it and will comply with such
terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in subsection 5.3.1 with respect to the Pledged Stock issued by it
and (iii) the terms of subsections 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it
pursuant to subsection 6.3(c) or 6.7 with respect to the Pledged Stock issued
by it.

 

5.2.8                        Accounts Receivable.  (a) 
Other than in the ordinary course of business or as permitted by the
Loan Documents, such Grantor will not (i) grant any extension of the time of
payment of any of such Grantor’s Accounts Receivable, (ii) compromise or settle
any such Account Receivable for less than the full amount thereof, (iii)
release, wholly or partially, any Person liable for the payment of any Account
Receivable, (iv) allow any credit or discount whatsoever on any such Account
Receivable or (v) amend, supplement or modify any Account Receivable unless
such extensions, compromises, settlements, releases, credits or discounts would
not reasonably be expected to materially adversely affect the value of the
Accounts Receivable constituting Collateral taken as a whole.

 

(b)  Such Grantor will deliver to the
Administrative Agent a copy of each material demand, notice or document
received by it that questions or calls into doubt the validity or
enforceability of more than 10% of the aggregate amount of the then outstanding
Accounts Receivable.

 

5.2.9                        Maintenance of Records.  Such Grantor will keep and maintain at its
own cost and expense reasonably satisfactory and complete records of its
Collateral, including, without limitation, a record of all payments received
and all credits granted with respect to such Collateral, and shall mark such
records to evidence this Agreement and the Liens and the security interests
created hereby.

 

5.2.10                  Acquisition of Intellectual Property.  Within 90 days after the end of each
calendar year, such Grantor will notify the Administrative Agent of any
acquisition by such Grantor of (i) any registration of any material Copyright,
Patent or Trademark or (ii) any exclusive rights under a material Copyright
License, Patent License or Trademark License constituting Collateral, and shall
take such actions as may be reasonably requested by the Administrative Agent
(but only to the extent such actions are within such Grantor’s control) to
perfect the security interest granted to the Administrative Agent and the other
Secured Parties therein, to the extent provided herein in respect of any
Copyright, Patent or Trademark constituting Collateral on the date hereof, by
(x) the execution and delivery of an amendment or supplement to this Agreement
(or amendments to any such agreement previously executed or delivered by such
Grantor) and/or (y) the making of appropriate filings (I) of financing

 

20

 

statements under the Uniform Commercial Code
of any applicable jurisdiction and/or (II) in the United States Patent and
Trademark Office, or with respect to Copyrights and Copyright Licenses, another
applicable office).

 

5.2.11                  Protection of Trade Secrets.  Such Grantor shall take all steps which it
deems commercially reasonable to preserve and protect the secrecy of all
material Trade Secrets of such Grantor.

 

5.3                                 Covenants of Each Pledgor.  Each Pledgor covenants and agrees with the
Administrative Agent and the other Secured Parties that, from and after the
date of this Agreement until the earlier to occur of (i) the Loans, any
Reimbursement Obligations, and all other Obligations then due and owing shall
have been paid in full, no Letter of Credit shall be outstanding and the
Commitments shall have terminated or (ii) as to any Pledgor, all the Capital
Stock of such Pledgor shall have been sold or otherwise disposed of as
permitted under the terms of the Credit Agreement:

 

5.3.1                        Additional Shares.  If such Pledgor shall, as a result of its
ownership of its Pledged Stock, become entitled to receive or shall receive any
stock certificate (including, without limitation, any stock certificate
representing a stock dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), stock option or similar rights in respect
of the Capital Stock of any Issuer, whether in addition to, in substitution of,
as a conversion of, or in exchange for, any shares of the Pledged Stock, or
otherwise in respect thereof, such Pledgor shall accept the same as the agent
of the Administrative Agent and the other Secured Parties, hold the same in
trust for the Administrative Agent and deliver the same forthwith to the
Administrative Agent in the exact form received, duly indorsed by such Pledgor
to the Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor, to be held by
the Administrative Agent, subject to the terms hereof, as additional collateral
security for the Obligations (subject to subsection 3.3 and provided
that in no event shall there be pledged, nor shall any Pledgor be required to
pledge, more than 65% of any series of the outstanding Capital Stock of any
Foreign Subsidiary pursuant to this Agreement).  Any sums paid upon or in respect of the Pledged Stock upon the
liquidation or dissolution of any Issuer (except any liquidation or dissolution
of any Subsidiary of the Borrower in accordance with the Credit Agreement)
shall be paid over to the Administrative Agent to be held by it hereunder as
additional collateral security for the Obligations, and in case any
distribution of capital shall be made on or in respect of the Pledged Stock or
any property shall be distributed upon or with respect to the Pledged Stock
pursuant to the recapitalization or reclassification of the capital of any
Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected security interest in favor of
the Administrative Agent, be delivered to the Administrative Agent to be held
by it hereunder as additional collateral security for the Obligations.  If any sums of money or property so paid or
distributed in respect of the Pledged Stock shall be received by such Pledgor,
such Pledgor shall, until such money or property is paid or delivered to the
Administrative Agent, hold such money or property in trust for the Secured
Parties, segregated from other funds of such Pledgor, as additional collateral
security for the Obligations.

 

21

 

5.3.2                        Maintenance of Pledged Stock.  Without the prior written consent of the
Administrative Agent, such Pledgor will not (except as permitted by the Credit
Agreement) (i) vote to enable, or take any other action to permit, any Issuer
to issue any stock or other equity securities of any nature or to issue any
other securities convertible into, or granting the right to purchase or
exchange for, any stock or other equity securities of any nature of any Issuer,
(ii) sell, assign, transfer, exchange, or otherwise dispose of, or grant any
option with respect to, the Pledged Securities or Proceeds thereof or (iii)
create, incur or permit to exist any Lien or option in favor of, or any
material adverse claim of any Person with respect to, any of the Pledged
Securities or Proceeds thereof, or any interest therein, except for the
security interests created by this Agreement or Liens arising by operation of
law.

 

5.3.3                        Maintenance of  First Priority Security Interest.  Such Pledgor shall maintain the security
interest created by this Agreement in such Pledgor’s Pledged Collateral as a
perfected security interest having at least the priority described in
subsection 4.3.4 or 4.3.5, as applicable, and shall defend such security
interest against the claims and demands of all Persons whomsoever.  At any time and from time to time, upon the
written request of the Administrative Agent, and at the sole expense of such Pledgor,
such Pledgor will promptly and duly execute and deliver such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted by
such Pledgor.

 

5.4                                 Covenants of Holding, Merger Sub
and GPI Holding.  Each of
Holding, Merger Sub and GPI Holding covenants and agrees with the
Administrative Agent and the other Relevant Secured Parties that, from and
after the date of this Agreement until the Loans, any Reimbursement Obligations
and all other Obligations then due and owing, shall have been paid in full, no
Letter of Credit shall be outstanding and the Commitments shall have
terminated, such Person shall not conduct, transact or otherwise engage, or
commit to conduct, transact or otherwise engage, in any business or operations
other than (i) transactions contemplated by the Loan Documents or the provision
of administrative, legal, accounting and management services to, or on behalf
of, any of its Subsidiaries, (ii) the ownership of the Capital Stock of Merger
Sub (with respect to Holding), of GPI Holding (with respect to Merger Sub), and
the Borrower (with respect to GPI Holding), the sale and transfer of such
ownership interests (to the extent not prohibited by the Credit Agreement) and
the exercise of rights and performance of obligations in connection therewith; provided
that (A) in the event of a merger of Holding and Merger Sub, Holding shall be
permitted to own the Capital Stock of GPI Holding and (B) until the
consummation of the ACX Liquidation Transaction, GPI Holding shall be permitted
to own the Capital Stock of ACX (UK) Limited, (iii) the entry into, and
exercise of rights and performance of obligations in respect of (A) the
Transaction Documents, this Agreement and any other Loan Document to which it
is a party; any other agreement to which it is a party on the date hereof; the
Existing RIC Holding Indebtedness, the 2002 Senior Subordinated Note Documents,
2003 Senior Note Documents, 2003 Senior Subordinated Note Documents or any
guarantee thereof; and any guarantee of Indebtedness or other obligations of
any of its Subsidiaries permitted pursuant to the Loan Documents; in each case
as amended, supplemented, waived or otherwise modified from time to time, and
any refinancings, refundings, renewals or extensions thereof, (B) contracts and
agreements with officers, directors and employees of it or any Subsidiary
thereof relating to their employment or directorships, (C) insurance policies
and related contracts and agreements, and (D) equity subscription agreements,
registration rights agreements, voting

 

22

 

and other stockholder agreements, engagement letters, underwriting agreements
and other agreements in respect of its equity securities or any offering,
issuance or sale thereof, including but not limited to in respect of the
Management Subscription Agreements, (iv) the offering, issuance, sale and
repurchase or redemption of, and dividends or distributions on its equity
securities, (v) the filing of registration statements, and compliance with
applicable reporting and other obligations, under federal, state or other
securities laws, (vi) the listing of its equity securities and compliance with
applicable reporting and other obligations in connection therewith, (vii) the
retention of (and the entry into, and exercise of rights and performance of
obligations in respect of, contracts and agreements with) transfer agents,
private placement agents, underwriters, counsel, accountants and other advisors
and consultants, (viii) the performance of obligations under and compliance
with its certificate of incorporation and by-laws (or, in the case of Merger
Sub, comparable governing documents), or any applicable law, ordinance,
regulation, rule, order, judgment, decree or permit, including, without
limitation, as a result of or in connection with the activities of its
Subsidiaries, (ix) the incurrence and payment of its operating and business
expenses and any taxes for which it may be liable, (x) making loans to or other
Investments in, or incurrence of Indebtedness from, its Subsidiaries as and to
the extent not prohibited by the Credit Agreement, (xi) the merger of Merger
Sub with and into Holding, and (xii) other activities incidental or related to
the foregoing.

 

SECTION 6.  REMEDIAL
PROVISIONS

 

6.1                                 Certain Matters Relating to Accounts.  (a) 
At any time and from time to time after the occurrence and during the
continuance of an Event of Default, the Administrative Agent shall have the
right to make test verifications of the Accounts Receivable in any reasonable
manner and through any reasonable medium that it reasonably considers
advisable, and the relevant Grantor shall furnish all such assistance and
information as the Administrative Agent may reasonably require in connection
with such test verifications.  At any
time and from time to time after the occurrence and during the continuance of
an Event of Default, upon the Administrative Agent’s reasonable request and at
the expense of the relevant Grantor, such Grantor shall cause independent
public accountants or others reasonably satisfactory to the Administrative
Agent to furnish to the Administrative Agent reports showing reconciliations,
aging and test verifications of, and trial balances for, the Accounts
Receivable.

 

(b)                                 Any Proceeds constituting collections of
Accounts Receivable of any Grantor, if and when collected and received by such
Grantor (including upon the transfer thereof directly to such Grantor for any
collection agent in respect of any Permitted Receivables Transaction but
excluding any such collections through the Lockbox System), shall forthwith
(and, in any event, within two Business Days of receipt by such Grantor) be
deposited in, or otherwise transferred by such Grantor to, the Collateral
Proceeds Account of such Grantor maintained by the Collateral Account Bank; provided
that Proceeds of Accounts Receivable of such Grantor need only be transferred
to the Collateral Proceeds Account of such Grantor to the extent that the
aggregate balance thereof exceeds $250,000 at any time.  Until so turned over, all such payments
shall be held by such Grantor in trust for the benefit of the Administrative
Agent and the other Secured Parties, segregated from other funds of such
Grantor.  All Proceeds constituting
collections of Accounts Receivable of such Grantor while held by the Collateral
Account Bank (or by such Grantor in trust for the benefit of the Administrative
Agent and the other Secured Parties) shall continue to be collateral security
for all of the Obligations of such

 

23

 

Grantor and shall not
constitute payment thereof until applied as hereinafter provided.  At any time when an Event of Default has
occurred and is continuing, at the Administrative Agent’s election, the
Administrative Agent may apply all or any part of the funds of such Grantor on
deposit in the Collateral Proceeds Account to the payment of the Obligations of
such Grantor then due and owing, such application to be made in the order of
priority set forth in subsection 6.5 hereof. 
So long as no Event of Default has occurred and is continuing, the funds
on deposit in each Collateral Proceeds Account shall be remitted as provided in
subsection 6.1(d).  At any time from
time to time after the occurrence and during the continuance of an Event of
Default and at the Administrative Agent’s request, such Grantor shall deliver to
the Administrative Agent all original and other documents evidencing, and
relating to, the agreements and transactions which gave rise to the Accounts
Receivable of such Grantor, including, without limitation, all original orders,
invoices and shipping receipts related to such Accounts Receivable.

 

(c)                                  Lockbox System. 
(i)  Solely to the extent
required under subsection 8.18(a) of the Credit Agreement, on or prior to the
date required pursuant to such subsection 8.18(a), each Grantor shall (subject
to subsection 8.18(a) of the Credit Agreement) establish or cause to be
established in the name of the Administrative Agent, and subject to the control
of the Administrative Agent pursuant to the Lockbox Agreements, for the benefit
of the Administrative Agent and the other Secured Parties, the Lockbox System
into which the Proceeds of all Accounts Receivable of such Grantor (except as
permitted under and in accordance with subsection 8.18(a) of the Credit
Agreement) shall be deposited and forwarded to the Collateral Account Bank in
accordance with and to the extent and when required under the Lockbox
Agreements.  On or after the date, if
any, on which such Grantor is required to establish any Lockbox System, for so
long as such Grantor is required to maintain such system (subject to subsection
8.18(a) of the Credit Agreement), (x) such Grantor shall ensure that all
account debtors in respect of the Accounts Receivable of such Grantor payable
in Dollars shall have been given instructions reasonably satisfactory to the
Administrative Agent directing such account debtors to make all payments on
such Accounts Receivable by means of deposits into the Lockbox System, (y)
without the prior consent of the Administrative Agent (which consent shall not
be unreasonably withheld), such Grantor shall not, in a manner materially
adverse to the Secured Parties, change the form of any such instructions given
to account debtors, and (z) unless and until the Administrative Agent shall
have advised such Grantor to the contrary, such Grantor shall, and the
Administrative Agent hereby authorizes such Grantor to, enforce and collect all
amounts owing on the Accounts Receivable of such Grantor, for the benefit and
on behalf of the Administrative Agent and the other Secured Parties; provided,
however, that such privilege shall automatically be suspended upon the
occurrence and during the continuance of an Event of Default specified in
subsection 9(f) of the Credit Agreement with respect to such Grantor and may at
the option of the Administrative Agent be terminated upon the occurrence and
during the continuance of any other Event of Default.

 

(ii)                                  All Proceeds of Accounts Receivable of such
Grantor which have been received on any Business Day through the Lockbox System
will be transferred into the Collateral Proceeds Account of such Grantor on
such Business Day to the extent required by the applicable Lockbox
Agreement.  All Proceeds of such
Accounts Receivable received on any Business Day by the Collateral Account Bank
pursuant to paragraph (b) above will be transferred into such Collateral
Proceeds Account on such Business Day. 
Such Collateral Proceeds Account is, and shall remain, under the sole
dominion and

 

24

 

control
of the Administrative Agent.  Each
Grantor acknowledges and agrees that (A) except as provided in clause (d)
below, such Grantor has no right of withdrawal from its Collateral Proceeds
Account, (B) the funds on deposit in its Collateral Proceeds Account shall be
collateral security for all of its Obligations and (C) upon the occurrence and
during the continuance of an Event of Default, at the Administrative Agent’s
election, the funds on deposit in its Collateral Proceeds Account may be
applied by the Administrative Agent to the payment of its Obligations then due
and owing, such application to be made in the order of priority set forth in
subsection 6.5 hereof.

 

(iii)                               Notwithstanding the other provisions of this
subsection 6.1(c), in the event that Holding or any of its Subsidiaries shall
enter into a Permitted Receivables Transaction, such Grantor shall have no
obligation to establish or maintain any Lockbox System, and the Administrative
Agent shall take all such actions and execute and deliver all such releases,
termination agreements, and other documents and instruments as may be necessary
or reasonably requested by such Grantor to evidence and provide for the
termination of any Lockbox System then in existence; provided that such
Grantor shall take all reasonable actions and make all reasonable alternative
arrangements as the Administrative Agent may reasonably request to provide for
the periodic deposit into the Collateral Proceeds Account of such Grantor of
Proceeds of all Accounts Receivable of such Grantor constituting Collateral
after such Proceeds shall have been received by such Grantor, and for the
Administrative Agent to have a commercially reasonable degree of control over
such Proceeds prior to the deposit thereof into such Collateral Proceeds
Account.

 

(d)                                 General Fund Account.  So long as no Event of Default has occurred
and is continuing, and whether or not any Lockbox System shall have been
established and maintained, the Administrative Agent shall instruct the
Collateral Account Bank to promptly remit any funds on deposit in each
Grantor’s Collateral Proceeds Account to such Grantor’s General Fund
Account.  In the event that an Event of
Default has occurred and is continuing, the Administrative Agent and the
Grantors agree that the Administrative Agent, at its option, may require that
each Collateral Proceeds Account be established at JPMorgan Chase Bank.  Each Grantor shall have the right, at any
time and from time to time, to withdraw such of its own funds from its own
General Fund Account, and to maintain such balances in its General Fund
Account, as it shall deem to be necessary or desirable.

 

(e)                                  Restructuring of Deposit Accounts.  If after the Closing Date the relevant
Grantor demonstrates to the Administrative Agent, and the Administrative Agent
in its sole discretion agrees, that the costs associated with maintaining both
a Collateral Proceeds Account and a General Fund Account outweigh any benefits
to the Secured Parties in terms of any additional protection to their rights in
such Grantor’s Collateral that could not be achieved with the use of a single
account, then upon the request of such Grantor, the Administrative Agent may
amend this Agreement to delete the requirement that a separate General Fund
Account be maintained and provide that such Grantor be entitled to withdraw
funds on deposit in such Collateral Proceeds Account at any time so long as no
Event of Default has occurred and is continuing.

 

25

 

6.2                                 Communications with Obligors;
Grantors Remain Liable. 
(a)  The Administrative Agent in
its own name or in the name of others may at any time and from time to time
after the occurrence and during the continuance of an Event of Default
specified in subsection 9(a) of the Credit Agreement, communicate with obligors
under the Accounts Receivable and parties to the Contracts (in each case, to
the extent constituting Collateral) to verify with them to the Administrative
Agent’s satisfaction the existence, amount and terms of any Accounts Receivable
or Contracts.

 

(b)                                 Upon the request of the Administrative Agent
at any time after the occurrence and during the continuance of an Event of
Default specified in subsection 9(a) of the Credit Agreement, each Grantor
shall notify obligors on such Grantor’s Accounts Receivable and parties to such
Grantor’s Contracts (in each case, to the extent constituting Collateral) that
such Accounts Receivable and such Contracts have been assigned to the
Administrative Agent, for the ratable benefit of the Secured Parties, and that
payments in respect thereof shall be made directly to the Administrative Agent.

 

(c)                                  Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of such Grantor’s
Accounts Receivable to observe and perform all the conditions and obligations
to be observed and performed by it thereunder, all in accordance with the terms
of any agreement giving rise thereto. 
Neither the Administrative Agent nor any Lender shall have any
obligation or liability under any Account Receivable (or any agreement giving
rise thereto) by reason of or arising out of this Agreement or the receipt by
the Administrative Agent or any other Secured Party of any payment relating
thereto, nor shall the Administrative Agent or any other Secured Party be
obligated in any manner to perform any of the obligations of any Grantor under
or pursuant to any Account Receivable (or any agreement giving rise thereto) to
make any payment, to make any inquiry as to the nature or the sufficiency of
any payment received by it or as to the sufficiency of any performance by any
party thereunder, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts that may have been
assigned to it or to which it may be entitled at any time or times.

 

6.3                                 Pledged Stock. 
(a)  Unless an Event of Default
shall have occurred and be continuing and the Administrative Agent shall have
given notice to the relevant Pledgor of the Administrative Agent’s intent to
exercise its corresponding rights pursuant to subsection 6.3(b), each Pledgor
shall be permitted to receive all cash dividends and distributions paid in
respect of the Pledged Stock (subject to the last two sentences of Section
5.3.1 of this Agreement) and all payments made in respect of the Pledged Notes,
to the extent permitted in the Credit Agreement, and to exercise all voting and
corporate rights with respect to the Pledged Stock; provided, however,
that no vote shall be cast or corporate right exercised or such other action
taken (other than in connection with a transaction expressly permitted by the
Credit Agreement) which, in the Administrative Agent’s reasonable judgment,
would materially impair the Pledged Stock or the related rights or remedies of
the Secured Parties or which would be inconsistent with or result in any
violation of any provision of the Credit Agreement, this Agreement or any other
Loan Document.

 

(b)                                 If an Event of Default shall occur and be
continuing and the Administrative Agent shall give notice of its intent to
exercise such rights to the relevant Pledgor

 

26

 

or Pledgors, (i) the
Administrative Agent shall have the right to receive any and all cash
dividends, payments or other Proceeds paid in respect of the Pledged Stock and
make application thereof to the Obligations of the relevant Pledgor in such
order as is provided in subsection 6.5, and (ii) any or all of the Pledged
Stock shall be registered in the name of the Administrative Agent or its
nominee, and the Administrative Agent or its nominee may thereafter exercise
(x) all voting, corporate and other rights pertaining to such Pledged Stock at
any meeting of shareholders of the relevant Issuer or Issuers or otherwise and
(y) any and all rights of conversion, exchange, subscription and any other rights,
privileges or options pertaining to such Pledged Stock as if it were the
absolute owner thereof (including, without limitation, the right to exchange at
its discretion any and all of the Pledged Stock upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
structure of any Issuer, or upon the exercise by the relevant Pledgor or the
Administrative Agent of any right, privilege or option pertaining to such
Pledged Stock, and in connection therewith, the right to deposit and deliver
any and all of the Pledged Stock with any committee, depositary, transfer
agent, registrar or other designated agency upon such terms and conditions as
the Administrative Agent may reasonably determine), all without liability
(other than for its gross negligence or willful misconduct) except to account
for property actually received by it, but the Administrative Agent shall have
no duty to any Pledgor to exercise any such right, privilege or option and
shall not be responsible for any failure to do so or delay in so doing, provided
that the Administrative Agent shall not exercise any voting or other consensual
rights pertaining to the Pledged Stock in any way that would constitute an
exercise of the remedies described in subsection 6.6 other than in accordance
with subsection 6.6.

 

(c)                                  Each Pledgor hereby authorizes and instructs
each Issuer or maker of any Pledged Securities pledged by such Pledgor
hereunder to (i) comply with any instruction received by it from the Administrative
Agent in writing that (x) states that an Event of Default has occurred and is
continuing and (y) is otherwise in accordance with the terms of this Agreement,
without any other or further instructions from such Pledgor, and each Pledgor
agrees that each Issuer or maker shall be fully protected in so complying, and
(ii) unless otherwise expressly permitted hereby, pay any dividends or other
payments with respect to the Pledged Securities directly to the Administrative
Agent.

 

6.4                                 Proceeds to be Turned Over To
Administrative Agent.  In
addition to the rights of the Administrative Agent and the other Secured
Parties specified in subsection 6.1 with respect to payments of Accounts
Receivable, if an Event of Default shall occur and be continuing, and the Administrative
Agent shall have instructed any Grantor to do so, all Proceeds received by such
Grantor consisting of cash, checks and other Cash Equivalent items shall be
held by such Grantor in trust for the Administrative Agent and the other
Secured Parties, segregated from other funds of such Grantor, and shall,
forthwith upon receipt by such Grantor, be turned over to the Administrative
Agent in the exact form received by such Grantor (duly indorsed by such Grantor
to the Administrative Agent, if required). 
All Proceeds received by the Administrative Agent hereunder shall be
held by the Administrative Agent in the relevant Collateral Proceeds Account
maintained under its sole dominion and control.  All Proceeds while held by the Administrative Agent in such
Collateral Proceeds Account (or by the relevant Grantor in trust for the
Administrative Agent and the other Secured Parties) shall continue to be held
as collateral security for all the Obligations of such Grantor and shall not
constitute payment thereof until applied as provided in subsection 6.5

 

27

 

6.5                                 Application of Proceeds.  It is agreed that if an Event of Default
shall occur and be continuing, any and all Proceeds of the relevant Granting
Party’s Collateral (as defined in the Credit Agreement) received by the
Administrative Agent (whether from the relevant Granting Party or otherwise)
shall be held by the Administrative Agent for the benefit of the Secured
Parties as collateral security for the Obligations of the relevant Granting
Party (whether matured or unmatured), and/or then or at any time thereafter
may, in the sole discretion of the Administrative Agent, be applied by the
Administrative Agent against the Obligations of the relevant Granting Party
then due and owing in the following order of priority:

 

FIRST,
to the payment of all reasonable costs and expenses incurred by the
Administrative Agent in connection with this Agreement, the Credit Agreement,
any other Loan Document or any of the Obligations of the relevant Granting
Party, including, without limitation, all court costs and the reasonable fees
and expenses of its agents and legal counsel, and any other reasonable costs or
expenses incurred in connection with the exercise by the Administrative Agent
of any right or remedy under this Agreement, the Credit Agreement, or any other
Loan Document;

 

SECOND,
to the ratable satisfaction of all other Obligations of the relevant Granting
Party; and

 

THIRD,
to the relevant Granting Party or its successors or assigns, or to whomsoever
may be lawfully entitled to receive the same.

 

Notwithstanding the
foregoing, it is agreed that any Proceeds consisting of adequate protection
payments received in respect of any Granting Party’s Collateral by the Administrative
Agent prior to the termination by the PBGC of the Graphic Retirement Plan shall
be held by the Administrative Agent for the benefit of the Relevant Secured
Parties as collateral security for the Obligations of such Granting Party owing
to the Relevant Secured Parties (whether matured or unmatured), and/or then or
at any time thereafter may, in the sole discretion of the Administrative Agent,
be applied by the Administrative Agent against such Obligations then due and
owing in the foregoing order of priority (with each reference to the
Obligations of the relevant Granting Party being deemed to refer to the
Obligations of the relevant Granting Party owing to the Relevant Secured
Parties).  It is further agreed that
adequate protection payments made on account of the Graphic Retirement Plan
prior to the termination by the PBGC of such Plan shall not constitute Proceeds
subject to this Section 6.5.

 

6.6                                 Code and Other Remedies.  (a) 
If an Event of Default shall occur and be continuing, the Administrative
Agent, on behalf of the Secured Parties, may exercise, in addition to all other
rights and remedies granted to them in this Agreement and in any other
instrument or agreement securing, evidencing or relating to the Obligations to
the extent permitted by applicable law, all rights and remedies of a secured
party under the Code or any other applicable law.  Without limiting the generality of the foregoing, to the extent
permitted by applicable law, the Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon any
Granting Party or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances,
forthwith (subject to the terms of any documentation governing any Permitted
Receivables Transaction) collect, receive, appropriate and

 

28

 

realize upon the Security Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Security Collateral or any part thereof (or contract
to do any of the foregoing), in one or more parcels at public or private sale
or sales, at any exchange, broker’s board or office of the Administrative Agent
or any other Secured Party or elsewhere upon such terms and conditions as it
may deem advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk.  The Administrative Agent or any other
Secured Party shall have the right, to the extent permitted by law, upon any
such sale or sales, to purchase the whole or any part of the Security Collateral
so sold, free of any right or equity of redemption in such Granting Party,
which right or equity is hereby waived and released.  Each Granting Party further agrees, at the Administrative Agent’s
request (subject to the terms of any documentation governing any Permitted
Receivables Transaction), to assemble the Security Collateral and make it
available to the Administrative Agent at places which the Administrative Agent
shall reasonably select, whether at such Granting Party’s premises or
elsewhere.  The Administrative Agent
shall apply the net proceeds of any action taken by it pursuant to this
subsection 6.6, after deducting all reasonable costs and expenses of every kind
incurred in connection therewith or incidental to the care or safekeeping of any
of the Security Collateral or in any way relating to the Security Collateral or
the rights of the Administrative Agent and the other Secured Parties hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to
the payment in whole or in part of the Obligations of the relevant Granting
Party then due and owing, in the order of priority specified in subsection 6.5
above, and only after such application and after the payment by the
Administrative Agent of any other amount required by any provision of law,
including, without limitation, Section 9-615(a)(3) of the Code, need the
Administrative Agent account for the surplus, if any, to such Granting
Party.  To the extent permitted by
applicable law, (i) such Granting Party waives all claims, damages and demands
it may acquire against the Administrative Agent or any other Secured Party
arising out of the repossession, retention or sale of the Security Collateral,
other than any such claims, damages and demands that may arise from the gross
negligence or willful misconduct of any of the Administrative Agent or such
other Secured Party, and (ii) if any notice of a proposed sale or other
disposition of Security Collateral shall be required by law, such notice shall
be deemed reasonable and proper if given at least 10 days before such sale or
other disposition.

 

(b)                                 Solely
in connection with Collateral located in the State of Louisiana, for purposes
of executory process under applicable Louisiana law,  each Granting Party hereby acknowledges the indebtedness owed
under the Obligations of such Granting Party, CONFESSES
JUDGMENT thereon and consents that judgment be rendered and signed,
whether during the court’s term or during vacation, in favor of the
Administrative Agent, for the benefit of the Secured Parties, for the full
amount of such Obligations, including but not limited to, amounts due and
payable under the Credit Agreement, any Notes or any of the other Loan
Documents in principal, interest, and attorneys’ fees, together with all charges
and expenses whatsoever pursuant to this Agreement and the Credit
Agreement.  Upon the occurrence and
during the continuance of an Event of Default, and in addition to all of its
rights, powers and remedies under this Agreement and applicable law, the Administrative
Agent may, at its option, cause all or any part of the Security Collateral of
such Granting Party to be seized and sold under executory process or under writ
of fieri  facias issued in execution of an ordinary judgment
obtained upon such Obligations, without appraisement to the highest bidder, for
cash or under such terms as the Administrative Agent deems acceptable.  Each Granting Party hereby waives all and
every appraisement of the Administrative Agent and waives and renounces the
benefit of appraisement and the benefit of all laws relative to

 

29

 

the appraisement of the Security Collateral of such Granting Party
seized and sold under executory or other legal process.  Each Granting Party agrees to waive, and
does hereby specifically waive:

 

(i)                                     the benefit of appraisement provided for in
Articles 2332, 2336, 2723 and 2724, Louisiana Code of Civil Procedure, and all
other laws conferring such benefits;

 

(ii)                                  the demand and three (3) days delay accorded
by Articles 2639 and 2721, Louisiana Code of Civil Procedure;

 

(iii)                               the notice of seizure required by Articles
2293 and 2721, Louisiana Code of Civil Procedure;

 

(iv)                              the three (3) days delay provided by Articles
2331 and 2722, Louisiana Code of Civil Procedure;

 

(v)                                 the benefit of the other provisions of
Articles 2331, 2722 and 2723, Louisiana Code of Civil Procedure;

 

(vi)                              the benefit of the provisions of any other
articles of the Louisiana Code of Civil Procedure relating to the foreclosure
of movable or immovable property not specifically mentioned above; and

 

(vii)                           all rights of division and discussion with
respect to the Obligations of such Granting Party.

 

In the event the
Administrative Agent elects, at its option, to enter suit via  ordinaria
on the Obligations of such Granting Party, in addition to the foregoing
confession of judgment, such Granting Party hereby waives citation, other legal
process and legal delays and hereby consents that judgment for the unpaid
principal due on such Obligations, together with interest, attorneys’ fees,
costs and other charges that may be due on such Obligations, be rendered and
signed immediately.

 

6.7                                 Registration Rights.  (a) 
If the Administrative Agent shall determine to exercise its right to
sell any or all of the Pledged Stock pursuant to subsection 6.6(a), and if in
the reasonable opinion of the Administrative Agent it is necessary or
reasonably advisable to have the Pledged Stock, or that portion thereof to be
sold, registered under the provisions of the Securities Act, the relevant
Pledgor will use its reasonable best efforts to cause the Issuer thereof to (i)
execute and deliver, and use its best efforts to cause the directors and
officers of such Issuer to execute and deliver, all such instruments and
documents, and do or cause to be done all such other acts as may be, in the
reasonable opinion of the Administrative Agent, necessary or advisable to
register such Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its reasonable best efforts to cause
the registration statement relating thereto to become effective and to remain
effective for a period of not more than one year from the date of the first
public offering of such Pledged Stock, or that portion thereof to be sold, and
(iii) make all amendments thereto and/or to the related prospectus which, in
the reasonable opinion of the Administrative Agent, are necessary or advisable,
all in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and

 

30

 

Exchange Commission applicable thereto.  Such Pledgor agrees to use its reasonable best efforts to cause
such Issuer to comply with the provisions of the securities or “Blue Sky” laws
of any and all states and the District of Columbia that the Administrative
Agent shall reasonably designate and to make available to its security holders,
as soon as practicable, an earnings statement (which need not be audited) that
will satisfy the provisions of Section 11(a) of the Securities Act.

 

(b)                                 Such Pledgor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all such
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof.  Such Pledgor
acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and, notwithstanding
such circumstances, to the extent permitted by applicable law, agrees that any
such private sale shall be deemed to have been made in a commercially
reasonable manner.  The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

 

(c)                                  Such Pledgor agrees to use its reasonable
best efforts to do or cause to be done all such other acts as may be necessary
to make such sale or sales of all or any portion of such Pledged Stock pursuant
to this subsection 6.7 valid and binding and in compliance with any and all
other applicable Requirements of Law. 
Such Pledgor further agrees that a breach of any of the covenants
contained in this subsection 6.7 will cause irreparable injury to the
Administrative Agent and the Lenders, that the Administrative Agent and the
Lenders have no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this subsection 6.7
shall be specifically enforceable against such Pledgor, and to the extent
permitted by applicable law, such Pledgor hereby waives and agrees not to
assert any defenses against an action for specific performance of such
covenants except for a defense that no Event of Default has occurred or is
continuing under the Credit Agreement.

 

6.8                                 Waiver; Deficiency.  Each Granting Party shall remain liable for
any deficiency if the proceeds of any sale or other disposition of the Security
Collateral are insufficient to pay in full, the Loans, Reimbursement
Obligations constituting Obligations of such Granting Party and, to the extent
then due and owing, all other Obligations of such Granting Party and the
reasonable fees and disbursements of any attorneys employed by the
Administrative Agent or any other Secured Party to collect such deficiency.

 

SECTION 7.  THE ADMINISTRATIVE AGENT

 

7.1                                 Administrative Agent’s
Appointment as Attorney-in-Fact, etc.  (a)  Each Granting Party
hereby irrevocably constitutes and appoints the Administrative Agent and any
authorized officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of such Granting Party and in the name of such Granting
Party or in its own name, for the purpose of carrying out the terms of this

 

31

 

Agreement, to take any and all appropriate action and to execute any
and all documents and instruments that may be reasonably necessary or desirable
to accomplish the purposes of this Agreement to the extent permitted by applicable
law, provided that the Administrative Agent agrees not to exercise such
power except upon the occurrence and during the continuance of any Event of
Default.  Without limiting the
generality of the foregoing, at any time when an Event of Default has occurred
and is continuing (in each case to the extent permitted by applicable law), (x)
each Pledgor hereby gives the Administrative Agent the power and right, on
behalf of such Pledgor, without notice or assent by such Pledgor, to execute,
in connection with any sale provided for in subsection 6.6(a) or 6.7, any
indorsements, assessments or other instruments of conveyance or transfer with
respect to such Pledgor’s Pledged Collateral, and (y) each Grantor hereby gives
the Administrative Agent the power and right, on behalf of such Grantor,
without notice to or assent by such Grantor, to do any or all of the following:

 

(i)                                     subject to the terms of any documentation
governing any Permitted Receivables Transaction, in the name of such Grantor or
its own name, or otherwise, take possession of and indorse and collect any
checks, drafts, notes, acceptances or other instruments for the payment of
moneys due under any Account Receivable of such Grantor that constitutes
Collateral or with respect to any other Collateral of such Grantor and file any
claim or take any other action or institute any proceeding in any court of law
or equity or otherwise deemed appropriate by the Administrative Agent for the
purpose of collecting any and all such moneys due under any Account Receivable
of such Grantor that constitutes Collateral or with respect to any other
Collateral of such Grantor whenever payable;

 

(ii)                                  in the case of any Copyright, Patent or
Trademark constituting Collateral of such Grantor, execute and deliver any and all
agreements, instruments, documents and papers as the Administrative Agent may
reasonably request to such Grantor to evidence the Administrative Agent’s and
the Lenders’ security interest in such Copyright, Patent or Trademark and the
goodwill and general intangibles of such Grantor relating thereto or
represented thereby;

 

(iii)                               pay or discharge taxes and Liens, other than Liens permitted under this
Agreement or the other Loan Documents, levied or placed on the Collateral of
such Grantor, effect any repairs or any insurance called for by the terms of
this Agreement and pay all or any part of the premiums therefor and the costs
thereof; and

 

(iv)                              subject to the terms of any documentation governing any Permitted
Receivables Transaction, (A) direct any party liable for any payment under any
of the Collateral of such Grantor to make payment of any and all moneys due or
to become due thereunder directly to the Administrative Agent or as the
Administrative Agent shall direct; (B) ask or demand for, collect, receive
payment of and receipt for, any and all moneys, claims and other amounts due or
to become due at any time in respect of or arising out of any Collateral of
such Grantor; (C) sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications,

 

32

 

notices
and other documents in connection with any of the Collateral of such Grantor;
(D) commence and prosecute any suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect the Collateral of such
Grantor or any portion thereof and to enforce any other right in respect of any
Collateral of such Grantor; (E) defend any suit, action or proceeding brought
against such Grantor with respect to any Collateral of such Grantor; (F)
settle, compromise or adjust any such suit, action or proceeding described in
clause (E) above and, in connection therewith, to give such discharges or
releases as the Administrative Agent may deem appropriate; (G) subject to any
existing reserved rights or licenses, assign any Copyright, Patent or Trademark
constituting Collateral of such Grantor (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), for such
term or terms, on such conditions, and in such manner, as the Administrative
Agent shall in its sole discretion determine; and (H) generally, sell,
transfer, pledge and make any agreement with respect to or otherwise deal with
any of the Collateral of such Grantor as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do,
at the Administrative Agent’s option and such Grantor’s expense, at any time,
or from time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral of such Grantor
and the Administrative Agent’s and the other Secured Parties’ security
interests therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

 

(b)                                 The reasonable expenses of the Administrative
Agent incurred in connection with actions undertaken as provided in this
subsection 7.1, together with interest thereon at a rate per annum equal to the
rate per annum at which interest would then be payable on past due ABR Loans
that are Revolving Credit Loans under the Credit Agreement, from the date of
payment by the Administrative Agent to the date reimbursed by the relevant Granting
Party, shall be payable by such Granting Party to the Administrative Agent on
demand.

 

(c)                                  Each Granting Party hereby ratifies all that
said attorney shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies contained
in this Agreement are coupled with an interest and are irrevocable as to the
relevant Granting Party until this Agreement is terminated as to such Granting
Party, and the security interests in the Security Collateral of such Granting
Party created hereby are released.

 

7.2                                 Duty of Administrative Agent.  (a) 
The Administrative Agent’s sole duty with respect to the custody,
safekeeping and physical preservation of the Security Collateral in its
possession, under Section 9-207 of the Code or otherwise, shall be to deal with
it in the same manner as the Administrative Agent deals with similar property
for its own account.  Neither the
Administrative Agent, any other Secured Party nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect
or realize upon any of the Security Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Security
Collateral upon the request of any Granting Party or any other Person or,
except as otherwise provided herein, to take any other action whatsoever with
regard to the Security Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the other Secured Parties hereunder are solely to protect the
Administrative Agent’s and the

 

33

 

other Secured Parties’ interests in the Security Collateral and shall
not impose any duty upon the Administrative Agent or any other Secured Party to
exercise any such powers.  The
Administrative Agent and the other Secured Parties shall be accountable only
for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, employees or
agents shall be responsible to any Granting Party for any act or failure to act
hereunder, except as otherwise provided herein or for their own gross
negligence or willful misconduct.

 

(b)  Solely in connection with Collateral located
in the State of Louisiana, and pursuant to the authority contained in La.R.S.
9:5136 through 9:5140.1, each Granting Party and the Administrative Agent do
hereby expressly designate the Administrative Agent or its designee to be
keeper or receiver (“Keeper”) for the benefit of the Administrative
Agent or any assignee of the Administrative Agent, such designation to take
effect immediately upon any seizure of any of the Security Collateral of such
Granting Party under writ of executory process or under writ of sequestration
or fieri  facias as an incident to an action brought by the
Administrative Agent.  The Keeper shall
be entitled to be paid its reasonable fees and expenses (not to exceed five
percent (5%) of the amount due or sued for or claimed or sought to be
protected, preserved or enforced in the proceeding for the recognition of the
security interest created hereby), and the payment of such fees shall be
secured by the security interest in the Security Collateral granted in this
Agreement.

 

7.3                                 Execution of Financing Statements.  Pursuant to any applicable law, each
Granting Party authorizes the Administrative Agent to file or record financing
statements and other filing or recording documents or instruments with respect
to such Granting Party’s Security Collateral without the signature of such
Granting Party in such form and in such filing offices as the Administrative
Agent reasonably determines appropriate to perfect the security interests of
the Administrative Agent under this Agreement. 
Each Granting Party authorizes the Administrative Agent to use the
collateral description “all personal property” or “all assets” in any such
financing statements.  The
Administrative Agent agrees to notify the relevant Granting Party of any
financing or continuation statement filed by it, provided that any
failure to give such notice shall not affect the validity or effectiveness of
any such filing.

 

7.4                                 Authority of Administrative Agent.  Each Granting Party acknowledges that the
rights and responsibilities of the Administrative Agent under this Agreement
with respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement or any amendment, supplement or other modification of
this Agreement shall, as between the Administrative Agent and the Secured
Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Granting Parties the Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Granting Party
shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

 

7.5                                 Right of Inspection.  Upon reasonable written advance notice to
any Grantor and as often as may reasonably be desired, or at any time and from
time to time after the occurrence and during the continuation of an Event of
Default, the Administrative Agent shall have

 

34

 

reasonable access during normal business hours to all the books,
correspondence and records of such Grantor, and the Administrative Agent and
its representatives may examine the same, and to the extent reasonable take
extracts therefrom and make photocopies thereof, and such Grantor agrees to
render to the  Administrative Agent, at
such Grantor’s reasonable cost and expense, such clerical and other assistance
as may be reasonably requested with regard thereto.  The Administrative Agent and its representatives shall also have
the right, upon reasonable advance written notice to such Grantor subject to
any lease restrictions, to enter during normal business hours into and upon any
premises owned, leased or operated by such Grantor where any of such Grantor’s
Inventory or Equipment is located for the purpose of inspecting the same, observing
its use or otherwise protecting its interests therein.

 

SECTION 8.  NON-LENDER
SECURED PARTIES

 

8.1                                 Rights to Collateral.  (a) 
The Non-Lender Secured Parties shall not have any right whatsoever to do
any of the following:  (i) exercise any
rights or remedies with respect to the Collateral (such term, as used in this
Section 8, having the meaning assigned to it in the Credit Agreement),
including, without limitation, the right to (A) enforce any Liens or sell or
otherwise foreclose on any portion of the Collateral, (B) request any action,
institute any proceedings, exercise any voting rights, give any instructions,
make any election, notice account debtors or make collections with respect to
all or any portion of the Collateral or (C) release any Guarantor under this
Agreement or release any Collateral from the Liens of any Security Document or
consent to or otherwise approve any such release; (ii) demand, accept or obtain
any Lien on any Collateral (except for Liens arising under, and subject to the
terms of, this Agreement); (iii) vote in any Bankruptcy Case or similar
proceeding in respect of Holding or any of its Subsidiaries (any such
proceeding, for purposes of this clause (a), a “Bankruptcy”) with respect to,
or take any other actions concerning the Collateral; (iv) receive any proceeds
from any sale, transfer or other disposition of any of the Collateral (except
in accordance with this Agreement); (v) in the case of the PBGC, receive any
adequate protection payments received by the Administrative Agent prior to the
termination of the Graphic Retirement Plan (it being understood and agreed that
(A) any adequate protection payments received by the Administrative Agent on or
after the termination by the PBGC of the Graphic Retirement Plan shall be
deemed to be Proceeds of the Collateral and applied in accordance with Section
6.5 and (B) any adequate protection payments made on account of the Graphic
Retirement Plan prior to the termination of such Plan by the PBGC shall not
constitute Proceeds for purposes of Section 6.5); (vi) oppose any sale,
transfer or other disposition of the Collateral; (vii) object to any
debtor-in-possession financing in any Bankruptcy which is provided by one or
more Lenders among others (including on a priming basis under Section 364(d) of
the Bankruptcy Code); (viii) object to the use of cash collateral in respect of
the Collateral in any Bankruptcy; or (ix) seek, or object to the Lenders
seeking on an equal and ratable basis, any adequate protection or relief from
the automatic stay with respect to the Collateral in any Bankruptcy.

 

(b)                                 Each
Non-Lender Secured Party, by its acceptance of the benefits of this Agreement
and the other Security Documents, agrees that in exercising rights and remedies
with respect to the Collateral, the Administrative Agent and the Lenders, with
the consent of the Administrative Agent, may enforce the provisions of the
Security Documents and exercise remedies thereunder and under any other Loan
Documents (or refrain from enforcing rights and exercising remedies), all in
such order and in such manner as they may determine in the exercise

 

35

 

of their sole business judgment.  Such exercise and enforcement shall include,
without limitation, the rights to collect, sell, dispose of or otherwise
realize upon all or any part of the Collateral, to incur expenses in connection
with such collection, sale, disposition or other realization and to exercise
all the rights and remedies of a secured lender under the Uniform Commercial
Code of any applicable jurisdiction. 
The Non-Lender Secured Parties hereby agree not to contest or otherwise
challenge any such collection, sale, disposition or other realization of or
upon all or any of the Collateral. 
Whether or not a Bankruptcy Case has been commenced, the Non-Lender
Secured Parties shall be deemed to have consented to any sale or other
disposition of any property, business or assets of Holding or any of its
Subsidiaries and the release of any or all of the Collateral from the Liens of
any Security Document in connection therewith.

 

(c)                                  Notwithstanding
any provision of this subsection 8.1, (i) the Non-Lender Secured Parties shall
be entitled to file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleadings (A) in
order to prevent any Person from seeking to foreclose on the Collateral or
supersede the Non-Lender Secured Parties’ claim thereto or (B) in opposition to
any motion, claim, adversary proceeding or other pleading made by any Person
objecting to or otherwise seeking the disallowance of the claims of the
Non-Lender Secured Parties and (ii) the PBGC shall have the right to pursue any
remedies it may have against the Borrower in accordance with ERISA and other
applicable law.

 

(d)                                 Each
Non-Lender Secured Party, by its acceptance of the benefit of this Agreement,
agrees that the Administrative Agent and the Lenders may deal with the
Collateral, including any exchange, taking or release of Collateral, may change
or increase the amount of the Borrower Obligations and/or the Guarantor
Obligations, and may release any Guarantor from its Obligations hereunder, all
without any liability or obligation (except as may be otherwise expressly
provided herein) to the Non-Lender Secured Parties.

 

8.2                                 Appointment of Agent.  Each Non-Lender Secured Party, by its
acceptance of the benefits of this Agreement and the other Security Documents,
shall be deemed irrevocably to make, constitute and appoint the Administrative
Agent, as agent under the Credit Agreement (and all officers, employees or
agents designated by the Administrative Agent) as such Person’s true and lawful
agent and attorney-in-fact, and in such capacity, the Administrative Agent
shall have the right, with power of substitution for the Non-Lender Secured
Parties and in each such Person’s name or otherwise, to effectuate any sale,
transfer or other disposition of the Collateral.  It is understood and agreed that the appointment of the
Administrative Agent as the agent and attorney-in-fact of the Non-Lender
Secured Parties for the purposes set forth herein is coupled with an interest
and is irrevocable.

 

8.3                                 Waiver of Claims.  To the maximum extent permitted by law, each Non-Lender Secured
Party waives any claim it might have against the Administrative Agent or the
Lenders with respect to, or arising out of, any action or failure to act or any
error of judgment, negligence, or mistake or oversight whatsoever on the part
of the Administrative Agent or the Lenders or their respective directors,
officers,

 

36

 

employees or agents with respect to any exercise of rights or remedies
under the Loan Documents or any transaction relating to the Collateral
(including, without limitation, any such exercise described in subsection
8.1(b) above), except for any such action or failure to act which constitutes
willful misconduct or gross negligence of such Person.  Neither the Administrative Agent nor any
Lender nor any of their respective directors, officers, employees or agents
shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of Holding, any
Subsidiary of Holding, any Non-Lender Secured Party or any other Person or to
take any other action or forbear from doing so whatsoever with regard to the
Collateral or any part thereof, except for any such action or failure to act
which constitutes willful misconduct or gross negligence of such Person.

 

SECTION 9.  MISCELLANEOUS

 

9.1                                 Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except by
a written instrument executed by each affected Granting Party and the
Administrative Agent, provided that (a) any provision of this Agreement
imposing obligations on any Granting Party may be waived by the Administrative
Agent in a written instrument executed by the Administrative Agent and (b)
notwithstanding anything to the contrary in subsection 11.1 of the Credit
Agreement, no such waiver and no such amendment or modification shall amend,
modify or waive the definition of “Secured Party” or subsection 6.5 if such
waiver, amendment, or modification would adversely affect a Secured Party
without the written consent of each such affected Secured Party.

 

9.2                                 Notices.  All
notices, requests and demands to or upon the Administrative Agent or any
Granting Party hereunder shall be effected in the manner provided for in
subsection 11.2 of the Credit Agreement; provided that any such notice,
request or demand to or upon any Guarantor shall be addressed to such Guarantor
at its notice address set forth on Schedule 1, unless and until such
Guarantor shall change such address by notice to the Administrative Agent given
in accordance with subsection 11.2 of the Credit Agreement.

 

9.3                                 No Waiver by Course of Conduct;
Cumulative Remedies. 
Neither the Administrative Agent nor any other Secured Party shall by
any act (except by a written instrument pursuant to subsection 9.1), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any other Secured Party,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Administrative Agent or any
other Secured Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which the Administrative Agent
or such other Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

 

9.4                                 Enforcement Expenses;
Indemnification.  (a)  Each Guarantor agrees to pay or reimburse
each Relevant Secured Party and the Administrative Agent for all their
respective reasonable costs and expenses incurred in collecting against such
Guarantor under the guarantee contained in Section 2 or otherwise enforcing or
preserving any rights under this Agreement against such Guarantor and the other
Loan Documents to which such Guarantor is a party, including, without
limitation, the reasonable fees and disbursements of counsel to the Relevant
Secured Parties and the Administrative Agent.

 

37

 

(b)  Each Guarantor agrees to pay, and to save
the Administrative Agent and the Relevant Secured Parties harmless from, (x)
any and all liabilities with respect to, or resulting from any delay in paying,
any and all stamp, excise, sales or other similar taxes which may be payable or
determined to be payable with respect to any of the Security Collateral or in
connection with any of the transactions contemplated by this Agreement and (y)
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance
and administration of this Agreement (collectively, the “indemnified
liabilities”), in each case to the extent the Borrower would be required to
do so pursuant to subsection 11.5 of the Credit Agreement, and in any event
excluding any taxes or other indemnified liabilities arising from gross
negligence or willful misconduct of the Administrative Agent or any Relevant
Secured Party.

 

(c)  The agreements in this subsection 9.4 shall
survive repayment of the Obligations and all other amounts payable under the
Credit Agreement and the other Loan Documents.

 

9.5                                 Successors and Assigns.  This Agreement shall be binding upon and
shall inure to the benefit of the Granting Parties, the Administrative Agent
and the Secured Parties and their respective successors and assigns; provided
that no Granting Party may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Administrative
Agent.

 

9.6                                 Set-Off.  Each
Guarantor hereby irrevocably authorizes the Administrative Agent and each other
Relevant Secured Party at any time and from time to time without notice to such
Guarantor, any other Guarantor or the Borrower, any such notice being expressly
waived by each Guarantor and by the Borrower, to the extent permitted by
applicable law, upon the occurrence and during the continuance of an Event of
Default under subsection 9(a) of the Credit Agreement so long as any amount remains
unpaid after it becomes due and payable by such Guarantor hereunder, to set-off
and appropriate and apply against any such amount any and all deposits (general
or special, time or demand, provisional or final) (other than the Collateral
Proceeds Account and the General Fund Account), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Administrative Agent or such other Relevant Secured Party to or
for the credit or the account of such Guarantor, or any part thereof in such
amounts as the Administrative Agent or such other Relevant Secured Party may
elect.  The Administrative Agent and
each other Relevant Secured Party shall notify such Guarantor promptly of any
such set-off and the application made by the Administrative Agent or such other
Relevant Secured Party of the proceeds thereof; provided that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of the
Administrative Agent and each other Relevant Secured Party under this
subsection 9.6 are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Administrative Agent or such
other Relevant Secured Party may have.

 

9.7                                 Counterparts. 
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.

 

38

 

9.8                                 Severability. 
Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction; provided that, with respect to any Pledged Stock
issued by a Foreign Subsidiary, all rights, powers and remedies provided in
this Agreement may be exercised only to the extent that they do not violate any
provision of any law, rule or regulation of any Governmental Authority
applicable to any such Pledged Stock or affecting the legality, validity or
enforceability of any of the provisions of this Agreement against the Pledgor
(such laws, rules or regulations, “Applicable Law”) and are intended to
be limited to the extent necessary so that they will not render this Agreement
invalid, unenforceable or not entitled to be recorded, registered or filed
under the provisions of any Applicable Law.

 

9.9                                 Section Headings.  The Section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken
into consideration in the interpretation hereof.

 

9.10                           Integration. 
This Agreement and the other Loan Documents represent the entire
agreement of the Granting Parties, the Administrative Agent and the other
Secured Parties with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by the Granting Parties,
the Administrative Agent or any other Secured Party relative to subject matter
hereof not expressly set forth or referred to herein or in the other Loan
Documents.

 

9.11                           GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

9.12                           Submission To Jurisdiction; Waivers.  Each party hereto hereby irrevocably and
unconditionally:

 

(a)                                  submits for itself and its property in any
legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for
the Southern District of New York, and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding
may be brought in such courts and waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such
action or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
such party at its address referred to in subsection 9.2 or at such

 

39

 

other address of which the
Administrative Agent (in the case of any other party hereto) or the Borrower
(in the case of the Administrative Agent) shall have been notified pursuant
thereto;

 

(d)                                 agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law or
shall limit the right to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited
by law, any right it may have to claim or recover in any legal action or
proceeding referred to in this Section any punitive damages.

 

9.13                           Acknowledgments.  Each Guarantor hereby acknowledges that:

 

(a)                                  it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party;

 

(b)                                 neither the Administrative Agent nor any
other Relevant Secured Party has any fiduciary relationship with or duty to any
Guarantor arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between the Guarantors, on the one
hand, and the Administrative Agent and the Relevant Secured Parties, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

 

(c)                                  no joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Guarantors and the
Secured Parties.

 

9.14                           WAIVER OF JURY TRIAL.  EACH PARTY
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN.

 

9.15                           Additional Granting Parties.  Each new Domestic Subsidiary of the Borrower
that is required to become a party to this Agreement pursuant to subsection
7.9(b) of the Credit Agreement shall become a Granting Party for all purposes
of this Agreement upon execution and delivery by such Subsidiary of an
Assumption Agreement in the form of Annex 2 hereto.  Each existing Granting Party that is required to become a Pledgor
with respect to Capital Stock of any new Subsidiary of the Borrower pursuant to
subsection 7.9(b) of the Credit Agreement shall become a Pledgor with respect
thereto upon execution and delivery by such Granting Party of a Supplemental
Agreement in the form of Annex 2 hereto.

 

9.16                           Releases. 
(a)  At such time as the Loans,
the Reimbursement Obligations and the other Obligations (other than (i) any
Obligations in respect of the PBGC Amount and (ii) any Obligations owing to a
Non-Lender Secured Party in respect of the provision of cash management
services) then due and owing shall have been paid in full, the Commitments have
been terminated and no Letters of Credit shall be outstanding, all Security
Collateral shall be released from the Liens created hereby, and this Agreement
and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Granting Party hereunder
shall terminate, all without delivery of any instrument or performance of any
act

 

40

 

by any party, and all rights to the Security Collateral shall revert to
the Granting Parties.  At the request
and sole expense of any Granting Party following any such termination, the
Administrative Agent shall deliver to such Granting Party any Security
Collateral held by the Administrative Agent hereunder, and execute and deliver
to such Granting Party such documents (including without limitation UCC
termination statements) as such Granting Party shall reasonably request to
evidence such termination.

 

(b)                                 In connection with any sale or other
disposition of Security Collateral permitted by the Credit Agreement, the Lien
pursuant to this Agreement on such sold or disposed of Security Collateral
shall be automatically released.  In
connection with the sale or other disposition of all of the Capital Stock of
any Guarantor or the sale or other disposition of Security Collateral permitted
under the Credit Agreement, the Administrative Agent shall, upon receipt from
the Borrower of a written request for the release of such Guarantor from its
Guarantee or the release of the Security Collateral subject to such sale or
other disposition, identifying such Guarantor or the relevant Security
Collateral and the terms of the sale or other disposition in reasonable detail,
including the price thereof and any expenses in connection therewith, together
with a certification by the Borrower stating that such transaction is in
compliance with the Credit Agreement and the other Loan Documents, execute and
deliver to the relevant Granting Party (at the sole cost and expense of such
Granting Party) all releases or other documents (including without limitation
UCC termination statements) necessary or reasonably desirable for the release
of such Guarantee or the Liens created hereby on such Security Collateral, as
applicable, as such Granting Party may reasonably request.

 

(c)                                  The PBGC acknowledges that its security
interests in any Collateral shall be automatically released when the
Administrative Agent, for the benefit of the Lenders, releases its security
interests in the same Collateral (whether before, during, or after a
foreclosure) and only proceeds of foreclosures shall be shared in accordance
with the terms and conditions of Section 6.5 hereof.

 

(d)                                 On the first date on which (i) the PBGC
Amount has been paid or otherwise satisfied in full or has otherwise been
reduced to zero or (ii) the outstanding Indebtedness under the Credit Agreement
is rated “Baa2” or better by Moody’s and “BBB” or better by S&P, in each
case with a stable outlook or better, the PBGC shall cease to be a Secured
Party and the PBGC Amount, and any other amount owing by any Granting Party to
the PBGC, shall cease to be Obligations secured by the Lien on the Collateral created
by the Security Documents, all without delivery of any instrument or
performance of any act by any party.  At
the request and sole expense of any Granting Party following such date, the
PBGC shall deliver to such Granting Party such documents as such Granting Party
shall reasonably request to evidence the release by the PBGC of its interest in
such Collateral.

 

[Remainder
of page left blank intentionally; Signature page to follow.]

 

41

 

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Collateral Agreement to be duly executed and delivered as of the date first
above written.

 

 

	
   

  	
  GRAPHIC PACKAGING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RIVERWOOD ACQUISITION
  SUB LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRAPHIC PACKAGING
  INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RIVERWOOD INTERNATIONAL
  MACHINERY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  

 

42

 

	
   

  	
  SLEVIN SOUTH COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDEN TECHNOLOGIES
  COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GAC ALUMINUM
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDEN EQUITIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LAUENER ENGINEERING
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward W. Stroetz, Jr.

  	
   

  
	
   

  	
   

  	
  Name: Edward W. Stroetz, Jr.

  
	
   

  	
   

  	
  Title: Acting General Counsel and Secretary

  

 

43

 

	
  Acknowledged and Agreed
  to as

  of the date hereof by:

  

  JPMORGAN CHASE BANK,

  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Bruce Borden

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Bruce Borden

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  
						

 

44

 

Annex 1A to

Guarantee and Collateral Agreement

 

ACKNOWLEDGEMENT
AND CONSENT*

 

The undersigned hereby
acknowledges receipt of a copy of the Guarantee and Collateral Agreement, dated
as of August 8, 2003 (the “Agreement”), made by the Granting
Parties parties thereto for the benefit of JPMorgan Chase Bank, as
Administrative Agent.  The undersigned
agrees for the benefit of the Administrative Agent and the Lenders as follows:

 

The undersigned will be
bound by the terms of the Agreement and will comply with such terms insofar as
such terms are applicable to the undersigned.

 

The undersigned will
notify the Administrative Agent promptly in writing of the occurrence of any of
the events described in subsection 5.3.1 of the Agreement.

 

The terms of subsections 6.3(c)
and 6.7 of the Agreement shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to subsection
6.3(c) or 6.7 of the Agreement.

 

	
   

  	
  [NAME OF ISSUER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fax:

  

 

* This consent is
necessary only with respect to any Issuer which is not also a Granting Party.

 

45

 

Annex 1B to

Guarantee and Collateral Agreement

 

ACKNOWLEDGEMENT
AND CONSENT*

 

The undersigned hereby
acknowledges receipt of a copy of the Guarantee and Collateral Agreement, dated
as of August 8, 2003 (the “Agreement”), made by the Granting
Parties parties thereto for the benefit of JPMorgan Chase Bank, as
Administrative Agent.  The undersigned
agrees for the benefit of the Administrative Agent and the Lenders as follows:

 

The undersigned will be
bound by the terms of the Agreement and will comply with such terms insofar as
such terms are applicable to the undersigned.

 

The terms of Section 8 of
the Agreement shall apply to it, mutatis  mutandis.

 

	
   

  	
  PENSION
  BENEFIT GUARANTY

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Fax:

  

 

* This consent is to be executed by the PBGC.

 

46

 

Annex 2 to

Guarantee and Collateral Agreement

 

ASSUMPTION
AGREEMENT

 

ASSUMPTION AGREEMENT,
dated as of
                        ,
        , made by                                                             ,
a
                            
corporation (the “Additional Granting Party”), in favor of JPMORGAN
CHASE BANK, as administrative agent (in such capacity, the “Administrative
Agent”) for the banks and other financial institutions (the “Lenders”)
from time to time parties to the Credit Agreement referred to below and the
other Secured Parties (as defined below). 
All capitalized terms not defined herein shall have the meaning ascribed
to them in such the Guarantee and Collateral Agreement referred to below, or if
not defined therein, in the Credit Agreement.

 

W
I  T  N  E  S  S  E  T  H
:

 

WHEREAS, Graphic
Packaging International, Inc., a Delaware corporation, GPI Holding (the “Borrower”),
JPMorgan Chase Bank, as administrative agent, Deutsche Bank Securities Inc., as
syndication agent, and the Lenders are parties to a Credit Agreement, dated as
of August 8, 2003 (as amended, supplemented, waived or otherwise modified
from time to time, the “Credit Agreement”);

 

WHEREAS, in connection
with the Credit Agreement, Holding, GPI Holding, the Borrower and certain of
its Subsidiaries are, or are to become, parties to the Guarantee and Collateral
Agreement, dated as of August 8, 2003 (as amended, supplemented, waived or
otherwise modified from time to time, the “Guarantee and Collateral Agreement”),
in favor of the Administrative Agent, for the ratable benefit of the Secured
Parties (as defined in the Guarantee and Collateral Agreement);

 

WHEREAS, the Additional
Granting Party is a member of an affiliated group of companies that includes
the Borrower and each other Granting Party; the proceeds of the extensions of
credit under the Credit Agreement will be used in part to enable the Borrower
to make valuable transfers to one or more of the other Granting Parties
(including the Additional Granting Party) in connection with the operation of
their respective businesses; and the Borrower and the other Granting Parties
(including the Additional Granting Party) are engaged in related businesses,
and each such Granting Party (including the Additional Granting Party) will
derive substantial direct and indirect benefit from the making of the
extensions of credit under the Credit Agreement;

 

WHEREAS, the Credit
Agreement requires the Additional Granting Party to become a party to the
Guarantee and Collateral Agreement; and

 

WHEREAS, the Additional
Granting Party has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Guarantee and Collateral Agreement;

 

47

 

NOW, THEREFORE, IT IS
AGREED:

 

1.  Guarantee and Collateral Agreement.  By executing and delivering this Assumption
Agreement, the Additional Granting Party, as provided in subsection 9.15 of the
Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Granting Party thereunder with the same force and
effect as if originally named therein as a Guarantor [, Grantor and Pledgor]
[and Grantor] [and Pledgor](1) and, without limiting the generality of the
foregoing, hereby expressly assumes all obligations and liabilities of a
Guarantor [, Grantor and Pledgor] [and Grantor] [and Pledgor](2)
thereunder.  The information set forth
in Annex 1-A hereto is hereby added to the information set forth in Schedules
                        
to the Guarantee and Collateral Agreement, and such Schedules are hereby
amended and modified to include such information.  The Additional Granting Party hereby represents and warrants that
each of the representations and warranties of such Additional Granting Party,
in its capacities as a Guarantor [, Grantor and Pledgor] [and Grantor] [and
Pledgor],(3) contained in Section 4 of the Guarantee and Collateral Agreement
is true and correct in all material respects on and as the date hereof (after
giving effect to this Assumption Agreement) as if made on and as of such date.

 

2.  GOVERNING LAW.  THIS ASSUMPTION AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(1)                                  Indicate
the capacities in which the Additional Granting Party is becoming a Grantor.

(2)                                  Indicate
the capacities in which the Additional Granting Party is becoming a Grantor.

(3)                                  Indicate
the capacities in which the Additional Granting Party is becoming a Grantor.

 

48

 

IN WITNESS WHEREOF, the
undersigned has caused this Assumption Agreement to be duly executed and
delivered as of the date first above written.

 

	
   

  	
  [ADDITIONAL GRANTING PARTY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Acknowledged and Agreed
  to as

  of the date hereof by:

  

  JPMORGAN CHASE BANK,

  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
							

 

49

 

Annex 1-A to

Assumption Agreement

 

Supplement to

Guarantee and Collateral Agreement

Schedule 1

 

Supplement to

Guarantee and Collateral Agreement

Schedule 2

 

Supplement to

Guarantee and Collateral Agreement

Schedule 3

 

Supplement to

Guarantee and Collateral Agreement

Schedule 4

 

Supplement to

Guarantee and Collateral Agreement

Schedule 5

 

Supplement to

Guarantee and Collateral Agreement

Schedule 6

 

50Exhibit
4.4

 

 

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

 

 

 

 

8.50% SENIOR NOTES
DUE 2011

 

 

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.

  	
  [Reserved]

  
	
  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

  

 

ii

 

	
  ARTICLE VI

  
	
   

  
	
  REMEDIES

  
	
   

  	
   

  
	
  Section 601.

  	
  Events of
  Default

  
	
  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

  

 

iii

 

	
  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

  
	
   

  	
   

  
	
  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

  

 

iv

 

	
  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

  
	
   

  	
   

  
	
  ARTICLE XIII

  
	
   

  
	
  NOTE GUARANTEES

  
	
   

  	
   

  
	
  Section 1301.

  	
  Guarantees
  Generally

  
	
  Section 1302.

  	
  Continuing
  Guarantees

  
	
  Section 1303.

  	
  Release of Note Guarantees

  
	
  Section 1304.

  	
  [Reserved].

  
	
  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

  
	
   

  
	
  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

  
			

 

v

 

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

  	
   

  

 

vi

 

	
  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.

 

vii

 

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 Notes, the Senior Subordinated Notes, this
Indenture or the Senior Subordinated 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

 

8

 

Restricted Subsidiary
shall be included 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.

 

“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 (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.

 

11

 

“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 8.50% Senior Notes Due 2011, 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).

 

“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.

 

12

 

“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.

 

“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.

 

13

 

“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, this Indenture, the
Senior Subordinated 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 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.

 

14

 

“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 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),

 

15

 

(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 8.50% Senior Notes Due 2011, 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 interest 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.

 

“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

 

16

 

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 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

 

17

 

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 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

 

18

 

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.

 

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

 

19

 

(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;

 

(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;

 

20

 

(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 Subordinated Notes;

 

(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;

 

21

 

(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;

 

(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

 

22

 

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;

 

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

 

23

 

(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 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.

 

24

 

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

 

25

 

“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 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

 

26

 

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.

 

“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.

 

“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.

 

27

 

“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 Subordinated
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 any Indebtedness of the Company or any Restricted Subsidiary other than,
in the case of the Company, Subordinated Obligations and, in the case of any
Note Guarantor, Guarantor Subordinated Obligations.

 

“Senior Subordinated
Indenture” means the Indenture of even date herewith among the Company,
Holding, GPI Holding and the Trustee governing the Company’s 9.50% Senior
Subordinated Notes due 2013, as the same may be amended, supplemented, waived
or otherwise modified from time to time.

 

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

 

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

 

28

 

“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).

 

“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

 

29

 

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
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.

 

30

 

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

 

(a)                                  the
Mergers;

 

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

 

(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

 

31

 

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 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

  
	
  “Certificate of
  Beneficial Ownership”

  	
   

  	
  313

  

 

32

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “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

  
	
  “Initial Agreement”

  	
   

  	
  410

  
	
  “Initial Lien”

  	
   

  	
  413

  
	
  “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

  
	
  “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;

 

33

 

(2)          “or”
is not exclusive;

 

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

 

(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.

 

34

 

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 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

 

35

 

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.

 

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

 

36

 

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 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 108,
the party hereto that set such record date shall be deemed to have initially
designated the 180th day

 

37

 

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 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.

 

38

 

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.

 

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

 

39

 

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

 

40

 

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:

 

41

 

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

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
  Dated:

  	
   

  	
   

  

 

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

 

42

 

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, 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.

 

43

 

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 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 “8.50% Senior Notes Due 2011” of the Company.  The final Stated Maturity of the Notes shall
be August 15, 2011.  Interest on the Outstanding
principal amount of Notes will accrue at the rate of 8.50% 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

 

44

 

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.

 

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

 

45

 

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 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.

 

46

 

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 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.

 

47

 

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 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,

 

48

 

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.

 

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.

 

49

 

(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 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,

 

50

 

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).

 

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

 

51

 

(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 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.”

 

52

 

(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.

 

(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

 

53

 

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.

 

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.

 

54

 

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;

 

(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

 

55

 

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 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;

 

56

 

(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);

 

(iii)                               Indebtedness represented by the Notes (other
than any Additional Notes) and the Senior Subordinated Notes issued on the
Issue Date (or any Senior Subordinated Notes issued in respect thereof or in
exchange therefor), 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

 

57

 

(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;

 

(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 

 

58

 

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 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.                                [Reserved]

 

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,
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)

 

59

 

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

 

60

 

(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 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

 

61

 

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 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.

 

62

 

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, this Indenture, the Senior Subordinated Indenture, the
Notes or the Senior Subordinated 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 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

 

63

 

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

 

(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

 

64

 

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
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 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);

 

65

 

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 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

 

66

 

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
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

 

67

 

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.

 

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 (the

 

68

 

“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 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).

 

69

 

(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, 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;

 

70

 

(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.

 

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

 

71

 

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, 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;

 

(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;

 

(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:

 

72

 

(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 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

 

73

 

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. 
Upon the effectiveness of such a declaration, such principal and
interest will be due and payable immediately.

 

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.

 

74

 

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,
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 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

 

75

 

which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Notes for principal (and premium, if any)
and interest, respectively; and

 

Third:  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

 

(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

 

76

 

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

 

(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

 

77

 

(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 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,

 

78

 

(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 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.

 

79

 

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
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

 

80

 

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,

 

(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

 

81

 

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 709 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
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,

 

82

 

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.

 

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

 

83

 

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.

 

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.

 

84

 

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.

 

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,

 

85

 

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

 

(8)          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 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; or

 

86

 

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

 

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.

 

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

 

87

 

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 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, 2007 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

  	
   

  
	
  2007

  	
   

  	
  104.250

  	
  %

  
	
  2008

  	
   

  	
  102.125

  	
  %

  
	
  2009
  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

 

88

 

(expressed as a percentage of principal amount
thereof) of 108.500% 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 satisfaction of one or more conditions
precedent, including the completion of the related Equity Offering.

 

(c)                                  At any time prior to August 15, 2007, 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, 2007, (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.

 

89

 

“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, 2007; 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 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.

 

90

 

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.

 

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

 

91

 

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 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

 

92

 

(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

 

(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.

 

93

 

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
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.

 

94

 

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 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

 

95

 

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 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.

 

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, 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

 

96

 

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 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 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 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”).

 

97

 

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 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, (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.

 

98

 

(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.

 

(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

 

99

 

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.

 

(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.

 

100

 

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.                          [Reserved].

 

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
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

 

101

 

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.

 

102

 

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

  

 

103

 

EXHIBIT
A

 

Form of Note(1)

(FACE OF NOTE)

 

GRAPHIC PACKAGING
INTERNATIONAL, INC.

 

8.50% Senior Notes
Due 2011

 

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, 2011.   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 8.50% 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 8.50% Senior Notes Due 2011 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 Note Guarantees of the Note Guarantors and
may hereafter be entitled to certain other senior 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 will be
redeemable, at the Company’s option, in whole or in part, and from time to time
on and after August 15, 2007 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 performance of the Company’s obligations with respect to such
redemption or purchase 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 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:

 

6

 

	
  Period

  	
   

  	
  Redemption Price

  	
   

  
	
  2007

  	
   

  	
  104.250

  	
  %

  
	
  2008

  	
   

  	
  102.125

  	
  %

  
	
  2009
  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
108.500% 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 performance of the Company’s obligations with respect to
such redemption or purchase 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, 2007, 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.

 

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.

 

7

 

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.

 

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

 

8

 

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”)

 

8.50%
Senior Notes due 2011 (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”)

 

8.50%
Senior Notes due 2011 (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

 

15

 

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
8.50% Senior Notes due 2011 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.

 

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:

  

 

3

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